To The Moon

About Hims & Hers

$Hims & Hers Health Inc.(HIMS)$ 

Him & Hers Inc. is a U.S.-based telehealth company founded in 2017, specializing in prescription and over-the-counter medications, as well as personal care products.

Operating on a direct-to-consumer model, the company connects customers with licensed healthcare professionals through its platform. Patients pay for both the consultation and prescribed medications, making healthcare more accessible. Over time, Hims & Hers has expanded its services to include health solutions for both men and women, as well as mental health treatments.

In October 2020, the company secured a deal with Oaktree Capital Management to go public via a blank check company, achieving a $1.6 billion valuation. Following the agreement, the company rebranded as Hims & Hers Health Inc. and officially began trading on the New York Stock Exchange in January 2021.

The irony of the Hims & Hers Super Bowl commercial on February 10, 2025, has ignited widespread debate across the U.S., underscoring the ad's effectiveness in capturing public attention.

Aired on one of the largest platforms in the world, the commercial highlighted stark U.S. health statistics:

✅ 74% of Americans are overweight

✅ Obesity-related deaths exceed 500,000 per year

✅ Big Pharma is a $160 billion industry profiting from illness

✅ Processed food keeps consumers trapped in unhealthy cycles

At first, the ad appeared to take a bold stance against Big Pharma and the food industry, criticizing them for prioritizing profit over public health. However, the message took an unexpected turn when Hims & Hers positioned its own weight-loss medications—such as compounded Semaglutide—as a more affordable, doctor-trusted alternative to high-priced drugs like Ozempic.

The company claims that Big Pharma prices weight-loss drugs for profit, not patients, while Hims & Hers offers compounded GLP-1 medications for under $200 per month, making them more accessible to those struggling with insurance hurdles and supply shortages. However, compounded medications do not undergo FDA review for safety or efficacy, raising concerns about potential risks.

The controversy gained further traction when Senators Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.) sent a letter to the FDA, warning that the ad could mislead consumers by failing to mention safety risks or side effects associated with weight-loss medications.

Despite the backlash, Hims & Hers is gaining strong public interest after the controversial ad, and I believe sales will skyrocket as more consumers seek affordable alternatives to traditional weight-loss medications. Whether this momentum will sustain or lead to further regulatory scrutiny remains to be seen. Yesterday, Hims closed at $46.34, up 2.76 or 6.33%.

Q3 Earnings 

Hims & Hers Health reported a 77% year-over-year increase in revenue from $226.7 million in the third quarter of 2023 to $401.6 million in Q3 2024. 

The San Francisco-based company reported a net income for the third quarter of $75.6 million compared to a net loss of $7.6 million in the same period last year. It attributes the net income in Q3 to a $60.8 million tax benefit pertaining to the release of a tax valuation allowance. 

Adjusted EBITDA was $51.1 million for Q3 2024 compared to $12.3 million for the third quarter last year, and free cash flow was $79.4 million in Q3 2024 compared to $19.3 million in Q3 2023. 

Net cash provided by operating activities in the third quarter of this year was $85.3 million compared to 425.2 million for the same period last year. 

The company raised its full-year 2024 revenue guidance to range between $1.46 billion to $1.465 billion and its adjusted EBITDA to $173 million to $178 million, a margin of 12%. 

“Our model is rapidly gaining scale, driving accelerating top-line growth, improving profitability and strong cash flow. We are seeing this strength across our business. Our new weight loss offering is helping a growing number of people and providing an accelerant to what was already a robust trajectory," Yemi Okupe, chief financial officer of Hims & Hers Health, said in a statement. 

"These strong underlying trends continued as subscriber growth excluding contributions from our compounded GLP-1 solutions increased 40% year-over-year, benefiting from improving brand awareness, broader personalization initiatives, and new customers accessing care for multiple conditions."

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