Sign in
H&

Hims & Hers Health, Inc. (HIMS)·Q3 2025 Earnings Summary

Executive Summary

  • Delivered strong top-line growth and an across-the-board operational scale-up: revenue rose 49% YoY to $598.98M with subscribers up 21% YoY to ~2.47M and Monthly Online Revenue per Avg. Subscriber up 19% YoY to $80 . Beat S&P consensus revenue ($579.85M*) for Q3; company reported gross margin 74% (down ~500 bps YoY) and diluted EPS $0.06 .
  • Tightened guidance: FY25 revenue to $2.335–$2.355B and Adjusted EBITDA to $307–$317M; Q4 revenue guided to $605–$625M and Adjusted EBITDA to $55–$65M (9–10% margin) .
  • Mix and execution dynamics: GLP‑1 compounding shift to 503(a) and shorter shipping cadences reduced recognized revenue per shipment and increased fulfillment costs, pressuring gross margins; management expects a $20–$25M headwind in Q4 and normalization in 2H26 as refill cohorts stack .
  • Strategic catalysts: active discussions with Novo Nordisk on Wegovy injections and future oral Wegovy, launch of Hers menopause/perimenopause specialty, collaboration to offer KYZATREX (oral testosterone) in 2026, and imminent launch of comprehensive lab testing (foundation for a 2026 Longevity specialty) .

What Went Well and What Went Wrong

What Went Well

  • Broad-based growth with strong unit economics: revenue +49% YoY to $598.98M; Adjusted EBITDA +53% YoY to $78.37M; OCF $148.72M and FCF $79.36M in Q3 .
  • Mix shift to personalization driving higher ARPU and retention: Monthly Online Revenue per Avg. Subscriber rose to $80 (+19% YoY); subscribers using personalized treatment plans +50% YoY; management: “Scale doesn’t just make us bigger, it makes us better” .
  • Marketing leverage and balance sheet strength: marketing fell to 39% of revenue (from 45% YoY); liquidity ~$1.1B (cash, ST and LT investments) with opportunistic $10M buybacks; “track record of execution” underpinning 2030 targets .

What Went Wrong

  • Gross margin pressure: down ~500 bps YoY to 74% on shorter shipping cadences for certain weight-loss offerings and related fulfillment costs; partly offset by scale in non-weight specialties .
  • Elevated G&A and Ops: Zava integration and leadership hires lifted G&A to 13% of revenue (from 11%); Ops & support rose to 13% (from 12%) .
  • Near-term GLP-1 revenue recognition headwind: shift to smaller shipments drives $20–$25M Q4 headwind; sexual health transition away from on-demand solutions still a drag through 2025 .

Financial Results

P&L and Cash Flow (USD Millions, per share where noted)

MetricQ1 2025Q2 2025Q3 2025
Revenue$586.01 $544.83 $598.98
Gross Margin %73% 76% 74%
Net Income$49.49 $42.51 $15.77
Diluted EPS$0.20 $0.17 $0.06
Adjusted EBITDA$91.06 $82.24 $78.37
Operating Cash Flow$109.09 $(19.12) $148.72
Free Cash Flow$50.05 $(69.43) $79.36

Segment Revenue Mix (USD Millions)

SegmentQ1 2025Q2 2025Q3 2025
Online Revenue$576.36 $536.88 $589.10
Wholesale Revenue$9.65 $7.95 $9.88
Total$586.01 $544.83 $598.98

KPIs

KPIQ1 2025Q2 2025Q3 2025
Subscribers (End of Period, ‘000s)2,366 2,439 2,471
Monthly Online Revenue per Avg. Subscriber ($)$84 $74 $80
Marketing as % of Revenue (GAAP)39% (231.24/586.01) 40% (217.86/544.83) 39% (232.15/598.98)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$2.3B–$2.4B (Q1 & Q2) $2.335B–$2.355B Raised/Narrowed
Adjusted EBITDAFY 2025$295M–$335M (Q1 & Q2) $307M–$317M Narrowed
RevenueQ4 2025—$605M–$625M New
Adjusted EBITDAQ4 2025—$55M–$65M (9–10% margin) New
GLP‑1 cadence impactQ4 2025—($20M–$25M) headwind on revenue recognition New disclosure
Zava contributionH2 2025—≥$50M incremental revenue New disclosure

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
AI/technology & personalizationEmphasis on precision care, personalization; investment in pharmacy infrastructure and labs to tailor care Building next‑gen platform: diagnostics‑driven personalization, chatbots for non‑clinical support, AI‑assisted tools (e.g., nutritional coaches) Accelerating use cases
Supply chain & verticalizationFocus on scaling compounding/personalization infrastructure “Gold standard” compounding; verticalize 503(a) sterile fulfillment; source GLP‑1 APIs from FDA Green List suppliers; micro‑dosing options Deeper verticalization
Weight loss specialty (GLP‑1 & orals)Strong growth driver Price cuts up to 20% for compounded GLP‑1; smaller shipment cadence creates revenue timing headwind in Q4; on track for $725M 2025 WL revenue Broader access; near‑term timing headwinds
Product pipelineBuilding to new specialties Launching Hers menopause/perimenopause; testosterone offering; diagnostics before year‑end; Longevity in 2026 Broadening
Partnerships & ecosystem—Active discussions with Novo on Wegovy; GRAIL strategic investment; Marius partnership to offer KYZATREX in 2026 Expanding
International expansionPlanning to grow in key markets ZAVA integration across UK/DE/FR/IE; launch in Spain; preparing Canada; >$1B long‑term international revenue opportunity Scaling
Regulatory/legal environment—FDA shortage resolution and end of enforcement discretion for 503B in May; continuing compounding consistent with statutory exemptions Higher compliance focus

