Profitable, growing, and facing a GLP-1 test
- Hims & Hers reached its first full year of net income in 2024, with $126.0 million in profit.
- Online Revenue is the core business, with $1.44 billion in 2024 sales versus $38.6 million from Wholesale Revenue.
- Subscribers grew 45% in 2024, showing that the customer engine still works.
- The main risk is now clear: the FDA resolved the semaglutide shortage on February 21, 2025.
- The stock story depends on whether weight loss can shift to personalized, liraglutide, or branded options without hurting margins.
The GLP-1 clock is running
Hims & Hers has proved that its model can scale. In 2024, revenue reached $1.48 billion, subscribers ended the year at 2.229 million, and the company posted $126.0 million of net income. That matters because this was not just fast growth. It was fast growth with real operating leverage.
The bull case is that Hims keeps using its brand, app, provider network, pharmacies, and new supply chain assets to sell care that feels cheaper and easier than a doctor visit. More than 50% of subscribers were using personalized solutions in Q3 2024. The company also bought a 503B compounding facility in 2024, then added a peptide manufacturing facility and a lab testing business in February 2025. That points to more control over cost, supply, and personalization.
The bear case is sharper. On February 21, 2025, the FDA resolved the semaglutide shortage. That could limit Hims' ability to keep selling compounded semaglutide once current inventory is sold. Hims now needs regulators to accept its clinical necessity argument for personalized dosing, or it needs to move users to liraglutide, branded GLP-1s, or other weight loss products at good margins.
That makes the next few quarters less about whether the brand is working and more about what happens after the shortage shield goes away. Strong growth and profitability are real. So is the risk that a high-priced weight loss product becomes smaller, less profitable, or harder to sell.
Subscriptions first, retail second
Hims & Hers makes most of its money online. A customer uses the website or app, gets connected to a licensed healthcare provider, and may receive a prescription or wellness product. Many customers sign up for recurring delivery, so subscription behavior is central to the model.
The smaller Wholesale Revenue line comes from non-prescription products sold through retailers and third-party platforms. This can make money, but it also works like advertising because shoppers see the brand in physical stores and other channels.
The model breaks if customer acquisition gets too expensive, if churn rises, or if regulators limit key products. Weight loss has raised Monthly Online Revenue per Average Subscriber because GLP-1 products cost more. That helps growth, but it also raises dependence on a product area with heavy regulatory and supply risk.
Management is trying to control more of the value chain. The company has added compounding, peptide manufacturing, and lab testing capabilities. That could improve margins and personalization, but it also adds new rules, new inspections, and more execution risk.
Five care lines, one big swing
Weight loss
This is the fastest-moving specialty in the story. It includes oral weight loss plans and compounded GLP-1 injections, but semaglutide faces a post-shortage test.
Sexual health
This is one of the original Hims categories. It helps anchor the brand and subscription habit with treatments that many customers prefer to buy privately.
Dermatology and hair loss
These products fit the repeat-order model well. Personalized formulas can raise loyalty if customers see better fit or results.
Mental health
The company offers access to treatment through its digital care model. This line can add breadth, but it must operate within strict healthcare rules.
Personalized solutions
More than 50% of subscribers were using a personalized solution in Q3 2024. This is central to Hims' argument that some compounded products remain needed even after shortages end.
Non-prescription wellness products
These products are sold online and through wholesale partners. They are smaller than the online prescription model, but they can broaden brand reach.
Almost all online
Mix is based on 2024 revenue disclosed in the 2024 Form 10-K. Hims reports one operating segment, but separates revenue into Online Revenue and Wholesale Revenue.
What could break the story
Semaglutide access fades
High impact · High oddsThe FDA resolved the semaglutide shortage on February 21, 2025. Hims said this could constrain access to compounded semaglutide once current inventory is sold. If the company cannot keep enough users in weight loss through other products, revenue and margins could fall.
Clinical necessity argument fails
High impact · Medium oddsHims' long-term plan depends partly on offering personalized compounded treatments when a clinician decides standard products do not fit a patient. Regulators may not agree that this supports broad post-shortage compounding. A stricter view would narrow the weight loss opportunity.
Lower-margin weight loss mix
High impact · Medium oddsLiraglutide and branded GLP-1s could keep users on the platform, but they may not carry the same pricing or margin profile as compounded semaglutide during a shortage. If alternatives cost more to source or sell for less profit, growth could look strong while earnings quality weakens.
Vertical integration adds new compliance risk
Medium impact · Medium oddsThe company has bought a 503B compounding facility, a peptide manufacturing facility, and a lab testing business. These assets can improve control, but they bring rules tied to drug manufacturing, lab certification, and quality systems. Mistakes could lead to delays, costs, or enforcement actions.
Customer acquisition gets less efficient
Medium impact · Medium oddsThe platform depends on attracting and keeping customers at a cost that makes subscriptions profitable. Competition comes from telehealth peers, traditional doctors, pharmacies, and drug makers. If ads get more expensive or churn rises, growth may cost too much.
In one breath
How does Hims & Hers make money?
Most revenue comes from products and services sold through its website and app, often through subscriptions. A much smaller amount comes from non-prescription products sold to retail and third-party partners.
Why is semaglutide such a big issue for HIMS stock?
Compounded semaglutide helped power the weight loss business while the drug was in shortage. The FDA resolved that shortage in February 2025, so Hims must prove it can keep serving weight loss customers through allowed personalized compounding or other products.
Is Hims & Hers profitable?
Yes, 2024 was its first full year of profitability on a net income basis. The company reported $126.0 million of net income and $176.9 million of Adjusted EBITDA for the year.
What should investors watch next?
The biggest items are the GLP-1 transition, weight loss margins, and updates on the new peptide manufacturing and lab testing assets. Any FDA, FTC, or state pharmacy board comments also matter.