Investing in Health Stock: Will GLP-1 Pill Copycat Restrictions Derail Hims & Hers? Is HIMS Still a Good Choice in 2026?

TradingKey - Founded in 2017, Hims & Hers Health (HIMS) is a telehealth platform that operates directly to the consumer and provides online consultations and prescriptions for over-the-counter products. The company operates in all 50 states and Washington D.C. and connects consumers to licensed practitioners regarding primary and some specialty services including, but not limited to, sexual and mental health, hair loss, dermatology, and weight loss. Besides conducting virtual consultations, the company offers tailored prescription and OTC products (some of which are available for purchase over-the-counter in brick-and-mortar shops) to clients through the mail.

The brand has won over younger consumers by making it easier to talk about taboo health subjects, and by turning what used to be uncomfortable, face-to-face errands into privacy-focused, app-driven routines. Its subscription-based business model, coupled with tailored treatment regimens, allows users to maintain lasting engagement, a critical aspect of the company’s growth narrative and a reason why some see Hims & Hers stock as a play on long-term digital health as opposed to a traditional pharmaceutical bet.

How Hims & Hers Stock Performed in 2025

In an operational sense, 2025 was a significant year of growth. Management guided 2025 revenue between $2.3 billion and $2.4 billion with EBITDA up to $335 million. Subscribers also increased 31% year-over-year in Q2. Compared to earlier years, profitability also improved: after the company’s first quarter of profit with a net income of $1.2 million at the end of 2023, the company experienced net income of $42.5 million in Q2 2025. The company’s momentum was a combination of interest in core offerings along with increased demand for weight-management solutions.

The share price told a more volatile story. Investors bid up the stock of Hims & Hers multiple times in 2025 on the prospect of venturing into GLP-1 weight-loss treatments, a space that many analysts see surpassing $100 billion by the end of the decade. But those gains proved fragile as regulatory and litigation issues coalesced. By early 2026, the mood had changed. On February 9, 2026, shares of HIMS dropped by 16% within one trading day to $19.33 on unusually large volume. Media reports attributed the decline in share price to the company’s decision to discontinue selling its 'copycat' GLP-1 medication after receiving numerous regulatory warnings and facing litigation. The rapid fluctuations in investor confidence towards highly valued growth stocks in healthcare (such as HIMS) is symptomatic of how effectively regulations, patent issues, or product supply can impact the business valuation of high-growth healthcare firms.

Will GLP-1 Pill Restrictions Derail Hims & Hers in 2026?

The U.S. Food and Drug Administration has stated that it plans to limit GLP-1 active pharmaceutical ingredients in non–FDA-approved compounded drugs that are mass-marketed as competitor products to approved drugs. At about the same time, Novo Nordisk (NVO) litigated against an anticipated loophole semaglutide pill, which caused Hims & Hers to stop offering that product.

Previously, the company had tapped into GLP-1 hype by offering compounded injectable semaglutide, and it had briefly described an anticipated pill approach before it was stopped by regulation and lawsuits.

In the immediate future, these activities pose two practical challenges for 2026. They seem to limit revenue potential from compounded GLP-1 pills and may also limit the supply and/or profitability of compounded injectables (should enforcement broaden).

Additionally, they pose challenges to regulatory clarity surrounding the product(s) and marketing claims, which will adversely affect the company’s valuation multiples, even if the core business remains intact. Management has suggested a shift from contentious compounded medicine to the treatment of other disorders and AI-enabled medicine.

If that shift results in greater activity in areas such as sexual health, mental health, dermatology, and non-GLP-1 weight management, the company can still realize growth through cross-selling and retention. Overall, the brand, subscription model, and a wide total addressable market are positive indicators.

I expect the stock price for Hims & Hers will recover in 2026, in part due to clearly defined execution and vision from management. For the shares, a path back to high growth without the use of unapproved compounded GLP-1 drugs would probably be a reason to reconsider. Additional items that may impact results are protracted litigation, enforcement actions on injectables, and rising costs of customer acquisition. The most reasonable scenario is that 2026 will be a year of transition, where regulatory risks are more visible but overall demand for affordable telehealth and tailored care is still strong.

Is Hims & Hers a Better Buy Than Traditional Pharma Stocks?

The primary reason for comparing Hims & Hers to traditional pharma companies has to do with the business model rather than product offerings. Firms like Novo Nordisk make big bets with patented drugs, extended clinical trials, and pay out dividends based on cash flows from exclusive franchise drugs. Their risk is with R&D and how the market defines pricing and patents.

In contrast, Hims & Hers is a telehealth-focused consumer health platform. It generates demand, structures networks of clinicians, and delivers treatment (predominantly through the use of generics and compounded therapies) through a subscription and e-commerce platform. Its value is a function of the strength of its brand, the size of its user base, and the ability to move into new areas (rather than the ability to create paradigm-shifting drugs). This might predict fast revenue growth under the right conditions.

Unfortunately, the opposite is true. Hims & Hers is also considering marketing, regulatory, and competitive risks from other digital health providers such as Teladoc Health (TDOC) and American Well (AMWL).

Hims & Hers won't substitute for a pharma share for investors. If the consumer health companies or digital offerings have previously been on your wish list, owning this one only increases the risks and return drivers associated with this segment of equities. If you want a more reliable income stream with less risk, the larger-cap pharma companies will most likely fit that bill. However, if you're looking for a scalable health platform like Hims & Hers that can continue to build its business while potentially creating far more volatility based on the nature of regulations/plan execution, then consider taking a look at Hims & Hers at an attractive valuation.

Key Risks You Should Know Before Buying Hims & Hers

Regulatory scrutiny is currently the greatest concern related to the GLP-1 compounds. The FDA's ongoing push to curtail the use of unapproved compounded medications, along with ongoing patent litigation, could diminish a previously lucrative channel of growth for the GLP-1 compounds and lead to potential legal risks surrounding the company’s operations. In telehealth, competition will remain an ongoing challenge; thus far, obtaining market share has depended on both ongoing marketing efforts and investment in products. It is also becoming increasingly difficult to maintain margins due to rising acquisition costs associated with telehealth. The overall financial results for these companies will continue to be impacted by the level of investment and unpredictability related to earnings; therefore, if these companies decide to invest in building brand equity at the expense of short-term earnings, we would expect to see financial volatility in their operations. Plus, the stock is not for income investors as the company does not have a dividend. And finally, the stock’s volatility—both positive and negative—serves to illustrate that valuation can be rapidly reset as assumptions change, and therefore size and timing are important considerations.

Yet the company still has some powerful assets in its arsenal—a trusted consumer brand, a nationwide telehealth network, and a sticky subscription base in multiple large, underserved categories. For investors who are confident in a growth healthcare platform and the risk of regulation that comes with it, HIMS can still be a long-term holding—insofar as they size their positions appropriately and can stomach the volatility that has a news-driven bias to the downside. For those who value stability or income more highly, traditional pharma might be a safer choice for the moment while the regulators get settled.