Hims & Hers Revenue Jumps 49 Percent Amid Margin Decline

Hims & Hers reported third-quarter revenue of $890.4 million, a 49 percent increase driven largely by a 321 percent surge in international sales to $233.3 million. This growth was supported by the acquisition of Eucalyptus, which contributed approximately $135 million to international sales.

Despite the revenue growth, the company experienced a sharp contraction in gross margins, which fell from 73.8 percent to 57.2 percent. Management attributed this decline to international expansion and a strategic shift toward branded weight loss drugs. The company also saw a sequential decline of 100,000 subscribers.

Financial performance remained mixed as adjusted EBITDA grew modestly by $4 million to $82.4 million, while free cash flow dropped significantly to $26 million from $79.4 million. To expand treatment options, the company maintains partnerships with Eli Lilly and Company and Novo Nordisk.

Regulatory and financial pressures persist, including obligations related to recent acquisitions and an ongoing lawsuit from the Federal Trade Commission.