Hims & Hers (HIMS) Q2 2025: Personalized Care Drives 73% Revenue Growth as Platform Expands Beyond Weight Loss
Hims & Hers delivered a transformative Q2, with platform personalization and specialty expansion fueling 73% top-line growth. The company’s shift toward daily, personalized offerings is strengthening subscriber retention and broadening its addressable market, even as legacy segments decline. Management’s focus on international expansion, AI-driven care, and lab testing signals a long-term pivot from reactive treatment to proactive, membership-based healthcare.
Summary
- Personalization Accelerates Retention: Daily and tailored offerings are driving stickier subscriber relationships and higher lifetime value.
- Strategic Expansion Underway: New specialties, at-home lab testing, and global markets are being prioritized for growth beyond core segments.
- Investment Cycle Signals Platform Ambition: Near-term margin compression is expected as Hims & Hers invests in AI, tech, and new geographies.
Performance Analysis
Hims & Hers posted 73% year-over-year revenue growth to $545 million, with subscriber count rising 31% to over 2.4 million. This surge was propelled by robust growth in dermatology, oral weight loss, and daily sexual health, each exceeding 55% year-over-year subscriber gains. The company’s pivot from on-demand to daily sexual health offerings is a deliberate strategy to improve retention and customer value, even as this transition temporarily drags on overall sequential revenue outside of GLP-1, glucagon-like peptide-1, the weight loss medication segment.
Gross margin expanded three points quarter-over-quarter to 76%, reflecting a favorable mix shift away from GLP-1 and the impact of personalized treatments. Adjusted EBITDA margin held above 15%, despite $7 million in severance and new talent onboarding costs. Marketing spend was 40% of revenue, with management maintaining a disciplined payback period below one year. Free cash flow was negative $69 million due to working capital investments, but a return to positive free cash flow is expected in the second half. The balance sheet remains strong, with $1.1 billion in cash and short-term investments.
- Legacy Segment Headwinds: On-demand sexual health and off-boarding of commercial GLP-1s weighed on sequential revenue, but daily offerings are offsetting declines.
- Retention Outperformance: Personalized plans in weight loss specialty show 75% six-month adherence, far surpassing industry averages.
- Operational Investment: Elevated inventory and CapEx reflect preparation for new specialty launches and supply chain resilience amid tariff uncertainty.
Platform complexity and investment in technology, including AI and automation, are increasing operating costs, but management views these as essential for long-term value creation and global scalability.
Executive Commentary
"The momentum we saw through the first half of 2025 is proof that our platform is delivering exactly what millions of people have been waiting for, access to personalized, high-quality care that meets people where they are."
Andrew Dudum, Co-founder and CEO
"Our platform drove 82 million of adjusted EBITDA in the second quarter. The complexity of our platform and future ambitions will necessitate a more nuanced organizational structure. One that is able to move in an even more agile manner and scale globally."
Yemi Okupe, CFO
Strategic Positioning
1. Deepening Personalization and Daily Offerings
Hims & Hers is deliberately shifting from transactional, on-demand products to daily, personalized care models, especially in sexual health and weight loss. This approach enables higher engagement, better outcomes, and stronger retention, as evidenced by daily sexual health offerings now comprising 65% of new sexual health subscribers. The company’s platform leverages a network of 1,500 providers, AI-driven data, and app-based tools to tailor interventions at scale.
2. Specialty Expansion and Lab Testing Integration
New specialties, such as hormonal health and at-home lab testing, are being launched to broaden the addressable market and support long-term growth. The recent acquisition of a blood testing lab positions Hims & Hers to verticalize diagnostics, with plans to offer lab testing as a standalone product. This capability is foundational to the company’s vision of shifting from reactive treatment to proactive, membership-based healthcare.
3. International Growth and Platform Leverage
The Zava acquisition expands Hims & Hers into the UK, Germany, Ireland, and France, with Canada targeted for 2026. Management views international as a focused, high-return effort, not a broad “spray and pray” expansion. The company expects a handful of key markets to deliver multibillion-dollar revenue potential, leveraging Zava’s regulatory and operational expertise.
