The telehealth provider Hims & Hers delivered a financial report for the quarter ending September 30th that presented investors with a complex picture of robust growth shadowed by profitability concerns. While top-line figures shattered expectations, a significant earnings miss and an upcoming leadership transition have market participants questioning the company’s near-term trajectory.
Strong User Growth Meets Profitability Pressures
The company’s revenue engine continues to fire, with sales surging 49% year-over-year to nearly $600 million, a result that exceeded analyst projections. This growth is underpinned by a subscriber base that has now surpassed 2.47 million users. The company also reported a 19% increase in average monthly revenue per user, which now stands at $80.
A particularly bright spot was the performance of its personalized treatment plans, where the customer count expanded by an impressive 50%. However, the financial celebration was tempered by the bottom line. Earnings per share came in at $0.06, falling notably short of the anticipated range between $0.09 and $0.10. Compressing gross margins, which declined from 79% to 74% due to costs associated with new product lines, contributed to the profit shortfall. Although adjusted EBITDA showed improvement, climbing to $78.4 million, it still disappointed investors who were hoping for more.
Leadership Reshuffle and the Strategic GLP-1 Question
Coinciding with the earnings release on November 2nd, Hims & Hers announced a restructuring of its executive team. Nader Kabbani, the Chief Operating Officer, is transitioning into an advisory capacity. Stepping into the COO role is Mike Chi, who was promoted from Chief Commercial Officer. This consolidation grants Chi oversight of all operational, marketing, and product functions, a move interpreted as an effort to streamline management during a period of rapid expansion.
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Potentially more consequential for the stock’s long-term value is the company’s confirmed “active discussions” with Danish pharmaceutical giant Novo Nordisk. The talks concern the potential distribution of the blockbuster weight-loss medication Wegovy on the Hims & Hers platform. The inclusion of such a high-demand drug could unlock substantial new revenue streams. The dialogue is reportedly even exploring a future oral version of the treatment. This development is particularly significant following Novo Nordisk’s termination of a previous partnership. The central strategic challenge for Hims & Hers is whether it can secure a foothold in the lucrative GLP-1 market without becoming overly reliant on any single pharmaceutical partner.
Forward Guidance and Long-Term Ambitions
Looking ahead, the management team has provided guidance for the fourth quarter of 2025, forecasting revenue between $605 million and $625 million. They project an adjusted EBITDA of $55 million to $65 million for the same period. For the full fiscal year, the company anticipates total revenue of approximately $2.35 billion and an adjusted EBITDA of up to $317 million.
The company’s long-range vision remains ambitious. Hims & Hers is targeting at least $6.5 billion in annual revenue and $1.3 billion in adjusted EBITDA by the year 2030. The realism of these goals hinges on two key factors: the successful integration and expansion into the European market through the recent acquisition of Zava, and the materialization of a concrete partnership with Novo Nordisk.
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