HIMS

Hims & Hers is one of the fastest-growing consumer-healthcare platforms in the market, and the FY2025 numbers are striking: revenue grew 59.0% to $2.35B — a near-tenfold rise from $272M in FY2021 — at a 73.8% gross margin, with the company sustaining GAAP profitability (net income $128M) for a second year after losses through FY2023. The subscription telehealth model generates genuine cash: operating cash flow grew 19.5% to $300M, and ROE is a strong 23.7%. The brand-led, direct-to-consumer model in dermatology, sexual health, mental health and weight management has clearly found product-market fit.

Beneath the top-line, however, the picture is more nuanced. Operating margin is thin at 4.5% and net income grew just 1.8% despite 59% revenue growth, with diluted EPS actually down 3.8% to $0.51 — operating leverage has not yet materialized as the company plows spend into marketing, capex (up 359% to $243M as it builds fulfillment/pharmacy infrastructure), and acquisitions. Total liabilities ballooned 599% to $1.61B, lifting liabilities/equity to 2.98x, reflecting debt and obligations taken on to fund this expansion. Retained earnings remain negative (-$114M).