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Hims oral semaglutide
A screenshot from forhers.com showing oral semaglutide (Sherwood News)

Hims reports Q4 earnings beat, revenue miss

The report comes as the company has faced mounting legal troubles related to its short-lived Wegovy pill copy.

J. Edward Moreno

Hims & Hers reported mixed financial results and gave lukewarm full-year guidance, moves that come after a tumultuous stretch for the telehealth company. 

For the last three months of 2025, Hims & Hers reported:

  • Earnings per share of $0.08, compared to the $0.04 analysts polled by FactSet were expecting.

  • Revenue of $617.8 million, compared to the $619 million analysts were penciling in.

For the full year in 2026, the company expects:

  • Revenue to hit between $2.7 billion and $2.9 billion, compared to the $2.74 billion analysts are currently expecting.

  • Adjusted EBITDA between $300 million and $375 million, compared to the $369 million Wall Street is expecting. The company said it intends to accept smaller margins in its international business in the short term as it gains market share.

The earnings report comes as the company has faced massive blowback from regulators after it rolled out a copy of Novo Nordisk’s Wegovy pill early this month. Hims is now facing a patent infringement lawsuit from Novo as well as potential charges by the Department of Justice. 

CEO Andrew Dudum declined to comment on “ongoing” talks with the Food and Drug Administration and the DOJ.

“We pulled back to prioritize, honestly, just the engagement and the relationships with the ecosystem of stakeholders,” Dudum said. “We talked to quite a few of them on launch and understood their dynamics and chose to prioritize them in those conversations, so we decided to pull it.”

The stock has also taken a hit: it is down more than 50% since the start of the year, with more than 30% of that drawdown coming after Hims announced the Wegovy pill copies. The stock fell about 4% in after-hours trading following the report.

The company said its outlook assumes that it will continue to be able to sell copycat versions of Novo’s drugs. Throughout the report and call, company executives played down the impact of GLP-1s for its growth prospects.

“Today, some may think of us as a GLP-1 company,” Dudum said in an X post. “The reality is that only a small minority of our subscribers are using a compounded GLP-1 treatment.”

As its weight-loss segment sits in a precarious place, the company has focused on expanding into new treatments and geographies.

While Hims does not break out revenue by treatment segment, it did say that more than half of its revenue in 2025 came from “non-GLP-1 offerings” and described compounded GLP-1s as an “incremental growth vector.” Dudum told analysts he expects to add “performance, recovery, and sleep” in the future. He also said the company is looking into peptide therapies “right now.”

In the final quarter of 2025, Hims added hormone treatments and labs, including a cancer detection test from Grail. Hims announced last week that it would acquire Eucalyptus, an Australian digital health company, in a deal valued up to $1.15 billion.

Last year, Hims bought Zava, a UK-based peer with a presence in France, Ireland, and Germany, for $265.7 million. It also announced that it would launch in Canada this year offering generic Wegovy. The Eucalyptus acquisition puts Hims in new markets — like Australia and Japan — and gives it a wider presence in other international markets like the United Kingdom, Germany, and Australia. 

The company also broke out its international revenue for the first time: in 2025 if it brought in $133.9 million from outside the US, compared to $26.8 million in 2024.

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Matt Phillips

Why software shares are withstanding the war jitters

The outbreak of the war in Iran has clearly rattled investors and created a few clear winners — mostly energy stocks — and losers — consumer staples, airlines, and, well, more or else everything else.

But there is one interesting outlier to that Manichaean market dynamic.

Software shares — often the same companies that the market was giving up for dead just a few weeks ago due to overexpectations of an AI-driven disruption — have been holding up remarkably well.

These companies, including Intuit, ServiceNow, Datadog, Snowflake, IBM, Workday, and Oracle, have actually had a pretty decent run since the war started with a combined US-Israeli attack on Iran last weekend.

A new note from RBC Capital’s Rishi Jaluria suggests this isn’t just a fluke. Looking at the performance of software stocks during periods of geopolitical stress and market volatility over the last 10 and 25 years, his team found that software shares appear fairly well insulated when these broader shocks hit. RBC wrote:

“The defensive nature of SaaS models and the mission-critical nature of many core software systems at the enterprise level (e.g., in the absence of mass layoffs that may create seat-based headwinds, geopolitical uncertainty and/or market volatility typically will not cause an enterprise CIO to consider ripping out their ERP, CRM, Cyber systems, etc.”

I briefly got Jaluria on the phone yesterday, and he explained a bit more about why he thinks investors might see software as a decent place to hide out from the current chaos.

