Hims & Hers Hits $2.35B Revenue, But Margins Dip

Date of Call: Feb 23, 2026

Financials Results

• Revenue: Q4: $618M, up 28% YOY. Full Year: $2.35B, up 59% YOY.
• Gross Margin: Q4: 72%, down approximately 2 points quarter-over-quarter.

Guidance:

• Q1 revenue expected to be $600M-$625M (2%-7% YOY growth). Q1 adjusted EBITDA expected to be $35M-$55M (7% margin at midpoint).
• Full-year revenue expected to be $2.7B-$2.9B (15%-24% YOY growth). Full-year adjusted EBITDA expected to be $300M-$375M (12% margin at midpoint).
• Expect at least $200M in international revenue contributions in 2026, including potential from Eucalyptus acquisition closing in H2 2026.
• Expect several newer offerings (testosterone, menopause, labs) to incrementally scale throughout the year.
• Expect continued investment in platform technology, AI, and international expansion.
• Expect international markets (including Eucalyptus) to run near breakeven on adjusted EBITDA initially, with margin expansion over time.

Business Commentary:

Revenue Growth and Diversification:

• Hims & Hers reported revenue of $618 million for Q4 2025, representing a year-over-year growth rate of 28%. For the full year 2025, revenue reached $2.35 billion, up 59% year-over-year.
• The growth was driven by scaling offerings in sexual health and dermatology, and the rapid expansion of the weight loss offering, which reached a $100 million revenue run rate in less than 7 months.

International Expansion and Acquisitions:

• International revenue grew almost 400% year-over-year to $134 million in 2025.
• This was attributed to strategic acquisitions such as ZAVA and Livewell, which expanded the company's presence in the U.K., Germany, France, Ireland, Spain, and Canada, and the anticipated acquisition of Eucalyptus to further strengthen its position in the U.K., Australia, and Japan.

Profitability and Margin Expansion:

• Adjusted EBITDA in 2025 increased nearly 80% year-over-year to $318 million, with adjusted EBITDA margins expanding nearly 2 points to 14% for the full year.
• The improvement was driven by strong performance in tenured specialties, operational efficiencies, and marketing leverage.

Investment in Technology and AI:

• The company continues to invest in technology and AI, with technology and development costs as a percentage of revenue increasing to 7% for both Q4 and the full year.
• These investments are aimed at enhancing customer experience, improving operational efficiencies, and enabling personalized care through data insights.

Focus on Personalized and Proactive Care:

• Over 65% or 1.6 million of the company's subscribers were utilizing personalized treatments by the end of 2025.
• This trend is driven by the company's strategy to offer tailored treatments and leverage data from new offerings like Labs to better address consumer health needs and drive engagement.

Sentiment Analysis:

Overall Tone: Positive

• Management expressed strong conviction in the company's vision and growth trajectory, citing "tremendous progress," "28% year-over-year growth," and "confidence in our ability to meet or exceed our 2030 ambitions." They highlighted successful scaling of new offerings, international expansion, and a robust pipeline, stating, "Our success in the U.S. places us in a position to thoughtfully expand and rapidly scale across international markets."

Q&A:

• Question from Maria Ripps (Canaccord Genuity Corp.): How should investors think about the durability and growth profile of the U.S. weight loss business over the next few years given scrutiny on compounded GLP-1s? Also, how is the marketing mix evolving and are you seeing structural improvement in CAC and lifetime value?
  Response: Durability is supported by a broadening assortment of therapies and strong patient demand; weight loss scaled to $100M run rate in 7 months. Marketing leverage improved due to platform breadth and consumer brand awareness; retention and personalized treatments drive stronger lifetime value.

• Question from Justin Patterson (KeyBanc Capital Markets Inc.): How deep are you looking to go into the wearables ecosystem, how long should we think about investments to support these initiatives, and what are the steps to scale up Labs over the next year?
  Response: Investing deeply in wearables, labs, and AI to create a flywheel for proactive preventative care; investments will be stage-gated and focused on verticalizing infrastructure. Labs is scaling with 70% of users identifying treatable risks on the platform; integration of YourBio will enable at-home testing.

• Question from Craig Hettenbach (Morgan Stanley): Which legacy core categories are expected to drive growth in 2026? Within weight loss, is there a range embedded in guidance?
  Response: Core vs. non-core is less relevant; growth is expected across both Hims and Hers portfolios, including newer specialties like testosterone and menopause support. Weight loss guidance is embedded in the overall revenue and EBITDA ranges, with no specific standalone figure provided.

• Question from Eric Percher (Nephron Research LLC): What is the composition of the international business outlook, and how do you think about becoming a leading provider of branded GLP-1 medications and maintaining manufacturer relationships?
  Response: International composition will mirror the U.S. mix over time with category expansion. Relationships with brand manufacturers are strong and expected to remain consistent; the model as a consumer distributor is the winning approach overseas.

• Question from Mark Stephen Mahaney (Evercore ISI Institutional Equities): Can you provide an update on the fertility opportunity and the data points from Labs?
  Response: Fertility not yet launched; early data for menopause, testosterone, and Labs is encouraging, with each having potential to scale to $100M run rate. Labs provides valuable health insights, with 70% of users identifying treatable clinical risks.

