Hims & Hers Health Inc (HIMS) Q1 2025 Earnings Call Highlights: Record Revenue Growth and ...

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Tue, May 6, 2025, 1:07 AM 4 min read

Revenue: $586 million, up 111% year over year.
Adjusted EBITDA: $91 million, nearly triple from the same quarter last year.
Adjusted EBITDA Margin: Nearly 16%, expanded by over 4 points quarter over quarter.
Subscriber Base: Nearly 2.4 million, a year-over-year increase of 38%.
Monthly Online Revenue per Average Subscriber: $84, up more than 50% year over year.
Gross Margin: Declined approximately 3 points quarter over quarter.
Marketing Spend: 39% of revenue, improved by 8 points year over year.
Cash Flow from Operations: $109 million.
Free Cash Flow: $50 million.
Cash and Short-term Investments: $323 million at quarter end.
Capital Expenditures (CapEx): $59 million invested in the first quarter.
Guidance for Q2 2025 Revenue: $530 million to $550 million, representing growth of 68% to 74% year over year.
Guidance for Q2 2025 Adjusted EBITDA: $65 million to $75 million, reflecting a 13% margin at the midpoint.
Full Year 2025 Revenue Guidance: $2.3 billion to $2.4 billion, up 56% to 63% year over year.
Full Year 2025 Adjusted EBITDA Guidance: $295 million to $335 million, reflecting a 13% margin at the midpoint.

Warning! GuruFocus has detected 3 Warning Sign with HIMS.

Release Date: May 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Revenue grew 111% year over year to $586 million, demonstrating strong momentum.
Subscriber base increased by 38% year over year, reaching nearly 2.4 million.
Partnership with Novo Nordisk expands access to branded Wegovy, enhancing weight loss offerings.
Adjusted EBITDA nearly tripled, reaching $91 million, indicating improved profitability.
Expansion into new specialties like low testosterone and menopause support is underway, broadening service offerings.

Negative Points

Gross margins declined approximately 3 points quarter over quarter due to scaling of GLP-1 revenue.
Volatility expected in sexual health growth as the company transitions to more premium daily products.
Marketing efficiency may experience volatility as the company leans into specialty-specific marketing.
Transition of subscribers off commercially available semaglutide expected to result in a one-time revenue drop in Q2.
Potential headwinds from macroeconomic factors such as tariffs could impact gross margins.

Q & A Highlights

Q: Can you elaborate on the future road map Hims & Hers and Novo Nordisk are developing together? What do you see as the next possible steps on this road map? A: Andrew Dudum, CEO: The collaboration with Novo Nordisk is exciting, and both teams are aligning on a shared vision for the future of healthcare. We see opportunities across categories, product lines, and geographies. This partnership is a blueprint for the next 5 to 10 years, integrating innovations in biotech, diagnostics, and preventative testing. Our platform aims to unify a disjointed industry, benefiting consumers by broadening the ecosystem.

Q: What type of longevity products is the team looking to build with the recent acquisition of the peptide facility? How does this fit with the plan to roll out lab testing and offer more targeted treatments? A: Andrew Dudum, CEO: We are investing in innovative operations to deliver cutting-edge care. Peptide innovation is expanding rapidly, and we aim to make these treatments accessible to a broader audience. The peptide facility will be vital for our future platform, intersecting with lab testing and longevity to offer proactive and preventative care. We plan to offer solutions that help customers understand and optimize their health.

Q: On the weight loss category and the target for $725 million of revenue this year, what are the key drivers? A: Oluyemi Okupe, CFO: We are confident in meeting or exceeding the $725 million target due to the breadth of offerings in the weight loss specialty. We recently launched liraglutide and partnered with Novo Nordisk for branded Wegovy, alongside existing products like personalized semaglutide and oral offerings. These options provide strength across the specialty, supporting our revenue and adjusted EBITDA guidance.

Q: Can you discuss the initiatives to re-accelerate growth in the sexual health vertical? A: Andrew Dudum, CEO: We are transitioning the sexual health business from an on-demand model to one offering broader care, including cardiometabolic and testosterone support. This involves accelerating R&D and expanding services. Daily solutions have doubled year over year, now accounting for 40% of the business. We aim to provide hyper-personalized, multi-action care, improving retention and expanding with customers as they age.

Q: How do you approach the opportunity for growth in personalized GLP-1s versus brand partnerships? A: Andrew Dudum, CEO: We aim to be blue-chip and adhere to regulations. Personalized semaglutide will remain on the platform for clinical necessity, such as side effect mitigation. We believe in offering choice and selection to consumers, allowing providers to make the best clinical decisions. Personalized options are additive to the ecosystem, catering to patients who cannot use commercial doses.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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