Key facts
- Hims & Hers reported third-quarter revenue of $599 million, a 49% year-over-year increase.
- The company's subscriber base grew to 2.47 million paying customers.
- Adjusted earnings per share were $0.06, missing targets.
- Gross margin contracted to 74% from 79% in the prior year.
- Chief Operating Officer Nader Kabbani transitioned to an advisory role.
- Fourth-quarter revenue guidance is projected between $605 million and $625 million.
Hims & Hers Health reported strong third-quarter 2025 financial results, with revenue reaching $599 million, a significant 49% increase year-over-year and exceeding analyst expectations of $580 million. The telehealth provider also saw its subscriber base grow to 2.47 million paying customers, a 21% increase, while average monthly revenue per user rose 19% to $80.
Despite the robust top-line growth, the company's profitability metrics presented a more challenging picture. Adjusted earnings per share were $0.06, falling short of the projected $0.10. Furthermore, the gross margin contracted by five percentage points to 74%, a decline attributed to increased competition, including Amazon's entry into the telehealth sector.
Coinciding with the earnings release, Hims & Hers announced an unexpected executive reshuffling. Chief Operating Officer Nader Kabbani, who joined in May 2025, transitioned to an advisory role. His responsibilities will now be consolidated under Chief Commercial Officer Mike Chi. The abrupt nature of this change has raised questions among investors regarding the company's strategic direction, particularly concerning international expansion and regulatory complexities.
Looking ahead to the fourth quarter of 2025, Hims & Hers provided revenue guidance of $605 million to $625 million, with projected EBITDA margins between 9% and 10%, a decrease from the third quarter's performance. While management reaffirmed ambitious long-term revenue targets, the current margin pressures and leadership changes introduce uncertainty about their achievability.