Hims & Hers Revenue Soars 74%, But Q3 Net Income Plunges 79%

TL;DR

**HIMS is growing revenue like crazy, but Q3 profit got crushed by tax changes and debt, making it a risky bet for now.**

AI Summary

Hims & Hers Health, Inc. reported a significant increase in revenue for the nine months ended September 30, 2025, reaching $1,729,819 thousand, up from $995,375 thousand in the same period of 2024, representing a 73.8% increase. Net income also grew to $107,764 thousand for the nine months of 2025, compared to $100,013 thousand in 2024, a 7.75% increase. However, net income for the three months ended September 30, 2025, decreased to $15,774 thousand from $75,588 thousand in the prior year, a substantial 79.1% drop, primarily due to a $7,626 thousand change in fair value of liabilities and a significantly lower benefit from income taxes ($3,551 thousand in 2025 vs. $51,995 thousand in 2024). The company's total assets surged to $2,233,304 thousand as of September 30, 2025, from $707,539 thousand at December 31, 2024, driven by increased cash and cash equivalents, short-term and long-term investments, and substantial increases in goodwill and intangible assets, indicating significant acquisitions and investments. Total liabilities also rose dramatically to $1,652,322 thousand from $230,823 thousand, largely due to the issuance of $971,023 thousand in convertible senior notes. Operating expenses increased across the board, with marketing expenses rising to $681,247 thousand for the nine months of 2025 from $457,759 thousand in 2024.

Why It Matters

Hims & Hers' substantial revenue growth of 73.8% year-over-year for the nine months signals strong market penetration and demand for its telehealth services, which is crucial for investors looking for high-growth companies in the digital health sector. However, the sharp 79.1% decline in Q3 net income, largely due to a reduced tax benefit and fair value adjustments, raises concerns about profitability sustainability and operational efficiency, potentially impacting investor confidence. The significant increase in liabilities, particularly the $971,023 thousand in convertible senior notes, indicates aggressive expansion and investment, which could either fuel future growth or introduce financial risk. Competitively, Hims & Hers is expanding its platform and product offerings, including weight loss and dermatology, aiming to capture a larger share of the evolving telehealth market against rivals like Teladoc and Amwell.

Risk Assessment

Risk Level: high — The risk level is high due to the dramatic 79.1% decrease in net income for the three months ended September 30, 2025, to $15,774 thousand from $75,588 thousand in the prior year, primarily driven by a significant reduction in benefit from income taxes from $51,995 thousand to $3,551 thousand. Additionally, the company incurred $971,023 thousand in convertible senior notes, substantially increasing its long-term liabilities and introducing interest rate and conversion risk.

Analyst Insight

Investors should closely scrutinize the drivers behind the Q3 net income decline, particularly the tax benefit reduction, and assess the long-term implications of the new convertible senior notes. While revenue growth is impressive, a deeper dive into profitability margins and the cost of capital is warranted before making further investment decisions.

Financial Highlights

revenue

$1,729,819,000

operating Margin

5.58%

total Assets

$2,233,304,000

total Debt

$1,652,322,000

net Income

$107,764,000

gross Margin

74.51%

cash Position

$345,778,000

revenue Growth

+73.8%

Revenue Breakdown

Key Numbers

• $1.73B — Revenue (Increased 73.8% for the nine months ended September 30, 2025, compared to the same period in 2024.)
• $107.76M — Net Income (9 months) (Increased 7.75% for the nine months ended September 30, 2025, compared to the same period in 2024.)
• $15.77M — Net Income (Q3) (Decreased 79.1% for the three months ended September 30, 2025, compared to the same period in 2024.)
• $971.02M — Convertible Senior Notes (New liability as of September 30, 2025, significantly increasing total liabilities.)
• $2.23B — Total Assets (Increased from $707.54 million at December 31, 2024, indicating significant growth and acquisitions.)
• $1.65B — Total Liabilities (Increased from $230.82 million at December 31, 2024, primarily due to convertible notes.)
• $681.25M — Marketing Expenses (Increased for the nine months ended September 30, 2025, from $457.76 million in 2024.)
• $3.55M — Benefit from Income Taxes (Q3) (Significantly lower in Q3 2025 compared to $51.99 million in Q3 2024, impacting net income.)
• $7.63M — Change in Fair Value of Liabilities (Negative impact on Q3 2025 income from operations, compared to zero in Q3 2024.)
• 227.5M — Class A & V Shares Outstanding (Increased from 220.84 million at December 31, 2024, indicating share issuance.)

