Hims & Hers Q3 2025 Earnings Call: Contradictions in GLP-1 Revenue Outlook, Marketing Strategy, and Longevity Launch Timelines Revealed

Date of Call: November 3, 2025

Financials Results

• Revenue: $~600M, up 49% YOY
• Gross Margin: 74%, down >2 points quarter-over-quarter
• Operating Margin: Adjusted EBITDA margin ~13% (above 13% in Q3); adjusted EBITDA $78M, up >50% YOY

Guidance:

• Q4 revenue expected $605M–$625M (≈+26%–30% YOY).
• Q4 adjusted EBITDA expected $55M–$65M (~10% margin at midpoint).
• FY2025 revenue expected $2.335B–$2.355B (≈+58%–59% YOY).
• FY2025 adjusted EBITDA expected $307M–$317M (~13% margin at midpoint).
• Assumes $20M–$25M Q4 headwind from migration to 503A (shorter shipment cadences) and at least $50M incremental H2 revenue from Zava.
• Expect near-term moderation in on-demand sexual health; investments to continue into 2026.

Business Commentary:

• Revenue and Subscriber Growth:
• Hims & Hers Health reported a revenue growth of 49% year-over-year to nearly $600 million in Q3.

• The growth was driven by expanding reach and deepening engagement, particularly through personalized treatment plans and new specialties like weight loss and hormonal health.

• Weight Loss and Specialty Expansion:

• The weight loss specialty continued to show strong performance, with subscribers using personalized solutions increasing by 50% year-over-year.

• This growth was attributed to effective verticalization of compounding infrastructure and price reductions, which extended care to a broader population.

• International Market Expansion:

• An estimated 200 million adults in Europe are within reach through the Zava acquisition, contributing to international revenue growth.
• This expansion represents a significant opportunity, as the business model naturally translates across regions, and the company is preparing for additional market entries like Canada.

• Diagnostics and Personalization:
• The company plans to launch comprehensive whole body lab testing before year-end, which will significantly expand personalized care options.
• This initiative aims to proactively manage health and identify early indicators of serious conditions, enhancing the platform's position in preventive care.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management: "revenue grew 49% year-over-year to nearly $600 million" and "adjusted EBITDA grew more than 50% year-over-year to $78 million." CEO: "I've never been more excited about where this company is heading." CFO: free cash flow $79M and >$1.1B in cash and investments support continued investments and international expansion.

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 will launch in 2026, supported by the acquired California peptide manufacturing facility to onshore R&D and scale offerings.

• 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: High confidence growth will reaccelerate as new specialties (e.g., testosterone) and diagnostics scale; company expects meaningful acceleration into the second half of 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 cadence and hyper-personalization; marketing will shift from stigmatized direct-response tactics toward broader brand messaging to scale awareness and lower acquisition costs.

• Question from Maria Ripps (Canaccord Genuity): What is your approach to the portfolio of GLP-1 solutions on the platform, especially if the Novo partnership moves forward? Are there other GLP-1s you may add? Also, how price-sensitive are consumers to compounded GLP-1s and how will price reductions affect demand?
  Response: Plan to offer broad GLP‑1 assortment (including pursuing Novo opportunities); verticalization and price reductions aim to expand the addressable market by passing savings to subscribers and boosting retention.

• Question from Craig Hettenbach (Morgan Stanley): On the Hers business approaching $1B in 2026, how much will new menopause products move the needle versus growth from existing products?
  Response: Hers' growth is multi‑engine — legacy dermatology, oral/personalized weight (GLP), and new hormonal/menopause, diagnostics and longevity offerings — producing diversified, broad-based growth toward $1B.

• Question from Craig Hettenbach (Morgan Stanley): Is it possible margins could contract year-over-year in 2026 before you see the benefits from these investments, or can you hold margin levels?
  Response: Too early to provide 2026 margin specifics; investments may temporarily pressure margins but are expected to be accretive over time based on prior investment playbooks.

• Question from Brian Tanquilut (Jefferies): How are you thinking about capital deployment between buybacks and spending on CapEx?
  Response: Priority is investing in growth (verticalization, platform, international); will opportunistically repurchase shares when market valuation meaningfully underestimates intrinsic value.

• Question from Brian Tanquilut (Jefferies): On negotiations with Novo and the decision to lower GLP prices, what are the sticking points and pros/cons of rolling out a Novo product through your platform?
  Response: Engagement with Novo is ongoing with limited public detail; the strategic goal is to partner to expand patient choice and affordability while leveraging Hims & Hers as a large consumer distribution platform.

• Question from Eric Percher (Nephron Research): Are you still on path for $725M for the year for weight loss, and how have the compound versus oral markets developed?
  Response: Weight-loss specialty is strong across orals and compounded GLP‑1s; orals broaden eligibility and are growing healthily — company remains on pace for $725M+.

• Question from Eric Percher (Nephron Research): The personalized compounded side — the $20M–$25M headwind — was that for 4Q and can you explain the cadence changes from 2Q to 3Q to 4Q?
  Response: Yes — the $20M–$25M Q4 headwind reflects shorter shipment cadences (more frequent, smaller shipments) which reduce revenue recognized per shipment; this timing effect should normalize by H2 2026 as cohorts rebuild.

• Question from Ryan MacDonald (Needham): As you've integrated Zava and expanded internationally, how is the Hims approach resonating outside the U.S., and what investments are required to scale clinician networks across markets?
  Response: Zava validated international demand and was accretive; the U.S. model translates well globally and the company will localize offerings and scale clinician networks and capabilities per market as it expands (Canada, U.K., Brazil, etc.).