4. Technology and AI as Core Differentiators
AI-powered personalization, automation, and global-ready architecture are central to the next growth phase. The new CTO is tasked with building unified data platforms, AI-powered agents for 24-7 support, and scalable infrastructure to support millions of users worldwide. Responsible AI governance and ethical frameworks are explicit priorities as the company scales.
5. Capital Allocation and Margin Discipline
Despite an aggressive investment cycle, management remains committed to a strict capital allocation framework, targeting sub-one-year paybacks on marketing and disciplined M&A. The robust balance sheet and buyback flexibility provide downside protection and optionality as the company pursues new growth levers.
Key Considerations
Hims & Hers is navigating a complex transition, balancing rapid growth with platform reinvestment and international expansion. The company’s ability to execute on personalization, specialty launches, and global scaling will determine its long-term trajectory.
Key Considerations:
- Retention as a Growth Engine: Personalized daily offerings are creating a more loyal, higher-value subscriber base, mitigating churn from legacy segments.
- New Specialties Expand TAM: Hormonal health and lab testing open new verticals, with lab testing expected to become a significant standalone category.
- International Execution Risk: Zava provides a platform for targeted global growth, but regulatory and operational complexity require disciplined focus.
- Technology Investment Pacing: Elevated tech and talent spend should drive product innovation, but near-term margin compression is likely as AI and automation scale.
- Supply Chain and Tariff Management: Inventory build and diversified sourcing reflect proactive risk management amid global volatility.
Risks
Hims & Hers faces execution risk as it expands into new specialties and geographies, with potential for regulatory hurdles, integration complexity, and competitive response. The transition from legacy on-demand offerings may temporarily suppress growth, while elevated marketing and tech investment could pressure margins if retention or subscriber growth underdelivers. Tariff and supply chain volatility remain external risks, though currently not impacting guidance.
Forward Outlook
For Q3 2025, Hims & Hers guided to:
- Revenue of $570 to $590 million (42% to 47% YoY growth)
- Adjusted EBITDA of $60 to $70 million (11% margin at midpoint)
For full-year 2025, management maintained guidance:
- Revenue of $2.3 to $2.4 billion (56% to 63% YoY increase)
- Adjusted EBITDA of $295 to $335 million (13% margin at midpoint)
Management highlighted several factors that will shape second-half results:
- GLP-1 revenue recognition will be lower per order but higher in frequency, with Q4 acceleration expected
- Zava acquisition to contribute at least $50 million in incremental revenue for 2025
- Marketing and technology investment will be elevated to support specialty launches and international scaling
- Retention gains from daily offerings expected to offset legacy declines by 2026
Takeaways
Hims & Hers is in the midst of a strategic transformation, using platform personalization, specialty launches, and global expansion to build a defensible, high-retention healthcare business.
- Personalized Care as a Moat: Data-driven, daily offerings are driving superior retention, positioning the company for durable growth as legacy segments are phased out.
- Strategic Investment Cycle: Elevated spend on technology, talent, and inventory is a calculated bet on platform expansion, with near-term margin trade-offs for long-term value.
- Long-Term Watchpoint: Investors should monitor execution in international markets, specialty adoption, and the pace at which technology investment translates to subscriber and margin gains.
Conclusion
Hims & Hers is executing on a multi-year pivot from transactional care to a personalized, tech-enabled platform with global ambitions. While the investment cycle and specialty transition create near-term volatility, the company’s focus on retention, specialty expansion, and disciplined capital deployment positions it as a differentiated leader in consumer healthcare.
Industry Read-Through
Hims & Hers’ results underscore a broad shift in digital health toward personalized, longitudinal care models that emphasize retention, data-driven engagement, and proactive health management. The success of daily and tailored offerings signals that consumer demand is moving beyond episodic telehealth toward integrated, membership-based platforms. Competitors in digital health, pharmacy, and primary care will need to invest in data, AI, and specialty expansion to keep pace. The company’s international push also highlights the growing viability of cross-border digital health models, but regulatory complexity and local adaptation remain gating factors for sector-wide adoption.