The Novo Nordisk partnership discussion is the real wildcard here because branded Wegovy access would legitimize HIMS but also compress margins significantly compared to compounded GLP-1s. The sequential EBITDA decline despite revenue growth suggests the GLP-1 price cuts are already eating into profitability faster than management anticipated. If NVO is serious about this partnership, they're probably trying to recapture market share lost to compounders without undermining their direct sales channels. The Q4 margin compression guidance makes sense only if they're prebaking the economics of a lower-margin branded product mix, which investors need clarity on befor the call.
The Novo Nordisk partnership discussion is the real wildcard here because branded Wegovy access would legitimize HIMS but also compress margins significantly compared to compounded GLP-1s. The sequential EBITDA decline despite revenue growth suggests the GLP-1 price cuts are already eating into profitability faster than management anticipated. If NVO is serious about this partnership, they're probably trying to recapture market share lost to compounders without undermining their direct sales channels. The Q4 margin compression guidance makes sense only if they're prebaking the economics of a lower-margin branded product mix, which investors need clarity on befor the call.