Bull of the Day: Hims & Hers Health (HIMS)

Core Insights - Hims & Hers Health has established itself as a disruptive player in the telehealth sector, focusing on personalized healthcare solutions for stigmatized health conditions, achieving scalable profitability [1][2] - The company operates a subscription-based model, which has shown significant growth and resilience, positioning itself to capitalize on the 100+ billion telehealth market [2][4] Financial Performance - In 2024, Hims & Hers reported revenue of 1.5 billion, a 69% year-over-year increase, with subscribers growing to 2.2 million, reflecting a 45% increase [4][6] - The company achieved a net income of $126 million and adjusted EBITDA of$177 million in 2024, with a margin of 11.8% [4][8] - For 2025, Hims & Hers provided guidance of $2.3 billion to$2.4 billion in revenue, indicating nearly 60% annual growth at the midpoint, and adjusted EBITDA guidance of $270 million to$320 million [5][7] Revenue Streams - The primary revenue driver is the subscription model, accounting for over 90% of total revenue, with the average monthly online revenue per subscriber reaching $73, a 24$725 million revenue in 2025), and Primary Care [6][7] Margin Profile - Hims & Hers is expected to improve its adjusted EBITDA margin to 12.6% in 2025, driven by operational leverage, vertical integration, and automation [8][9] - The company maintains strong financial metrics, with gross margins between 80-83% and a net profit margin of 4% in 2024 [9] Marketing Strategy - Hims & Hers employs a sophisticated marketing strategy with a $150 million annual budget, focusing on digital advertising, micro-influencers, and algorithmic targeting [10][11] - The proprietary customer segmentation algorithm achieves a 93$250 billion by 2030, with Hims & Hers positioned to capture significant market share in mental health, sexual wellness, and chronic condition management [12] - The company is adapting to recent FDA regulations affecting its compounded GLP-1 weight-loss drugs by diversifying its product portfolio [13][14]