💰 Market Cap: $13.1B | 🏢 1.5K Employees | 🌍 US, UK, EU, Canada

👨‍💼 CEO Andrew Dudum | 🎯 Personalized Digital Healthcare | 🇺🇸 San Francisco, CA

$47.04

📈 +$2.65 (+5.97%) After Hours

+158% YTD | Post-Earnings Rally

🚀 Needs:

Novo Nordisk Wegovy partnership finalizes (injectable + oral when FDA approved) providing branded GLP-1 pathway • Compounded GLP-1 revenue sustains as complement to branded offerings • Hers brand hits $1B+ run rate with menopause/hormonal expansion • International markets (UK, EU, Canada) scale to $200M+ annually • Testosterone and longevity offerings achieve rapid adoption • Operating margins expand to 16-18% as platform scales • GRAIL cancer screening integration drives proactive care adoption • No major FDA regulatory setbacks on compounding or platform operations

⚖️ Needs:

Novo Nordisk partnership closes with reasonable economics allowing dual compounded/branded strategy • Revenue growth maintains 35-40% annually through 2026 • Subscriber count reaches 3.0-3.2M by end of 2026 • Core Hims sexual health transitions successfully to daily personalized treatments by H2 2026 • New specialty launches (testosterone, menopause, longevity, lab testing) contribute 20-25% of revenue • Adjusted EBITDA margins stabilize at 13-14% after investment cycle • Weight loss maintains $725M+ run rate with mix of compounded and branded • Zava integration successful with UK/EU expansion on track • Strategic partnerships (Marius testosterone, GRAIL diagnostics) deliver value

⚠️ Risk:

Novo Nordisk partnership talks collapse or result in unfavorable economics • FDA restricts or bans compounded GLP-1s when shortages end causing 30-40% revenue hit • Eli Lilly and Novo aggressively litigate and win against compounding pharmacies • Core Hims sexual health transition cannibalizes revenue faster than new products scale • Customer acquisition costs surge as competition intensifies in telehealth • Margin compression from higher COGS, fulfillment costs, and lower-margin branded drugs • New product launches (testosterone, menopause) see slower adoption than expected • Class action lawsuits or regulatory investigations create overhang

💰

What Happened

Revenue Beat: $599M vs $580M est (+3.4% surprise), up 49% YoY

EPS Miss: $0.06 vs $0.10 est (40% miss) due to strategic investments in new categories

Subscribers: 2.5M (+21% YoY), added 30K sequentially; 40%+ growth ex-sexual health transition

Adj EBITDA: $78.4M (13.1% margin), up 53% YoY; marketing leverage drove 600bps improvement

Cash Position: $1.1B total liquidity ($630M cash/ST investments); $149M operating CF, $79M FCF

📈

Why It Matters

"Scale Makes Us Better": CEO Dudum: "Scale doesn't just make us bigger, it makes us better" - each customer engagement improves the platform

Personalization Working: Subscribers using personalized solutions grew 50% YoY, driving nearly 50% revenue growth

Facility Verticalization: Footprint expanded from 400K sq ft to 1M+ sq ft in 2025 for compounding infrastructure

Three Growth Pillars: Hims US, Hers US ($1B run rate 2026), International ($1B+ opportunity)

Treatment to Prevention: Platform evolving from treating conditions to proactive health management with diagnostics

🎯

What's Next

🔥 Novo Nordisk Partnership: Active discussions to offer Wegovy injectable + oral formulations; "breadth and assortment is winning formula" - major strategic validation

Q4 Guidance: $605-625M revenue (vs $630M est), $55-65M EBITDA (10% margin) - conservative positioning

FY 2025 Narrowed: $2.335-2.355B revenue (58-59% growth), $307-317M EBITDA (13% margin)

Lab Testing Launch: Whole-body testing rolling out by year-end; $5K-10K tests at "fraction of cost"

2026 Catalysts: Longevity specialty (peptides/GLP/GIP), oral testosterone (Marius partnership), GRAIL cancer screening integration

💡

Bottom Line for Retail Investors

HIMS delivered a beat-and-miss quarter that the market embraced - stock rallied 6.0% after hours to $47.04 on a game-changing catalyst. Revenue crushed estimates (+49% YoY) while EPS miss was strategic: management prioritizes long-term growth over near-term margins. The headline: active discussions with Novo Nordisk to offer branded Wegovy (injectable + future oral) - this resolves the biggest bear case around regulatory risk on compounded GLP-1s. CEO Dudum emphasized "breadth and assortment is the winning formula" - HIMS will offer compounded AND branded options. Other key insights: 50% growth in personalized solutions, marketing leverage improving 600bps, weight loss on track for $725M+, Hers exploding toward $1B run rate 2026. Testosterone launch showing "immediate product-market fit", menopause addressing 1.3M women annually, lab testing democratizing $10K diagnostics. For retail investors, this rally validates the thesis - multiple growth vectors firing simultaneously with the Novo partnership providing legitimacy and a path beyond compounding. Long-term $6.5B revenue vision by 2030 intact with conviction increasing.

