Hims & Hers Health, Inc. Q3 FY2025 earnings call

• The third quarter was a strong step forward with the strategy working, expanding reach, deepening engagement, and transforming health care experience. Personalized care is central, with subscribers using personalized solutions growing 50% YOY, driving nearly 50% YOY revenue growth.
• Launches include low testosterone, perimenopause and menopause support, and plan to launch comprehensive whole body lab testing by year-end. Verticalization of compounding infrastructure is ongoing, with investments in facilities to establish a new gold standard. Price reductions on compounded GLP-1 treatment plans by up to 20%.
• Partnerships with Novo Nordisk, Marius Pharmaceuticals, and GRAIL. International expansion via Zava acquisition, preparing to launch in Canada, and seeing potential for over $1 billion in annual revenue from international markets.

In the third quarter, revenue grew 49% year-over-year to nearly $600 million. Adjusted EBITDA margins were above 13%, and adjusted EBITDA grew more than 50% year-over-year to $78 million. The subscriber base increased sequentially by more than 30,000, with a year-over-year growth rate of 20%. The portfolio has three key areas: offerings under the Hims brand in the U.S., offerings under the Hers brand in the U.S., and an expanding international portfolio. Within the Hims brand, there's a transition to personalized daily treatment offerings. The Hers brand is on pace to deliver revenue of over $1 billion in 2026, driven by new specialties like menopause, diagnostics, and longevity.

• Q4 revenue expected to be between $605 million to $625 million, +26%-30% YOY; adjusted EBITDA $55 million to $65 million.
• Full year 2025 revenue expected $2.335 billion to $2.355 billion, +58%-59% YOY; adjusted EBITDA $307 million to $317 million.
• Factors: Fulfillment shift for sterile weight loss products causing $20M-$25M headwind in Q4, Zava incremental revenue of at least $50M in H2, moderation in on-demand sexual health but expected to ease in 2026.

• Potential regulatory changes that could impact operations.
• Competition in the health care space which could affect market share.
• Margin pressures from ongoing investments in verticalization, new specialties, and international expansion.

Q: I'd like to check in on weight loss growth components versus your initial expectations for the year, ask if you're still on path for $725 million for the year or better and a little bit of context on how the compound versus oral market has developed.

A: Yemi Okupe said continued strength across weight loss components, oral business robust, GLP-1 offering strong, on pace to achieve $725 million or greater target.

Q: You've seen nice leverage on the marketing side. Just curious if there has any changes in your marketing strategy or approach. And as you think about the new year, how are you thinking about the marketing, especially around Super Bowl and just lapping your great success last year?

A: Yemi Okupe said marketing leverage from organic and lower cost channels, retention improving. They will lean in on investing in new specialties, technology platform, and leadership position, with confidence in hitting 2030 targets.