A Quick Take on Hims & Hers
Hims & Hers’ (HIMS) revenues grew by 73% year-over-year to $545 million, but the company slightly missed revenue estimates. The Monthly Average Online Revenue Per Subscriber declined sequentially from $84 to $74, primarily due to the offboarding of GLP-1 subscribers. Free cash flow turned negative ($-69M) in Q2 due to investments in new form factors, automation, and supply chain strengthening, though it is expected to return positive in the second half of the year (H2).
The company experienced material headwinds in Q2 following the sudden end of its partnership with Novo Nordisk in June. This required HIMS to offboard subscribers who were on commercially available dosages of GLP-1s, contributing to the quarter-over-quarter decline in monthly average revenue per subscriber. Despite this, management remains confident, retaining the FY25 Weight Loss Revenue Target of at least $725M.
The platform currently serves over 2.4 million subscribers. HIMS’s personalization strategy is highly successful, with over 1.4 million subscribers now utilizing personalized solutions—representing more than half of the subscriber base for the first time. Personalized plans are offered across several conditions, including sexual wellness, dermatology, hormone health, and weight management.
HIMS is committed to scaling intelligent, individualized care through significant investment in AI, marked by the recent appointment of a CTO specializing in AI. The vision includes building a unified data and intelligence platform and developing AI-powered personalized agents that will be “always on” to provide 24/7 support, enhance patient adherence, automate processes, and drive efficiency within 3 to 6 months.
International growth is accelerating following the July acquisition of ZAVA, which expands HIMS’s presence in the UK and establishes a foundation in Germany, Ireland, and France. HIMS is also planning a launch in Canada in 2026, focusing on a holistic weight loss program, anticipating the structural access unlocks provided by the first-ever availability of generic semaglutide globally.
The company is entering a period of investment lasting at least the next year, specifically augmenting AI development talent and scaling global platforms. HIMS is expanding into new specialties, including hormonal health (for men and women) and lab testing capabilities (acquiring a blood testing lab), with a plan to enter the longevity space next year. The FY25 guidance remains strong, projecting revenues between $2.3 billion and $2.4 billion.
