10-K: Hims & Hers Reports Profitable 2024, Eyes Further Expansion

Hims & Hers achieved its first full year of profitability in 2024 and is strategically expanding its capabilities through acquisitions and new specialties.

Summary

• Hims & Hers Health, Inc., launched in 2017, operates a consumer-first platform for health and wellness needs, offering access to a provider network, electronic medical records, digital prescriptions, and cloud pharmacy fulfillment.
• The company's platform provides treatments for sexual health, hair loss, dermatology, mental health, and weight loss, connecting patients with licensed healthcare professionals.
• In 2024, Hims & Hers facilitated over thirty million telehealth consultations across all 50 U.S. states and the United Kingdom.
• The company's business strategy centers around a trusted brand, innovative products and services, leading technology, and clinical excellence.
• Hims & Hers acquires new customers through various marketing channels, including social media, online search, television, radio, retail partnerships, and brand advertising campaigns.
• The company is focused on growth opportunities such as acquiring more customers, expanding within the existing customer base, and rapidly expanding into new specialties.
• Hims & Hers leverages its pharmacy, affiliated pharmacies, and compounding outsourcing facility to personalize drug delivery and consolidate shipping.
• In 2024, the company acquired MedisourceRx, a licensed compounding outsourcing facility, and in February 2025, acquired a peptide manufacturing facility and a lab testing services business.
• Hims & Hers expanded into the United Kingdom in early 2021 and believes its model will afford further international expansion opportunities in Europe and beyond.
• The company has relationships with leading health systems to provide a clinically focused, telehealth-enabled patient care collaboration.
• Hims & Hers is subject to extensive healthcare laws and regulations, including those related to the practice of medicine, telehealth, privacy, product safety, and pharmacy operations.
• The company expects its weight loss specialty to drive new seasonality considerations, with increased traffic and subscriber growth in the first quarter.
• As of December 31, 2024, the company had 1,637 employees and 1,307 medical providers on its platform.
• Hims & Hers faces competition from traditional healthcare providers, pharmacies, and technology companies.
• The aggregate market value of voting stock held by non-affiliates as of June 28, 2024, was approximately $3.9 billion.
• As of February 21, 2025, there were 213,787,949 shares of Class A common stock and 8,377,623 shares of Class V common stock issued and outstanding.
• The company grew its revenue from $526.9 million in 2022 to $1,476.5 million in 2024.
• For the year ended December 31, 2024, Hims & Hers reported net income of $126.0 million and Adjusted EBITDA of $176.9 million.
• As of December 31, 2024, the company had cash and cash equivalents of $220.6 million and short-term investments of $79.7 million.
• In February 2025, Hims & Hers entered into a Revolving Credit and Guaranty Agreement providing for a three-year senior secured revolving line of credit up to $175.0 million.

Sentiment

Score: 8

Explanation: The document presents a positive outlook, highlighting strong financial performance and strategic growth initiatives. The company's first full year of profitability and continued expansion contribute to a favorable sentiment.

Positives

• The company achieved its first full year of profitability in 2024.
• Hims & Hers experienced significant revenue growth, driven by new offerings and increased subscriber base.
• The company is strategically expanding its capabilities through acquisitions and new specialties.
• Hims & Hers has secured a substantial line of credit to support future growth.
• The company's digital-first model has proven successful in the U.S. and the United Kingdom, with potential for further international expansion.

Negatives

• The company operates in a highly regulated environment, subject to complex healthcare laws and regulations.
• Hims & Hers faces intense competition from established healthcare providers and technology companies.
• The company is dependent on relationships with Affiliated Medical Groups, which it does not own, to provide healthcare consultation services.
• The company's business could be adversely affected if Providers were classified as employees of the Affiliated Medical Groups instead of independent contractors.
• The market price of the company's Class A common stock may be volatile.

Risks

• Failure to comply with applicable healthcare laws and governmental regulations could result in substantial penalties.
• Security breaches and data loss could compromise sensitive information and expose the company to liability.
• The company may require additional capital to support business growth, which may not be available on acceptable terms.
• The dual class common stock structure concentrates voting power with the CEO, limiting investors' influence.
• The company's reliance on third-party service providers and potential disruptions in the supply chain could negatively impact operations.

Future Outlook

The company intends to continue investing in growth, including expanding its fulfillment capabilities, marketing efforts, and product offerings. Hims & Hers also expects to pursue opportunities to acquire or invest in complementary businesses and technologies.

Industry Context

The announcement reflects the ongoing shift towards telehealth and personalized healthcare, with Hims & Hers positioning itself as a leader in this evolving market. The company's expansion into new specialties and its focus on technology-driven solutions align with broader industry trends.

Comparison to Industry Standards

• While the document does not provide specific comparisons to industry standards, Hims & Hers' growth and profitability metrics can be assessed against those of other telehealth companies such as Teladoc Health, Amwell, and similar direct-to-consumer healthcare providers.
• The company's subscriber growth and revenue per subscriber can be compared to subscription-based businesses in other sectors to evaluate its performance.
• The company's expansion into new specialties can be compared to the strategies of other healthcare companies seeking to diversify their offerings.

Stakeholder Impact

• Shareholders: Positive impact due to increased profitability and growth.
• Employees: Potential for growth and recognition within the company.
• Customers: Access to a broader range of personalized health and wellness solutions.
• Suppliers: Opportunities for increased business through expanded operations.
• Creditors: Increased financial stability and ability to meet obligations.

Next Steps

• Continue to acquire more customers through brand awareness and innovative, personalized products.
• Grow within the existing customer base through robust customer engagement and cross-sell opportunities.
• Pursue a roadmap of rapid specialty expansion into new conditions that can be treated safely and effectively via telehealth.
• Leverage existing capabilities and continue to expand capabilities to penetrate new sales channels and further improve operations.
• Expand into new geographies, building on the strong brand and digital-first, cloud-based business model.

Key Dates