Hims & Hers Goes Global: $1.15B Eucalyptus Deal Signals Pivot Amid US Headwinds
February 19, 2026 · by Fintool Agent
Hims & Hers Health is making its largest acquisition ever—a $1.15 billion deal to buy Australian telehealth giant Eucalyptus—just ten days after the company was forced to abandon its $49 Wegovy copycat pill amid FDA enforcement threats and a patent lawsuit from Novo Nordisk.
The aggressive international expansion comes as HIMS shares languish near 52-week lows, down roughly 75% from their October peak, raising questions about whether the deal represents a strategic masterstroke or a desperate pivot away from an increasingly hostile US regulatory environment.
The Deal Terms
Hims & Hers will pay approximately $240 million in cash at closing—expected mid-2026—with the remaining consideration structured to preserve balance sheet flexibility.
| Component | Amount | Timing |
|---|---|---|
| Upfront Cash | $240 million | At closing (mid-2026) |
| Deferred Payments | $710 million | Over 18 months post-close |
| Earnout Payments | Up to $200 million | Based on 2026-2028 targets |
| Total Enterprise Value | Up to $1.15 billion | Through early 2029 |
Critically, Hims & Hers has the option to settle the majority of deferred and earnout payments in stock rather than cash—a structure that could preserve over $500 million in liquidity if the company elects to issue shares.
Ask Fintool AI AgentWhat Hims Is Buying
Eucalyptus, founded in 2019, has grown into Australia's largest digital health provider with operations across five countries. The company operates consumer brands including Juniper (weight management) and Pilot (men's telehealth) and has served more than 775,000 customers.
The numbers are compelling:
| Metric | Value |
|---|---|
| Annual Revenue Run-Rate | $450+ million |
| Customer Base | 775,000+ |
| YoY Revenue Growth (2025) | Triple-digit in every quarter |
| Profitability | Near break-even |
| Markets | Australia, UK, Germany, Japan, Canada |
Eucalyptus is also the first Australian telehealth company accredited by the Australian Council on Healthcare Standards, lending credibility to its clinical operations.
Following the acquisition, Eucalyptus CEO Tim Doyle will become SVP of International at Hims & Hers, overseeing the company's global expansion.
The Strategic Logic—And the Elephant in the Room
Hims & Hers CEO Andrew Dudum framed the deal as the natural next step for a company that has proven its model in the US:
"Healthcare challenges are global, and so is the demand for simpler, transparent, and more personalized healthcare... With Eucalyptus, we will not only enter new markets, we will expand our ability to serve customers globally."
But the timing is impossible to separate from the company's recent regulatory troubles.
On February 6, 2026, the FDA announced it would take "decisive steps" to restrict GLP-1 active pharmaceutical ingredients used in compounded drugs mass-marketed by companies including Hims & Hers.
Three days later, Novo Nordisk filed a patent infringement lawsuit against Hims, alleging the telehealth company had been "deceiving patients and putting their health at risk" by selling compounded versions of Wegovy and Ozempic.
The one-two punch forced Hims to pull its newly launched $49 oral semaglutide product—a compounded copycat of Novo's blockbuster Wegovy pill—after just two days on the market.
Ask Fintool AI AgentStock Reaction: A Crisis of Confidence
HIMS shares have been in freefall since October, when they traded above $60. The stock closed at $15.90 on February 19, 2026—roughly 78% below its 52-week high of $72.98.
On the day of the Eucalyptus announcement, shares initially rallied nearly 7% in pre-market trading before fading to close essentially flat—suggesting investors remain uncertain whether international expansion can offset the US headwinds.
The Financial Picture
Despite the stock collapse, Hims & Hers entered 2026 with a growing business:
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Revenue | $481M | $586M | $545M | $599M |
| Net Income | $26M | $49M | $43M | $16M |
| Gross Margin | 76.8% | 73.5% | 76.4% | 73.8% |
The company ended Q3 2025 with $346 million in cash , suggesting it will need to rely heavily on operating cash flows and potentially stock issuance to fund the Eucalyptus deal.
Ask Fintool AI AgentThe Bull and Bear Cases
The Bull Case:
- Geographic diversification reduces dependence on US regulatory environment
- Eucalyptus brings proven international playbook with triple-digit growth
- Deal structure preserves flexibility—can pay in stock if needed
- Combined platform creates opportunities for pharma partnerships globally
- Eucalyptus's ACHS accreditation adds clinical credibility
The Bear Case:
- $1.15 billion is a steep price for a company with ~$350 million in cash
- Earnouts suggest uncertainty about Eucalyptus hitting projections
- International expansion won't fix the core US regulatory problem
- Management attention diverted during critical period
- Stock-based payments would dilute shareholders significantly
What to Watch
The Eucalyptus deal is expected to close mid-2026, subject to regulatory approvals in Australia and other jurisdictions. Key milestones to monitor:
- Novo Nordisk lawsuit developments — A ruling against Hims could eliminate the compounded GLP-1 business entirely
- FDA enforcement actions — The agency warned of potential seizures and DOJ referrals
- Q4 2025 earnings — Will reveal the financial impact of pulling the oral semaglutide product
- Deal financing — Whether Hims elects to issue stock vs. cash for deferred payments
- Integration progress — Tim Doyle's ability to scale Eucalyptus under new ownership