• Question from Brian Tanquilut (Jefferies LLC): What are the swing factors in the wide EBITDA guidance range?
  Response: The range allows flexibility to invest in scaling new specialties (testosterone, menopause, labs), technology/AI, and international integration (including Eucalyptus) if unit economic and scale milestones are met.

• Question from Glen Santangelo (Barclays Bank PLC): How does the compounded GLP-1 revenue affect the reported U.S. revenue, and what is the headwind/tailwind?
  Response: GLP-1 revenue per order is larger than core business; the shift to shorter shipping cadences creates a lower revenue per order headwind (e.g., $65M in Q1). However, the majority of platform revenue and profitability is from non-GLP-1 offerings.

• Question from Ryan MacDonald (Needham & Company, LLC): What is the regulatory update regarding the pill launch and any conversations with FDA/DOJ? For the broadening weight loss pipeline, will you focus on branded partnerships or personalized offerings?
  Response: The pill was pulled to prioritize stakeholder engagement; ongoing conversations with FDA/DOJ are welcomed. The platform will evolve to offer a breadth of treatments, including branded partnerships, to meet consumer demand as the category expands.

Contradiction Point 1

Timeline for Launching Whole-Body Lab Testing and Longevity Specialty

Conflicting statements on when new services will be available.

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2025Q4: Investments in wearables, labs, and AI are focused on creating a flywheel for proactive preventative care. The company aims to make data collection frequent and easy, transitioning from single treatments to a longevity-focused category. - Andrew Dudum(CEO)

What are the investment levels in the wearables ecosystem, the timeline for these investments, and the scaling strategies for Labs over the next year? - Nick G. (Retail Investor)

20251104-2025 Q3: Comprehensive whole-body lab testing will launch before year-end. ... The longevity specialty will launch in 2026. - Andrew Dudum(CEO)

Contradiction Point 2

Assessment of Core Business Growth Levers and Near-Term Outlook

Inconsistent messaging on the expected drivers and timing of growth reacceleration.

What is Hims & Hers' strategy for the retail community? - Hims & Hers retail community

2025Q4: Growth acceleration is expected as new capabilities like diagnostics are integrated. - Yemi Okupe(CFO)

How will regulatory and legal challenges impact growth and mitigate risks from a potential GLP-1 ban, and which categories are best positioned to pivot the business away from GLP-1s? - Inhouse Community (Retail Investor)

20251104-2025 Q3: Near-term headwinds (shift from on-demand to daily sexual health, shorter weight loss cadences) are expected to ease in the second half of 2026, allowing Hims and Hers to reaccelerate growth. - Yemi Okupe(CFO)

Contradiction Point 3

Strategy Regarding GLP-1 Offerings and Partnerships

Contradiction on the company's openness to and strategy for branded GLP-1 partnerships.

How is Hims & Hers performing in the retail community? - Hims & Hers retail community

2025Q4: The company's foundational vision is to disrupt access to great care, not to launch treatments.... The strategy remains to expand the platform's offering systematically... The company has an unprecedented array of durable growth engines. - Andrew Dudum(CEO)

What impact will regulatory/legal scrutiny and a potential GLP-1 ban have on growth, and which categories are best positioned to pivot the business away from GLP-1s? - Maria Ripps (Canaccord Genuity)

20251104-2025 Q3: Breadth and assortment of GLP-1 options is the winning formula. The company is excited to reengage with Novo Nordisk on oral Wegovy (once FDA-approved) and will pursue next-generation biotech innovations... - Andrew Dudum(CEO)

Contradiction Point 4

Impact of Revenue Recognition Changes on GLP-1 Business

Contradiction on whether the revenue per order decline is specific to the GLP-1 segment or applies broadly.

What is your response to Glen Santangelo of Barclays Bank PLC? - Glen Santangelo (Barclays Bank PLC)

2025Q4: The shift in revenue recognition (lower revenue per order) is due to a change in shipping cadence for the weight loss business, affecting the entire subscriber base, not just new customers. - Yemi Okupe(CFO)

How much of the 17% Q4 U.S. revenue growth was driven by compounded GLP-1 contributions, and how does this align with the $65 million Q1 headwind? - In the outlook, did you imply average revenue per order will be down in the second half? Does that imply an acceleration in subscriber growth?

2025Q2: The lower revenue recognized per order applies specifically to the personalized GLP-1 component due to a shift in shipment cadence (smaller, more frequent batches). - Yemi Okupe(CFO)

Contradiction Point 5

Growth Drivers for U.S. Weight Loss Business

Contradiction on the primary drivers of growth within the U.S. weight loss segment.

How is the retail segment performing? - Hims & Hers retail community

2025Q4: The strategy remains to expand the platform's offering systematically... and expand into new categories like labs, menopause, low testosterone..." The weight loss business has an increasing range of assortment. - Andrew Dudum(CEO)

How will regulatory and legal scrutiny impact growth, and what strategies and categories can mitigate risks from a potential ban on compounding GLP-1s? - Can you help us understand the core dynamics between your core business and the weight loss segment in Q2 and expectations for Q3? Also, any trends within the personalized GLP-1 offering?

2025Q2: Strong growth (>55%) was offset by the sexual health on-demand segment. The company is consciously rotating this base toward higher-retention daily offerings. This transition is expected to become accretive in 2026. - Yemi Okupe(CFO)