Hims & Hers Charts Aggressive Growth Path Amid Regulatory Headwinds

Hims & Hers US4330001060

The telehealth provider Hims & Hers is rapidly diversifying its business model through a series of strategic moves. In a matter of days, the company announced three significant initiatives, ranging from international expansion for its GLP-1 weight management programs to a strategic acquisition in the diagnostics space. This aggressive push comes as regulatory pressure mounts in the United States on the very compounded medications that have recently fueled its growth, presenting a complex backdrop for its equity performance.

Financially, Hims & Hers enters this period of strategic activity from a position of strength. For the third quarter of 2025, the company reported revenue approaching $600 million, representing a 49% year-over-year increase. Its subscriber base grew to nearly 2.5 million, a 21% annual gain.

Profitability metrics also showed positive momentum, with net income reaching $15.8 million and adjusted EBITDA exceeding $78 million. Management has refined its full-year 2025 revenue guidance to a range of $2.335 billion to $2.355 billion. Furthermore, discussions with Novo Nordisk regarding potential partnership models are ongoing, although no definitive agreement has been reached yet.

International Expansion Targets Weight Management Markets

The company is executing a clear international strategy. On December 10, its comprehensive weight management program officially launched in the United Kingdom. Through the "Hers" platform, women in the UK can now access GLP-1 medications such as Wegovy (Novo Nordisk) and Mounjaro (Eli Lilly), supplemented by the over-the-counter drug Orlos. This market entry was facilitated by the acquisition of the London-based telehealth provider ZAVA.

The company is targeting a market where approximately 64% of the adult population is considered overweight or obese. Notably, the pricing strategy is aggressive: Wegovy is offered from £149 per month with an annual commitment, significantly undercutting typical U.S. price points via Novo Nordisk's direct channels. The company believes this increases attractiveness for cost-conscious patients and could ease customer acquisition.

Parallel to this, on December 4, Hims & Hers announced its official entry into the Canadian market, based on its acquisition of Livewell, a digital health platform focused on weight reduction. This expansion is timed to coincide with the anticipated initial global availability of generic semaglutide—a key lever for potentially offering GLP-1 treatments at a lower cost and greater scale.

Canada presents a similarly large addressable market, with nearly two-thirds of the adult population classified as overweight or obese. To solidify its commitment, Hims & Hers has established local leadership, appointing Austin Kouri as General Manager for Canada and Dr. Sandy Van as Chief Medical Officer for the region, signaling a long-term market build-out rather than a mere pilot.

Strategic Pivot into Diagnostics

Just one day prior to the Canada news, on December 3, the company announced another strategic shift: an agreement to acquire YourBio Health, a Boston-based specialist in capillary blood collection. This move deliberately positions Hims & Hers in the diagnostics and personalized health services sector.

YourBio Health brings several proprietary technologies into the fold:
* The TAP® device, which utilizes bladeless microneedles
* The HALO™ technology platform
* An extensive patent portfolio in micro-technology
* Solutions for nearly pain-free blood collection

Scheduled for completion in early 2026, the transaction will be funded entirely from existing cash reserves. Strategically, it enables Hims & Hers to more tightly integrate telehealth treatments with proprietary diagnostic and lab data—a building block for more individualized therapies and additional revenue streams.

U.S. Regulatory Pressure on a Key Growth Driver

As the company expands, it faces increasing headwinds in its home market concerning compounded GLP-1 medications, which have been a primary growth engine. On December 10, the stock came under selling pressure after U.S. lawmakers introduced the SAFE Drugs Act of 2025. Shares closed that Friday at €31.48, trading approximately 12% below their 50-day moving average.

The legislative draft explicitly targets compounded versions of GLP-1 drugs, which play a significant growth role for Hims & Hers. Proposed measures include:
* A clear legal definition of when a drug is "essentially a copy" of an existing approved drug
* A requirement for pharmacies to report prescriptions from other states to the FDA
* Restrictions on the mass production of unapproved versions of FDA-approved medications

The FDA reports it has already received over 1,000 adverse event reports related to compounded GLP-1 medications. Notably, while Hims & Hers shares declined, Novo Nordisk and Eli Lilly equities gained 6.2% and 1.3%, respectively, following the announcement—a sign investors may perceive the regulatory move as strengthening the position of the original manufacturers.

Despite the recent pullback, the stock remains up 28.33% year-to-date, though it trades significantly below its 52-week high of €66.06. The current phase—marked by international expansion, a diagnostic foray, and regulatory challenges—represents a critical test of whether Hims & Hers can translate its dynamic growth into a more robust and diversified business model.