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Hims & Hers Health, Inc. (HIMS)·Q2 2025 Earnings Summary

Executive Summary

  • Strong top-line with profitability: Revenue grew 73% YoY to $544.8M; GAAP net income was $42.5M (8% margin) and Adjusted EBITDA was $82.2M (15% margin) .
  • Mixed vs estimates: Revenue was slightly below S&P Global consensus ($544.8M actual vs $552.0M consensus*), while Primary EPS beat materially ($0.289 vs $0.165 consensus*) as operating leverage and lower marketing intensity offset GLP‑1 headwinds. Values retrieved from S&P Global.
  • Guidance: Company introduced Q3 guide ($570–$590M revenue; $60–$70M Adj. EBITDA, 11–12% margin) and reaffirmed FY25 ($2.3–$2.4B revenue; $295–$335M Adj. EBITDA, 13–14% margin) .
  • Key narrative drivers: Transition away from commercially available GLP‑1 dosages and shorter shipment cadence pressured in-quarter recognition, but strong momentum in oral weight loss, dermatology, and daily sexual health supported margins; management reaffirmed at least $725M weight loss revenue for FY25 and expects ZAVA to add ≥$50M in 2H25 .

What Went Well and What Went Wrong

  • What Went Well

    • EPS and profitability: “Adjusted EBITDA…more than doubled relative to the prior year” ($82.2M vs $39.3M) with 15% margin, aided by marketing leverage and mix away from GLP‑1 .
    • Personalization scaling: Subscribers reached 2.44M (+31% YoY) and monthly online revenue per average subscriber was $74 (+30% YoY), reflecting “robust growth in Subscribers utilizing personalized treatment plans” .
    • Strategic expansion: Reiterated FY outlook; Q3 guide introduced; international expansion via ZAVA (≥$50M for remainder of 2025) and lab testing to underpin hormone health and future longevity offerings .

  • What Went Wrong

    • Revenue vs Street and sequential dynamics: Revenue came in below S&P consensus ($544.8M vs $552.0M*); sequential revenue declined vs Q1 ($586.0M) as the company offboarded GLP‑1 subscribers on commercially available dosages and shifted cadence . Values retrieved from S&P Global.
    • Gross margin compression: Gross margin fell ~500 bps YoY to 76% on higher weight loss mix, partly offset by scale and provider efficiency gains .
    • Cash flow dip: Free Cash Flow turned to $(69.4)M (from $47.6M a year ago) and operating cash flow was $(19.1)M, driven by temporary working capital investments and higher capex to automate and expand pharmacy infrastructure; management expects normalization in 2H25 .

Financial Results

QTD P&L and margins (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($M)$481.1 $586.0 $544.8
Gross Margin %77% 73% 76%
Net Income ($M)$26.0 $49.5 $42.5
Net Income Margin %5% 8% 8%
Adjusted EBITDA ($M)$54.1 $91.1 $82.2
Adjusted EBITDA Margin %11% 16% 15%
Diluted EPS ($)$0.11 $0.20 $0.17

Q2 2025 vs S&P Global consensus

MetricActualConsensus
Revenue ($M)$544.8 $552.0*
Primary EPS ($)0.2894*0.1647*
EBITDA ($M)37.1880*72.1960*

Note: S&P “Primary EPS” and “EBITDA” may not be directly comparable to company-reported diluted EPS and Adjusted EBITDA; values with asterisks are from S&P Global.

Segment revenue (oldest → newest)

Metric ($M)Q4 2024Q1 2025Q2 2025
Online Revenue$470.8 $576.4 $536.9
Wholesale Revenue$10.4 $9.6 $8.0
Total Revenue$481.1 $586.0 $544.8

Key KPIs (oldest → newest)

KPIQ4 2024Q1 2025Q2 2025
Subscribers (End of Period, ‘000)2,229 2,366 2,439
Monthly Online Revenue per Avg Subscriber ($)73 84 74

Cash, debt, and cash flow (Q2 2025)

  • Cash & equivalents: $1,124.6M; short-term investments: $20.0M .
  • Convertible senior notes (net): $969.5M ; May 0.00% converts due 2030 priced at $870M to fund AI, diagnostics, international expansion (capped calls executed) .
  • Operating cash flow $(19.1)M; Free Cash Flow $(69.4)M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q3 2025—$570–$590 New
Adjusted EBITDA ($M)Q3 2025—$60–$70 (11–12% margin) New
Revenue ($B)FY 2025$2.3–$2.4 (Q1’25) $2.3–$2.4 Maintained
Adjusted EBITDA ($M)FY 2025$295–$335 (Q1’25) $295–$335 (13–14% margin) Maintained

Additional management targets/assumptions:

  • Weight loss specialty revenue of at least $725M in FY25; ZAVA to contribute ≥$50M in 2H25 .
  • Q2 result landed within Q2 guidance issued on May 5 ($530–$550M revenue; $65–$75M Adj. EBITDA) .

