Hims & Hers Reports Strong FY25 Revenue Growth, Mixed Q4 Profitability, and Issues FY26 Guidance

summarizeSummary

Hims & Hers Health, Inc. reported robust full-year 2025 revenue growth of 59% to $2.35 billion, alongside mixed Q4 profitability with a decline in net income and negative free cash flow, and provided a cautious Adjusted EBITDA outlook for 2026.

check_boxKey Events

• Full Year 2025 Performance

  Revenue surged 59% year-over-year to $2.35 billion, with Adjusted EBITDA increasing 80% to $318 million. Subscribers grew 13% to over 2.5 million.

• Q4 2025 Mixed Results

  Q4 revenue grew 28% to $617.8 million, but net income decreased to $20.6 million from $26.0 million year-over-year, and free cash flow was negative $2.6 million. Gross margin declined to 72% from 77%.

• 2026 Financial Outlook

  The company projects full-year 2026 revenue between $2.7 billion and $2.9 billion, and Adjusted EBITDA between $300 million and $375 million, which is relatively flat compared to 2025's $318 million. Q1 2026 Adjusted EBITDA guidance is $35 million to $55 million, lower than Q4 2025.

• Share Repurchase Program

  In Q4 2025, the company repurchased approximately $80 million of Class A common stock under its $250 million authorization, aiming to offset dilution and capitalize on market volatility.

auto_awesomeAnalysis

Hims & Hers delivered impressive top-line growth in 2025, with revenue up 59% and Adjusted EBITDA up 80%, demonstrating strong execution in expanding its subscriber base and service offerings. However, the fourth quarter showed some signs of pressure, with net income declining and free cash flow turning negative, primarily due to increased capital expenditures for pharmacy infrastructure and international expansion. The 2026 guidance for Adjusted EBITDA, which is relatively flat compared to 2025, suggests that the company anticipates continued investments or potential margin compression in the near term, especially with the lower Q1 EBITDA outlook. The ongoing share repurchase program is a positive signal of management's confidence in the company's intrinsic value, particularly as the stock trades near its 52-week low. Investors will be watching how the company balances aggressive growth initiatives, particularly international expansion and new specialties, with profitability and cash flow generation in the coming year, especially as the Eucalyptus acquisition integrates.