Hims(US:HIMS)2025-11-03 21:16Financial Performance - Revenue for Q3 2025 reached $598.976 million, a 49% increase from $401.556 million in Q3 2024[20] - Gross profit for Q3 2025 was $442.058 million, compared to $317.886 million in Q3 2024, reflecting a 39% growth[20] - Net income for Q3 2025 was $15.774 million, down from $75.588 million in Q3 2024, indicating a decrease of 79%[20] - Net income for the nine months ended September 30, 2025, was $107,764,000, compared to $100,013,000 for the same period in 2024, representing a growth of approximately 7.7%[27] - Basic net income attributable to common stockholders for the three months ended September 30, 2025, was $15.2 million, resulting in a basic net income per share of $0.07[155] - The diluted net income attributable to common stockholders for the same period was $15.2 million, with a diluted net income per share of $0.06[155] Assets and Liabilities - Total current assets increased to $845.260 million as of September 30, 2025, up from $395.831 million at the end of 2024, representing a 113% growth[18] - Total assets reached $2.233 billion as of September 30, 2025, compared to $707.539 million at the end of 2024, marking a 215% increase[18] - Total liabilities rose to $1.652 billion as of September 30, 2025, compared to $230.823 million at the end of 2024, a significant increase of 617%[18] - Cash and cash equivalents increased to $345.778 million as of September 30, 2025, compared to $220.584 million at the end of 2024, a 57% increase[18] - The accumulated deficit decreased to $(134.373) million as of September 30, 2025, from $(242.137) million at the end of 2024, indicating an improvement in financial health[18] Operating Expenses - Operating expenses for Q3 2025 totaled $430.251 million, up from $295.512 million in Q3 2024, reflecting a 46% increase[20] - Total operating expenses for Q3 2025 were $430.3 million, a 46% increase from $295.5 million in Q3 2024, with total operating expenses for the nine months ended September 30, 2025, at $1,192.5 million, up 57% from $760.3 million[210] - Marketing expenses for Q3 2025 were $232.2 million, a 27% increase from $182.3 million in Q3 2024, with customer acquisition costs rising to $202.6 million from $160.7 million[215] - Operations and support expenses for Q3 2025 were $76.8 million, a 62% increase from $47.5 million in Q3 2024, driven by higher employee compensation and order fulfillment costs[216] Revenue Streams - Online revenue for the nine months ended September 30, 2025, reached $1.702336 billion, up 76% from $967.177 million in the same period of 2024[52] - Online Revenue for Q3 2025 reached $589.1 million, a 50% increase from $392.6 million in Q3 2024, driven by new personalized offerings and geographic expansion[180] - Total revenue for the nine months ended September 30, 2025, was $1.73 billion, up 74% from $995.4 million in the same period of 2024[180] - Personalized offerings accounted for approximately 70% of Online Revenue in Q3 2025, up from about 50% in the prior year[180] Acquisitions - The company acquired Zava Global GmbH for a total purchase price of $258.0 million, including upfront cash of €142.2 million and contingent consideration of €77.0 million[66] - The acquisition of Zava is expected to achieve revenue and adjusted EBITDA targets with potential earn-out payments of up to €100.0 million over the fiscal years 2025, 2026, and 2027[66] - The company acquired manufacturing assets from C S Bio Co. for up to $39.1 million, including $32.7 million upfront and a potential earn-out of $6.4 million[70] - The acquisition of Trybe Labs was completed for total cash consideration of $5.1 million, with goodwill of $5.0 million recognized[72] - The company acquired MedisourceRx for $31.0 million, with the fair value of the 503B pharmacy license determined at $28.596 million[75] Stock-Based Compensation - Stock-based compensation for the nine months ended September 30, 2025, was $100,756,000, an increase from $67,973,000 in the prior year[27] - The Company reported total stock-based compensation expense of $40.2 million for the three months ended September 30, 2025, compared to $24.9 million for the same period in 2024, reflecting a 61.2% increase[152] - For the nine months ended September 30, 2025, total stock-based compensation expense was $100.8 million, up from $68.0 million in the same period of 2024, representing a 48.5% increase[152] Cash Flow - Net cash provided by operating activities for Q3 2025 was $148.721 million, up from $85.267 million in Q3 2024[197] - Free Cash Flow for Q3 2025 was $79.364 million, slightly lower than $79.386 million in Q3 2024[197] - The company reported a net cash increase of $124,338,000 for the nine months ended September 30, 2025, compared to an increase of $68,855,000 in the same period of 2024[27] Future Outlook - The company plans to continue investing in fulfillment and distribution capabilities, including expanding its facilities over the next 12 months[188] - The company anticipates that its weight loss specialty will drive seasonal increases in Subscriber growth and Monthly Online Revenue in the first quarter of the year[190] - The company expects operations and support expenses to increase as it invests in fulfillment and operating capabilities[205] - Technology and development expenses are anticipated to rise as the company continues to invest in its platform and new offerings[206]