Q2 2025 Hims & Hers Health Inc Earnings Call

Tiffany: Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hims & Hers second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. I would now like to turn the call over to Bill Newby, head of investor relations. Bill, please go ahead.

Hello, and thank you for standing by. My name is Tiffany and I will be your conference operator today.

At this time, I would like to welcome everyone to the Hims & Hers second quarter 2025 earnings call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press star, then the number 1 on your telephone keypad.

I would now like to turn the call over to Bill newbie head of investor relations bill. Please go ahead.

Yemi Okupe: Good afternoon, everyone, and welcome to the Hims & Hers Health second quarter 2025 earnings call. Today, after the market closed, we released this quarter's shareholder letter, a copy of which you can find on our website at investors.hims.com. On the call with me today is Andrew Dudum, our co-founder and chief executive officer; Yemi Okupe, our chief financial officer; and our new chief technology officer, Mo Elshinawi. Before I hand it over to Andrew, I need to remind you of legal safe harbor and cautionary declarations. Certain statements and projections of future results made in this presentation constitute forward-looking statements that are based on, among other things, our current market, competitors, and regulatory expectations, and are subject to risk and uncertainties that could cause actual results to vary materially.

Good afternoon, everyone and welcome to the hens and hers. Health second quarter 2025 earnings call today, after the market closed, we released this quarter shareholder letter, a copy of which you can find on our website at investors.com.

On the call with me today is Andrew dudum. Our co-founder and chief executive officer, yo Coupe, our Chief Financial Officer and our new Chief technology officer Mo El shinawi.

Yemi Okupe: We take no obligation to update publicly any forward-looking statement after this call, whether as a result of new information, future events, changes in assumptions, or otherwise. Please see our most recently filed 10-K and 10-Q reports for a discussion of risk factors as they relate to forward-looking statements. In today's presentation, we also have certain non-GAAP financial measures. We refer you to the reconciliation tables to the most directly comparable GAAP financial measures contained in today's press release and shareholder letter. You can find this information as well as a link to today's webcast at investors.hims.com. After the call, this webcast will be archived on the website for 12 months. And with that, I will turn the call over to Andrew.

Before I hand it over to Andrew, I need to remind you of legal, Safe, Harbor and cautionary. Declarations certain statements and projections of future results made in this presentation constitute for looking statements that are based on among other things. Our current market competitors, and Regulatory expectations, and our subject to risk and uncertainties, that could cause actual results to vary materially.

We take no obligation to update publicly any forward-looking statement after this call, whether as a result of new information, future events, changes, assumptions, or otherwise. Please see our most recently filed 10-K and 10-Q reports for a discussion of risk factors as they relate to forward-looking statements.

In today's presentation, we also have certain non-gaap Financial measures. We refer you to the reconciliation tables, to the most directly comparable. Gaap, Financial measures contained in today's press release and shareholder letter.

After the call, this webcast will be archived on the website for 12 months.

Andrew Dudum: Thanks, Bill. The momentum we saw through the first half of 2025 is proof that our platform is delivering exactly what millions of people have been waiting for: access to personalized, high-quality care that meets people where they are. From the beginning, we have believed that medicine should be centered on the individual, not the system. We're now seeing the market demanding just that. What we have built is working, and it's working at scale. We're seeing it in the momentum of our business, in the results our customers are experiencing, and in the growing number of people choosing our platform to optimize their health and realize the benefits of precision medicine. For decades, only the wealthiest have enjoyed access to these benefits. We are now making them accessible to everyone.

And with that, I will turn the call over to Andrew.

Thanks Bill.

The momentum we saw through the first half of 2025 is proof that our platform is delivering exactly what millions of people have been waiting for.

Access to personalized, high-quality care that meets people where they are?

From the beginning, we have believed that medicine should be centered on the individual, not the system. We're now seeing the market demanding just that, but what we have built is working, and it's working at scale.

We're seeing it in the momentum of our business in the results. Our customers are experiencing and the growing. Number of people choosing our platform to optimize their health and realize the benefits of precision medicine.

Andrew Dudum: At the end of the second quarter, we were serving over 2.4 million subscribers on our platform, with nearly 1.5 million collaborating with a provider to receive a personalized treatment. And that number continues to grow each day. We believe we're not just expanding access to care; we're fundamentally improving how it can be delivered. Today, our platform allows subscribers to access a network of nearly 1,500 world-class providers that can diagnose and treat concerns in a fraction of the time it can take in a traditional brick-and-mortar setting. It equips these providers with hundreds of options to address the unique needs of each individual patient, with these options informed by millions of past clinical interactions and customer journeys. And it enables consistent and proactive support to be delivered seamlessly through the Hims & Hers apps.

For decades, only the wealthiest have enjoyed access to these benefits. We are now making them accessible to everyone.

At the end of the second quarter, we were serving over 2.4 million subscribers on our platform with nearly 1.5 million collaborating with the provider to receive a personalized treatment. And that number continues to grow each day.

