Hims & Hers Health (NYSE:HIMS) Q4 2025 Earnings call February 23, 2026 05:00 PM ET Company ParticipantsAndrew Dudum - Co-founder and CEOBill Newby - Head of Investor RelationsEric Percher - Partner of Pharma Supply Chain and Digital HealthGlen Santangelo - Managing DirectorMaria Ripps - Managing Director of Equity ResearchMark Mahaney - Senior Managing Director and Head of Internet ResearchYemi Okupe - CFOConference Call ParticipantsBrian Tanquilut - Senior Analyst of Healthcare Services and Digital Health ...

Core Insights - Elevance Health is enhancing healthcare by leveraging technology to create a more intuitive and personalized experience for health plan members [1] Group 1 - The company aims to simplify access to healthcare services [1] - Elevance Health is focused on building trust among its health plan members [1]

Core Insights - Hims & Hers Health reported $599 million in sales for Q3, exceeding expectations of $582 million and its own guidance of $570 million to $590 million, but earnings per share were only 6 cents, missing forecasts by 3 cents [1][3] - The company tightened its full-year sales outlook to $2.34 billion to $2.36 billion, indicating a year-over-year growth of 58.1% to 59.5%, but Q4 guidance was lower than expected at $605 million to $625 million, compared to the Street's projection of $632 million [3][4] - The potential partnership with Novo Nordisk could enhance revenue opportunities for Hims, particularly in the weight loss vertical, which is a key growth driver for the company [5][7] Financial Performance - Hims & Hers achieved Q3 sales of $599 million, surpassing both market expectations and internal guidance [1] - The company expects full-year sales to be between $2.34 billion and $2.36 billion, a slight adjustment from previous guidance [3] - Q4 sales guidance is projected at $605 million to $625 million, falling short of analyst expectations [2][3] Market Reaction - Following the earnings report, Hims stock rose over 5% to $46.83, reflecting investor optimism despite mixed results [2] - The stock remains volatile, having recently broken out of a cup-with-handle base but subsequently dropping below key moving averages [7] Strategic Developments - Hims is in discussions with Novo Nordisk regarding a potential deal that could clarify uncertainties around their partnership and bolster Hims' weight loss offerings [4][7] - The company has seen a 21% increase in subscribers, reaching 2.5 million, indicating strong adoption of its personalized healthcare platform [6][8] - New verticals, including testosterone offerings and menopause care, are being launched, expanding Hims' total addressable market [8]

Core Insights - Hims and Hers Health exceeded Wall Street revenue estimates for Q3, driven by subscriber growth and expanded healthcare offerings [1][3] - The company is in discussions with Novo Nordisk to provide Wegovy injections and an oral version, following the end of a previous partnership [2] Financial Performance - Quarterly revenue reached $600 million, surpassing analyst expectations of $580.2 million, with an adjusted profit of 6 cents per share, below the anticipated 10 cents [7] - The subscriber base grew to 2.47 million, a 21% increase year-over-year, while monthly online revenue per subscriber rose 19% to $80 [5] Growth Strategy - The company aims for $6.5 billion in revenue by 2030, focusing on investments in diagnostics, lab testing, menopause treatments, and international expansion [3] - Hims expects to generate $725 million from its GLP-1 weight-loss drug offering by 2026 [4] Market Position - Hims' online revenue growth is primarily organic, despite the acquisition of healthcare platform Zava to enhance consumer reach in the UK [5] - The company is characterized as a fast-growth business willing to invest heavily for growth, potentially impacting short-term profit margins [6]

Core Viewpoint - Hims and Hers Health exceeded Wall Street revenue expectations for Q3, driven by subscriber growth and expanded personalized healthcare offerings [1][2]. Group 1: Financial Performance - The company reported quarterly revenue of $600 million, surpassing analysts' estimates of $580.2 million [2]. - Adjusted profit for the quarter ending September 30 was 6 cents per share, which was below the average analyst estimate of 10 cents per share [2]. - Monthly online revenue per average subscriber increased by 19% to $80 [2]. Group 2: Subscriber Growth - Hims and Hers' subscriber base grew to 2.47 million, marking a 21% increase from the previous year [2]. - The growth in subscribers contributed significantly to the company's revenue performance [2]. Group 3: Market Context - The company has launched personalized versions of semaglutide, a key ingredient in the weight-loss drug Wegovy, in response to government restrictions on mass production of drug copies [1].

Core Insights - Hims & Hers Health, Inc. launched a new specialty in women's health focusing on affordable treatment plans for women experiencing perimenopause and menopause [1][5] - The launch is expected to enhance Hims & Hers' business and solidify its position in the niche market [2][7] Company Developments - Following the announcement, Hims & Hers' shares declined nearly 4.9% [3] - The company currently has a market capitalization of $11.25 billion and an earnings yield of 1.2%, which is better than the industry's negative yield [4] - Hims & Hers estimates that women spend an average of nine years in poor health, which is 25% more than men, impacting their work and community presence [5] - Approximately 1.3 million women in the U.S. experience menopause annually, but only 30% of OB/GYN residency programs provide formal menopause training [5] - Hims & Hers serves over half a million subscribers and aims to surpass $1 billion in annual revenues by 2026 [5][6] Market Potential - The global menopause market is projected to grow from $17.79 billion in 2024 to $24.35 billion by 2030, with a CAGR of approximately 5.4% [7] - The latest product launch is anticipated to significantly boost Hims & Hers' business due to favorable industry trends [7] Stock Performance - Hims & Hers shares have increased by 117.7% over the past year, outperforming the industry and the S&P 500 [10]