Key Players & Entities

• Hims & Hers Health, Inc. (company) — registrant
• New York Stock Exchange (regulator) — exchange where Class A common stock is registered
• $1,729,819 thousand (dollar_amount) — total revenue for nine months ended September 30, 2025
• $995,375 thousand (dollar_amount) — total revenue for nine months ended September 30, 2024
• $107,764 thousand (dollar_amount) — net income for nine months ended September 30, 2025
• $15,774 thousand (dollar_amount) — net income for three months ended September 30, 2025
• $75,588 thousand (dollar_amount) — net income for three months ended September 30, 2024
• $971,023 thousand (dollar_amount) — convertible senior notes, net, as of September 30, 2025
• $2,233,304 thousand (dollar_amount) — total assets as of September 30, 2025
• $707,539 thousand (dollar_amount) — total assets as of December 31, 2024

FAQ

Risk Factors

• Convertible Senior Notes Issuance [high — financial]: The company issued $971,023,000 in convertible senior notes, significantly increasing total liabilities to $1,652,322,000 as of September 30, 2025. This substantial debt load could impact future financial flexibility and profitability.
• Increased Operating Expenses [medium — operational]: Total operating expenses rose to $1,192,516,000 for the nine months ended September 30, 2025, from $760,287,000 in the prior year. Marketing expenses alone increased by 48.8% to $681,247,000, indicating significant investment in customer acquisition.
• Volatility in Fair Value of Liabilities [medium — financial]: A change in fair value of liabilities of $(7,626,000)$ negatively impacted net income for the three months ended September 30, 2025. This volatility can lead to unpredictable earnings.
• Reduced Income Tax Benefit [medium — financial]: The benefit from income taxes in Q3 2025 was significantly lower at $3,551,000 compared to $51,995,000 in Q3 2024, contributing to the sharp decline in quarterly net income.
• Growth in Goodwill and Intangible Assets [medium — operational]: Goodwill increased from $112,728,000 to $259,236,000 and intangible assets from $43,410,000 to $194,931,000. This suggests significant acquisitions or investments that carry integration and valuation risks.

Industry Context

Hims & Hers operates in the rapidly growing telehealth and digital health market, which has seen increased competition and evolving regulatory landscapes. The company competes with other direct-to-consumer health platforms and traditional healthcare providers offering similar services. Trends include expanding service offerings beyond initial focus areas and integrating physical and digital health solutions.

Regulatory Implications

The company operates under various healthcare regulations, including those related to telehealth, prescription drug dispensing, and data privacy (e.g., HIPAA). Changes in these regulations could impact service delivery, costs, and market access. Compliance with state and federal laws governing medical practice and marketing is crucial.

What Investors Should Do

1. Monitor the impact of increased debt on financial flexibility.
2. Analyze the sustainability of revenue growth versus operating expense increases.
3. Evaluate the drivers of the Q3 net income decline.
4. Assess the strategic rationale and integration of recent acquisitions.

Key Dates

• 2025-09-30: End of Third Quarter and Nine Months — Reporting period for the 10-Q, showing significant revenue growth but a sharp decline in quarterly net income due to specific non-recurring items and tax benefits.
• 2025-09-30: Issuance of Convertible Senior Notes — A major financing event that substantially increased the company's debt load, impacting its balance sheet structure.
• 2025-09-30: Significant Increase in Assets — Total assets more than tripled, driven by cash, investments, and substantial increases in goodwill and intangibles, signaling strategic acquisitions or investments.

Glossary

Convertible senior notes

Debt securities that can be converted into a predetermined amount of the issuer's equity at certain times. (Hims & Hers issued $971,023,000 of these, significantly increasing their liabilities and potentially diluting equity in the future.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its net assets. (The substantial increase in goodwill ($259,236,000$ as of Sep 30, 2025) indicates significant acquisition activity.)

Intangible assets, net

Non-physical assets that have value, such as patents, copyrights, and brand names, net of accumulated amortization. (The increase to $194,931,000$ suggests the company has acquired or developed significant intellectual property or brand value.)

Change in fair value of liabilities

The fluctuation in the market value of a company's liabilities, which can impact net income. (A negative change of $(7,626,000)$ in Q3 2025 negatively affected net income for the quarter.)

Deferred revenue

Revenue that has been received by the company but not yet earned, typically from services or subscriptions to be provided in the future. (Deferred revenue increased to $118,458,000$, indicating a growing future revenue stream from existing customer commitments.)

Earn-out liabilities

Obligations to pay additional consideration to sellers of acquired businesses, contingent on the future performance of the acquired business. (The emergence of $50,361,000$ in current and $49,623,000$ in long-term earn-out liabilities suggests recent acquisitions with performance-based payouts.)

Year-Over-Year Comparison

Hims & Hers has demonstrated robust top-line growth, with revenue increasing by 73.8% for the nine months ended September 30, 2025, compared to the prior year. However, this growth has been accompanied by a significant increase in operating expenses, particularly marketing, and a substantial rise in liabilities due to the issuance of convertible senior notes. While net income for the nine months showed a modest increase, the third quarter saw a dramatic decrease in profitability, largely due to non-operational factors like fair value adjustments and a reduced tax benefit, highlighting a mixed financial performance and increased financial complexity.

