Hims(US:HIMS)2025-11-03 21:08Financial Performance - Revenue for Q3 2025 was nearly $600 million, representing a 49% increase year-over-year[1]. - Net income for Q3 2025 was approximately $16 million, with Adjusted EBITDA exceeding $78 million, reflecting a 53% year-over-year growth[1][8]. - Subscribers reached almost 2.5 million, marking a 21% increase year-over-year[1][3]. - Total revenue for Q3 2025 reached $598.976 million, a 49% increase from $401.556 million in Q3 2024[27]. - Adjusted EBITDA for Q3 2025 was $78,365,000, compared to $51,096,000 in Q3 2024, reflecting a year-over-year increase of about 53%[37]. - Net income for the nine months ended September 30, 2025, was $107.764 million, compared to $100.013 million for the same period in 2024[30]. - Net income for Q3 2025 was $15,774,000, which is only 3% of revenue, down from 19% in Q3 2024[37]. - Free Cash Flow for Q3 2025 was $79.4 million, unchanged from Q3 2024[8]. - Free Cash Flow for Q3 2025 was $79,364,000, slightly lower than $79,386,000 in Q3 2024, indicating stable cash generation capabilities[39]. - Net cash provided by operating activities for Q3 2025 was $148,721,000, compared to $85,267,000 in Q3 2024, showing improved operational efficiency[39]. Revenue Guidance - Full year 2025 revenue guidance has been narrowed to between $2.335 billion and $2.355 billion, with Adjusted EBITDA guidance set between $307 million and $317 million[1][9]. Online Revenue - Online Revenue for Q3 2025 was $589.1 million, a 50% increase from $392.6 million in Q3 2024[4][8]. - Monthly Online Revenue per Average Subscriber increased to $80, a 19% rise from $67 in Q3 2024[3][4]. Operating Expenses - Operating expenses increased to $430.251 million in Q3 2025, up from $295.512 million in Q3 2024, primarily driven by higher marketing costs[27]. - The company plans to continue investing in technology and development, with operating expenses in this area increasing to $40.577 million in Q3 2025 from $21.092 million in Q3 2024[27]. - The company incurred stock-based compensation of $40,172,000 in Q3 2025, up from $24,899,000 in Q3 2024, highlighting increased employee compensation costs[37]. Cash and Assets - Cash and cash equivalents at the end of Q3 2025 were $345.778 million, significantly up from $166.374 million at the end of Q3 2024[31]. - Total assets increased to $2.233 billion as of September 30, 2025, compared to $707.539 million at the end of 2024[26]. - Total liabilities rose to $1.652 billion as of September 30, 2025, compared to $230.823 million at the end of 2024[26]. - The company reported a total stockholders' equity of $580.982 million as of September 30, 2025, up from $476.716 million at the end of 2024[26]. Adjusted EBITDA and Free Cash Flow - Adjusted EBITDA and Free Cash Flow metrics are used by the company to evaluate ongoing operations and liquidity, although specific figures were not disclosed[32]. - The Adjusted EBITDA margin remained stable at 13% for Q3 2025, consistent with Q3 2024, while the nine-month Adjusted EBITDA margin improved to 15% from 12%[37]. - The company acknowledged limitations of Adjusted EBITDA and Free Cash Flow, emphasizing the need to consider these metrics alongside U.S. GAAP results for a comprehensive performance evaluation[36][38]. Strategic Initiatives - Hims & Hers is in discussions with Novo Nordisk to potentially offer Wegovy injections and oral Wegovy through its platform[12]. - The company is focused on expanding its platform and services, aiming to establish itself as a global brand in personalized healthcare[2]. Capital Expenditures - Total capital expenditures, including purchases of property and equipment, were $65,265,000 in Q3 2025, significantly higher than $3,342,000 in Q3 2024, indicating increased investment in growth[39].