Hims & Hers (HIMS) Q1 2025: Personalized Solutions Push Monthly Subscriber Revenue Up 50%, Setting Global Platform Ambitions
Hims & Hers delivered a Q1 marked by a 50%+ surge in monthly online revenue per subscriber, propelled by a rapid transition to premium, personalized care across its core and new specialties. Platform expansion, a pivotal Novo Nordisk partnership, and operational investments are redefining the company’s addressable market and margin profile. Management’s long-term vision now centers on scaling a data-driven, global health ecosystem, with execution and retention metrics signaling durable momentum despite near-term specialty mix volatility.
Summary
- Personalization Drives Platform Stickiness: Over 1.4 million subscribers now engage with tailored solutions, boosting retention and lifetime value.
- Strategic Partnerships Expand Ecosystem: Novo Nordisk collaboration validates the model and unlocks new branded options in weight loss.
- Operational Scale Fuels Global Ambition: Investments in fulfillment, automation, and diagnostics underpin a roadmap to $6.5 billion revenue by 2030.
Performance Analysis
Hims & Hers posted 111% year-over-year revenue growth in Q1, reaching $586 million, with adjusted EBITDA nearly tripling and margins expanding to 16%. The subscriber base climbed to nearly 2.4 million, up 38% YoY, with over 1.4 million now utilizing personalized solutions—a shift credited with driving both higher retention and premium pricing. Notably, monthly online revenue per average subscriber jumped over 50% YoY to $84, reflecting strong adoption of daily, multi-condition offerings across weight loss, dermatology, and sexual health.
Despite a deliberate reallocation of marketing spend—39% of revenue, down eight points YoY—the company achieved record efficiency, aided by organic channel growth and subscriber advocacy. Gross margins dipped three points sequentially as GLP-1, glucagon-like peptide-1 weight loss medication, revenue scaled, but are expected to rebound as fulfillment and specialty mix normalize. Cash flow from operations hit $109 million, with $50 million in free cash flow, supporting aggressive investments in fulfillment, automation, and lab diagnostics.
- Weight Loss Category Accelerates: Rapid expansion, including branded Wegovy access, positions weight as a top specialty within 18 months.
- Dermatology and Sexual Health Transform: Over 80% of dermatology subscribers now use personalized regimens, driving nearly 50% YoY specialty growth.
- Operational Leverage Emerges: G&A and operations costs improved materially as a percent of revenue, reflecting automation and scale.
Subscriber transitions in sexual health and GLP-1 offerings introduce temporary volatility, but underlying platform engagement and cross-specialty retention gains point to structural growth.
Executive Commentary
"We have a solid foundation, strong confidence in our ability to deliver long-term growth. And with new expansions and new partnerships, we're excited for what's next."
Andrew Dudum, Co-founder and Chief Executive Officer
"The strength of our platform is clear in the first quarter. Revenue grew 111% year over year to 586 million. That momentum is the result of our ability to execute on a strategy that is able to bring a greater precision of care to more people."
Yemi Okupe, Chief Financial Officer
Strategic Positioning
1. Personalization at Scale
Hims & Hers is rapidly evolving from a transactional telehealth provider to a data-driven, personalized care platform. Over 70% of new subscribers now partner with providers for tailored solutions, with dermatology and sexual health specialties seeing a pronounced shift toward daily, multi-action regimens. This transition is driving retention rates up by nearly 10 points in sexual health and producing higher average revenue per user.
2. Ecosystem Expansion Through Partnerships
The new collaboration with Novo Nordisk, global pharmaceutical leader in obesity care, brings branded Wegovy to the platform and signals external validation of Hims & Hers’ distribution and engagement capabilities. Management emphasized this as a “blueprint” for future deals spanning drug launches, diagnostics, and preventative care, positioning the company as a hub for both consumers and industry partners.
3. Operational Infrastructure and Automation
Significant investments in fulfillment capacity (expanding to 700,000 square feet) and automation are unlocking the ability to efficiently deliver thousands of SKUs, supporting both current and future specialty launches. The recent acquisition of an at-home lab testing provider and peptide facility further extends the platform into diagnostics and longevity, with the goal of making personalized, proactive care accessible to mass-market consumers.
