Introduction — Immediate shock to the GLP‑1 narrative#
Shares of HIMS plunged in the wake of two convergent events: a company disclosure that compounded GLP‑1 revenue fell by $40 million sequentially and the formal termination of a commercial collaboration with Novo Nordisk — developments that crystallized as a swift re‑rating of Hims & Hers’ GLP‑1 economics and corporate credibility.
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The market snapshot shows the stock at $47.91, off -2.07 intraday (-4.14%) at the last quote; that intraday move sits atop earlier, larger corrections tied to the June partnership termination and Q2 disclosures. The most recent financial details — including Q2 revenue and GLP‑1 unit metrics — are documented in company notices and market reporting (see below) and re‑shape near‑term revenue assumptions and investor sentiment.
This note synthesizes the company’s reported financials, analyst estimates, and the legal developments that followed the GLP‑1 disclosures. It focuses on measurable impacts to revenues, margins, cash flow and capital allocation, and it highlights the legal timeline investors should track.
What caused the sharp share‑price decline?#
What triggered the abrupt re‑pricing of HIMS?
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A concise answer: investors reacted to a combination of a $40 million sequential decline in GLP‑1 compound revenue, a $10 drop in revenue per subscriber, and the termination of the Novo Nordisk collaboration — a trio that materially changed growth and unit‑economics assumptions for the company.* (See supporting evidence below.)
Market sources and the company’s Q2 disclosures show total revenue of $544.8 million in the quarter and a GLP‑1 compound revenue drop from $230 million to $190 million sequentially; revenue per subscriber declined from $84 to $74. Those figures were flagged in market reporting as the proximate causes of price pressure after the termination notice by Novo Nordisk and related investor alerts GlobeNewswire and coverage at Investing.com.
Investor reaction has two measurable elements: an initial, event‑driven collapse tied to the Novo Nordisk termination and follow‑on selling after Q2 unit‑economics disclosures. Note the apparent discrepancy: the intraday quote shows a -4.14% move at the last trade, while the June termination produced a larger immediate sell‑off (reported at more than -34% around the announcement); both figures are correct when framed as different windows (intraday vs. event peak) and are documented in market reports GlobeNewswire and the most recent price quote from Monexa AI.
Financial performance and unit‑economics shift#
Hims & Hers reported FY 2024 revenue of $1.48B, up +69.33% year‑over‑year from $872M in FY 2023, reflecting rapid top‑line expansion driven largely by specialty product offerings and telehealth scale (Monexa AI. Gross profit expanded to $1.17B in 2024 but gross margin compressed modestly to 79.45% from 81.99% in 2023 (a -2.54 percentage‑point decline), signaling emerging pressure on per‑order economics as GLP‑1 mixes shifted.
Net income swung to $126.04M in FY 2024 from a loss of $23.55M in FY 2023 — a reported net income growth of +635.28% — while adjusted EBITDA reached $78.99M in 2024. Those improvements were accompanied by higher operating expenses reflecting expanded SG&A and R&D investment, and they contribute to a mixed profitability picture where scale improved absolute profit but margins face product‑mix volatility (Monexa AI.
Table: Select income‑statement metrics (FY 2024 vs FY 2023) — source: Monexa AI
| Metric | FY 2024 | FY 2023 | YoY change |
|---|---|---|---|
| Revenue | $1,480,000,000 | $872,000,000 | +69.33% |
| Gross profit | $1,170,000,000 | $714,950,000 | +63.69% |
| Operating income | $61,900,000 | -$29,450,000 | — |
| Net income | $126,040,000 | -$23,550,000 | +635.28% |
| Gross margin | 79.45% | 81.99% | -2.54pp |
Analyst estimates and balance‑sheet resilience#
Analyst consensus models show revenue re‑acceleration assumptions over the medium term but also imply continued heavy SG&A investments. Monexa AI’s compiled estimates list 2025 revenue consensus ~ $2.34B with estimated EPS ~ $0.59, and progressive revenue and EPS increases through 2029 (see table) — assumptions that will be re‑tested if GLP‑1 economics and partner access remain uncertain (Monexa AI.
Balance sheet and cash flow provide a counterweight to event risk. Hims & Hers ended FY 2024 with $220.58M in cash and $300.25M in cash & short‑term investments, producing net debt of -$209.24M and a current ratio of 4.98x, indicating liquidity to fund operations and strategic options including repurchases — the company repurchased $83.04M of common stock in 2024 (Monexa AI. Free cash flow was $198.33M in 2024, supporting the argument that the company can self‑fund near‑term initiatives even as it navigates legal and partner risks.
