Hims & Hers Makes Billion-Dollar Bet on Global Growth

Hims & Hers US4330001060

In a bold move to accelerate its international strategy, telehealth provider Hims & Hers Health, Inc. has announced an agreement to acquire Australian digital health company Eucalyptus. The transaction, structured with a potential total value of up to $1.15 billion, signals a major investment in scaling the company's footprint outside the United States.

The acquisition is designed to fast-track Hims & Hers' global expansion. Eucalyptus brings an established operational presence in Australia, the United Kingdom, and Germany, with additional business development underway in Japan and Canada. For Hims & Hers, this translates to immediate market entry in Australia and Japan, alongside a reinforced position in the UK, German, and Canadian markets.

Financially, the deal is constructed with multiple components. An initial cash payment of approximately $240 million is due upon closing. The remaining consideration consists of guaranteed deferred payments over 18 months, supplemented by performance-based earn-outs. These future payments are tied to specific financial targets to be met by early 2029.

A key detail for shareholders is the company's option to settle the majority of the deferred and earn-out payments either in cash or in stock, which will influence the potential dilution of existing equity. Hims & Hers intends to fund the acquisition primarily through its existing cash reserves and future operating cash flow. The transaction, expected to close around mid-2026, remains subject to customary closing conditions and regulatory approvals.

The Target's Profile and Integration Plans

Eucalyptus contributes substantial scale to the combined entity. The company reports an annualized revenue run-rate exceeding $450 million and serves a customer base of more than 775,000. It also brings clinical credibility to the table, highlighted by over 20 peer-reviewed publications and an accreditation from the Australian Council on Healthcare Standards (ACHS)?reportedly a first for an Australian telehealth firm.

Post-acquisition, Tim Doyle, the current CEO of Eucalyptus, is slated to lead Hims & Hers' international business outside the U.S. in the role of Senior Vice President International.

Regulatory Context and Upcoming Financial Test

This strategic push comes at a time when Hims & Hers faces increased regulatory and legal scrutiny in its home market, particularly concerning its compounded GLP-1 offerings. The expansion into new international territories can be viewed as a move to diversify its operational base.

Investors will soon receive a crucial update on the company's financial health to assess its capacity for such a significant expansion. Hims & Hers is scheduled to release its fourth quarter and full-year 2025 results on Monday, February 23, 2026. This report will provide critical insight into the underlying operational strength available to support this billion-dollar growth initiative.