Company Overview
Hims & Hers Health, Inc. (HIMS) operates as a vertically integrated telehealth platform that controls every step of the patient experience. The company facilitates online doctor consultations, writes prescriptions through its own medical team, compounds medications via its in-house pharmacy, and handles delivery directly to the consumer.
This end-to-end ownership model has allowed the company to maintain strong margins across its product categories, which include skincare, hair loss treatments, sexual health products, weight loss solutions, and mental health services.
The platform currently serves approximately 2.5 million monthly subscribers and recently expanded brand awareness through a Super Bowl campaign. The company is also pursuing international growth through the acquisition of Zava, covering the UK, Germany, France, Ireland, and Spain — representing over 200 million addressable adults.
Key Financial Highlights (Q3 2025)
- Revenue reached nearly $600 million, representing a 49% year-over-year increase
- The subscriber base grew 21% year-over-year to approximately 2.5 million active members
- The company generated $16 million in net income and $78 million in adjusted EBITDA, up 53% year-over-year
- Free cash flow totaled $79 million for the quarter
- Monthly revenue per subscriber rose to $80, a 19% year-over-year increase driven by cross-selling
- Full-year 2025 revenue guidance stands at $2.3–$2.4 billion with over $200 million in projected adjusted EBITDA
The GLP-1 Controversy and Current Sell-Off
The stock has declined approximately 77% from all-time highs, driven largely by uncertainty surrounding the company's compounded semaglutide offering.
The company had been selling compounded versions of the active ingredient found in Ozempic and Wegovy at $199–$299/month versus approximately $1,000/month for branded versions — legally permitted because the FDA had placed semaglutide on its drug shortage list.
The FDA has since removed semaglutide from the shortage list, and Novo Nordisk filed a patent infringement lawsuit on February 9th seeking a permanent ban on the company's compounded semaglutide sales.
Why the Sell-Off Appears Overdone
The weight loss segment represents only approximately 30% of the company's 2025 revenue (~$725 million out of $2.35 billion). The remaining 70% of the business is entirely unrelated to the GLP-1 dispute.
Key considerations include:
✔️ The Hers brand alone, covering skincare, women's hair loss, menopause, and wellness, is on pace to exceed $1 billion in revenue in 2026 — none of which is tied to semaglutide
✔️ The weight loss segment includes products entirely outside the lawsuit's scope, including liraglutide (off-patent) and oral medication kits featuring metformin, bupropion, and topiramate
✔️ The platform retains the ability to prescribe branded Wegovy through its telehealth services, though at lower margins
✔️ When Eli Lilly pursued similar litigation against compounders Willow Health and Mochi Health, the courts dismissed the case entirely