Key Financial Figures

• $0.0001 — which registered Class A common stock, $0.0001 par value per share HIMS New York Stock
• $0 — ares of Class A common stock, par value $0.0001, and 8,377,623 shares of Class V c

Filing Documents

• hims-20250930.htm (10-Q) — 1927KB
• hims-20250930x10qxex103.htm (EX-10.3) — 15KB
• hims-20250930x10qxex311.htm (EX-31.1) — 10KB
• hims-20250930x10qxex312.htm (EX-31.2) — 10KB
• hims-20250930x10qxex321.htm (EX-32.1) — 5KB
• hims-20250930x10qxex322.htm (EX-32.2) — 5KB
• hims-20250930x10qxex103001.jpg (GRAPHIC) — 245KB
• hims-20250930x10qxex103002.jpg (GRAPHIC) — 286KB
• hims-20250930x10qxex103003.jpg (GRAPHIC) — 61KB
• hims-20250930x10qxex103004.jpg (GRAPHIC) — 169KB
• hims-20250930x10qxex103005.jpg (GRAPHIC) — 148KB
• 0001773751-25-000354.txt ( ) — 11557KB
• hims-20250930.xsd (EX-101.SCH) — 76KB
• hims-20250930_cal.xml (EX-101.CAL) — 92KB
• hims-20250930_def.xml (EX-101.DEF) — 440KB
• hims-20250930_lab.xml (EX-101.LAB) — 915KB
• hims-20250930_pre.xml (EX-101.PRE) — 670KB
• hims-20250930_htm.xml (XML) — 1384KB

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations and Comprehensive Income 2 Condensed Consolidated Statements of Stockholders' Equity 3 Condensed Consolidated Statements of Cash Flows 5 Notes to Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) 30

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 46

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 48

Risk Factors

Item 1A. Risk Factors 48

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 86

Other Information

Item 5. Other Information 86

Exhibits

Item 6. Exhibits 87

Signatures

Signatures 88 i Table of Contents Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q, including, without limitation, statements under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations," includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believe," "estimate," "anticipate," "expect," "assume," "imply," "intend," "plan," "may," "will," "potential," "project," "predict," "continue," "could," "confident," "confidence," or "should," or, in each case, their plural, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include, but are not limited to, any statements relating to our financial and business performance, including with respect to the Hims & Hers platform, our marketing campaigns, investments in innovation, the solutions accessible on our platform, and our infrastructure, and the underlying assumptions with respect to the foregoing; statements relating to events and trends relevant to us, including with respect to our regulatory environment, financial condition, results of operations, short- and long-term business operations, objectives, and financial needs; expectations regarding our mobile applications, market acceptance, user experience, customer retention, brand development, our ability to invest and generate a return on any such investment, customer acquisition costs, operating efficiencies and leverage (including our fulfillment capabilities), the effect of any pricing decisions, changes in our product and offering mix, the timing and market acceptance of any new pr

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Hims & Hers Health, Inc. Condensed Consolidated Balance Sheets (In Thousands, Except Share and Per Share Data) September 30, 2025 December 31, 2024 (Unaudited) Assets Current assets: Cash and cash equivalents $ 345,778 $ 220,584 Short-term investments 283,966 79,667 Inventory 105,989 64,427 Prepaid expenses and other current assets 109,527 31,153 Total current assets 845,260 395,831 Restricted cash — 856 Long-term investments 438,340 — Goodwill 259,236 112,728 Property, equipment, and software, net 267,438 82,083 Intangible assets, net 194,931 43,410 Operating lease right-of-use assets 139,297 10,881 Deferred tax assets, net 84,925 61,603 Other long-term assets 3,877 147 Total assets $ 2,233,304 $ 707,539 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 198,413 $ 91,180 Accrued liabilities 80,131 53,013 Deferred revenue 118,458 75,285 Earn-out liabilities 50,361 — Operating lease liabilities 3,422 1,889 Total current liabilities 450,785 221,367 Convertible senior notes, net 971,023 — Operating lease liabilities 143,578 9,456 Earn-out liabilities 49,623 — Deferred tax liabilities, net 31,208 — Other long-term liabilities 6,105 — Total liabilities 1,652,322 230,823 Commitments and contingencies (Note 14) Stockholders' equity: Common stock – Class A shares, par value $ 0.0001 , 2,750,000,000 shares authorized and 219,121,219 and 212,459,586 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively; Class V shares, par value $ 0.0001 , 10,000,000 shares authorized and 8,377,623 shares issued and outstanding as of September 30, 2025 and December 31, 2024 23 22 Additional paid-in capital 714,411 719,155 Accumulated other comprehensive income (loss) 921 ( 324 ) Accumulated deficit ( 134,373 ) ( 242,137 ) Total stockholders' equity 580,982 476,716 Total liabilities and stockholders' equity $ 2,233,304 $ 707,539 See accompanying notes to

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View this 10-Q filing on SEC EDGAR