Hims & Hers Targets Global Growth Through Major Acquisition

Hims & Hers US4330001060

The telehealth company Hims & Hers is making a decisive move to accelerate its international footprint. Its strategy hinges on a substantial, structured acquisition of digital health provider Eucalyptus. This deal aims to significantly bolster the firm's presence in key markets outside the United States, including Australia, Japan, the United Kingdom, Germany, and Canada. A critical question for investors is whether this expansion can offset mounting pressures in its domestic market.

Investors are keenly awaiting the upcoming quarterly report for greater clarity on the company's operational health. Hims & Hers is scheduled to release its fourth-quarter and full-year 2025 financial results after the U.S. market closes on February 23, 2026. This report is expected to shed light on the recent impact of U.S. regulatory challenges on its core business and to provide insight into the potential near-term boost from international growth initiatives.

Concurrently, the company faces notable headwinds at home related to regulatory scrutiny of compounded GLP-1 weight-loss medications. On February 7, the firm withdrew a compounded oral semaglutide pill following explicit warnings from the U.S. Food and Drug Administration (FDA) about specific ingredients in such products. Merely two days later, on February 9, Novo Nordisk filed a patent infringement lawsuit concerning compounded medications.

This regulatory environment has already weighed heavily on the stock. Shares touched a 52-week low of ?13.28 last Friday, a price that stands approximately 79% below the 52-week high.

Acquisition Structure Emphasizes Risk Mitigation

The agreement to acquire Eucalyptus is both sizable and carefully phased. The total purchase price could reach up to $1.15 billion. The deal's framework is explicitly designed for risk sharing, beginning with an upfront cash payment of $240 million. The transaction's closure is anticipated around mid-2026.

Subsequent payments are spread across guaranteed installments over 18 months and performance-based earn-outs extending into early 2029. Notably, the deal terms allow Hims & Hers to settle up to 60% of these later payments using company stock.

Eucalyptus brings considerable scale to the table, reporting an annualized revenue run rate exceeding $450 million. The target company also achieved triple-digit percentage growth in 2025 compared to the prior year. Its customer base comprises more than 775,000 users, served through brands such as Juniper and Pilot. Following integration, Eucalyptus CEO Tim Doyle is set to join Hims & Hers as Senior Vice President of International operations.