Earnings Call Themes & Trends

TopicQ4 2024 (Q‑2)Q1 2025 (Q‑1)Q2 2025 (Current)Trend
AI/TechnologyEmphasis on scaling tech-enabled care; strong EBITDA growth Set 2030 targets; platform-centric focus New CTO outlines AI agents, unified data platform, global-ready architecture; near-term impact in 3–6 months Improving
Supply chain/tariffsScale benefits; inventory rising YoY Capex ramp for facilities Inventory increased to strengthen supply chain, hedge tariff uncertainty; minimal tariff risk expected Watch
Weight loss productsMix tailwind but margin pressure Strong growth; subscribers and revenue up Offboarding commercially available GLP‑1s; oral and personalized GLP‑1 strong; shorter shipment cadence depresses in-quarter revenue recognition; acceleration expected Q4 Mixed
Sexual healthGrowthGrowthRotation from on-demand to daily; near-term subscriber drag; retention benefits by 2026 Transition
InternationalUS-centricEarly roadmapClosed ZAVA; ≥$50M 2H25; Canada 2026 with generic semaglutide; selective market focus Expanding
Regulatory/legal2024 tax valuation release —FDA shortage resolved; pivot from 503B to 503A; continued offering of certain compounded GLP‑1s; compliance emphasis Evolving
Diagnostics/R&D—Roadmap to broaden capabilities Lab testing acquired; foundation for hormone health and longevity Building

Management Commentary

  • CEO: “It’s never been more clear that we are delivering exactly what millions of people have been waiting for: access to personalized, high-quality care that meets people where they are.”
  • CFO: “Revenue grew 73% and Adjusted EBITDA more than doubled relative to the prior year; both were driven by robust growth in Subscribers utilizing personalized treatment plans.”
  • CEO on outcomes: Customers on a GLP‑1 personalized plan for 6 months “reported losing on average 10.3% of their body weight… [and] only 25%…had discontinued” .
  • CTO: “We will…build AI powered personalized agents that are always on…to ensure continuous engagement and increase the likelihood of reaching a positive outcome.”

Q&A Highlights

  • GLP‑1 trajectory and recognition: Offboarding commercially available dosages created a step-down; remaining weight loss offerings (oral and personalized GLP‑1) expected to grow; shorter duration shipments lower revenue per order but increase frequency, supporting a Q4 acceleration .
  • Canada launch and pricing: Will operate under Hims & Hers brands; expected consumer price for generic semaglutide ~$75–$100 vs branded $200–$400, expanding access; no cross-border shipments to the U.S. .
  • Marketing efficiency and payback: Elevated 2H investment with disciplined payback “well below a one year period”; reinforcement as new specialties/geographies scale .
  • Inventory/supply chain: Inventory build was deliberate for new launches and to mitigate tariff/supply risks; not expected to be a recurring step-up each quarter .
  • AI deployment timeline: Expect tangible efficiency and engagement improvements in 3–6 months through agent-centric model .

Estimates Context

  • Q2 2025 revenue: $544.8M actual vs $552.0M S&P Global consensus* (slight miss). Values retrieved from S&P Global.
  • Q2 2025 Primary EPS: $0.289 actual vs $0.165 consensus* (beat). Values retrieved from S&P Global.
  • Note: S&P Global “EBITDA” is not directly comparable to company-reported Adjusted EBITDA; company reported $82.2M Adjusted EBITDA. S&P Global shows EBITDA actual of $37.2M vs $72.2M consensus*, suggesting definitional differences. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Mixed headline vs Street: modest revenue shortfall vs S&P consensus but strong EPS beat on operating leverage and disciplined marketing .
  • Sequential dip explained: GLP‑1 offboarding and shipment cadence change pressured in-quarter recognition; management guides to a Q4 re-acceleration .
  • FY guide intact with new Q3 guide: Reaffirmed $2.3–$2.4B revenue and $295–$335M Adj. EBITDA; Q3 guide points to sequential growth ($570–$590M) .
  • Strategic investments: Elevated 2H marketing and technology spend to scale AI agents, lab testing, hormone health; expect sub‑1 year payback to sustain marketing leverage over time .
  • Weight loss still a pillar: At least $725M FY25 weight loss revenue reiterated; ZAVA expected to contribute ≥$50M in 2H25 .
  • Cash and flexibility: $1.12B cash and recent 0.00% converts provide ample firepower for capabilities and international expansion; temporary working capital drag expected to normalize .
  • Watch items: Gross margin mix as weight loss evolves; regulatory posture around compounded GLP‑1s; execution on lab testing and hormone launches; progress on AI-enabled engagement .

Footnote: Asterisked values are from S&P Global consensus/actuals feeds. Values retrieved from S&P Global.