• Question from Ryan MacDonald (Needham): On whole-body lab testing, is there a margin risk for a stand-alone lower-margin testing offering and how will you package it with longitudinal treatments to drive LTV/CAC?
  Response: Testing will act as lower-margin lead-gen and be bundled into treatment pathways; the company doesn't need high margins on tests and will verticalize to lower costs, driving conversions into higher-LTV care.

• Question from Jungwon Kim (TD Cowen): Any changes in marketing strategy driving the Q3 leverage, and how are you thinking about marketing investments for next year (e.g., Super Bowl) after last year's success?
  Response: Marketing leverage comes from rising organic/lower-cost acquisition and stronger retention via personalized offerings; company will continue to invest in brand and channels selectively, targeting ~1-year payback and disciplined capital allocation.

Contradiction Point 1

GLP-1 Revenue Outlook

It involves differing views on the expected revenue trajectory for the GLP-1 specialty, which is a significant part of the company's weight loss segment.

Will you meet the $725 million weight loss target for the year? Can you clarify the compound vs oral market dynamics? - Eric Percher (Nephron Research)

2025Q3: We are on track for the $725 million weight loss target. The oral business grows robustly due to broader eligibility and lower prices. GLP-1 offerings remain strong. The headwinds in Q4 are due to shorter shipping cadences, but as cohorts renew, this dynamic will normalize by the second half of 2026. - Yemi Okupe(CFO)

How should we model the GLP-1 revenue decline in Q3 and Q4 based on Q2 data? - Eric Percher (Nephron Research)

2025Q2: In Q2, GLP-1 had material headwinds due to offboarding commercially available dosages. Remaining products like oral weight loss and personalized semaglutide are expected to grow. Revenue recognition will be lower per order but more frequent, leading to an acceleration in Q4. - Oluyemi Okupe(CFO)

Contradiction Point 2

Marketing Strategy and Spending

It involves differing views on the company's marketing strategy and the expected payback period for marketing investments.

Has the marketing strategy changed, and what are the Super Bowl and future plans? - Jungwon Kim (TD Cowen)

2025Q3: Our marketing strategy leverages organic and lower-cost channels, along with strong retention from personalized solutions. As we expand into new specialties and international markets like Canada, we will invest strategically to further grow our presence. Our confidence in meeting 2030 targets remains high, and we are aligning investments to support this. - Yemi Okupe(CFO)

How should we think about marketing spend in the second half of the year and patient acquisition costs? - Brian Tanquilut (Jefferies)

2025Q2: We plan to invest robustly while maintaining a payback period below a year. Volatility in Q2 taught us to manage efficient marketing. We'll continue to focus on a year or less payback period. - Oluyemi Okupe(CFO)

Contradiction Point 3

Longevity Product and Peptide Facility Timeline

It involves the timeline and plans for the introduction of longevity products and the role of the peptide facility in this process, which impacts the company's product strategy and market positioning.

What is the timeline for launching the full-stack subscription service, including at-home testing, peptides, and expanded longevity offerings? What are the key challenges in rolling out this service? - Nick G (Hims House community)

2025Q3: The longevity specialty will launch in 2026 with treatments like peptides, coenzymes, and more, designed for performance, recovery, and cardiometabolic longevity markers. - Andrew Dudum(CEO)

What longevity product are you developing via the peptide facility acquisition? How does the facility align with plans to expand lab testing and targeted treatments? - Nick G (Hims House Community)

2025Q1: The peptide facility will be a vital component of the future platform, broadening access to innovative therapeutics. It will enable us to bring cutting-edge care to the masses at affordable and hyper-personalized scales. - Andrew Dudum(CEO)

Contradiction Point 4

Hims & Hers Platform Expansion Strategy

It involves the strategic direction of the Hims & Hers platform, particularly in the expansion into new specialties and the use of personalized offerings, which are key to the company's growth strategy.

With increased diagnostic capabilities, how will Hims & Hers expand into new specialties and adjust its marketing strategies? - Justin Patterson (KeyBanc Capital Markets)

2025Q3: As diagnostics increase, the pace of new product offerings will accelerate, and personalization will become more hyper-focused. - Andrew Dudum(CEO)

What is the mix of personalized and commercial dosages in the GLP-1 business, and what are the risks of personalization post-Q1? - Ryan MacDonald (Needham)

2024Q4: We are confident that our investments in both personalized care and assimilation of specialties will drive growth over the next few years. - Andrew Dudum(CEO)

Contradiction Point 5

GLP-1 Partnership and Personalized Doses Strategy

It involves the strategic alignment and partnership with a key player in the GLP-1 space, which affects the company's product offerings, pricing strategy, and relationships with pharmaceutical companies.

How is your GLP-1 specialty strategy evolving with the Novo partnership? How might consumer price sensitivity and price cuts affect demand? - Maria Ripps (Canaccord Genuity)

2025Q3: Our strategy includes pursuing partnerships and new innovations to give patients personalized treatment options. Verticalizing capabilities allows us to optimize pricing and make options more accessible. - Andrew Dudum(CEO)

How do you balance growth strategies between personal lines and brand partnerships, especially with plans to transition subscribers to commercial doses in the near term? - Eric Percher (Nephron Research)

2025Q1: We aim to be blue chip and play by the rules in personalization. Clinical necessity determines personalized semaglutide use, with side effects like nausea and vomiting as legitimate justifications. We provide choice to consumers within regulatory boundaries, ensuring the best clinical outcomes. - Andrew Dudum(CEO)