Hims & Hers Health Inc (NYSE:HIMS) reported financial results for the fourth quarter and full year 2025 that presented a mixed picture for investors, leading to a notable decline in the stock's after-hours trading. The telehealth platform met revenue expectations for the quarter but issued guidance for the upcoming period that fell short of Wall Street's forecasts, casting a shadow over its otherwise strong growth narrative.
Earnings and Revenue Versus Estimates
The company's fourth-quarter performance was a tale of two key metrics. Revenue growth remained robust, while profitability surprised to the upside.
- Revenue: For Q4 2025, Hims & Hers reported revenue of $617.8 million, marking a 28.4% increase year-over-year. This figure was essentially in line with analyst estimates, which had anticipated $631.6 million. For the full year 2025, revenue reached $2.35 billion, a significant 59% jump from the previous year.
- Earnings Per Share: The company reported non-GAAP earnings per share (EPS) of $0.07 for the quarter. This comfortably exceeded the consensus analyst estimate of $0.047, representing a beat of nearly 50%.
Market Reaction and Forward Guidance
Despite the earnings beat, the market's immediate reaction was negative, with shares falling approximately 6% in after-hours trading following the report. This reaction appears to be primarily driven by the company's outlook for the first quarter of 2026.
Hims & Hers provided Q1 2026 revenue guidance in a range of $600 million to $625 million. The midpoint of this range, $612.5 million, falls about 5.6% below the analyst consensus estimate of $649.1 million. The company also forecast full-year 2026 revenue between $2.7 billion and $2.9 billion, with the midpoint of $2.8 billion aligning closely with the current analyst sales estimate of $2.796 billion.
The guidance underscores a expected deceleration in growth, particularly in the near term, as the company laps a period of explosive expansion. Furthermore, management's commentary attached specific conditions to its outlook, noting it assumes the "ongoing ability to provide access to compounded semaglutide," a copycat version of popular GLP-1 weight-loss drugs. As highlighted in recent news reports, this business line faces ongoing legal and regulatory scrutiny, adding a layer of uncertainty to future performance.
Key Takeaways from the Earnings Report
Beyond the headline numbers, the earnings release detailed several important developments for Hims & Hers:
- Subscriber and Monetization Growth: The company ended 2025 with over 2.5 million subscribers, a 13% increase from the end of 2024. More importantly, the average revenue generated per subscriber continued to climb, with Monthly Revenue per Average Subscriber rising to $83 from $65 a year ago, indicating success in selling more services to its existing customer base.
- International Expansion: A major growth driver has been the company's aggressive international push. "Rest of the World" revenue skyrocketed 399% for the full year to $134 million, albeit from a small base. This segment now represents a meaningful part of the growth story.
- Profitability Metrics: The company highlighted its Adjusted EBITDA, which reached $318 million for the full year, up 80% from 2024. However, investors noted a contraction in gross margin, which fell to 72% in Q4 from 77% a year prior, potentially reflecting the sales mix shift or investments in new initiatives.
- Long-Term Targets: Management reiterated ambitious long-term targets, aiming for at least $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA by 2030.
The quarterly results from Hims & Hers confirm the continued strong demand for its telehealth and wellness platform, evidenced by solid subscriber and revenue growth. However, the market's negative reaction highlights investor sensitivity to any signs of a growth slowdown and the perceived risks associated with the company's reliance on compounded weight-loss medications. The guidance for the coming quarter suggests a period of digestion and investment following a year of breakneck expansion.
For a detailed breakdown of future earnings estimates and historical performance, you can review the data here.
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