Hims & Hers Health (NYSE:HIMS) reported first-quarter results that showed impressive revenue growth and subscriber expansion but fell short on earnings, with a softer near-term outlook prompting a 7% drop in shares in pre-market today.
The telehealth company posted adjusted earnings of $0.20 per share for Q1 2025, below the analyst consensus of $0.23. Revenue surged 111% year-over-year to $586 million, beating expectations of $538.9 million, as the company continues to scale its direct-to-consumer healthcare model.
The subscriber base grew 38% from the prior year to reach 2.4 million users. However, gross margin narrowed to 73%, down from 82% in the same quarter last year, reflecting increased costs tied to growth and service expansion.
Looking ahead, Hims & Hers reaffirmed its full-year revenue guidance of $2.3 billion to $2.4 billion, in line with analyst expectations, while raising its adjusted EBITDA forecast to a range of $295 million to $335 million.
However, the Q2 revenue outlook of $530 million to $550 million fell short of the $564.5 million consensus estimate, weighing on investor sentiment. The company expects Q2 adjusted EBITDA between $65 million and $75 million.