Management Commentary

  • CEO (prepared remarks): “We’re launching new specialties at an increasing pace… making significant progress in establishing Hims & Hers as a truly global brand.”
  • CEO (on verticalization and affordability): “We strategically reduced prices across compounded GLP‑1 treatment plans by as much as 20%… extending accessible care to an even broader population.”
  • CFO (profitability and leverage): “Adjusted EBITDA grew more than 50% YoY to $78M… Marketing as a percentage of revenue was 39%, representing more than six points of leverage YoY.”
  • CFO (investment cadence): “We may see a temporary pause in YoY margin expansion as we invest… we have a much broader set of levers and expect mid‑term margin expansion.”

Q&A Highlights

  • GLP‑1 cadence headwind/normalization: Smaller shipment cadence drives a $20–$25M Q4 revenue headwind; dynamic expected to normalize in 2H26 as cohorts stack .
  • Hers growth path: Hers offerings have grown near/at triple digits and are “on pace to deliver revenue of over $1B in 2026,” with menopause, diagnostics, and longevity as incremental drivers .
  • International rollout: Zava integration validates demand; Canada launch near‑term with generic semaglutide expected in 2026; evaluating Brazil/Australia/Japan; scaling clinician networks per market .
  • Marketing efficiency: Greater organic/low-cost acquisition and stronger retention from personalized offerings; maintain ~1‑year payback discipline while leaning into 2026 growth opportunities .
  • Novo Nordisk: Parties are in active discussions; no specifics disclosed; Hims seeks breadth of options to optimize patient outcomes and affordability .

Estimates Context

  • Q3 2025 actuals vs S&P Global consensus: Revenue $598.98M vs $579.85M*; S&P “Primary EPS” actual 0.2813* vs consensus 0.1017*; S&P “EBITDA” actual $30.01M* vs consensus $68.04M* (note: company-reported Adjusted EBITDA was $78.37M—definitions differ) .
  • Q4 2025 setup: Company guides revenue to $605–$625M vs S&P consensus $617.48M*; guides Adjusted EBITDA to $55–$65M vs S&P EBITDA consensus $62.53M* (definitions differ) .

Values retrieved from S&P Global.

Estimates Comparison (S&P Global)

MetricQ3 2025 Consensus*Q3 2025 Actual*Q4 2025 Consensus*
Revenue ($)579,848,820598,976,000617,480,930
Primary EPS ($)0.10170.28130.05239
EBITDA ($)68,042,64030,007,00062,526,880

Key Takeaways for Investors

  • Top-line beat with strong subscriber and ARPU gains, but gross margin headwinds from GLP‑1 shipment cadence and fulfillment costs muted flow-through; watch 2H26 normalization .
  • FY25 guidance tightened higher at the midpoint; Q4 guide embeds ~$20–$25M GLP‑1 cadence headwind yet still brackets S&P revenue consensus—execution bar remains manageable .
  • Non-GAAP vs GAAP framing matters: company’s Adjusted EBITDA ($78.37M) diverges from S&P EBITDA ($30.01M*)—investors should anchor valuation/coverage ratios on consistent definitions .
  • New specialties (menopause/perimenopause, testosterone), diagnostics launch, and 2026 Longevity offering broaden TAM and deepen relationships—near-term OpEx investments may pause margin expansion but aim to unlock mid-term operating leverage .
  • Potential Novo Wegovy access, GRAIL investment, and international expansion (Zava integration, Spain launch, Canada next) are multi-year catalysts; monitor partnership execution and regulatory contours around compounding .
  • Stock narrative: revenue resilience and pipeline breadth are positives; near-term gross margin pressure and cadence headwinds are the swing factors into Q4; partnership headlines (Novo) could be material catalysts .

Supporting Data (Detail)

  • Q3 2025 revenue $598.98M; online $589.10M; wholesale $9.88M .
  • Gross margin 74% (vs 79% LY); diluted EPS $0.06; Adjusted EBITDA $78.37M .
  • Subscribers ~2.471M; MORAS $80; marketing 39% of revenue .
  • Liquidity ~$1.1B (cash, ST & LT investments); repurchased ~$10M shares in Q3 .
  • Guidance: Q4 revenue $605–$625M; Q4 Adjusted EBITDA $55–$65M (9–10%); FY25 revenue $2.335–$2.355B; FY25 Adjusted EBITDA $307–$317M (13%) .
  • Initiatives: menopause/perimenopause specialty (Hers), Marius collaboration (KYZATREX), diagnostics before year‑end, Longevity in 2026, Novo discussions (Wegovy) .

Citations

  • Q3 2025 8-K, press release, shareholder letter:
  • Q3 2025 earnings call transcript:
  • Q2 2025 press release:
  • Q1 2025 press release:
  • Hers menopause/perimenopause press release:
  • Marius/KYZATREX collaboration press release:

Notes

  • “Primary EPS,” “Revenue Consensus Mean,” and “EBITDA Consensus Mean” are S&P Global metrics; cells marked with an asterisk were retrieved from S&P Global and may not align with company non‑GAAP definitions. Values retrieved from S&P Global.