0001773751-26-000022
SEC filingRevenue surged 59% to $2.35B driven by personalized and weight loss offerings, but gross margin contracted 5pp to 74% as mix shifted.
Hims & Hers Health, Inc. launched in 2017 and describes itself as a consumer-first health and wellness platform that transforms how customers fulfill their health and wellness needs. The mission is "to help the world feel great through the power of better health." The platform provides access to a distributed provider network, electronic medical records, digital prescriptions, cloud pharmacy fulfillment, and personalization capabilities. Offerings span chronic conditions including sexual health, hair loss, hormone health, weight loss, dermatology, and mental health, as well as comprehensive laboratory testing. Since founding, the company has facilitated over fifty million telehealth consultations across the United States, Canada, the United Kingdom, and parts of the European Union (Germany, Republic of Ireland, France, and Spain).
The core platform is accessible via websites (hims.com, forhers.com, zavamed.com, etc.) and mobile applications. Prescription medications include generic, brand-name, and compounded drugs, with the majority fulfilled through wholly-owned pharmacies (two licensed 503A pharmacies, a licensed 503B outsourcing facility, a peptide manufacturing facility, and a lab facility). Over-the-counter products include drug/device products, cosmetics, and supplements, many white-labeled or co-developed with manufacturers. Lab testing services measure biomarkers for health assessment and clinical management. Subscriptions are offered with cadences from 30 to 360 days.
Customers are acquired through diverse marketing channels: social media, online search, television, radio, retail partnerships, and physical brand advertising. The company emphasizes omnichannel acquisition and organic growth via word-of-mouth. No single customer accounts for a material portion of revenue. The company also has partnerships with health systems (Ochsner Health, Mount Sinai Health System, Carbon Health, ChristianaCare Health System, Hartford Healthcare) for in-person care referrals, without monetary exchange.
Competition is fragmented. In direct-to-consumer health and wellness, competitors include traditional healthcare providers, pharmacies, and large retailers selling non-prescription products. In direct-to-consumer healthcare, competitors are smaller, niche private organizations in sexual health, weight loss, menopause, testosterone, hair loss, and lab testing. In telehealth and health management, the company competes with larger providers serving self-insured employers and insurance plans, as well as public/private organizations in behavioral health.
Strategic priorities include: (1) building a trusted, easy-to-use brand that normalizes seeking treatment; (2) leveraging proprietary technology and a customizable integrated stack for personalized patient and clinician experiences; (3) expanding into new specialties with high prevalence and recurring treatment needs (sleep disorders, PTSD, fertility, diabetes, cholesterol, hypertension); (4) growing within the existing customer base through cross-sell and longer subscription adoption; (5) international expansion, exemplified by the announced acquisition of Eucalyptus (Australia, UK, Germany, Canada, Japan); and (6) enhancing operational leverage through owned facilities for personalized fulfillment and cost reduction.
As of December 31, 2025, the company had 2,442 employees. Additionally, 1,586 medical providers (physicians, nurse practitioners, physician assistants, behavioral health providers) deliver care through Affiliated Medical Groups in all 50 U.S. states. In Canada, approximately 30 licensed healthcare providers are engaged. In the United Kingdom and European Union, physicians are directly employed or contracted through UK and Irish subsidiaries. The company operates a remote-first policy for corporate functions and emphasizes employee development, engagement surveys, and a holistic total rewards package.
Revenue for the year ended December 31, 2025 was $2.35 billion, a 59% increase from $1.48 billion in 2024. The growth was broad-based, led by the United States segment which grew 53% to $2.21 billion, driven by personalized offerings (over 70% of US revenue) and the Hers brand (nearly 40%). Rest of World Revenue surged 399% to $134 million, primarily from the acquisitions of Zava and Medici. Gross profit rose 48% to $1.73 billion, but gross margin contracted to 74% from 79% due to a mix shift toward weight loss offerings with higher product costs and shorter shipping cadences. Operating expenses increased 46% to $1.63 billion, but as a percentage of revenue they declined from 75% to 70%, reflecting operating leverage. Marketing expenses grew 35% to $919 million but fell as a percent of revenue from 46% to 39%. Operating income rose 71% to $106 million, yielding an operating margin of 4.5% versus 4.2% in the prior year. Net income was essentially flat at $128 million, as the prior year benefited from a $68 million tax benefit from the release of a valuation allowance.
The company now reports revenue by geography: United States and Rest of World. The US segment remains dominant, representing 94% of total revenue. Its 53% growth was fueled by personalized offerings, which more than doubled their share of US revenue from approximately half to over 70%. The Hers brand also gained share, rising from less than 30% to nearly 40% of US revenue, driven by GLP-1s and dermatology. Rest of World revenue increased nearly fivefold, largely from the Zava (UK/EU) and Medici (Canada) acquisitions. Subscriber growth was modest at 13%, but average revenue per subscriber jumped 28% to $83, reflecting higher-value personalized and weight loss subscriptions.
