HIMS Q1 Earnings Call: Personalized Care and New Partnerships Drive Upside, Guidance Signals Near-Term Transition

Telehealth company Hims & Hers Health (NYSE:HIMS) announced better-than-expected revenue in Q1 CY2025, with sales up 111% year on year to $586 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $540 million was less impressive, coming in 2.4% below expectations. Its non-GAAP profit of $0.30 per share was 32.2% above analysts’ consensus estimates.

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StockStory’s Take

Hims & Hers Health’s Q1 results reflected significant expansion in personalized healthcare offerings and strong subscriber growth, both of which management cited as key contributors to revenue and margin outperformance. CEO Andrew Dudum highlighted the company’s evolution, stating, “We are scaling a platform for the future of healthcare—one that’s accessible, affordable, transparent, and personalized,” and pointed to momentum in dermatology, sexual health, and weight loss as critical success factors this quarter.

Looking ahead, management maintained a positive outlook for the full year while acknowledging short-term headwinds tied to product mix shifts and transitions in the weight loss category. CFO Yemi Okupe noted that the company’s guidance assumes continued robust growth in tenured specialties but flagged volatility in sexual health as the subscriber base moves toward higher-retention, premium daily solutions. Management attributed long-term confidence to strategic investments in partnerships, automation, and new specialty launches.

Key Insights from Management’s Remarks

Hims & Hers Health leadership discussed multiple operational and strategic drivers affecting the quarter’s results, with particular focus on the rapid adoption of personalized treatments and the impact of new partnerships on future growth.

• Personalization Drives Retention: The company’s transition to daily, multi-action personalized treatments in dermatology and sexual health led to stronger subscriber retention, with over 80% of dermatology users now using tailored solutions.
• Expansion of Weight Loss Solutions: The launch of branded Wegovy through a partnership with Novo Nordisk, alongside new oral and injectable offerings, expanded the company’s weight management portfolio and diversified subscriber options.
• New Market and Specialty Entry: Q1 saw the groundwork for upcoming launches in low testosterone and menopause support, leveraging the recent acquisition of a lab testing provider to enable more diagnostic-driven care.
• Operational Investments: Hims & Hers ramped up internal fulfillment capacity and automation, signing a lease for a larger Arizona facility to support scaling of personalized and sterile products, aimed at increasing efficiency and supporting specialty growth.
• Leadership Changes: The appointment of Nader Kabbani as Chief Operating Officer, following a long tenure at Amazon, was highlighted as foundational for scaling operations, while outgoing COO Melissa Baird was recognized for her contributions to the company’s growth trajectory.

Drivers of Future Performance

Management’s outlook for the rest of the year centers on continued expansion of personalized care, execution of new specialty launches, and scaling partnerships, all while navigating near-term transition dynamics in certain product categories.

• Subscriber Mix Shift: The ongoing transition in sexual health from on-demand to premium, daily offerings is expected to increase retention and engagement, though management expects temporary revenue volatility during the transition.
• Weight Loss Category Dynamics: The completion of transitioning subscribers off commercially available semaglutide is anticipated to cause a short-term revenue decline in Q2, with management expecting subsequent stabilization as new branded and oral offerings gain traction.
• Operational Scale and Efficiency: Investments in automation, expanded fulfillment, and lab diagnostics are expected to improve gross margins and support the launch of new specialties, while ongoing marketing discipline is intended to maintain attractive payback periods despite channel mix shifts.

Top Analyst Questions

• Craig Hettenbach (Morgan Stanley): Asked for detail on weight loss revenue drivers and the impact of new product launches; management emphasized ongoing strength in personalized and oral offerings and confirmed the transition off semaglutide is proceeding as expected.
• Maria Ripps (Canaccord Genuity): Inquired about the timeline and initiatives to reaccelerate growth in sexual health; management explained the focus on daily multi-condition treatments and projected ongoing transition to higher retention offerings.
• Eric Percher (Nephron Research): Sought clarity on the interplay between personalized and branded GLP-1 (weight loss) products; CEO Andrew Dudum stressed the independence of provider decision-making and the additive nature of personalized treatments for patients with specific clinical needs.
• Daniel Grosslight (Citi): Asked about the proportion of commercial to personalized GLP-1 transitions and any restrictions tied to the Novo Nordisk partnership; management declined to disclose specifics but reiterated adherence to regulatory and clinical standards.
• David Larsen (BTIG): Questioned whether Hims & Hers plans to accept insurance and the nature of relationships with other pharma partners; CEO Dudum stated little interest in adding insurance due to complexity and inefficiency, and clarified the current status of partnerships with manufacturers like Lilly.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the impact of new specialty launches in hormone-related and preventative care, (2) the pace of subscriber adoption of branded versus personalized offerings in the weight loss category, and (3) operational execution on fulfillment and automation initiatives. Progress in scaling partnerships and realizing efficiencies from lab diagnostics will also be important indicators of the company’s ability to sustain growth and margin expansion.

Hims & Hers Health currently trades at a forward EV-to-EBITDA ratio of 31.8×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report.

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