Hims & Hers Q3 2025: Contradictions Emerge on International Expansion, Marketing Strategy, Diagnostic Capabilities, and GLP-1 Pricing

Date of Call: November 03, 2025

Financials Results

• Revenue: Nearly $600M, up 49% YOY
• Gross Margin: 74%, down over 2 percentage points sequentially
• Operating Margin: Adjusted EBITDA margin above 13% (adjusted); adjusted EBITDA $78M, up >50% YOY

Guidance:

• Q4 revenue expected $605M–$625M (up ~26%–30% YOY).
• Q4 adjusted EBITDA $55M–$65M (~10% margin at midpoint).
• Full-year revenue expected $2.335B–$2.355B (up ~58%–59% YOY); full-year adjusted EBITDA $307M–$317M (~13% margin at midpoint).
• Expect $20M–$25M Q4 headwind from 503A shorter shipment cadences; normalizing in H2 2026.
• Expect at least $50M incremental H2 revenue from Zava; continued investments in specialties and diagnostics.

Business Commentary:

* Revenue and Subscriber Growth: - Hims & Hers Health reported revenue growth of 49% year-over-year for Q3, reaching nearly $600 million. - The subscriber base increased by more than 30,000 sequentially, reflecting a year-over-year growth rate of 20%. - This growth was driven by the expansion of services and offerings, including new specialties like testosterone and menopause support.

• Weight Loss Offerings and Verticalization:
• The weight loss specialty showed strong performance, contributing significantly to overall growth.
• The company reduced prices for compounded GLP-1 treatments by up to 20%, increasing accessibility.

• This strategy was supported by an ongoing verticalization of operations to lower costs while maintaining quality.

• International Expansion and Acquisitions:

• Hims & Hers acquired Zava Global, expanding into markets like the U.K., Germany, France, Ireland, and Spain.
• The integration of Zava contributed to $50 million of incremental revenue in the second half of the year.

• This expansion reflects the company's strategy to scale globally, leveraging its consumer-centric model in new markets.

• Diagnostic Services and New Specialties:

• The company announced plans to launch comprehensive whole-body lab testing before year-end.
• This initiative is part of a broader effort to provide proactive health management and early detection of conditions.
• The expansion into diagnostics is aimed at enhancing personalization and accessibility in health care.

Sentiment Analysis:

Overall Tone: Positive

• Management highlighted 49% YOY revenue growth to nearly $600M and adjusted EBITDA of $78M (up >50% YOY). They reiterated confidence in long-term 2030 targets ($6.5B revenue / $1.3B adjusted EBITDA) while outlining near-term investments and specific guidance for Q4 and full year.

Q&A:

• Question from Nick G (Retail Investor): What is the time line to release a full stack subscription service that includes at-home testing and additional products and services like peptides and a broader longevity offering? What are the biggest hurdles for this type of rollout?
  Response: Whole-body lab testing will launch before year-end; the longevity specialty (peptides, coenzymes, GLP/GIP) is planned for 2026, leveraging an onshored peptide manufacturing facility.

• Question from Hims House community (Retail Investor): How confident are you that you'll be able to reaccelerate core growth over the coming quarters? And what specific levers can you pull? And what's the realistic time line to see in these results?
  Response: They are confident growth will reaccelerate as diagnostics, new specialties (testosterone, menopause, longevity) and the shift to personalized daily offerings drive stronger retention and acquisition, with relief expected into 2026.

• Question from Justin Patterson (KeyBanc Capital Markets): As diagnostic capabilities ramp up, how do you envision the pace in which you provide personalized treatments and expand into new specialties changes? And then related to that, how might you adjust your marketing efforts to make more consumers aware of just this expanded offering?
  Response: Diagnostics will accelerate product introductions and hyper-personalization; marketing will shift from stigmatized direct-response to broader brand messaging to reach larger audiences and drive long-term leverage.

• Question from Maria Ripps (Canaccord Genuity): Please discuss your approach to the portfolio of GLP-1 solutions, especially if the Novo partnership moves forward; any other GLP-1s you may add; and consumer price sensitivity to compounded GLP-1s and how price reductions impact demand?
  Response: They favor breadth and choice (including potential Novo Wegovy oral) and will continue adding next-gen GLP/GIP therapies; verticalization and price reductions aim to expand accessibility and demand.

• Question from Craig Hettenbach (Morgan Stanley): On the Hers business approaching $1B in 2026, how much will new menopause products move the needle versus existing products?
  Response: Hers growth is multi‑engine (legacy dermatology, oral/personalized weight, hormonal health, longevity, diagnostics); menopause and diagnostics are meaningful contributors but growth will be broad-based across multiple categories.

• Question from Craig Hettenbach (Morgan Stanley): Is it possible margins could contract year‑over‑year in 2026 before you see follow-through, or can you hold margin levels despite investments?
  Response: Too early to give specific 2026 margin guidance; investments may temporarily pause margin expansion but are expected to be accretive over time and drive future margin/FCF expansion.

• Question from Brian Tanquilut (Jefferies): How are you thinking about capital deployment towards buybacks versus spending on CapEx?
  Response: Priority remains investing in growth (facilities, capabilities, international) but with strong cash flow they will opportunistically buy back stock when valuation disconnects appear.

• Question from Brian Tanquilut (Jefferies): What are the negotiating points or sticking points with Novo and what would it take to finalize an agreement for rolling out a Novo product?
  Response: They are engaged with Novo but declined to share specifics; emphasis is on partnering to offer patient choice and affordable access rather than disclosing negotiation details.

