Hims & Hers Health Earnings: Navigating Growth and Strategic Partnerships

Investors are turning their attention to Hims & Hers Health (NYSE: HIMS), as the digital health platform prepares to release its first-quarter 2025 earnings on May 5. The company’s stock has surged 45% week-on-week amid optimism around its partnership with Novo Nordisk and upcoming financial updates. Here’s what to watch for in the earnings report and how it could shape the company’s trajectory.

Key Financial Metrics to Watch

Hims & Hers has guided for Q1 2025 revenue of $520 million to $540 million, a significant jump from the $481 million reported in Q4 2024. The company also expects Adjusted EBITDA of $55 million to $65 million, implying a margin of 11% to 12%. These metrics are critical to assessing whether Hims & Hers can sustain its growth momentum, which saw revenue skyrocket 69% in 2024 to $1.5 billion.

The stock’s recent rally—from $28.09 to $40.82—reflects investor confidence in the Novo Nordisk partnership and anticipation of strong Q1 results. Analysts will scrutinize whether revenue growth aligns with guidance and whether Adjusted EBITDA margins expand, signaling operational efficiency.

Strategic Partnerships Driving Growth

The long-term collaboration with Novo Nordisk to co-market Wegovy—a blockbuster weight-loss drug—is central to Hims & Hers’ strategy. The partnership allows customers to access NovoCare Pharmacy services directly via Hims & Hers’ platform, bundling Wegovy with a membership that includes 24/7 care and nutrition guidance.

This move marks a pivotal shift for Hims & Hers. Previously, the company sold a compounded generic version of Wegovy, but the FDA’s directive to halt sales due to sufficient supply from Novo Nordisk pushed Hims & Hers to pivot. The partnership now positions it as a trusted partner in the $20 billion weight-loss market, reducing regulatory risks and boosting credibility.

Full-Year Outlook: Scaling Revenue and Profitability

For 2025, Hims & Hers aims to grow revenue to $2.3 billion to $2.4 billion and expand Adjusted EBITDA to $270 million to $320 million. These targets build on 2024’s success, which included a 45% rise in subscribers to 2.2 million and a 41% jump in average order value (AOV) to $137.

The company’s focus on subscription-based models and high-margin weight-loss offerings—Wegovy alone contributed significantly to 2024’s AOV growth—suggests scalability. However, investors will monitor whether gross margins improve amid rising costs, as well as customer retention rates in its subscription business.

Risks and Challenges

While the Novo Nordisk deal is a positive catalyst, Hims & Hers faces challenges. Competitors like Weight Watchers and established pharma players could undercut its pricing or customer reach. Additionally, the company’s reliance on non-GAAP metrics like Adjusted EBITDA—excluding stock-based compensation and taxes—may mask underlying financial pressures.

Conclusion: A Strategic Pivot to Profitability

Hims & Hers’ Q1 earnings will test whether its shift toward partnerships and premium health offerings can deliver sustainable growth. With revenue guidance on track and the Novo Nordisk deal solidifying its position in the weight-loss market, the company is well-positioned to meet its 2025 targets.

Crucially, the stock’s 45% surge in the week before earnings underscores investor optimism—a bet that Hims & Hers can leverage its digital platform to scale efficiently. If Q1 results confirm margin expansion and subscriber growth, the stock could continue its upward trajectory, solidifying Hims & Hers’ place as a leader in accessible, personalized healthcare.

For long-term investors, the partnership with Novo Nordisk and the focus on recurring revenue streams provide a compelling narrative. However, success hinges on execution: delivering on Adjusted EBITDA guidance and proving that Wegovy’s integration drives both top-line growth and customer loyalty. The earnings report on May 5 will be the first major test of this strategy.