4. Global and Specialty Diversification
Early traction in the UK and new launches in low testosterone and menopause support (targeting over 50 million potential U.S. customers) give management confidence in scaling internationally and deepening penetration in under-addressed verticals. The roadmap also includes longevity, sleep, and preventative care, leveraging proprietary data and lab infrastructure.
5. Capital Allocation Discipline
Marketing investments continue to target sub-one-year payback periods, while rising organic traffic and subscriber advocacy reduce reliance on paid channels. Free cash flow is being reinvested into infrastructure and automation, with management indicating that future M&A will be opportunistic and focused on strengthening platform capabilities.
Key Considerations
This quarter marks an inflection point in Hims & Hers’ evolution from a category-based telemedicine player to a vertically integrated, personalized health platform with global ambitions. The interplay between specialty mix, operational investments, and partnership strategy will define the next phase of growth.
Key Considerations:
- Platform Stickiness via Personalization: Retention and ARPU gains are tightly linked to adoption of daily, multi-condition, and proprietary regimens.
- Weight Loss Specialty as Growth Engine: Expansion into branded and generic GLP-1s, oral options, and collaborations positions Hims & Hers to capture a large, evolving TAM.
- Transition Risks in Sexual Health: Shift to daily offerings introduces near-term revenue volatility, but is expected to drive durable growth through higher retention.
- Operational Leverage and Automation: Scale-driven cost efficiencies and automation are improving margins and enabling SKU expansion.
- Blueprint for Pharma and Diagnostics Partnerships: Novo Nordisk deal may catalyze further collaborations, broadening platform relevance and defensibility.
Risks
Near-term volatility is expected as legacy subscribers transition to new offerings, especially in sexual health and GLP-1 specialties. Regulatory scrutiny around compounding and personalized medications, dependency on key pharma partnerships, and potential macro headwinds (such as tariffs) may impact gross margins and specialty mix. Management’s strong stance on clinical independence could also create tension with drug manufacturers over time.
Forward Outlook
For Q2 2025, Hims & Hers guided to:
- Revenue of $530 to $550 million (68% to 74% YoY growth)
- Adjusted EBITDA of $65 to $75 million (13% margin midpoint)
For full-year 2025, management raised guidance to:
- Revenue of $2.3 to $2.4 billion (56% to 63% YoY growth)
- Adjusted EBITDA of $295 to $335 million (13% margin midpoint)
Management highlighted:
- Continued robust growth in core and new specialties, with mental health and dermatology benefiting from personalization investments
- Temporary revenue dip in Q2 as subscribers transition off commercially available semaglutide, with underlying platform growth expected to resume in H2
Takeaways
Hims & Hers is demonstrating that a personalized, vertically integrated health platform can drive both rapid growth and operational leverage at scale.
- Retention and ARPU Gains: Personalization strategies are materially improving customer lifetime value and platform stickiness, especially in dermatology and sexual health.
- Strategic Partnerships as Platform Multipliers: Novo Nordisk collaboration validates the Hims & Hers model and could lead to additional pharma and diagnostics partnerships.
- Watch for Specialty Mix Shifts: Near-term volatility in sexual health and GLP-1 categories will be key to tracking the durability of the platform’s growth and margin expansion.
Conclusion
Q1 2025 positions Hims & Hers as a category leader in digital health, with execution on personalization, operational scale, and ecosystem partnerships underpinning a credible path to long-term financial targets. Investors should monitor specialty transitions, partnership developments, and operational leverage as key drivers of the next phase of growth.
Industry Read-Through
The Hims & Hers model signals a broader industry shift toward consumer-centric, data-driven, and vertically integrated care platforms. The ability to combine proprietary data, personalized regimens, and strategic pharma collaborations is becoming a key differentiator in digital health. Competitors relying on transactional or single-specialty models may face mounting pressure as platform players expand both breadth and depth of offerings. Expect further convergence between telehealth, diagnostics, and pharma as demand for accessible, personalized care accelerates globally.