💊

GLP-1 Market Leadership + Novo Partnership

🔥 Novo Nordisk Deal: Active discussions for Wegovy injectable + oral; eliminates compounding regulatory risk via branded pathway

Gold Standard Compounding: All API sourced from FDA-registered facilities; for semaglutide, exclusively from FDA green list suppliers

Verticalized Infrastructure: Building "gold standard" compounding at 1M+ sq ft facilities by year-end vs 400K in early 2025

Breadth Strategy: CEO: "breadth and assortment is winning formula" - offering compounded AND branded gives patients choice

👩‍⚕️

Hers Brand Explosion

$1B Run Rate 2026: CFO Okupe confirmed Hers on pace for $1B annual revenue next year (triple-digit growth trajectory)

1.3M Women Annually: Menopause market with only 30% of OB-GYN residencies offering formal treatment training

Diversified Portfolio: Mental health, dermatology (multi-year legacy still growing fast), weight loss all robust

Diagnostics Multiplier: Lab testing will enable proactive care capture "early in journey" across all Hers specialties

🧬

Testosterone & Longevity

"Immediate Product-Market Fit": CEO Dudum said testosterone launch response "already indicated immediate product-market fit"

California Peptide Facility: Onshoring R&D at owned peptide manufacturing plant for longevity specialty

2026 Longevity Rollout: Peptides (BPC-157, TB-500), coenzymes, GLP, GIP for performance/recovery/cardiometabolic markers

Oral Testosterone 2026: Marius Pharmaceuticals partnership for FDA-approved oral testosterone with seamless hormone tracking via app

🌍

Global Expansion

Zava Momentum: $50M+ incremental H2 2025 contribution; "immediately accretive acquisition" with strong momentum

200M+ Addressable Market: Now covering UK, Germany, France, Ireland, Spain; demand "same as US" per Dudum

Canada Imminent: Launching "near future" with generic semaglutide partnerships ready for 2026 availability

Brazil/Australia/Japan Next: "Good grasp" of competitive landscape; expanding to these markets with proven playbook

⚖️

Regulatory & Partnership Execution Risk

Novo Partnership Uncertainty: Discussions are active but not finalized; terms, timing, and economics unknown

503(a) Migration Drag: $20-25M Q4 revenue headwind from shorter shipment cadences; won't normalize until H2 2026

Compounding Dependency: Still heavily reliant on compounded GLP-1s until branded partnership launches; FDA/pharma litigation risk persists

Partnership Economics: Branded Wegovy margins likely lower than compounded; unclear impact on overall weight loss profitability

📉

Core Business Slowdown

Sexual Health Transition: "Deliberate effort" moving away from on-demand to daily; ex-transition, growth would be 40%+ YoY

H2 2026 Timeline: CFO Okupe said effects won't "meaningfully dissipate" until second half of 2026

Sequential Deceleration: 30K net adds in Q3 vs higher historical quarters; 21% YoY vs 44% in Q3 2024

Near-Term Margin Pause: Management expects "temporary pause in year-over-year margin expansion" starting Q4

💸

Profitability Pressure

Gross Margin Compression: 74% in Q3, down 200bps QoQ from shorter weight loss shipment cadences

Q4 Margin Guidance: 10% EBITDA margin midpoint vs 13.1% in Q3 (310bps compression) from investments

G&A and OpEx Rising: G&A up 200bps YoY from Zava integration and leadership hires; Ops/Support also up 200bps

Tech Investment Cycle: Tech/Development up 200bps to 7% of revenue; investments continuing through 2026

🏥

Competition Intensifying

GLP-1 Commoditization: Wegovy partnership discussions show need to offer branded alongside compounded (breadth = win per Dudum)

Marketing Pressure Ahead: New categories (diagnostics, longevity) less stigmatized = brand transformation needed to reach broader audience

Payback Discipline: One-year payback requirement on marketing may constrain speed of new category scaling

International Complexity: Each market has "nuances in positioning, marketing, offering" - requires local expertise and capital