Hims & Hers Launches Online Weight-Loss Care for Men in Germany
Hims & Hers Health shares rose 4% after the company launched online weight-loss care for men in Germany, expanding its cash-pay model into a market where statutory insurance generally excludes weight-loss drugs, tikr.com reported. The European expansion builds on the digital health platform Zava, which Hims & Hers purchased in July 2025 for $258 million including contingent payments.
German patients begin treatment through a private online consultation that can lead to a prescription from an EU-licensed clinician, followed by ongoing support. Patients requiring in-person care are referred to local providers. To justify the entry, the company cited statistics showing nearly one in five German adults has obesity and more than six in ten men are overweight. Company-cited surveys indicate 42% of adults prefer avoiding weight discussions with a general practitioner.
Shipping costs and growth drive gross margin decline
While the Germany launch expands the company’s international footprint, it arrives as financial metrics face scrutiny. Gross margin dropped to 64% in the second quarter of 2026 from 76% a year earlier. Across a broader timeframe, the company’s gross margin slid from 82% in 2023 to 73.8% in 2025.
The second-quarter decline resulted primarily from shipping and fulfillment expenses tied to the weight-loss segment, alongside the costs of overseas growth. These margin pressures coincided with a net loss of $86.3 million for the quarter. Meanwhile, regulatory challenges persist, including a Federal Trade Commission lawsuit filed in late July over privacy and billing practices, as well as a shareholder class action.
Frequently Asked Questions
Why does Germany suit the Hims & Hers cash-pay model?
Statutory insurance in Germany generally does not cover weight-loss drugs, requiring patients to pay out of pocket. This dynamic aligns with the subscription-based, cash-pay framework Hims & Hers utilizes.
How much did Hims & Hers pay to acquire Zava?
The company acquired Zava, a digital health platform registered in Germany, for $258 million including contingent payments in July 2025.
What caused the recent drop in the company’s gross margin?
Hims & Hers attributed the margin decline to shipping and fulfillment expenses within the weight-loss business, as well as the financial impact of expanding operations abroad and shifting from compounded GLP-1 medications to branded alternatives.