Hims & Hers: The Telehealth Growth Story Younger Investors Can't Afford to Ignore

The Motley Fool

by newsfeedback@fool.com (Rich Smith)

February 26, 2026

AI-Generated Deep Dive Summary

Hims & Hers Health (NYSE: HIMS) has faced significant challenges in recent months, with its stock down 70% over the past year and 60% in just three months. The company, known for its telemedicine offerings and compounding of GLP-1 weight loss drugs, saw its growth slow after the FDA announced that Novo Nordisk's Wegovy and Ozempic were no longer in shortage. This development, coupled with price competition from branded manufacturers like Novo Nordisk and Eli Lilly, which have cut prices by up to 80%, has cast doubt over Hims' ability to sustain its previous growth trajectory. Hims & Hers' reliance on GLP-1 drugs as a key revenue driver has left the company vulnerable to market shifts. While the telemedicine sector itself is growing, the company's business model—which includes compounding generic versions of popular medications for direct patient sale—has come under pressure. The decline in demand for these compounded drugs, combined with increased competition from larger pharmaceutical companies, has led to a significant slowdown in Hims' growth, particularly in the fourth quarter of 2025. Despite these challenges, Hims & Hers remains a key player in the telehealth space, offering services beyond weight loss medications. The company has expanded into mental health and wellness, which could position it for long-term growth even if its GLP-1 business continues to struggle. Investors interested in the broader potential of telemedicine should consider whether Hims' diversification efforts will be enough to offset its current challenges and drive future success. For finance-focused readers, the story of Hims & Hers highlights the risks and opportunities in the rapidly evolving telehealth industry. While the company's stock has taken a hit due to external market forces, its ability to adapt and innovate could determine whether it emerges as a leader in this growing sector. The question remains: Can Hims & Hers pivot away from its dependence on GLP-1 drugs and capitalize on its broader telemedicine offerings? The answer will likely shape the company's future—and the returns for investors who hold or follow its stock.

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Originally published on The Motley Fool on 2/26/2026