Hims & Hers Health, Inc. ((HIMS)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Hims & Hers Health, Inc. painted a picture of robust growth and strategic advancements, despite some anticipated challenges. The sentiment was largely positive, with notable achievements in revenue growth, subscriber expansion, and strategic partnerships, especially in the weight loss sector. However, the company is facing hurdles in transitioning its sexual health vertical and managing gross margins.
Record Revenue Growth
Hims & Hers reported a remarkable 111% year-over-year increase in revenue, reaching $586 million in the first quarter of 2025. This substantial growth underscores the company’s successful strategies and market demand for its offerings.
Subscriber Base Expansion
The company saw a significant expansion in its subscriber base, which grew to nearly 2.4 million, marking a 38% increase from the previous year. This growth reflects the company’s ability to attract and retain a larger customer base.
Successful Weight Loss Category Expansion
The weight loss category has emerged as one of the company’s largest specialties, bolstered by a successful collaboration with Novo Nordisk. This partnership has significantly contributed to the company’s revenue and market presence.
Strong Adjusted EBITDA Performance
Hims & Hers achieved a strong adjusted EBITDA of $91 million, nearly tripling from the same quarter last year. This performance indicates efficient operational management and profitability.
Strategic Partnerships and New Offerings
The strategic partnership with Novo Nordisk and the launch of branded Wegovy have expanded the company’s product offerings in the weight loss category, enhancing its competitive edge.
New COO Appointment
The appointment of Nader Kabbani, a former operations leader at Amazon, as the new Chief Operating Officer, is expected to bring valuable expertise and leadership to the company’s operations.
Transition in Sexual Health Vertical
The company is transitioning its sexual health vertical to more personalized and daily products, which is expected to cause short-term volatility but aims to enhance long-term customer engagement.
Gross Margin Impact
The company experienced a decline in gross margins by approximately three points quarter-over-quarter as GLP-1 revenue scaled, highlighting a challenge in maintaining profitability.
Challenges with Commercial Semaglutide Transition
Hims & Hers is completing the transition of subscribers previously on commercially available doses of semaglutide, which is expected to result in a one-time revenue drop in the second quarter.
Forward-Looking Guidance
Looking ahead, Hims & Hers has set ambitious financial targets, anticipating at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030. For 2025, the company projects full-year revenue between $2.3 billion and $2.4 billion, with adjusted EBITDA ranging from $295 million to $335 million. The focus on expanding personalization capabilities and entering new specialties is expected to drive future growth.
In conclusion, the earnings call for Hims & Hers Health, Inc. highlighted a strong quarter with impressive growth metrics and strategic partnerships, particularly in the weight loss category. While there are challenges ahead, particularly in transitioning the sexual health vertical and managing gross margins, the company’s forward-looking guidance reflects a commitment to long-term growth and market expansion.