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Hims & Hers Health, Inc. (HIMS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $586.0M (+111% YoY) and net income $49.5M; Adjusted EBITDA rose to $91.1M with a 16% margin, reflecting strong operating leverage .
  • Results exceeded Wall Street consensus: revenue $586.0M vs $538.9M (+$47.1M, +8.8%); Primary EPS $0.283 vs $0.121 (+$0.162, +134%)*. Values retrieved from S&P Global.
  • Guidance: FY 2025 revenue maintained at $2.3–$2.4B; FY 2025 Adjusted EBITDA raised to $295–$335M from $270–$320M; Q2 2025 revenue guided to $530–$550M with 12–14% Adjusted EBITDA margin .
  • Strategic catalysts: launch of branded Wegovy via Novo Nordisk collaboration, rollout of at-home lab testing, and expanded sterile and automation capacity to scale personalized care .

What Went Well and What Went Wrong

What Went Well

  • Record top-line and profitability: “Revenue grew 111% year-over-year to $586 million… adjusted EBITDA increased to $91 million, nearly triple” .
  • Personalization driving engagement and retention: “Over 70% of new subscribers partnered with a provider to obtain access to a personalized solution” and dermatology subs with personalized solutions exceeded 80% .
  • Weight loss portfolio breadth and new partnership: “Teaming up with Novo Nordisk is a pivotal milestone… expanding access to branded Wegovy” .

What Went Wrong

  • Gross margin compression: GM fell to 73% (−900 bps YoY) with GLP-1 mix shift; management expects improvement in Q2 on scale efficiencies .
  • Anticipated Q2 sequential revenue decline: transition off commercially available semaglutide expected to cause a one-time QoQ revenue drop in Q2 .
  • Sexual health near-term volatility: shift from on-demand to daily personalized solutions causing uneven growth during transition .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Millions)$278.171 $481.139 $586.010
GAAP Diluted EPS ($)$0.05 $0.11 $0.20
Gross Margin (%)82% 77% 73%
Adjusted EBITDA ($USD Millions)$32.347 $54.123 $91.057
Adjusted EBITDA Margin (%)12% 11% 16%
Net Income ($USD Millions)$11.128 $26.025 $49.485
Cash from Operations ($USD Millions)$25.838 $86.385 $109.090
Free Cash Flow ($USD Millions)$11.880 $59.500 $50.052

Beats vs Consensus (S&P Global):

MetricQ1 2025 ActualQ1 2025 ConsensusSurprise# of Estimates
Revenue ($USD Millions)$586.010*$538.871*+$47.139 (+8.8%)*11*
Primary EPS ($)$0.2832*$0.12124*+$0.1620 (+134%)*11*

Values retrieved from S&P Global.

Revenue mix:

MetricQ1 2024Q1 2025
Online Revenue ($USD Millions)$267.761 $576.361
Wholesale Revenue ($USD Millions)$10.410 $9.649
Total Revenue ($USD Millions)$278.171 $586.010

KPIs and operating efficiency:

KPIQ3 2024Q4 2024Q1 2025
Subscribers (end of period, ‘000s)2,047 2,229 2,366
Monthly Online Revenue per Avg Subscriber ($)67 73 84
Marketing as % of Revenue (%)—46% 39%
Gross Margin (%)79% 77% 73%
Adjusted EBITDA Margin (%)13% 11% 16%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 2025—$530M–$550M New
Adjusted EBITDAQ2 2025—$65M–$75M; margin 12%–14% New
RevenueFY 2025$2.3B–$2.4B $2.3B–$2.4B Maintained
Adjusted EBITDAFY 2025$270M–$320M $295M–$335M Raised
Long-term TargetsFY 2030—≥$6.5B revenue; ≥$1.3B Adj. EBITDA New LT targets

