Hims & Hers Health, Inc. HIMS delivered an earnings per share (EPS) of 20 cents in first-quarter 2025 compared with the year-ago period’s EPS of 5 cents. The metric surpassed the Zacks Consensus Estimate by 66.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
HIMS’ Revenues in Detail
Hims & Hers registered revenues of $586 million in the first quarter, up 110.7% year over year. The figure beat the Zacks Consensus Estimate by 8.9%.
Solid revenues from the Online channel drove the top line.
Shares of this company lost nearly 6.8% in today’s pre-market trading.
Hims & Hers’ Segment Details
Hims & Hers’ operations consist of two channels — Online Revenues and Wholesale Revenues.
In the quarter under review, Online Revenues of $576.4 million reflected a surge of 115.3% year over year on a reported basis.
During the reported quarter, subscribers were 2.4 million (up 38.4% year over year). This was primarily driven by increased traffic to Hims & Hers’ platform (through websites and mobile applications), resulting from marketing activities and improved onsite and customer onboarding experiences.
Monthly online revenue per average subscriber increased 52.7% year over year to $84 in the first quarter, primarily resulting from subscriber uptake of HIMS’ GLP-1 weight loss offering, along with changes in product mix.
The Net Orders and average order value, or AOV, metrics have become less relevant for Hims & Hers’ business. Hence, beginning with the three months ending March 31, 2025, the company will no longer be reporting them as key business metrics.
Wholesale Revenues totaled $9.6 million, down 7.3% year over year.
Hims & Hers Health, Inc. Price, Consensus and EPS Surprise
Hims & Hers Health, Inc. Price, Consensus and EPS Surprise
Hims & Hers Health, Inc. price-consensus-eps-surprise-chart | Hims & Hers Health, Inc. Quote
HIMS’ Margin Analysis
In the first quarter, Hims & Hers’ gross profit increased 87.9% year over year to $430.7 million. However, the gross margin contracted 886 basis points (bps) to 73.5%.
Marketing expenses jumped 77.1% year over year to $231.2 million, while technology and development expenses increased 95.2% year over year to $29.9 million. General and administrative expenses rose 40.6% year over year to $48.6 million, while operations and support expenses increased 62.7% year over year to $63 million. Operating expenses of $372.8 million increased 70.1% year over year.
Operating profit totaled $57.9 million, reflecting a 484.6% surge from the year-ago quarter. The operating margin in the first quarter expanded 632 bps to 9.9%.
Hims & Hers’ Financial Position
Hims & Hers exited first-quarter 2025 with cash and cash equivalents and short-term investments of $322.7 million compared with $300.3 million at 2024-end.
Net cash provided by operating activities at the end of first-quarter 2025 was $109.1 million compared with $25.8 million a year ago.
HIMS’ Outlook
Hims & Hers has provided its revenue outlook for the second quarter and reiterated the same for 2025.
The company projects revenues for the second quarter of 2025 in the range of $530 million to $550 million, reflecting an uptick of 68-74% year over year. The Zacks Consensus Estimate is pegged at $562.2 million.
For the full year, the company continues to project revenues in the range of $2.3 billion to $2.4 billion (representing growth of 56-63% from 2024 levels). The Zacks Consensus Estimate is pegged at $2.33 billion.
Our Take
Hims & Hers exited the first quarter of 2025 with better-than-expected results. The robust improvement in the top and bottom lines and strength in its Online revenue channel were promising. The increase in subscribers and monthly online revenue per average subscriber during the quarter was encouraging. The expansion of the operating margin during the quarter bodes well.
This month, Hims & Hers announced a long-term collaboration with Novo Nordisk to make obesity care and treatments more accessible, affordable and connected for Americans. In February, HIMS acquired a U.S.-based peptide facility based in California, which will likely enable it to strengthen the long-term durability of its domestic supply chain to meet the growing demand from Americans for personalized healthcare and treatment options. The same month, the company announced its plans to introduce at-home lab testing through its platform. These raise our optimism about the stock.
However, the quarter's lower Wholesale revenues were disappointing. The gross margin contracted due to rising product costs, which do not bode well for the stock.
Hims & Hers’ Zacks Rank and Other Key Picks
HIMS currently sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and Boston Scientific Corporation BSX.
CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 31.6%. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVS Health has a long-term estimated growth rate of 11.4%. CVS’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.1%.
Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion surpassed the Zacks Consensus Estimate by 2.3%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%.
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