Hims & Hers' shift to branded obesity drugs drives wider quarterly loss

Paul Cerro, chief investment officer at Cedar Grove Capital Management, which owns Hims shares, said many international markets are less profitable than the United States, but could still drive higher revenue over time.

"It's not that it's a bad business. It's just not as lucrative," said Cerro.

Hims said it was confident about reaching its goal of $6.5 billion in revenue by 2030. Raul Shah, chief investment officer at DocShah Financial, said Hims will likely return to historical profit margins in five years.

The company's subscriber base increased to nearly 2.9 million in the second quarter, up 19% from a year earlier, while monthly online revenue per average subscriber climbed 21% to $92.

Hims sells treatments including weight-loss drugs and hormone therapies, and has been investing in diagnostics and lab infrastructure to support its personalized care push. It also acquired a California-based peptide facility earlier this year.