Hims & Hers (NYSE: HIMS) Earnings Are In (Live Coverage)

Hims & Hers reported strong financial results for the first quarter of 2025, with revenue rising 111% year-over-year to $586.0 million. Net income for the quarter was $49.5 million, up from $11.1 million in Q1 2024. The company posted adjusted EBITDA of $91.1 million, compared to $32.3 million a year ago, bringing adjusted EBITDA margin to 16%.

The company’s subscriber base grew to 2.4 million, reflecting 38% growth from the prior year. Monthly online revenue per average subscriber increased 53% to $84, indicating higher per-user monetization.

Gross margin came in at 73%, down from 82% in the prior year period, which the company attributes to product mix changes and scaling of new fulfillment capabilities.

Following the FDA’s decision to end the semaglutide shortage, Hims transitioned away from compounded GLP-1 prescriptions and began offering branded alternatives through a new partnership with Novo Nordisk. Despite the shift, revenue and subscriber growth remained strong in Q1, with leadership citing continued adoption across weight loss and other care categories.

The company maintained its full-year revenue guidance of $2.3 billion to $2.4 billion and raised its adjusted EBITDA guidance to a range of $295 million to $335 million. Additionally, management introduced new long-term targets for 2030, aiming for at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA.

Hims will host a conference call later today to discuss the results in more detail, including performance drivers across its growing portfolio of care categories and operational updates related to its pharmacy and logistics network.

• GLP-1 Transition Under Scrutiny
  Hims’ shift from compounded to branded GLP-1s will test growth durability, margin structure, and fulfillment capacity — all eyes are on early uptake and unit economics.

• Subscriber Momentum Must Hold
  Strong 2024 subscriber growth now faces a regulatory test; Q1 must confirm continued expansion and multi-vertical engagement to validate the platform’s scalability.

• Margins Reflect Operational Discipline
  Analysts expect stable 6–8% EBITDA margins; any deviation could signal pressure from branded drug costs or fulfillment inefficiencies as Hims expands care categories.

Hims has appointed Nader Kabbani as its new Chief Operating Officer, marking a significant leadership addition as the telehealth company expands its personalized care offerings. Kabbani brings nearly two decades of experience from Amazon, where he led initiatives including the acquisition of PillPack, the launch of Amazon Pharmacy, and the development of Amazon Logistics and Kindle. He also oversaw Amazon’s COVID-19 vaccination efforts for over a million individuals.

CEO Andrew Dudum emphasized Kabbani’s role in scaling global operations to deliver affordable, seamless healthcare. The appointment coincides with Hims & Hers’ recent partnership with Novo Nordisk to offer the FDA-approved weight-loss drug Wegovy through its platform, enhancing access to obesity care. Following these developments, HIMS stock rose over 3% to $42.19, reflecting investor confidence in the company’s strategic direction.

Hims & Hers has guided for FY25 revenue between $1.17 billion and $1.19 billion, representing a healthy increase over FY24’s $872 million. Adjusted EBITDA is expected to land between $70 million and $80 million, implying sustained EBITDA margins above 6%. These targets reflect a careful balance between growth and profitability as the company moves into new, more regulated care categories.

On the Q4 2024 earnings call, CFO Yemi Okupe emphasized the company’s intention to drive profitability without compromising growth, pointing to the success of its vertically integrated model and data-driven customer acquisition engine. Management also highlighted efforts to improve marketing efficiency and maintain strong retention through service layering.

The guidance includes expectations around the full rollout of branded GLP-1 medications following the discontinuation of compounded options. The shift is likely to influence both gross margins and per-customer profitability, making this quarter’s commentary on cost structure especially relevant to modelers.

Analysts will be looking for any updates to this outlook, especially if the adoption curve for Wegovy is ahead of expectations or if churn increases materially. Margin stability in Q1 could reinforce confidence in the scalability of the platform, particularly as Hims expands into higher-acuity care and medication fulfillment partnerships.

Investor sentiment around Hims & Hers heading into Q1 earnings is cautiously constructive. While the discontinuation of compounded GLP-1 prescriptions introduced a level of uncertainty, analysts have broadly applauded the company’s rapid strategic response. The April announcement of a partnership with Novo Nordisk to offer Wegovy, an FDA-approved GLP-1 treatment, helped alleviate fears of demand disruption and was viewed as a critical step in maintaining user continuity.

Sell-side coverage remains largely bullish, with price targets consolidating in the mid-$20s. Several firms — including Jefferies and Bank of America — have reiterated their positive outlooks, citing Hims’ resilient subscriber growth and potential upside from new care verticals. That said, consensus does reflect a more tempered stance compared to late 2024, when sentiment was euphoric around GLP-1 traction.

Key themes in recent analyst notes include scrutiny over fulfillment cost structures for branded medications, margin implications from co-branded logistics, and whether churn rates might tick up in Q1. While no major downgrades have surfaced, several firms have flagged the need for greater transparency around economics per subscriber and cost-per-acquisition as the company scales.

Ultimately, today’s earnings report will serve as a barometer of investor confidence in Hims’ ability to absorb regulatory shocks and maintain momentum. Sentiment remains optimistic — but Q1 results could either validate or reset expectations for FY25 growth.

