Hims & Hers Quarter Reports Revenue Boom and Forecast Shock

Can the strong Hims & Hers quarter truly overshadow the forecast shock and GLP-1 risks in the long term?

Hims & Hers Quarter: How strong were the Q4 numbers really?

Hims & Hers Health, Inc. reported revenue of approximately $618 million for the fourth quarter of 2025, an increase of 28% year-over-year. For the full year, revenues climbed to $2.35 billion, representing a growth of 59%. This indicates that operationally, the Hims & Hers quarter continues to deliver significant momentum. Adjusted EBITDA for Q4 was $66 million, corresponding to a margin of 11%; for the entire year, the company achieved $318 million in EBITDA with a margin of 14%.

The number of subscribers surpassed 2.5 million, with nearly 1 million net new customers added since 2023. Particularly profitable: the average monthly revenue per subscriber rose by 11% to $83. Approximately 65% of users are already utilizing personalized treatments, which amounts to about 1.6 million people. At the same time, the reported quarterly earnings per share of $0.08 slightly exceeded many analysts’ expectations, with Zacks Investment Research also noting an EPS beat.

On the cost side, Hims & Hers reduced its marketing ratio to 39% of revenue, seven percentage points lower than the previous year. However, the gross margin sequentially decreased by about two points to 72%, impacted by rapid international growth, new specialty products, and effects from shipping logistics related to weight loss therapies.

Hims & Hers: What is pressuring the stock?

Despite the robust Hims & Hers quarter, the market reacted negatively. The after-hours stock plunge follows a loss of around 60% over the past twelve months. The main reason is the cautious outlook: For the first quarter of 2026, management expects only $600 to $625 million in revenue, significantly below previous consensus estimates of about $653 million. For adjusted EBITDA, Hims & Hers is targeting only $35 to $55 million.

Chief Financial Officer Yemi Okupe attributed the caution to higher expenses—including a costly Super Bowl advertisement—as well as investments in new product categories, technology, artificial intelligence, and international expansion. Additionally, there is an approximately $65 million headwind in the first quarter resulting from changed shipping cycles for weight loss medications. However, these effects are expected to largely dissipate over the course of the year.

For the full year of 2026, Hims & Hers forecasts revenue of $2.7 to $2.9 billion, which would represent growth of 15% to 24%. The EBITDA guidance is set at $300 to $375 million (margin around 12%). While management confirms its long-term goals for 2030 of $6.5 billion in revenue and $1.3 billion in EBITDA, many investors had expected more dynamic short-term growth.

Hims & Hers Health, Inc. (HIMS) Stock Chart — 1-Year Chart · Source: stocknewsroom.com

Hims & Hers and Novo Nordisk: How significant is the GLP-1 risk?

Additional pressure on the Hims & Hers quarter comes from conflicts surrounding GLP-1 weight loss medications. Following an aggressive pricing campaign with a low-cost, compounded Wegovy pill, the company faced a lawsuit from Novo Nordisk. Furthermore, the issue escalated to the Justice Department after the involvement of the General Counsel of the U.S. Department of Health and Human Services, leading Hims & Hers to withdraw the affected product from the market.

CEO Andrew Dudum emphasizes that only a small minority of subscribers actually use GLP-1 medications, with more than half of revenue coming from areas such as dermatology, sexual health, hormones, and lab diagnostics. Nevertheless, reports of non-FDA-approved injections and questionable supply chains have increased regulatory uncertainty. Concurrently, an investigation by the SEC is further undermining institutional investor confidence.

In contrast, there is rapid scaling of new categories: testosterone support, menopause therapies, peptide treatments, and preventive lab diagnostics are expected to reach hundreds of millions in revenue in the near future. In the testosterone segment, over 95% of users report increased levels, averaging more than 80% after two months, highlighting the cross-selling potential within the platform.

Hims & Hers: Internationalization as a double-edged sword

Another focus in the Hims & Hers quarter is international expansion. Revenues outside the U.S. increased by nearly 400% to $134 million in 2025. In addition to presence in the UK, Ireland, Spain, France, Germany, and Canada, the company is pursuing larger acquisitions: Deals such as Zava, LiveWell, and Urbio have already been completed; additionally, the planned acquisition of the Australian telemedicine provider Eucalyptus for up to $1.15 billion is underway.

Urbio brings a painless microneedle blood collection technology to the platform, while Eucalyptus, with an annual revenue run rate of approximately $450 million, is expected to pave the way into the Asia-Pacific region. For 2026, Hims & Hers anticipates at least $200 million in international revenue, excluding Eucalyptus; following the closing, this figure could increase by at least another $200 million in the second half of the year. At the same time, the strong investments in physical infrastructure—now exceeding 1 million square feet—as well as more than $225 million in CapEx last year represent a significant capital requirement.

On Wall Street, the primary discussion revolves around whether advertising offensives, M&A strategy, and spending on AI will translate quickly enough into rising cash flows. Some firms like Zacks see continued potential in the ongoing scaling of the platform, while more cautious voices from major investment banks like Morgan Stanley and Goldman Sachs warn of initially subdued margins. However, specific new price targets immediately following the Hims & Hers quarter have only been adjusted sporadically.

In regular trading, the stock closed at $15.51, while after-hours trading saw shares fall to $14.20. This places Hims & Hers clearly below previous 52-week highs and signals that the market currently interprets the strong operational metrics primarily as a bet with increased regulatory and strategic risk.

The number of patients actually treated with GLP-1 medications is really only a small minority of the entire subscriber base.
— Andrew Dudum, CEO of Hims & Hers Health, Inc.

Bottom Line

The Hims & Hers quarter combines strong growth and solid profitability with a surprisingly cautious outlook and growing GLP-1 risks. For investors, this means a significant reassessment of the formerly pure growth story towards a more complex turnaround scenario with regulatory implications. It will be crucial to see if the next Hims & Hers quarter demonstrates that internationalization, new therapy areas, and AI investments can recover the current confidence discount in the stock market.