Hims & Hers: Strong Growth Tempered by Acquisition and Legal Headwinds

Hims & Hers reports 59% revenue growth to $2.35B for 2025, beats EPS forecasts, and announces a major acquisition of Eucalyptus while navigating legal challenges.

The telehealth company Hims & Hers continues to post impressive growth metrics, though its latest financial results also highlight the significant costs associated with rapid expansion. While revenue for the fourth quarter and full year 2025 met market forecasts precisely, earnings per share came in well above projections. Beyond the core growth narrative, two significant developments are drawing investor attention: a major strategic acquisition and ongoing legal challenges.

Subscriber Growth and International Surge Drive Annual Results

For the full 2025 fiscal year, revenue surged 59% to $2.35 billion. Annual net profit reached $128 million, with adjusted EBITDA standing at $318 million. The company's subscriber base expanded to 2.51 million, marking a 13% year-over-year increase. Furthermore, revenue per user climbed, with average monthly revenue per subscriber rising 11% to $83 in Q4.

A standout performer was the international segment. Revenue generated outside the United States skyrocketed 399% from $26.8 million to $133.9 million year-over-year, signaling a clear strategic focus for future expansion.

Q4 Earnings Beat Amidst Cash Flow Fluctuation

The company's fourth-quarter performance saw revenue hit $617.8 million, a 28% increase from the prior year that aligned with analyst expectations. Net income for the quarter was $20.6 million.

The earnings-per-share figure captured significant attention, coming in at $0.08—double the $0.04 that had been anticipated. Adjusted EBITDA rose to $66.3 million, representing an 11% margin. However, free cash flow for the quarter showed a slight deficit of $2.6 million, contrasting with a positive annual free cash flow of $57.4 million for the full year.

Forward Outlook: Guidance, Acquisition, and Legal Risk

Management has provided revenue guidance of $600 to $625 million for the first quarter of 2026. For the full year, the company projects revenue between $2.7 and $2.9 billion, with adjusted EBITDA expected to be in the range of $300 to $375 million.

This growth agenda is underscored by the announced acquisition of Australian telehealth provider Eucalyptus. Announced on February 19, the transaction could be valued at up to $1.15 billion and is intended to significantly bolster Hims & Hers' presence in Australia, Japan, the United Kingdom, and Germany.

Concurrently, legal disputes with Novo Nordisk concerning the distribution of weight loss medications remain an unresolved background risk—a variable with potential to disrupt operational momentum.

Despite the robust growth figures, the stock remains under pressure, recently touching a 52-week low of €13.19. The key questions for investors now are whether Hims & Hers can meet its 2026 forecasts and successfully integrate the Eucalyptus acquisition without major setbacks.