HIMS · Q2 2025 Earnings
CautiousHims & Hers
Reported August 4, 2025
30-second summary
30-second take: Hims & Hers grew Q2 revenue 73% YoY to $544.8M with 2.44M subscribers (+31%) and adjusted EBITDA of $82.2M (15.1% margin), but the print masks a sequential GLP-1 step-down — per the Eric Percher Q&A exchange, weight-loss revenue stepped down to ~$190M in Q2 (the prior-quarter ~$230M figure was framed by the analyst, not independently confirmed in the materials provided here, and should be treated as unverified pending the 10-Q). Q3 guidance of $570–590M and the full-year $2.3–2.4B band imply Q3 is the trough, with management explicitly framing Q4 as the reacceleration driven by order-velocity dynamics in personalized GLP-1. The setup is binary on whether Q4 actually inflects; if it doesn't, the $725M full-year weight-loss target breaks.
Headline numbers
EPS
Q2 FY2025
$0.17
Revenue
Q2 FY2025
$0.54B
+73.0% YoY
Gross margin
Q2 FY2025
76.0%
Free cash flow
Q2 FY2025
$-0.07B
Operating margin
Q2 FY2025
4.9%
Key financials
Q2 FY2025| Metric | Q2 FY2025 | YoY |
|---|---|---|
| Revenue | $0.54B | +73.0% |
| EPS | $0.17 | — |
| Gross margin | 76.0% | — |
| Operating margin | 4.9% | — |
| Free cash flow | $-0.07B | — |
Guidance
Prior quarter data unavailable — comparison not possible.
Segment performance
Q2 FY2025| Segment | Q2 FY2025 | YoY |
|---|---|---|
| Online Revenue | $0.537B | +75.0% |
| Wholesale Revenue | $0.008B | -10.0% |
Platform metrics
Q2 FY2025| Segment | Q2 FY2025 |
|---|---|
| Subscribers | 2.439 million |
| Subscribers YoY Growth | 31% |
| Monthly Online Revenue per Average Subscriber | $74 |
| Monthly Online Revenue per Average Subscriber YoY Growth | 30% |
Profitability
Q2 FY2025| Segment | Q2 FY2025 |
|---|---|
| Adjusted EBITDA | $82.2 million |
| Adjusted EBITDA Margin | 15% |
Management tone
In prepared remarks and Q&A, management's posture on the GLP-1 transition was notably matter-of-fact — they characterized the Q2 step-down as the mechanical result of offboarding commercial doses and framed Q3 as a recognized trough, with CFO Yemi Okupe walking analysts through the order-velocity and revenue-recognition math that produces the Q4 inflection. The confidence reads as operational rather than promotional: the $725M full-year weight-loss target was reaffirmed without hedging, and Andrew Dudum laid out a multi-year roadmap (lab testing standalone, hormonal health, longevity in 2026, Canada in 2026) with specific operational milestones rather than promotional flourishes. The hormonal health launch was discussed in measured terms — investments already in guidance — suggesting management is trying to avoid front-running expectations on a category they've sized at 50M+ addressable Americans.
Q&A highlights
Maria Ripps · Canaccord
Understanding core business dynamics between core offerings and weight loss segment in Q2 and Q3, particularly underlying trends in personalized GLP-1 offering and generic semaglutide launch in Canada with cross-border implications
Management clarified that Q2 headwinds came from offboarding commercially available GLP-1 doses, while oral and personalized offerings performed well. Dermatology, oral weight loss, and daily sexual health all grew above 55% YoY. For Canada, generic semaglutide expected at $75-100 price point (vs. branded $200-400), with no cross-border dynamics anticipated. Personalized GLP-1 remains strategically important despite near-term revenue recognition dynamics.
Craig Hettenbach · Morgan Stanley
Update on HERS business performance (revenue/subscriber percentage) and key growth drivers; approach to AI investment strategy and expected returns timeline
HERS business growing robustly, driven by dermatology (skin/hair), weight loss, mental health, and upcoming hormonal support for menopause. AI strategy emphasizes tangible tactical improvements within 3-6 months through agent-centric model delivering 24/7 support for providers/patients/pharmacists. Management expects immediate efficiency and engagement improvements from tens of thousands of daily patient touchpoints.
Ryan McDonald · Needham and Company
Canadian expansion branding strategy (Hims/Hers vs. Zava); pricing dynamics for generic semaglutide relative to branded market; revenue recognition mechanics for GLP-1 orders under 503A regulatory shift
Canadian expansion will use Hims/Hers brands independently while leveraging Zava technology stack and expertise. Generic semaglutide pricing expected ~$75-100 vs. branded $200-400 range. For GLP-1 revenue mechanics: lower revenue per order offset by higher order velocity/frequency; Q4 acceleration expected from compounding. Q3 guidance implies $100M GLP-1 revenue each quarter.
Daniel Groflight · Citi
Hormonal health therapy launch timing; investment requirements (CapEx/OpEx) and compounding facility strategy
Hormonal launch expected 'relatively soon' (guidance indicates coming months, likely Q4). Offering will include compounded generics, branded, and specialty medications. Predominantly delivered through own facilities long-term; partner facilities initially. Investments for launch already embedded in 2025 guidance. Coverage spans perimenopause, menopause, and low testosterone.
Eric Percher · Nephron Research
GLP-1 revenue decline (Q2: $190M vs. prior $230M); expected continued decline in Q3-Q4; guidance reconciliation for $725M full-year weight loss target
Step-down in Q2 GLP-1 revenue primarily from offboarding commercially available dosages. Remaining products (oral, personalized semaglutide) expected to show 'renewed and continued growth.' Revenue recognition dynamics (smaller batches, frequent orders) will cause temporary Q3 headwinds but Q4 acceleration. $725M weight loss target is holistic across all components (oral >$100M, liraglutide, branded, personalized).
What to watch into next quarter
Does Q4 GLP-1 revenue actually inflect, or does the $725M full-year weight-loss target slip? Management's entire H2 narrative depends on order-velocity dynamics in personalized semaglutide compounding. A Q4 weight-loss print that doesn't bridge to $725M FY means the guide breaks.
Q3 adjusted EBITDA margin at 11–12% vs. Q2's 15.1% — watch whether the margin compression is genuinely transitory (recognition timing) or structural (personalized compounding is lower-margin). Q4 needs to recover toward 14–15% for the FY 13–14% midpoint to hold.
Hormonal health launch confirmation in H2 — addressable market sized at 50M+; pricing, formulary, and initial subscriber traction will set the 2026 set-up. Slippage into 2026 reframes the growth story.
FCF inflection — YTD -$19.4M with Q2 alone -$69.4M. Management guided to positive FCF in H2; watch whether that holds as inventory build normalizes or whether working capital absorption continues.
Zava integration and Canadian generic semaglutide ramp — Zava expected to contribute at least $50M of net incremental revenue in 2H 2025, with Canada targeted for 2026 launch. Subscriber adds and disclosed international revenue will signal whether the international thesis is real.
HERS revenue/subscriber disclosure — management discussed HERS growth qualitatively but did not break out the segment. Pressure for disclosure will intensify; a clean number would help bulls quantify the non-GLP-1 engine.
Sources
- Hims & Hers Q2 2025 8-K earnings release, filed with SEC: https://www.sec.gov/Archives/edgar/data/1773751/000177375125000248/hims-20250630x8xkearningsr.htm
- Q2 2025 earnings call prepared remarks and Q&A
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