HIMS Q2 Deep Dive: International Expansion and Product Shifts Define Next Growth Phase

Telehealth company Hims & Hers Health (NYSE:HIMS) missed Wall Street’s revenue expectations in Q2 CY2025, but sales rose 72.6% year on year to $544.8 million. On the other hand, the company expects next quarter’s revenue to be around $580 million, close to analysts’ estimates. Its non-GAAP profit of $0.29 per share was 26.3% above analysts’ consensus estimates.

Is now the time to buy HIMS? Find out in our full research report (it’s free).

StockStory’s Take

Hims & Hers Health’s second quarter results were met with a significant negative market reaction, as sales growth lagged Wall Street’s expectations despite a strong rise in non-GAAP profitability. Management attributed the shortfall in revenue to deliberate shifts in their product mix, including a transition away from on-demand sexual health offerings and a temporary headwind in personalized GLP-1 (weight loss) treatments. CEO Andrew Dudum noted that, "our typical weight loss subscriber has six interactions with the provider in the first 3 months," emphasizing the company’s focus on deepening personalized care and improving customer retention through higher engagement and broader treatment options.

Looking ahead, Hims & Hers Health’s updated guidance is shaped by ambitious investments in technology, global expansion, and new specialty launches. Management believes that the integration of at-home lab testing and expansion into hormonal health will drive future growth, alongside an increasing focus on international markets following the acquisition of ZAVA. CFO Yemi Okupe cautioned that, "we are entering an investment period for at least the next year, particularly in marketing and technology," suggesting that higher costs may impact margins in the short term as the company prioritizes long-term strategic initiatives.

Key Insights from Management’s Remarks

Management pointed to strong customer engagement in core specialties, ongoing investment in technology, and international expansion as primary drivers of the quarter’s performance and future plans.

• Personalized care momentum: The company’s focus on personalized treatment plans, especially within weight loss and daily sexual health categories, led to improved customer retention. Management highlighted that over 1.5 million subscribers are now collaborating directly with providers, and daily sexual health offerings now account for 65% of new subscribers in that segment.

• GLP-1 weight loss dynamics: Hims & Hers faced temporary revenue headwinds due to offboarding customers on commercially available GLP-1 dosages, but saw continued growth in oral and personalized semaglutide offerings. CEO Andrew Dudum emphasized the importance of provider access and app-based tools in maintaining strong retention rates, as evidenced by lower discontinuation compared to industry studies.

• Strategic product mix shift: The company is intentionally rotating away from lower-retention, on-demand sexual health offerings toward daily regimens that support higher engagement and multi-condition management. This shift is expected to benefit long-term customer lifetime value, even as it creates near-term subscriber and revenue volatility.

• Investment in technology and AI: Hims & Hers is increasing technology spending, particularly on AI-powered care agents and data platforms. New CTO Mo Elshenawy outlined plans to build a unified data system, automate processes, and create global-ready architecture, aiming to enhance efficiency and personalization for millions of users.

• International expansion and M&A: The acquisition of ZAVA accelerates Hims & Hers’ entry into the U.K., Germany, Ireland, and France, with plans to launch weight loss programs in Canada in 2026. Management believes these targeted markets offer multi-billion-dollar opportunities, with the ZAVA team providing expertise in navigating diverse regulatory environments.

Drivers of Future Performance

Hims & Hers expects its future performance to hinge on the success of new specialty launches, technology investments, and international growth.

• Hormonal health and lab testing launches: The upcoming introduction of hormonal health treatments for both men and women, supported by the newly acquired blood testing lab, is expected to expand the company’s addressable market and support more comprehensive care. Management sees lab testing as foundational, with plans to offer it as a stand-alone service and eventually integrate it into preventive health memberships.

• Technology-driven personalization: Significant investment is being made in AI and data platforms to enable tailored care, automate operational processes, and support global scalability. CTO Mo Elshenawy outlined a roadmap focused on AI-powered agents and unified data systems, with an emphasis on safety, ethics, and regulatory compliance.

• Global expansion focus: Growth in international markets, beginning with the ZAVA acquisition and planned entry into Canada, is seen as a major lever for future revenue. Management aims to replicate its U.S. model in a few select, high-potential markets rather than pursuing broad geographic diversification, emphasizing disciplined execution and regulatory know-how.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be watching (1) the adoption and retention rates for new daily sexual health and weight loss offerings, (2) the impact of AI-powered care agents and lab testing integration on customer experience and operational efficiency, and (3) the pace of international expansion, particularly in Europe and the upcoming Canadian launch. Execution on these priorities and the ability to manage marketing spend amid product transitions will be critical signposts for sustained growth.

Hims & Hers Health currently trades at $48.20, down from $63.45 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

Stocks That Trumped Tariffs

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.