Hims & Hers Health, Inc. ((HIMS)) has held its Q2 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 tempered by certain financial challenges. The company reported strong revenue and subscriber growth, alongside strategic expansions into new markets and healthcare offerings. However, the call also highlighted some hurdles, such as a decline in GLP-1 revenue, negative free cash flow, and rising general and administrative (G&A) and technology costs.
Record Revenue Growth
Hims & Hers Health, Inc. achieved a remarkable revenue growth of 73% year-over-year, reaching $545 million. The company also reported an adjusted EBITDA margin exceeding 15% in the second quarter of 2025, showcasing its ability to scale effectively while maintaining profitability.
Strong Subscriber Growth
The company experienced a substantial increase in its subscriber base, adding 73,000 new subscribers quarter-over-quarter, bringing the total to over 2.4 million. This reflects a year-over-year growth rate of 31%, underscoring the company’s successful customer acquisition strategies.
Expansion into New Markets
Hims & Hers is broadening its geographical footprint through the acquisition of ZAVA, which enhances its presence in the U.K. and other European markets. The company also has plans to enter the Canadian market by 2026, further solidifying its international expansion strategy.
Innovative Healthcare Offerings
The launch of at-home lab testing and the upcoming hormonal health specialty are part of Hims & Hers’ efforts to provide more personalized healthcare solutions. These initiatives aim to make healthcare more accessible and tailored to individual needs.
GLP-1 Revenue Decline
Despite overall growth, the company faced a decline in GLP-1 revenue, which fell from $230 million to $190 million. This decrease was attributed to the offboarding of subscribers on commercially available dosages, indicating a need for strategic adjustments in this area.
Negative Free Cash Flow
The second quarter saw a negative free cash flow of $69 million, primarily due to significant investments in working capital and supply chain. This highlights the company’s commitment to growth, albeit at the cost of short-term cash flow challenges.
Pressure on G&A and Tech Costs
The earnings call revealed an increase in G&A expenses as a percentage of revenue by 4 points quarter-over-quarter, with technology costs also rising by 2 points to 7%. These increases suggest that the company is investing heavily in its infrastructure and operations to support future growth.
Forward-Looking Guidance
Looking ahead, Hims & Hers provided optimistic guidance for the future. The company aims to achieve $725 million in revenue from its weight loss specialty by year-end and projects full-year revenue for 2025 between $2.3 billion and $2.4 billion, with adjusted EBITDA ranging from $295 million to $335 million. By 2030, the company targets $6.5 billion in revenue and $1.3 billion in adjusted EBITDA, driven by expansions into new specialties and international markets.
In conclusion, the earnings call for Hims & Hers Health, Inc. reflected a positive sentiment with strong growth metrics and strategic expansions. Despite facing some financial challenges, the company’s forward-looking guidance suggests a promising trajectory, aiming for significant revenue and EBITDA growth in the coming years.