The news: Hims & Hers co-founder and CEO Andrew Dudum stressed on its Q4 earnings call that the company’s success doesn’t depend on prescribing and selling compounded GLP-1s.

Dudum noted that “only a small minority of subscribers [use] a compounded GLP-1 treatment.” He also stated that Hims’ weight loss business is durable even in the “draconian scenario” in which they had to stop offering compounding GLP-1s.

Why it matters: Facing a crackdown on its copycat weight-loss drugs, Hims is downplaying its GLP-1 market exposure and banking on its broader treatment portfolio to sustain growth.

Hims’ attempt to disrupt the GLP-1 market has backfired into a perfect storm of litigation, heightened regulatory scrutiny, and a potential DOJ investigation. After launching a compounded Wegovy pill (and pulling it off the market two days later due to backlash) Hims was sued by Wegovy maker Novo Nordisk for alleged patent infringement. The knockoff Wegovy pill launch not only triggered Novo’s lawsuit but also prompted the FDA to announce it will restrict GLP-1 APIs used in mass-marketed, non-FDA-approved compounded drugs, including those at Hims.

The FDA added that it would crack down on ads from companies claiming compounded medications contain the same active ingredient as FDA-approved drugs. Meanwhile, the HHS said it is referring Hims to the DOJ over potential violations of federal drug law tied to medication quality or safety.

Hims also disclosed this week that it's under investigation by the SEC. The regulator has asked Hims to preserve documents related to the company’s public statements and disclosures regarding compounded semaglutide and related business relationships. Hims said the financial impact of the investigation can’t be predicted at this time.

It’s too early to say whether these added headwinds will derail business for Hims or others that continue prescribing compounded weight loss drugs despite the end of brand-name shortages. Hims noted that most of its 2025 revenues came from non-GLP-1 offerings; it highlighted menopause, testosterone, hair loss, sexual health, and lab testing as key growth areas going forward. Still, weight loss treatments made up a sizable share of Hims’ revenue last year—even if under half—and a lot of that likely came from compounded GLP-1s (despite Dudum downplaying it), given their steep discount on Hims’ platform.

Implications for telehealth companies and weight loss drug sellers: If it’s true that so few Hims members are using compounded GLP-1s, it’s unclear why the company pushed to keep offering them rather than secure branded distribution deals with Novo or Eli Lilly—moves that likely would have left it far more stable than it is now (stock down ~54% YTD). With pressures intensifying, telehealth companies offering compounded weight loss drugs should position themselves as valuable partners to drugmakers by leveraging their direct-to-consumer marketing expertise while offering easy online access to a pharma company’s branded medications.

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