Hims & Hers Health expects a significant boost in its weight-loss business as employers drop coverage for GLP-1 drugs like Wegovy and Zepbound. Soaring costs are driving companies to scale back these benefits, according to a Reuters analysis.
This shift transforms a major healthcare expense for employers into a direct revenue stream for direct-to-consumer platforms. Analysts note that a cash-pay market is expanding as insurance coverage wanes.
The weight-loss division already generates approximately one-third of the company's total revenue. Seven analysts have raised their 2026 revenue estimates for Hims since May.
Growth projections also reflect a partnership with Novo Nordisk to offer branded weight-loss medications.