Hims & Hers Health’s second quarter results were met with a significant negative market reaction, as sales growth lagged Wall Street’s expectations despite a strong rise in non-GAAP profitability. Management attributed the shortfall in revenue to deliberate shifts in their product mix, including a transition away from on-demand sexual health offerings and a temporary headwind in personalized GLP-1 (weight loss) treatments. CEO Andrew Dudum noted that, "our typical weight loss subscriber has six interactions with the provider in the first 3 months," emphasizing the company’s focus on deepening personalized care and improving customer retention through higher engagement and broader treatment options.
Is now the time to buy HIMS? Find out in our full research report (it’s free).
Hims & Hers Health (HIMS) Q2 CY2025 Highlights:
- Revenue: $544.8 million vs analyst estimates of $550.8 million (72.6% year-on-year growth, 1.1% miss)
- Adjusted EPS: $0.29 vs analyst estimates of $0.23 (26.3% beat)
- Adjusted EBITDA: $82.24 million vs analyst estimates of $72.2 million (15.1% margin, 13.9% beat)
- The company reconfirmed its revenue guidance for the full year of $2.35 billion at the midpoint
- EBITDA guidance for the full year is $315 million at the midpoint, below analyst estimates of $319.4 million
- Operating Margin: 4.9%, up from 3.5% in the same quarter last year
- Customers: 2.44 million, up from 2.37 million in the previous quarter
- Market Capitalization: $10.84 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hims & Hers Health’s Q2 Earnings Call
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Maria Ripps (Canaccord): Asked about dynamics between the core business and weight loss segment, and whether underlying trends would support future growth; CFO Yemi Okupe explained headwinds from offboarding GLP-1 subscribers and the deliberate shift in sexual health offerings, but noted strong growth in dermatology and daily sexual health.
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Craig Hettenbach (Morgan Stanley): Requested an update on the performance of the Hers business and AI investment returns; Okupe cited robust growth in dermatology and upcoming hormonal support, while CEO Andrew Dudum described plans for rapid deployment of AI-powered features to improve efficiency and engagement.
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Eric Percher (Nephron Research): Sought clarification on GLP-1 revenue headwinds and modeling assumptions; Okupe indicated that the impact was mostly from offboarding commercial GLP-1s and expects renewed growth in other weight loss components, with a stronger outlook for Q4.
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Ryan MacDonald (Needham & Company): Inquired about Canadian expansion branding and the impact of generic GLP-1 pricing; Dudum confirmed use of both Hims & Hers brands and projected material market unlocks due to lower generic pricing.
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Brian Tanquilut (Jefferies): Questioned marketing spend and customer acquisition costs; Okupe emphasized a disciplined approach, maintaining a sub-one-year payback even as the company increases investment to support new specialties and markets.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be watching (1) the adoption and retention rates for new daily sexual health and weight loss offerings, (2) the impact of AI-powered care agents and lab testing integration on customer experience and operational efficiency, and (3) the pace of international expansion, particularly in Europe and the upcoming Canadian launch. Execution on these priorities and the ability to manage marketing spend amid product transitions will be critical signposts for sustained growth.
Hims & Hers Health currently trades at $48.20, down from $63.45 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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