Hims & Hers Health Inc. reported a significant valuation decline of 70% over the past 12 months, driven primarily by headwinds in its GLP-1 drug segment following the FDA's termination of shortage declarations and intensifying price competition. The telehealth operator's fourth quarter 2025 results reflected mixed performance, with earnings exceeding expectations while revenue projections disappointed investors.
Quarterly revenue growth slowed substantially to 28% compared to the full-year expansion rate of 59%, signaling a notable deceleration in the company's trajectory. Despite these challenges, management maintained that GLP-1 medications represent a minority portion of total revenue, with the portfolio diversified across multiple therapeutic categories and primary care services.
The company issued forward guidance of $2.8 billion in 2026 sales, reflecting management's confidence in the broader business model beyond the GLP-1 category. This outlook suggests leadership believes the core telehealth operations can sustain expansion even as the competitive landscape in weight-loss and diabetes medications intensifies through both pricing pressure and new market entrants.