Management did not provide explicit numerical guidance, but outlined several strategic priorities. Revenue growth is expected to continue being driven by personalized offerings, with further expansion into international markets via the pending Eucalyptus acquisition (expected to close mid-2026). Gross margin is expected to fluctuate in the near term but stabilize over the long term as the business scales. Marketing expenses as a percentage of revenue are expected to decline over time due to leverage from mature offerings. Investments in fulfillment and manufacturing capacity will continue for at least the next 12 months. The company also noted that it expects to pursue additional acquisitions and investments in complementary technologies.
As of December 31, 2025, Hims & Hers held $228.6M in cash and cash equivalents, $348.9M in short-term available-for-sale investments, and $351.3M in long-term available-for-sale investments, totaling $928.8M in cash and liquid securities. Inventory stood at $80.1M (raw materials $53.2M, finished goods $27.0M). The company had $972.6M in 0% convertible senior notes (net of discount) due 2030, representing most of its debt, and $540.9M in stockholders' equity. Deferred revenue increased to $127.2M, up from $75.3M due to changes in weight loss offering shipping cadences.
Total non-cancelable purchase obligations were $32.0M as of year-end, primarily for cloud-based software contracts. Payments due: $14.8M in 2026, $14.6M in 2027, $2.5M in 2028, and $0.1M in 2029. Operating lease commitments were $217.0M gross ($148.0M present value), with a weighted average remaining lease term of 12.3 years. Notable new operating leases were signed in New Albany, Ohio ($69.4M ROU asset), Mesa, Arizona ($20.9M), and Menlo Park, California ($31.5M).
During 2025, the company repurchased $89.96M of Class A common stock (2.23M shares) under existing programs, exhausting the 2023 ($50M) and 2024 ($100M) programs. A new $250M buyback program was authorized in November 2025, with $225M remaining. The company also issued $1.0B aggregate principal of 0% convertible senior notes due 2030, netting $968.7M after discounts and costs. No dividends were paid. Capped calls were purchased for $47.8M to reduce dilution upon conversion.
The company operates as a single segment. Revenue was $2,347.6M, with United States contributing $2,213.6M (94.3%) and Rest of World $134.0M (5.7%). International revenue grew significantly due to the Zava acquisition in July 2025 and the Medici acquisition in November 2025, which established a Canadian presence. The CODM uses net income ($128.4M) as the profit measure; segment expenses including cost of revenue, customer acquisition costs ($798.5M), employee compensation, stock-based compensation ($135.2M), and depreciation are regularly reviewed.
The most critical risks stem from the rapidly evolving regulatory landscape for compounded GLP-1 drugs. The FDA's resolution of the semaglutide shortage in February 2025 restricted use of 503B facilities, and a February 2026 FDA statement specifically targeted Hims & Hers, indicating intent to restrict GLP-1 APIs for non-approved compounded drugs. Simultaneously, the HHS referred the company to the DOJ for potential FDCA violations. This unprecedented regulatory scrutiny could force operational changes, limit product offerings, and impose substantial legal costs. Additionally, expansion into peptide manufacturing and laboratory testing services introduces new FDA and state-level compliance obligations, as evidenced by a December 2025 warning letter for adverse event reporting deficiencies. International acquisitions (Zava, Medici, Eucalyptus) expose the company to divergent healthcare regulations in the UK, EU, and Canada, particularly concerning advertising of prescription medicines to the public.
The company's GLP-1 supply chain is highly concentrated, with certain weight loss offerings primarily fulfilled by a single supplier. Supply disruptions, trade policy changes, or batch failures could significantly impair order fulfillment. Dependence on third-party cloud infrastructure (AWS), Partner Pharmacies, and manufacturing suppliers creates multiple points of failure; any interruption could disrupt platform access and customer service.
Hims & Hers operates in intensely competitive markets against traditional healthcare providers, telehealth incumbents, pharmaceutical companies, and large retailers. The market for telehealth and compounded products is relatively new, and failure to achieve widespread acceptance—due to perceived risks, regulatory changes, or negative publicity—could hinder customer acquisition and retention. The company's brand is integral, and any reputational damage from safety concerns or influencer misconduct could have outsized impact.
The proposed acquisition of Eucalyptus for up to $1.15 billion carries significant integration risk, potential dilution if equity is used to fund consideration, and substantial transaction costs regardless of completion. The company's dual-class structure concentrates voting power with the CEO, limiting shareholder influence. Additionally, the need for capital to fund growth may lead to dilutive financing, and stock price volatility persists.
No cash flow data is available in the provided excerpt. The document contains only the audit report and a note on acquisition accounting for Zava. Actual cash flow statement numbers are not present, preventing analysis of CFO trends, capex intensity, or capital returns.