Throughout 2024, Hims & Hers demonstrated consistent top-line acceleration driven by new product introductions and broader consumer adoption. The company’s revenue grew from $260 million in Q1 2024 to $481 million in Q4, with subscriber growth moving in tandem — increasing from 1.5 million to 2.2 million across the same period.

This momentum reflects strong execution across multiple verticals, especially in mental health and metabolic care. In particular, the launch of GLP-1 weight-loss services mid-2024 significantly bolstered engagement, although much of that volume came through compounded versions prior to the recent FDA decision. With branded access now in place, investors are keen to see if the company can preserve that growth trajectory in Q1 2025.

Comparing past quarters also reveals positive trends in average order value and retention. CFO Yemi Okupe previously pointed to increasing multi-category engagement as a margin lever — users who start with one vertical, such as mental health, often expand into dermatology or primary care.

As today’s results arrive, the question is whether these patterns have continued into 2025, or if the post-compounding GLP-1 adjustment is creating temporary friction in subscriber additions. Forward commentary on churn, conversion, and re-engagement will be vital to contextualizing Q1 results.

According to Capital IQ, the Street expects Q1 2025 revenue of $260.91 million, representing 57% year-over-year growth. EPS is projected at $0.03, consistent with the company’s recent trend of balancing top-line growth with margin expansion.

Analysts have remained relatively steady in their forecasts over the past 60 days, signaling confidence in the company’s ability to execute through volatility. Notably, some models may not fully account for the rapid GLP-1 shift from compounded to branded fulfillment. Thus, revenue composition and subscriber dynamics will be closely scrutinized in the release.

In terms of profitability, consensus EBITDA margins are expected to come in around 6%–8%, roughly in line with FY24 results. The company previously guided for FY25 revenue between $1.17B and $1.19B, with EBITDA between $70M and $80M — targets that could be revised depending on Q1 performance and adoption trends of new product categories.

The telehealth platform was hit earlier this year by the Food & Drug Administration declaring there was no longer a shortage of Ozempic or Wegovy, the GLP-1 drugs sold by Novo Nordisk (NYSE:NVO) for the treatment of of diabetes and obesity, respectively. 

Because Hims was able to sell compounded versions of the treatments, the FDA announcement crushed HIMS stock, cutting the stock nearly in half. It subsequently loss some 68% of its value, despite promising to sell personalized dosages of semaglutide. That’s a bit of an end-run around the regulations, as the generic versions of the branded drug can continue to be sold so long as they are personalized beyond the standard dosages commercially available.

More than just weight-loss

Yet GLP-1 drugs represented less than 20% of Hims & Hers revenue in 2024 while hair-loss products for both men and women enjoyed phenomenal growth. In Q4, Hims Derm saw 55% year-over-year subscriber growth while Hers Derm more than doubled. Hims provides generic Rogaine and Propecia.

Other major contributors to HIMS 69% revenue growth in 2024 include sexual health treatments, such as drugs for erectile dysfunction, such as generic Viagra, and mental health services and treatments, including generic Zoloft.

And just last week, Hims & Hers and Novo Nordisk announced an agreement for the telehealth platform to sell branded Wegovy on its site for $599 per month.

This is a significant opportunity because it derisks the potential for litigation from the Dutch pharmaceutical while bringing in a well-known brand. It also means Hims will likely stop selling its cheaper compounded versions as it transitions subscribers to the branded drug.

Hurdles still to get over

However, Wegovy has lost significant market share to rival Eli Lilly‘s (NYSE:LLY) Zepbound, because it is seen as a better, more efficacious GLP-1 drug. 

Zepbound’s active ingredient, tirzepetide, is known as a dual-agonist as it targets the GLP-1 receptors as well as the receptors. Semaglutide only targets the GLP-1 receptor. Lilly also recently reported positive late-stage clinical trial results for its oral weight-loss treatment orforglipron. It expects to gain FDA approval to market it later this year and is already stockpiling the drug so there are no shortages.

These developments mean Hims & Hers may enjoy less traction in sales than many envision as suggested by HIMS 45% bounce in the stock last week. HIMS stock is up 2% at $41.64 per share ahead of the market’s open.

Shares of Hims & Hers Health have rallied 250% over the past year, buoyed by growing adoption of its direct-to-consumer model and continued expansion into new care categories. The company’s focus on retaining customers and driving lifetime value through vertical integration has enabled strong gross margins and operating leverage.

Today, investors are watching closely to see how the company weathers regulatory headwinds in the weight-loss market. In early 2025, the FDA declared the semaglutide shortage over, ending a period during which compounded GLP-1 prescriptions helped fuel subscriber growth. That decision forced Hims to discontinue those compounded offerings, but the company moved swiftly — launching a partnership with Novo Nordisk to provide access to branded Wegovy through its platform.

This pivot has helped stabilize investor sentiment, but the impact on margins and customer acquisition remains unclear. Bulls argue that branded partnerships provide more durable growth; skeptics question the long-term pricing structure and whether the company can retain users amid evolving fulfillment models.

Heading into earnings, there is high expectations for continued subscriber growth, and we will be focused on that number when earnings are out.