The telehealth provider Hims & Hers has fundamentally altered its strategy for weight management, concluding a protracted legal dispute with pharmaceutical giant Novo Nordisk. Effective this month, the company will cease offering its controversial compounded alternatives and will instead provide the branded medications Wegovy and Ozempic directly to consumers. While this move eliminates an immediate legal threat, it necessitates a significant overhaul of the company’s core business model.
Financial Performance and a Cautious Forecast
Despite the strategic shift, Hims & Hers is coming off a robust financial year. For 2025, revenue surged 59% to $2.35 billion. Its adjusted EBITDA nearly doubled, reaching over $318 million. However, management’s near-term guidance has tempered investor enthusiasm. For the first quarter of 2026, the company anticipates revenue in the range of $600 million to $625 million, falling notably short of market expectations which were around $652 million.
Analysts at Citigroup have identified a potential strategic hurdle: Hims & Hers remains absent from Novo Nordisk’s official list of retail partners. Market experts interpret this as a lingering consequence of the prior dispute over copycat drugs and view it as a risk factor for the company’s GLP-1 business segment in the current year.
A Settlement and a Strategic Retreat
The company’s new direction follows a settlement with Novo Nordisk. The Danish drugmaker has agreed to withdraw a patent infringement lawsuit it filed in February, though it reserves the right to pursue future legal action. In return, Hims & Hers has halted all sales and promotion of its in-house compounded GLP-1 agonist medications.
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Going forward, the focus will be on FDA-approved brand-name drugs, available for a starting price of $149 per month for cash-paying customers. Compounded versions will only be prescribed in rare, medically necessary exceptions. The medication service will be bundled with 24/7 access to healthcare professionals and nutritional counseling.
Diversifying Beyond Weight Loss
To reduce its reliance on the intensely competitive weight-loss market, Hims & Hers is aggressively expanding its service portfolio. A key initiative is the launch of a multi-cancer early detection blood test, developed in partnership with diagnostics firm GRAIL. The test is designed to identify signals for more than 50 types of cancer before symptoms appear.
Concurrently, the platform is broadening its scope to include testosterone treatments for men and specialized care for women in menopause. Geographically, the company is also pushing forward with international expansion. Following its entry into Canada and growth in the United Kingdom, the planned acquisition of the provider Eucalyptus is intended to unlock access to additional global markets.
The true financial impact of this strategic pivot will become clearer in May. Hims & Hers is scheduled to release its Q1 2026 results, which will provide the first concrete data on customer acceptance of the higher-priced branded drugs and the trajectory of subscriber numbers.
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