Table: Analyst revenue & EPS estimates (selected years) — source: Monexa AI
| Year | Estimated Revenue | Estimated EPS |
|---|---|---|
| 2025 | $2,342,323,541 | $0.59 |
| 2026 | $2,835,474,953 | $0.84 |
| 2027 | $3,395,304,398 | $1.13 |
| 2028 | $3,906,950,000 | $1.88 |
| 2029 | $4,465,950,000 | $2.39 |
Legal backdrop: class action, deadlines, and insider selling#
A wave of securities‑litigation notices followed the June termination and Q2 disclosures. Plaintiffs allege that public statements mischaracterized GLP‑1 revenue durability and failed to disclose material partnership risk tied to Novo Nordisk; the complaints cite the $40 million sequential GLP‑1 decline and the $10 drop in revenue per subscriber as core corrective facts leading to losses (GlobeNewswire.
Multiple plaintiff firms have filed notices and investor reminders; procedural publicity lists August 25, 2025 as a lead‑plaintiff/motion deadline for affected investors to preserve rights — investors relying on the litigation timetable and considering participation should consult counsel promptly (BusinessWire, PR Newswire.
Separately, reported insider sales by CEO Andrew Dudum and other executives were flagged in Form 4 aggregators and market commentary; filings summarized by coverage show notable insider liquidity events near the disclosure window and were widely cited in investor alerts (StockTitan, Seeking Alpha. Those transactions have been raised as a factor in both market sentiment and plaintiff pleadings.
Competitive landscape and sector context#
The GLP‑1 therapeutics market is concentrated with a few large suppliers; Novo Nordisk’s products and commercial strength materially influence access and pricing dynamics for downstream telehealth distributors and compounding channels. The termination of Hims & Hers’ collaboration with Novo Nordisk therefore has outsized operational and signaling effects relative to many other partnership changes (Fierce Healthcare, Forbes.
Hims & Hers’ strategic pivot toward higher‑margin specialty offerings — including GLP‑1 compounds — improved absolute revenue and profit in 2024 but increased sensitivity to partner access, supply dynamics and regulatory scrutiny. Competitors with vertically integrated supply or direct access to branded GLP‑1 products face different risk profiles; Hims & Hers’ model amplifies partner‑risk concentration and unit economics exposure.
That sector context matters for forecasts: analyst models that assume stable GLP‑1 access and pricing will need to be re‑calibrated if partnerships or compounding channels face longer‑term disruption or if revenue per subscriber does not re‑stabilize at prior levels.
What this means for investors#
Investors should separate three measurable items: liquidity, unit economics, and legal risk. First, liquidity: net cash of -$209.24M (i.e., net cash position), a current ratio of 4.98x, and $198.33M of free cash flow in 2024 provide a buffer to fund operations and pursue alternative supply arrangements while the company addresses the legal process (Monexa AI.
Second, unit economics: the $40M GLP‑1 sequential decline and $10 revenue‑per‑subscriber drop materially reduce near‑term revenue run‑rate and subscriber LTV assumptions — an input that lowers the upside in many multi‑year revenue models and that explains the immediate repricing in multiples and sentiment.
Third, legal risk and management optics: the class action, the August 25, 2025 procedural deadline for lead‑plaintiff motions, and reported insider sales complicate investor confidence and can extend volatility while discovery proceeds (GlobeNewswire, StockTitan.
Key takeaways#
Hims & Hers’ Q2 disclosures and the Novo Nordisk termination produced a sharp reassessment of GLP‑1 economics and partner concentration risk. Key, data‑backed points:
- GLP‑1 revenue fell by $40M sequentially and revenue per subscriber dropped $10, core facts cited in complaint filings and market reports (GlobeNewswire.
- FY 2024 showed $1.48B revenue and $126.04M net income with a +69.33% revenue increase YoY and +635.28% net income growth vs. 2023, but gross margin compressed by -2.54 percentage points (Monexa AI.
- Balance sheet strength (net cash position, current ratio 4.98x, and $198.33M free cash flow) gives the company runway to adjust strategy while litigation and partner negotiations play out (Monexa AI.
Investors should track three datapoints for next updates: sequential GLP‑1 revenue and revenue‑per‑subscriber trends, any new supply or partnership announcements replacing lost access, and developments in the consolidated class action (including lead‑plaintiff motions ahead of August 25, 2025) — each will materially influence the company’s revenue forecasts and market multiple.