Industry Perspective - The industry is shifting blame for the Autism/Tylenol issue from mothers to big pharma [1] - The industry emphasizes the need for personalized healthcare [4] - The industry highlights the necessity of women's health studies [4] Recommendations for Stakeholders - The industry advises women to trust their instincts and speak out [3] - The industry encourages women not to blindly trust doctors [4] - The industry suggests that men should be more proactive in healthcare [4] - The industry views the situation positively for women's health [4]

Core Insights - Hims & Hers Health, Inc. (HIMS) is focused on democratizing access to personalized healthcare, particularly in underserved areas, with a subscriber base of 2.4 million and nearly 1,500 licensed providers by Q2 2025 [1][7] - The company is expanding into hormonal health, targeting menopause and low testosterone, which presents a significant market opportunity in the U.S. [2][7] - International expansion through the acquisition of ZAVA enhances Hims & Hers' presence in Europe, gaining access to over 1.3 million patients, with plans to enter Canada in 2026 [3][7] Market Performance - Hims & Hers shares have increased by 86.5% year-to-date, outperforming the industry growth of 23.5% [6] - The forward 12-month price-to-sales (P/S) ratio for HIMS is 3.8X, lower than the industry average of 5.8X but higher than its three-year median of 2.4X [8] Financial Estimates - The Zacks Consensus Estimate for HIMS' earnings per share in 2025 indicates a 137% improvement from 2024 [9] - Current consensus estimates for HIMS' earnings per share are 0.12 for Q3 2025, 0.14 for Q4 2025, 0.64 for the current year, and 0.89 for the next year [12]

Core Viewpoint - Hims & Hers Health is experiencing significant revenue growth and expanding its subscriber base, despite volatility in its stock price and challenges in the weight loss segment [1][4][6]. Financial Performance - In Q2, Hims & Hers reported a revenue increase of 73% year-over-year, reaching $544.8 million, which was at the high end of its forecast but below analyst expectations [4][10]. - Monthly online revenue per subscriber rose by 30% to $74, and the total number of subscribers increased by 31% to nearly 2.44 million [4][10]. - Adjusted EBITDA surged to $82.2 million, a 109% increase from the previous year, and adjusted EPS was $0.17, exceeding analyst expectations [8][10]. Subscriber Growth - The number of customers using at least one personalized subscription grew by 89% to 1.5 million, making up over 60% of the subscriber base [5]. - The company noted a 170% increase in subscribers using personalized treatment plans for multiple conditions, reaching over 500,000 [5]. Marketing and Expenses - Marketing expenses increased by 50% to nearly $218 million, accounting for 40% of revenue, down from 46% a year ago, indicating improved efficiency [7][10]. - The gross margin was reported at 76%, reflecting a decrease of 500 basis points year-over-year [10]. Future Outlook - Hims & Hers maintains its 2025 revenue forecast of $2.3 billion to $2.4 billion, representing growth of 56% to 63%, and adjusted EBITDA guidance of $295 million to $335 million [10][11]. - For Q3, the company projects revenue between $570 million and $590 million, with adjusted EBITDA of $60 million to $70 million [11]. - The company is planning international expansion, starting with Canada and targeting Europe, Latin America, and Asia in the coming years [11][12]. Growth Opportunities - Hims & Hers is expanding into new areas, including hormonal health, which is expected to contribute to its long-term revenue goals of $6.5 billion by 2030 [12]. - The company continues to see strong growth across various health categories, despite challenges in the weight loss segment [13]. Valuation - The stock trades at a forward P/E ratio of around 55 based on 2025 analyst estimates, with a PEG ratio under 0.6, indicating potential undervaluation [14]. - The price-to-sales multiple is 5.5 times 2025 estimates, suggesting reasonable pricing given the high gross margins of the subscription business [14].

Core Insights - Roche plans to invest up to $550 million in its Indianapolis Diagnostics site by 2030, establishing it as a major hub for continuous glucose monitoring (CGM) systems [1][10] - The investment reflects Roche's commitment to advancing healthcare innovation and improving patient outcomes, particularly for the 38 million Americans living with diabetes [3][5] - The expansion is expected to create hundreds of skilled manufacturing jobs and thousands of construction jobs, boosting Indiana's economy and enhancing domestic production capabilities [6][10] Company Overview - Roche is the world's largest biotech company and a leader in in-vitro diagnostics, with a history of over 125 years in developing innovative medicines and diagnostics [7][8] - The Indianapolis site serves as the North American headquarters for Roche Diagnostics, housing key operations including research and development, manufacturing, and distribution [2][4] - Roche has made over $800 million in U.S. investments since 2015, highlighting the importance of U.S. operations in its global strategy [5] Industry Context - The investment in CGM manufacturing aligns with the growing need for effective diabetes management solutions, as diabetes poses significant health challenges for millions [3][4] - By enhancing local manufacturing capabilities, Roche aims to reduce dependency on imports and support national efforts to strengthen domestic production [6][10]