Hims & Hers is betting that a full-blown push into Japan can re-energize a growth story that recently lost some of its shine. The telehealth company completed its acquisition of Eucalyptus, gaining the weight-management platform Juniper and a ready-made presence in one of the world’s largest pharmaceutical markets. Yet the stock continues to trade under pressure, with a net loss of $92.1 million in the first quarter eroding investor confidence.
The shares slid to €22.90 on Wednesday, a drop of 2.88 percent, bringing the year-to-date decline to nearly 20 percent. In New York, the stock closed at $27.51 on June 2, with an after-hours slip to $27.29. Trading was heavy — roughly 14.7 million shares changed hands — and the intraday range stretched from $27.05 to $28.85.
A platform, not a blank slate
What sets the Japan move apart is that Hims & Hers is not starting from scratch. Juniper, built by Australian digital-health group Eucalyptus, has been active in Japan since November 2023, managing patient weight-loss treatments with local medical providers. The acquisition allows those patients to continue their care uninterrupted, while Hims & Hers layers on its own technology, data infrastructure, and clinical expertise.
The same model applies in Germany, where Juniper launched in March 2023, and in Australia, where Eucalyptus operates brands including Juniper, Pilot, Kin, and Software. Since 2019, Eucalyptus has overseen more than 550,000 patient consultations in Australia alone and nearly two million across all its markets — Australia, Britain, Germany, Japan, and Canada.
For Hims & Hers, the deal is about more than geography. In Canada, the company launched in 2025 and claims to be the first platform to offer generic semaglutide to eligible patients, with plans to expand into sexual health and hair loss. The Japanese acquisition strengthens a global footprint that already includes the U.S., Britain, Australia, and Canada, with growing operations in France, Germany, Ireland, and Spain.
The price of expansion
The Eucalyptus deal carries a total valuation of up to $1.15 billion, subject to customary adjustments. Around $240 million was paid in cash at closing, with the remainder structured as guaranteed deferred payments over 18 months and additional earn-out payments tied to financial targets through early 2029. Hims & Hers can settle most of those later installments in either cash or stock.
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To fund the deal and broader international ambitions, the company placed a $350 million convertible note with a 0 percent coupon and a 2032 maturity. Net proceeds were estimated at roughly $338.5 million, rising to about $389.5 million if the overallotment option is fully exercised. The capital is earmarked for technology, fulfillment infrastructure, artificial intelligence capabilities, and a closed data ecosystem.
Analysts remain cautious
The market’s lukewarm reception reflects a deeper tension. Leerink analyst Michael Cherny reaffirmed a “Market Perform” rating with a $12 price target — well below the current trading level and roughly 9 percent below the June 2 close. The broader consensus among 17 analysts is a “Hold,” with just four buy ratings, 11 holds, and two sells. The average target sits at $28.70.
Other Wall Street firms show the range of expectations: Canaccord Genuity at $32, Citigroup at $28, JPMorgan at $33, and Needham at $35. The gap between the lowest and highest targets underscores the uncertainty over how quickly international expansion will translate into measurable profits.
Revenue grows, margins shrink
Hims & Hers reported first-quarter revenue of $608.1 million, up 4 percent from $586.0 million a year earlier. The subscriber base grew to nearly 2.6 million, a 9 percent increase. But the bottom line swung sharply into the red: a net loss of $92.1 million compared with a $49.5 million profit in the year-ago quarter. Gross margin contracted to 65 percent from 73 percent, and adjusted EBITDA fell to $44.3 million from $91.1 million.
Management projects second-quarter revenue of $680 million to $700 million with adjusted EBITDA of $35 million to $55 million. For the full year, the company targets $2.8 billion to $3.0 billion in revenue and adjusted EBITDA of $275 million to $350 million — figures that do not include any contribution from the Eucalyptus acquisition.
The long-term horizon
Executives remain focused on the decade-end goals: $6.5 billion in revenue and $1.3 billion in adjusted EBITDA. The Japanese entry is central to that vision, but it also raises the stakes. Hims & Hers must demonstrate that its digital health model can scale profitably across different regulatory environments and medical systems. The immediate test comes in the second quarter, when revenue needs to hit at least $680 million to keep the bullish narrative alive. Whether margins can stabilize alongside growth will determine if the stock can claw back its losses.
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