Hims & Hers Health (HIMS 1.28%), a direct-to-consumer digital health platform focusing on telehealth, subscription medications, and personalized care, released its second quarter 2025 results on August 4, 2025. The headline news: GAAP revenue grew sharply to $544.8 million, up 73% year over year, but finished 1.2% below the consensus GAAP estimate of $551.7 million. However, earnings per share (diluted, GAAP) was $0.17, The quarter saw strong subscriber growth and profit expansion, but gross margin (GAAP) decreased to 76% from 81% in Q2 2024 and free cash flow (non-GAAP) turned negative, raising questions around operational investments and cash efficiency compared to the previous year.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Diluted (GAAP) | $0.17 | $0.15 | $0.06 | 183.3 % |
| Revenue | $544.8 million | $551.7 million | $315.6 million | 72.6 % |
| Adjusted EBITDA | $82.2 million | $39.3 million | 109.4 % | |
| Free Cash Flow | $(69.4) million | $47.6 million | (245.8 %) | |
| Subscribers (end of period) | 2.44 million | 1.86 million | 30.8 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Hims & Hers Health: Business Model and Recent Strategy
Hims & Hers Health offers digital healthcare through a subscription platform, enabling customers to access telehealth consultations, receive prescription treatments, and purchase personalized health and wellness products. Most revenue derives from its direct-to-consumer digital platform. Its model combines telehealth visits, e-commerce, and pharmacy fulfillment, making it easier for consumers to obtain treatments for conditions like hair loss, sexual health, weight management, mental health, and dermatology.
Recent business priorities have included expanding personalized care offerings, increasing the breadth of specialties supported, and investing in technological infrastructure. The company's ability to scale its digital platform, maintain regulatory compliance, and introduce new specialty areas—supported by strategic acquisitions in lab diagnostics and pharmacy—are key to its current and future success.
Quarter in Review: Growth, Investments, and Challenges
During the second quarter of 2025, Hims & Hers Health delivered strong top-line GAAP revenue growth but did not meet analyst revenue targets, reporting $544.8 million in GAAP revenue against the $551.7 million estimate. This shortfall, though modest in percentage terms (GAAP revenue missed consensus by approximately 1.2%), was notable.
Adjusted EBITDA, as defined by the company, more than doubled to $82.2 million, pointing to improved operational leverage as the business scales. Net income margin (GAAP) improved to 8%, with total net income (GAAP) of $42.5 million compared to $13.3 million for Q2 2024. However, gross margin dropped from 81% in Q2 2024 to 76%, a contraction of 5 percentage points. This was attributed to factors including product mix changes, particularly the growth of weight loss treatments, which carry lower gross margins. Higher investment in infrastructure and cost of goods for certain pharmaceuticals also weighed on profitability measures.
The company’s subscriber count reached 2.44 million, up 31% year-over-year. Monthly online revenue per average subscriber jumped 30% to $74, as users increasingly opted for personalized care programs in areas such as weight management and mental health. Online revenue—a key segment for the business—climbed 75% year over year, while wholesale revenue, representing less than 2% of total sales, fell by 10%. This indicates a clear strategic focus on recurring subscription revenue over one-time sales to third parties.
The period also saw continued investment in technological infrastructure. These moves are aimed at enabling greater personalization of care and support the addition of new medical specialties. Marketing expense was $217.9 million, up 50% from $144.9 million in Q2 2024, with ongoing efforts to build brand trust and attract new subscribers.
One of the quarter’s most concerning trends emerged in cash flow. Free cash flow (non-GAAP) swung from $47.6 million positive in Q2 2024 to negative $69.4 million. Inventory more than doubled over the past year to $141.8 million as of June 30, 2025. Capital expenditures, or CapEx, were $50.3 million compared to $6.0 million in Q2 2024. Although cash and equivalents jumped to $1.12 billion as of June 30, 2025, this was primarily due to proceeds from a $970 million convertible note, not from underlying operations.
The dividend status remains unchanged: HIMS does not currently pay a dividend.
Business Context: Product Families and Market Expansion
The company’s power lies in its scalable digital platform, which can quickly introduce new specialty offerings as health trends evolve. For example, the weight loss specialty leverages a combination of telehealth consultations and prescription medications, including both oral and injectable therapies. The recent partnership with pharmaceutical leader Novo Nordisk introduces branded GLP-1 drugs, such as Wegovy, as an additional option for subscribers, expanding customer options and providing brand validation in the competitive weight management space.
Other specialty areas, such as mental health, focus on telemedicine and subscription access to therapy or medication management, while dermatology leverages personalized treatments for both men’s and women’s skin and hair concerns. New investments in at-home lab testing and data analytics support a growing list of personalized treatment plans, designed to drive long-term retention among subscribers. The introduction of hormone-driven care for low testosterone and menopause is next on the roadmap, benefiting from internal pharmacy upgrades and enhanced fulfillment automation.
Looking Ahead: Guidance and Watch Points
Hims & Hers Health maintained its guidance for full-year 2025, forecasting revenue between $2.3 billion and $2.4 billion, and adjusted EBITDA of $295 million to $335 million for a margin of 13–14% for FY2025. For Q3 2025, management projected revenue of $570–$590 million and adjusted EBITDA between $60 million and $70 million, with a slightly lower margin of 11–12%. No changes were made to product rollout plans or specialty launches, with major upcoming areas including expanded international presence, low testosterone, and menopause support.
Investor attention should focus on several key areas in the coming quarters. First, the company’s ability to convert subscriber gains into sustainable positive cash flow will be important given the steep swing to negative Free Cash Flow (non-GAAP) of $(69.4) million. Second, gross margin trends should be monitored closely, as expanded offerings in weight management and other lower-margin categories could continue to pressure profitability. Gross margin was 76% compared to 81% for Q2 2024. Finally, operational discipline in capital allocation—and progress integrating acquisitions—will be crucial as the business scales and invests heavily in platform capabilities. HIMS does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
