Hims & Hers Health is retooling its core weight-loss business this year, shifting from sales of compounded GLP-1 drugs to branded versions of the blockbuster medications.

A new analysis from Truist Securities provides investors with a closer look at revenue streams from those products, which the company doesn't break out in financial filings.

Drawing on proprietary card data, Truist bumps up its estimate of Hims' U.S. GLP-1 revenue to $1.2 billion in 2026, from a previous estimate of $1.14 billion. While that's an increase from an estimated $802 million in 2025, Truist says most of that growth is driven by costs of branded medications that are included in revenue.

Truist expects the weight-loss medications will contribute nearly 40% of total annual revenue this year, estimated at $3.159 billion. The revenue estimate lands in the lower half of the company's guidance range of $3.1 billion to $3.3 billion.

Analyst Jailendra Singh reiterated a Hold rating on the stock while raising the price target to $32 from $27. Shares closed at $31.75 on Tuesday, up 2%.

At the same time, Truist now expects the majority of U.S. GLP-1 sales to come from compounded drugs-an estimated $625 million in revenue-while branded prescriptions contribute a slightly smaller share, worth $578 million. Within branded prescriptions, Truist estimates 55% of that revenue, or $320 million, is attributable to the cost of the medication, with 45% derived from customer membership fees.

Truist previously believed branded prescriptions would outweigh compounded GLP-1 sales this year. The updated revenue split is owed to a couple of factors. One is higher than anticipated customer retention in the compounded business, Singh says, although Truist's model points to declines in that area through the year.

On the branded side, the firm's revenue estimate is lower now "primarily to reflect the recent slowdown in branded GLP-1 new membership growth reflected in our Truist Card Data analysis," Singh writes. However, the card data suggests that retention of existing members is strong, Singh said, and "any incremental improvement in retention should be beneficial to HIMS overall revenue and profitability."

Singh sees margins improving on GLP-1 sales in the second half of 2026.

Truist estimates adjusted Ebitda margins of 18.5% for compounded prescriptions, up from 15.5% in the second quarter, and 16.5% for branded medications, versus 5% in the second quarter. Ebitda stands for earnings before interest, taxes, depreciation, and amortization.

Hims didn't immediately respond to a request for comment. During Hims' earnings call this month, Chief Financial Officer Yemi Okupe said the company's move in March to expand branded weight loss offerings was a "key driver" of growth in the second quarter.