Hims Hers Health 2025 Q1 Earnings Beats Expectations as Net Income Grows 344.7%
Tuesday, May 6, 2025 7:26 am ET
55min read HIMS Trend
Revenue
The total revenue of hims & hers health surged by 110.7% in 2025 Q1, reaching $586.01 million, compared to $278.17 million in 2024 Q1. Online revenue was the primary driver, contributing $576.36 million. Wholesale revenue, however, saw a slight decrease, totaling $9.65 million. Overall, this robust growth underscores Hims & Hers' ability to capitalize on digital sales channels.
Earnings/Net Income
Hims & Hers Health's EPS climbed significantly, marking a 340.0% increase to $0.22 in 2025 Q1 from $0.05 in 2024 Q1. This growth highlights the company's strengthening profitability, as net income rose by 344.7% to $49.48 million, setting a record high for fiscal Q1 net income in the past six years. The EPS reflects a positive outlook for the company.
Post-Earnings Price Action Review
The post-earnings strategy of investing in HIMS shares has shown remarkable resilience, delivering a strong 91.34% gain over the past five years. This strategy not only surpassed the benchmark by 9.91% but also demonstrated its ability to manage risk through periods of volatility, characterized by a maximum drawdown of -70.15%. The Sharpe ratio of 0.27 indicates the strategy's effectiveness in achieving risk-adjusted returns, and a compound annual growth rate (CAGR) of 14.08% further supports its potential in capturing growth opportunities. Despite the inherent risks, this approach highlights the company's strong performance and growth prospects.
CEO Commentary
Andrew Dudum, Co-Founder and Chief Executive Officer, emphasized that "2025 is already shaping up to be a landmark year for Hims & Hers," highlighting the company’s vision for personalized healthcare, which is resonating with an expanding global audience. He noted that revenue more than doubled year-over-year, and subscriber growth reached nearly 2.4 million, with over 1.4 million utilizing personalized solutions. Dudum outlined five core growth drivers, including deepening personalization capabilities and expanding into new specialties. He expressed confidence in achieving long-term financial targets, stating, "We expect to generate at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030."
Guidance
For Q2 2025, Hims & Hers Health expects revenue between $530 million and $550 million, reflecting year-over-year growth of 68% to 74%. The company anticipates adjusted EBITDA in the range of $65 million to $75 million, with a margin of 13% at the midpoint. For the full year, revenue is projected between $2.3 billion and $2.4 billion, representing a 56% to 63% year-over-year increase, with adjusted EBITDA anticipated between $295 million and $335 million, maintaining a 13% margin at the midpoint.
Additional News
Recently, Hims & Hers announced key changes in its leadership team, welcoming Nader Kabbani as Chief Operations Officer. Kabbani, who previously spent nearly 20 years at Amazon, brings valuable experience, having overseen Amazon Pharmacy and the acquisition of PillPack. This strategic appointment aims to enhance operational capabilities and drive future growth. Additionally, Hims & Hers has entered a partnership with Novo Nordisk, which is expected to strengthen its position in the healthcare market. These developments reflect the company's commitment to expanding its executive leadership and fostering industry collaborations to accelerate growth.
Article Polishing
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Ask Aime: What's driving Hims & Hers Health's stock price surge?
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