HIMS & HERS (HIMS) Q2 revenue 73% increase
HIMS & Health (To him 1.38%))The consumer direct digital health platform, which focuses on remote health, subscription drugs and personalized treatment, announced the results of the second quarter of 2025 on August 4, 2025. Headline News: GAAP revenue has risen sharply to $ 554.8 million, up 73% year -on -year, but is less than 1.2% of agreement estimates of $ 550 million. However, the weekly revenue (dilution, GAAP) was $ 0.17, and this quarter had strong subscriber growth and profit expansion, but GAAP (Gross Margin) decreased from 81%to 76%in the second quarter of 2024, and free cash flows (GAAP) had negative results, compared to the previous year, and more efficiency in cash efficiency compared to the previous year. I asked questions.
| Metrics | Q2 2025 | Q2 2025 estimates | Q2 2024 | And/and and change |
|---|---|---|---|---|
| EPS -Dilution (GAAP) | $ 0.17 | $ 0.15 | $ 0.06 | 183.3 % |
| revenue | $ 544.8 million | $ 557 million | $ 335 million | 72.6 % |
| Adjusted EBITDA | $ 822 million | $ 39.3 million | 109.4 % | |
| Free cash flow | $ (69.4) Million | $ 47.6 million | (245.8 %) | |
| Subscriber (termination terms) | 2.44 million | 186 million | 30.8 % |
Source: Estimation of Analysts provided by FactSet. Expectations for management guidelines provided in the first quarter of 2025.
HIMS & HERS Health: Business Model and Latest Strategy
HIMS & HERS Health provides digital health care through the subscription platform so that customers can access remote health counseling, receive prescription treatment, and buy personalized health and wellness products. Most profits are derived from digital platforms. This model combines remote health visits, e -commerce and pharmacies so that consumers can get more easily treated with hair loss, sex health, weight management, mental health and skin.
Recent business priorities included investments in technology infrastructure by expanding personalized medical services and increasing the width of supported specialized areas. The ability to expand the digital platform, maintain regulatory compliance, and introduce a new specialty that is supported by laboratory diagnosis and pharmacy strategic takeovers is the core of the current and future success.
Review Quarterly: Growth, Investment and Challenge
In the second quarter of 2025, HIMS & HERS HEALTH provided the strongest high -end GAAP sales growth, but failed to achieve the analyst’s profit goal, but reported $ 544.4 million for GAAP sales of $ 550 million. This tribe was noteworthy that the humble percentage terms (GAAP revenue missed about 1.2%consensus).
The EBITDA, which is adjusted as defined by the company, has more than doubled to $ 82.2 million, improving the operating leverage on a business scale. Net profit (GAAP) was improved to 8%, and total net profit (GAAP) improved to $ 42.5 million, compared to $ 13.3 million in the second quarter of 2024. This is due to factors, including changes in product mix, especially the growth of low weight loss processing. Infrastructure and product costs for certain medicines also affected profitability measurement.
The number of subscribers in the company reached 2.44 million, up 31% year -on -year. As users choose personalized treatment programs in areas such as weight management and mental health, monthly online profits have increased by 30%. Online revenue, the core sector of business, accounted for 75% year -on -year, and wholesale income, which accounts for less than 2% of total sales, decreased by 10%. This represents a strategic focus on repeated subscription revenue for one -time sales.
This period also saw continuous investment in technology infrastructure. This move aims to improve the personalization of treatment and to support the addition of new medical specialists. Marketing costs were $ 279 million, up 50% from $ 140 million in the second quarter of 2024, and continued to build brand trust and to attract new subscribers.
One of the most related trends in the quarter was in cash flows. The free cash flow (non -GAAP) ranged from $ 47.6 million to $ 69.4 million in the second quarter of 2024. As of June 30, 2025, inventory has more than doubled over the past year, $ 141.8 million, $ 141.8 million, $ 148 million, and capital expenditure was $ 533 million compared to $ 600,000 in June 2024. As of June 30, 2025, cash and equivalence increased to $ 112 billion, but this was mainly due to profits from $ 990 million notes.
Dividend status is not changed. HIMS does not pay dividends currently.
Business situation: Product family and market expansion
The company’s power is on an expandable digital platform, and as the health trends develop, you can quickly introduce new professional products. For example, weight loss expertise uses a combination of remote health counseling and prescription drugs, including oral and injection therapy. Recently, partnership with Pharmaceutical Leader Novo Nordisk provides brand verification of brand GLP-1 drugs such as Wegovy for additional options for subscribers, customer options and competitive weight management spaces.
Other special areas, such as mental health, focus on subscription approaches to telemedicine and treatment or drug management, while dermatology uses personal treatment for the skin and hair problems of men and women. New investments in home laboratory tests and data analysis support a list of personalized treatment planning designed to lead long -term maintenance between subscribers. The introduction of low testosterone and hormone -based treatment for menopause is followed by the roadmap and benefits from upgrading internal pharmacy and enhanced implementation automation.
Earlier: Guide and watch point
HIMS & HER HEALTH maintained a guideline for the whole in 2025, predicting sales between $ 2.3 billion and $ 2.4 billion, and adjusted EBITDA from $ 295 million to $ 335 million for FY2025’s 13-14% margin. In the third quarter of 2025, executives adjusted $ 550 million in sales and EBITDAs between $ 60 million and $ 70 million, with a slightly lower margin of 11-12%. Product rollout plans or special launches have not been changed, along with major areas in major areas, including the expanded international location, low testosterone and menopause.
Investors’ interest should focus on several major areas in a few quarters. First, the company’s ability to convert subscriber profits into sustainable positive cash flows will be important considering the steep swing as $ (69.4) of $ 69.4 for negative free cash flows (non -GAAP). Second, the extended offering of weight management and other lower margin categories can keep the pressure profitability, so it is necessary to closely monitor the total margin trend. The total margin was 76%compared to 81%in the second quarter of 2024. Finally, the operating field of capital allocation is important as a business scale and will invest greatly in the platform function. HIMS does not pay dividends currently.
Unless otherwise specified, income and net profit presented using the United States are generally recognized accounting principles (GAAP).
