Telehealth Growth Desk: Hims Q2 2025 and the Post-Shortage Quarter

Here is a number that did not make the headlines: Hims & Hers' revenue in Q2 2025 was lower than in Q1.

You will not find that sentence in the press release. It falls out of two numbers that are in it: $544.8 million for the quarter and $1,130.8 million for the first six months, which leaves about $586.0 million for Q1.¹ And yet the company still grew 73% year over year and reaffirmed its full-year guidance. Both things are true, and the gap between them is where the interesting questions live.

This is educational commentary on public company disclosures. It is not investment, medical or legal advice.

What did Hims & Hers report for Q2 2025?

On August 4, 2025, the company reported the following for the quarter ended June 30 (I covered the prior year's quarter in Hims Q2 2024 and the GLP-1 Land Grab):¹

• Revenue: $544.8 million, up 73% from $315.6 million.
• Subscribers: 2.439 million, up 31%.
• Monthly online revenue per average subscriber: $74, up 30% from $57.
• Net income: $42.5 million, versus $13.3 million.
• Adjusted EBITDA: $82.2 million, a 15% margin versus 12%.
• Gross margin: 76%, versus 81%.
• Free cash flow: negative $69.4 million, versus positive $47.6 million.

CEO Andrew Dudum said the company is "delivering exactly what millions of people have been waiting for: access to personalized, high-quality care." The CFO, Yemi Okupe, attributed the growth to subscribers using personalized treatment plans and said the second half would focus on strengthening pharmacy personalization infrastructure, expanding lab testing and growing internationally.¹

Why did revenue per subscriber matter more than subscriber count?

Because that is where most of the growth came from.

Subscribers grew 31%, but revenue grew 73%. The difference is revenue per subscriber, which rose 30% year over year to $74 a month.¹ A business that earns far more per customer than it did a year ago has changed what it sells, not just how many people it sells to.

The sequential wrinkle

The first six months averaged $79 of monthly online revenue per average subscriber, per the release. Q2 came in at $74.¹ If the half-year figure is $79 and the second quarter is $74, the first quarter must have been higher than $79. So revenue per subscriber looks to have slipped from Q1 to Q2, even though the subscriber base was up 31% on the year.

What was happening around the quarter?

The release is a financial document and it stays quiet about regulation and drug supply. Context from outside it is useful, as long as we keep inference separate from fact.

• February 21: The FDA declared the semaglutide shortage resolved and set April 22 for 503A compounders and May 22 for 503B outsourcing facilities as the end of its enforcement discretion periods.²
• June 23: Novo Nordisk (whose direct-to-patient push I covered in When Manufacturers Sell Direct) ended its collaboration with Hims & Hers, citing the company's sale and promotion of cheaper compounded versions of Wegovy. Hims' CEO said Novo's team had pressured the company to steer patients toward Wegovy regardless of clinical fit, and that the company would keep offering a range of treatments.³

Those two dates both fall inside the quarter. I cannot tell you from the release whether they moved the numbers. But when revenue per subscriber slips in the same quarter that supply rules tighten and a major partner leaves, the timing is worth noting.

Bloomberg Television built a segment on June 26, 2025, three days after Novo's exit, around a quote it attributed to the Hims & Hers chief executive:

The anchor read that line on air, and I have not confirmed it elsewhere, so I treat it as a statement of posture. It fits the concentration point below.

Plays here, from YouTube

What does the release not say?

A lot, which is normal. But three omissions are worth naming.

Why gross margin fell five points

The release shows gross margin at 76% versus 81% a year earlier and offers no explanation.¹ Possible reasons include product mix, fulfillment costs or pricing changes. I am guessing. The shareholder letter may say more, but the release itself does not.

Why free cash flow turned negative

Net income was a positive $42.5 million, but free cash flow was negative $69.4 million, and operating cash flow was negative $19.1 million.¹ A profitable quarter with negative cash flow often reflects working capital and investment timing. It is a reason to look at the cash flow statement, not a reason to panic.

What share of revenue comes from which treatments

The release does not break out revenue by condition. So it does not tell us how dependent the quarter was on any single drug class, which is precisely the question operators in this space should ask about their own businesses.

What does guidance imply?

The company affirmed full-year revenue guidance of $2.3 billion to $2.4 billion, and guided Q3 to $570 million to $590 million.¹ Against $544.8 million in Q2, that Q3 range implies roughly 5% to 8% sequential growth, by my arithmetic. After a quarter where revenue dipped sequentially, that guidance reads as management expecting a return to growth.

The CFO also pointed to the second half's priorities: personalization infrastructure in the company's pharmacies, lab testing and international expansion.¹ Read that as a statement of where the company wants growth to come from next, and a clue about reducing dependence on any one product line.

What should operators take from this?

You are probably not running a public company. The lessons still carry.

What it means for a smaller clinic

Hims & Hers had a very large year-over-year quarter and a more complicated sequential one. Both can be true. The company is still growing quickly, still guiding to a healthy full year, and clearly aware that its mix of products has to evolve.

If you run a telehealth business, do not copy their numbers. Copy the discipline of reading your own, and if you want help doing it, see my telehealth page. Revenue per patient, margin, cash and concentration will tell you more about your next year than any competitor's press release.

Keep building.Ekai