“With everything in the Middle East, you have to think about not just oil and gas input prices but also supply chains,” he said. “With software, you’re not really thinking about that.”

In other words, there is no equivalent of a closure of the Strait of Hormuz that software investors have to worry about.

Others suggested that the near-term profitability of these giant software companies — aside from concerns about potential long-term disruption from AI — may look different in the face of the economic uncertainty that seems to be growing with the war, especially after a sell-off that has left them relatively attractively valued.

Mark Moerdler, who covers software stocks for Bernstein Research, says that while the AI worries are clearly real, software companies continue to be highly productive cash cows.

“Everyone is afraid that AI is a massive disruptor, and all these articles you read talk about AI as massive disruptor or the world is ending or whatever,” he said. “You don’t see it in the fundamental numbers of the companies I cover. They are delivering GAAP profits, free cash flow, and they’re good investment ideas.”

Max Knoblauch
3h
Jet fuel refining margins are surging to 20-year highs amid Iran war, threatening airlines

According to a Deutsche Bank note on Friday, airlines haven’t seen this phenomenon since the aftermath of hurricanes Katrina and Rita in 2005.

Airlines Face Rapidly Rising Fuel Costs
markets
Matt Phillips

The slow-motion private credit crunch continues

You may have missed it, what with the Iran war, the price of oil spiking, or the ongoing questions about the durability — and future profitability — of the AI capex boom.

But there are clear signs of malaise in private credit markets — the massive corporate bond and loan markets that typically burble away quietly in the background while the stock markets garner the headlines.

The Financial Times reported on Friday:

“BlackRock has limited withdrawals from one of its flagship private credit funds following a surge in redemption requests, as investors retreat from the asset class and questions about credit quality intensify...

The decision to cap withdrawals at 5 per cent will be closely scrutinised by the industry as outflows climb across semi-liquid private credit funds. The vehicles have drawn in hundreds of billions of dollars from retail investors and wealthy individuals who were enticed by the high returns on offer but have started to bolt at the first signs of stress.”

That news follows an unsettling recent pattern of private credit firms telling investors they cannot have their money back on demand, most notably Blue Owl last month, which also limited redemptions.

Normally the goings-on of the credit markets are of little interest to stock jockeys. But the concerns about credit have started to bleed into the stock market, too.

Of the S&P 500’s 11 industry groups — known as sectors — the financial sector (Financial Select Sector SPDR Fund) is by far the year’s worst performer, down more than 9% in 2026, with firms with links to private credit such as Ares Management, Blackstone, KKR & Co., and Apollo Global Management some of the worst performers. They’re all down more than 20% since the start of the year.

If investors were looking for another thing to worry about, this would likely be a good one to add to the list.

BlackRock limits redemptions at private credit fund as outflows swell

But there are clear signs of malaise in private credit markets — the massive corporate bond and loan markets that typically burble away quietly in the background while the stock markets garner the headlines.

The Financial Times reported on Friday:

“BlackRock has limited withdrawals from one of its flagship private credit funds following a surge in redemption requests, as investors retreat from the asset class and questions about credit quality intensify...

The decision to cap withdrawals at 5 per cent will be closely scrutinised by the industry as outflows climb across semi-liquid private credit funds. The vehicles have drawn in hundreds of billions of dollars from retail investors and wealthy individuals who were enticed by the high returns on offer but have started to bolt at the first signs of stress.”

That news follows an unsettling recent pattern of private credit firms telling investors they cannot have their money back on demand, most notably Blue Owl last month, which also limited redemptions.

Normally the goings-on of the credit markets are of little interest to stock jockeys. But the concerns about credit have started to bleed into the stock market, too.

Of the S&P 500’s 11 industry groups — known as sectors — the financial sector (Financial Select Sector SPDR Fund) is by far the year’s worst performer, down more than 9% in 2026, with firms with links to private credit such as Ares Management, Blackstone, KKR & Co., and Apollo Global Management some of the worst performers. They’re all down more than 20% since the start of the year.

If investors were looking for another thing to worry about, this would likely be a good one to add to the list.

Luke Kawa
6h
US employment unexpectedly contracts in February, unemployment rate rises to 4.4%

Event contracts indicate a rate cut in June is a now a very live possibility.

Americans line up for job fair.
LNG terminal in Wilhelmshaven

Qatar energy minister warns of potential oil spike to $150 within weeks

“Most of the folks who appreciate just how bullish the US-Israel-Iran war is for oil markets think it’s SO WILDLY BULLISH that they can’t imagine this lasting much longer,” wrote Rory Johnston, founder of Commodity Context.

Hyunsoo Rim, Luke Kawa6h

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