Management also flagged a one-time sequential revenue decline in Q2 due to transitioning off commercially available semaglutide, with margin expansion expected on scale efficiencies .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 & Q4 2024)Current Period (Q1 2025)Trend
AI/Technology & MedMatchRoadmap to expand AI, lab data integration; CTO search CTO appointment and expanded AI vision (coaches, diagnostics, MedMatch) Accelerating
Supply Chain & CapacityInvest in sterile capabilities; larger AZ facility; automation Added peptide facility; expanded sterile fulfillment; 700k sq ft footprint Strengthening
Product Performance – Weight LossOral GLP-1 scaled quickly; GLP-1 contribution $225M in 2024 Portfolio breadth (oral kits, liraglutide, personalized, +Wegovy via Novo) Broadening
Sexual Health TransitionPersonalization strategy evolving; daily offerings gaining traction Daily solutions ~40% of sexual health subs; near-term volatility expected Transitioning
Regulatory/CompoundingClarity on 503(a) use post-shortage; respect provider independence Personalization reserved for clinical necessity; alignment with Novo philosophy Clarified
Tariffs/Macro—Potential tariff headwinds; expect GM expansion on efficiencies Watchlist
At-Home Lab TestingAcquisition of Trybe Labs to enable diagnostics Rollout to enable low-T/menopause and broader personalization Near-term launch

Management Commentary

  • “Revenue grew 111% year-over-year to $586 million… adjusted EBITDA increased to $91 million, nearly triple” — CFO Yemi Okupe .
  • “Teaming up with Novo Nordisk is a pivotal milestone… expanding access to branded Wegovy” — CEO Andrew Dudum .
  • “We expect to complete the transition… by the end of the second quarter… a onetime quarter-over-quarter revenue drop” — CFO Yemi Okupe .
  • “Gross margins declined approximately 3 points… We expect improvement in the second quarter” — CFO Yemi Okupe .
  • “We will elevate precision care… AI-driven tools, including access to coaches, therapeutic tools and nutrition advice” — CEO Andrew Dudum .

Q&A Highlights

  • Weight loss target drivers: breadth across oral kits, liraglutide, personalized semaglutide, and branded Wegovy underpin confidence in ~$725M 2025 specialty revenue .
  • Personalization stance: use 503(a) compounding for clinical necessity (side-effect mitigation), while respecting provider independence .
  • Sequential dynamics: commercial semaglutide transition drives Q2 QoQ revenue drop; momentum expected to rebuild thereafter .
  • Margins: sequential GM expansion expected on economies of scale and non-GLP growth; marketing efficiency may see quarter-to-quarter volatility .
  • Insurance: management prefers cash-pay simplicity vs. integrating insurance due to complexity and consumer inefficiency .

Estimates Context

  • Q1 2025 revenue and Primary EPS beat consensus meaningfully: revenue +$47.1M (+8.8%), EPS +$0.162 (+134%)*. Values retrieved from S&P Global.
  • Company-reported GAAP diluted EPS was $0.20, reflecting differences vs “Primary EPS” convention used in consensus reporting .

Key Takeaways for Investors

  • Strong beat-and-raise quarter: revenue +111% YoY; Adjusted EBITDA margin expanded to 16%; FY 2025 Adjusted EBITDA guidance raised, signaling confidence .
  • Near-term caution: Q2 revenue guide implies sequential decline due to semaglutide mix shift; watch margin trajectory and subscriber monetization .
  • Personalization moat: data-rich platform, lab testing, sterile and automation capacity, and peptide facility support scaling tailored care (durable retention/ARPU uplift) .
  • Weight-loss diversification: oral GLP-1 kits, liraglutide, personalized semaglutide, and Wegovy partnership mitigate single-treatment risk and broaden TAM .
  • Operating leverage: marketing % of revenue down to 39% from 46% in Q4; continued focus on sub-1-year payback aids margin expansion .
  • Strategic optionality: $870M 0% convertible notes priced to fund global expansion, AI buildout, and strategic M&A; capped call mitigates dilution .
  • LT narrative: 2030 targets (≥$6.5B revenue, ≥$1.3B Adj. EBITDA) frame multi-year growth path across new specialties (low-T, menopause, longevity) and international expansion .