Hims & Hers Health, Inc. (NYSE: HIMS) is firmly sustaining its high-growth narrative, as evidenced by its latest quarterly earnings that handily surpassed revenue expectations and showcased significant operational improvements.
The telehealth provider reported third-quarter revenue of $599 million, a striking 49% increase year-over-year. This figure not only crushed analyst estimates of $582 million but also landed at the high end of the company’s own guidance.
Fueling this performance is robust growth in its subscriber base and user spending. The company ended the quarter with over 2.47 million subscribers, a 21% jump from the previous year. More importantly, the average monthly online revenue per user climbed 19% to $80. The company highlighted that excluding the impact of a business model transition in its sexual health segment, underlying subscriber growth actually exceeded 40%.
A key driver of this success is the company’s strategic pivot toward personalized care. The number of subscribers using personalized treatment plans surged by 50%. Approximately 1.6 million users, representing 65% of its total subscriber base, are now signed up for at least one personalized service. These results underscore the powerful adoption of our personalized, holistic health offerings, the company stated.
While the gross margin saw a contraction of 5 percentage points to 74%, the company demonstrated impressive cost discipline. It significantly optimized its marketing spend, with sales and marketing expenses falling to 39% of revenue, down from 45% a year ago. This operational efficiency propelled its adjusted EBITDA up by 53% to $78.4 million.
On the bottom line, the company reported earnings per share (EPS) of $0.06, which fell short of market expectations. However, management clarified that this was due to a non-cash fair value adjustment on acquisition-related liabilities. Excluding this one-time item, profitability was in line with forecasts.
In a major strategic update, Hims & Hers announced it is in active discussions with Novo Nordisk to introduce the blockbuster weight-loss injection Wegovy, and its potential oral version (pending FDA approval), onto its platform. This marks a revival of talks after a previous collaboration was briefly halted over compounding and marketing disputes.
Further bolstering its growth prospects, the company is accelerating its international expansion through the recent acquisition of Europe-based telehealth platform Zava.
Reflecting its strong performance, Hims & Hers narrowed its full-year 2025 revenue outlook to a range of $2.335 billion to $2.355 billion. Simultaneously, it raised its adjusted EBITDA forecast to between $307 million and $317 million, signaling confidence in its continued profitability trajectory. The company also reaffirmed its ambitious long-term target of $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030.
From a valuation standpoint, the stock presents a compelling case for some analysts. Based on 2026 projections, the company trades at a forward P/E ratio of approximately 32.5x. Its Price/Earnings-to-Growth (PEG) ratio sits near 1.0, which is considered low for a high-growth stock. Coupled with a forward price-to-sales ratio of just 3.6x and its high-margin subscription model, some view the current valuation as attractive.