• Question from Eric Percher (Nephron Research): Are you still on path for $725M for the year for weight loss and how have compound vs oral markets developed?
  Response: Yes—on pace for $725M+ weight loss revenue; oral offerings are robust (broader eligibility, lower price) and GLP‑1 injectables remain strong.

• Question from Eric Percher (Nephron Research): The $20M–$25M headwind—was that for 4Q and can you speak to the cadence as you offboarded commercial doses?
  Response: The $20M–$25M Q4 headwind reflects shorter shipment cadences (smaller, more frequent shipments) reducing revenue recognized per shipment; this will normalize by H2 2026 as refill cohorts stack.

• Question from Ryan MacDonald (Needham): How is Hims messaging resonating internationally after Zava, and what investments are needed to scale clinician networks and expand in markets like Canada?
  Response: Demand and frustration with access are similar internationally; Zava is an accretive platform to scale, and they will adapt offerings/regulatory approaches per market while investing in local capabilities (e.g., Canada, U.K., Brazil).

• Question from Ryan MacDonald (Needham): Is whole‑body lab testing a lower-margin business and how will you package it with other offerings to drive LTV/CAC?
  Response: Tests may be lower-margin standalone but will serve as lead-gen and be bundled with higher‑value treatment pathways; verticalization will lower costs and improve conversion/LTV economics.

• Question from Jungwon Kim (TD Cowen): Any changes in marketing strategy and how are you thinking about marketing into next year (e.g., Super Bowl) after last year's success?
  Response: Marketing is shifting toward more organic/lower‑cost channels and benefits from higher retention in personalized offerings; they will continue disciplined, payoff-focused investment (one‑year payback target) and lean into incremental brand spend where ROI supports growth.

Contradiction Point 1

International Expansion Strategy

It reflects a shift in the company's international expansion strategy and the role of the ZAVA acquisition, which could impact future growth and revenue expectations.

How does Hims' messaging resonate internationally, and what investments are needed to scale clinical networks? - Ryan MacDonald (Needham & Company, LLC)

2025Q3: Demand for accessible care is consistent globally. We are confident in our scalable model and will invest in key markets like Canada and Brazil, with plans to expand to Australia and Japan. - Andrew Dudum(CEO)

What prompted the international expansion now, and why was ZAVA the ideal acquisition? - Bill Newby

2025Q2: The acquisition of ZAVA is the first step in taking a leadership role in bringing personalized high-touch, affordable precision medicine consumer experience globally. ZAVA was chosen for their ability to build a scalable platform in unique markets with unique regulatory challenges, demonstrating operational abilities. - Andrew Dudum(CEO)

Contradiction Point 2

Marketing Strategy and Investment

It involves changes in marketing strategy and investment plans, which are crucial for customer acquisition and business growth.

Have there been changes in the marketing strategy, and what are the plans for the Super Bowl and beyond? - Jungwon Kim (TD Cowen)

2025Q3: We are leveraging cost efficiency and retention to optimize marketing spend. In 2026, we plan to invest in growth opportunities, with confidence in achieving 2030 targets. - Yemi Okupe(CFO)

How should we view patient acquisition costs for the remainder of the year, given your investment plans? - Brian Gil Tanquilut (Jefferies LLC)

2025Q2: We plan to invest heavily in the second half, maintaining a payback period of less than a year. We expect to iterate and calibrate marketing spend effectively, focusing on specialty-specific investments. - Oluyemi Okupe(CFO)

Contradiction Point 3

Diagnostic Capabilities and Business Strategy

It involves changes in strategy regarding diagnostic capabilities, which are crucial for personalizing treatments and expanding into new specialties, potentially impacting business growth and market positioning.

How does diagnostic capability expansion impact personalized treatment delivery speed and new specialty expansion, and how might marketing strategies change? - Justin Patterson (KeyBanc Capital Markets Inc. Research Division)

2025Q3: Diagnostic capabilities will rapidly accelerate personalized treatment changes. Marketing will shift towards more open and accessible categories, transforming Hims & Hers' brand image. - Andrew Dudum(CEO)

What initiatives are being taken to reaccelerate growth in the sexual health vertical? - Maria Ripps (Canaccord Genuity Corp. Research Division)

2025Q1: Diagnostic capabilities are at the core of our strategy and will help us to transform our business by allowing us to bring more services to more people. - Andrew Dudum(CEO)

Contradiction Point 4

GLP-1 Solutions and Pricing Strategy

It involves changes in the company's approach to offering GLP-1 solutions and pricing strategy, which directly impacts customer accessibility and revenue projections.

How are you managing the GLP-1 product portfolio and its price sensitivity? - Maria Ripps(Canaccord Genuity)

2025Q3: We pursue breadth and choice in GLP-1 treatments, aiming to offer the best options through partnerships and innovation. We see strong retention for personalized offerings and plan to continue making GLP-1s accessible with price reductions to draw a broader audience. - Andrew Dudum(CEO), Yemi Okupe(CFO)

Are there partnership opportunities with branded companies in the GLP-1 space beyond liraglutide? - Daniel Grosslight(Citi)

2024Q4: We are open to partnerships but face challenges in sourcing branded medications consistently. The current pricing and reimbursement dynamics make it challenging to offer branded medications at a competitive advantage. - Andrew Dudum(CEO)