Hims & Hers Health Reports Q3 2025 Results

Telemedicine firm Hims & Hers Health (NYSE:HIMS) has unveiled its third-quarter results for 2025, showcasing a revenue increase of 49.2% year-over-year, totaling $599 million. However, its revenue forecast for the upcoming quarter, set at $615 million, fell 2.6% short of analyst predictions. Also, the company reported GAAP earnings per share at $0.06, which is 43.7% below what analysts were expecting.

So, is it a good time to invest in Hims & Hers Health? You might want to check out a detailed research report to dive deeper.

• Revenue: $599 million, exceeding analyst expectations of $579.6 million (49.2% year-over-year growth, 3.3% higher)

• EPS (GAAP): $0.06 vs. analyst estimate of $0.11 (43.7% miss)

• Adjusted EBITDA: $78.37 million against an expected $68.04 million (13.1% margin, lower than 15.2%)

• Q4 2025 Earnings Guidance: Forecasted sales of $615 million, below analysts’ expectations of $631.6 million.

• Full-year EBITDA Outlook: Estimated at $312 million, also lower than the $316.9 million expected by analysts.

• Operating Profit Margin: 2%, down from 5.6% in the same period last year.

• Free Cash Flow Margin: 13.2%, decreased from 19.8% year-over-year.

• Customer Base: 2.47 million people, up from 2.44 million in the previous quarter.

• Market Capitalization: $10.27 billion.

“This quarter, we continued to demonstrate our vision of providing world-class, personalized care from home. As we grow, our platform becomes more personal and engaging,” remarked Andrew Dadum, co-founder and CEO.

Initially focusing on sensitive issues like hair loss and sexual health, Hims & Hers Health has evolved into a consumer-driven telemedicine platform, linking patients with healthcare professionals for prescriptions and wellness products.

When assessing a company’s long-term performance, annual sales growth is a significant indicator. Even mediocre companies can shine briefly, but successful businesses sustain growth over years. Thankfully, Hims & Hers Health boasts a remarkable annual growth rate of 75.7% over the past five years, outpacing many healthcare firms and suggesting a strong customer resonance.

Yet, while five years provide a solid overview, healthcare’s rapidly changing landscape means some nuances may be overlooked. Though annualized revenue growth of 67% in the last two years is below the five-year average, it still signals robust demand.

Examining the customer trajectory is also crucial; Hims & Hers Health recorded 2.47 million customers this past quarter. Its customer base has seen an average growth of 38.9% year over year, which is slower than revenue growth, implying that customers are spending more annually on the company’s offerings.

During this quarter, the company not only achieved remarkable revenue growth of 49.2% but also surpassed Wall Street’s revenue predictions by 3.3%. Management is directing efforts for the next quarter to achieve a 27.8% year-over-year sales increase.

Projections for the next 12 months hint at a 21.1% growth rate, albeit slower than recent years. Nevertheless, this expectation reflects confidence in the market’s commitment to Hims & Hers Health’s products and services.

Hims & Hers Health’s operating profit margin for the third quarter was 2%, down 3.6 percentage points from last year, suggesting that rising costs are outpacing revenue growth. Over the long haul, while operational profitability was shown this quarter, the company has generally grappled with a challenging cost structure, leading to an average margin of -1.2% over the prior five years.

Conversely, there is a silver lining: Hims & Hers Health’s operating margin has improved by 48.1 percentage points over the last five years, with recent data showing a 10.3 percentage point uptick over two years. It seems like they are on a promising trajectory.

The company saw its EPS shift from negative to positive over the last five years, which is, arguably, an encouraging trend. For Q3, EPS stood at $0.06, a decrease from $0.32 last year—though this was below expectations, an emphasis on long-term EPS growth is more valuable than focusing on short-term ups and downs. Looking ahead, analysts predict a 42.4% increase in full-year EPS to $0.54 for Hims & Hers Health.

While it is reassuring that Hims & Hers Health outpaced revenue estimates, the missed earnings guidance and lower EPS indicate mixed results. Following the news, the stock appreciated by 3.9% to $46.11.

So, is Hims & Hers Health a worthy investment right now? What transpired this quarter matters, certainly, but it’s crucial to weigh that against the company’s long-term quality and valuation.