We believe we're not just expanding access to care. We're fundamentally improving, how it can be delivered.

Today, our platform allows subscribers to access a network of nearly 1,500 world-class providers that can diagnose and treat concerns in a fraction of the time compared to a traditional brick-and-mortar setting.

It equips these providers with hundreds of options to address the unique needs of each individual. Patients have access to these options, informed by millions of past clinical interactions and customer journeys.

Andrew Dudum: We believe this innovative and connected approach is leading to transformative results while also expanding the number of specialties we're positioned to address. I'd like to first touch on the customer successes we are witnessing today before diving deeper into where we're going next. We recently published a white paper containing an analysis of internal data highlighting what we're seeing in our weight loss specialty when care is personalized, holistic, and readily available. The data reflected that customers on a personalized treatment plan, inclusive of a GLP-1 treatment for six months, reported losing on average 10.3% of their body weight. And even more impressive is the number of individuals sticking with their plans. At six months, only 25% of customers on our platform had discontinued treatment. This is particularly encouraging when considering discontinuation rates in certain publicly available studies reached approximately 80% by six months.

And it enables consistent and proactive support to be delivered seamlessly through the Hims and Hers apps.

We believe this innovative and connected approach is leading to transformative results while also expanding the number of specialties for positions to address.

I'd like to first touch on the customer successes. We are witnessing today before diving deeper into where we're going next.

We recently published a white paper containing an analysis of internal data, highlighting what we're seeing in our weight loss specialty when care is personalized, holistic, and readily available.

The data reflected that customers on a personalized. Treatment plan, inclusive of a glp-1 treatment for 6 months, reported losing on average, 10.3% of their body weight. And even more impressive is the number of individuals sticking with their plans.

At six months, only 25% of customers on our platform had discontinued treatment.

Andrew Dudum: Our belief is that this strong retention is a result of three key factors. The first is provider access. It is not surprising that consumers are looking for deep engagement with a medical professional when starting and undergoing a new treatment. Our typical weight loss subscriber has six interactions with a provider in the first three months of beginning their treatment. The second is white-glove customization. Providers are collaborating with subscribers to manage efficacy and side effects by assessing how subscribers are responding to treatments and then adjusting titration schedules and end dosages if clinically appropriate. The final element is the accessibility and clarity brought by app-based tools. Subscribers have the ability to receive clear treatment instructions and educational content while also accessing tools such as water intake trackers and calorie counters that help them live healthier lives.

This is particularly encouraging when considering discontinuation rates in certain publicly available studies reached Approximately 80% by 6 months.

Our belief is that this strong retention is a result of 3 key factors.

The first is provider access.

It is not surprising that consumers are looking for deep engagement with a medical professional. When starting and undergoing a new treatment,

Our typical weight loss subscriber has six interactions with the provider in the first three months of beginning their treatment.

The second is White Glove customization.

Providers are collaborating with subscribers to manage efficacy and side effects by assessing how subscribers are responding to treatments and then adjusting titration schedules and end dosages. If clinically appropriate

The final element is the accessibility and Clarity brought by app-based tools.

Andrew Dudum: This approach and the resulting benefits were historically reserved for a privileged subset of the population. Today, we're broadening access to this model despite pushback from traditional incumbents who we believe seek to limit providers' ability to prescribe personalized treatments. Our belief is that these two key principles that have played a significant part in the success of our platform will become the industry standard in the years to come. First, the top priority is and will always be the protection of the consumer's interest. Our platform exists to serve the customer, and we ensure that the providers and the offerings and services that we make available are oriented toward delivering the best quality of care for our subscribers. Second, providers have complete independence in decision-making. We empower providers to exercise their own independent clinical judgment in making clinical decisions during each interaction.

Subscribers have the ability to receive clear treatment instructions and educational content while also accessing tools, such as water intake, trackers and calorie counters that help them live healthier lives.

This approach and the resulting benefits were historically reserved for a privileged subset of the population.

Today, we're broadening access to this model despite push back from traditional incumbents, Who We Believe seek to limit providers ability to prescribe personalized treatments.

Our belief is that these two key principles, which have played a significant part in the success of our platform, will become the industry standard in the years to come.

First the top priority is and will always be the protection of the consumer's interest.

Our platform exists to serve the customer. We ensure that the providers and the offerings and services we make available are oriented toward delivering the best quality of care for our subscribers.

Second providers have complete Independence in decision-making.

Andrew Dudum: We've implemented multiple safeguards to ensure providers never feel that they have been coerced or forced in any way to make clinical decisions for business purposes. Over time, we expect more companies will recognize this as the future of healthcare, and the ones who prioritize the customer above all else will be the ones who succeed. We look forward to partnering with those who share that vision. Now, moving to where we're going next. As we build upon this vision and embark on our next chapter of growth, we look forward to bringing the same focus into new specialties. We believe these new specialties will expand our ability to address each individual customer and position us to achieve the 2030 targets we set out last quarter of at least 6.5 billion in revenue and 1.3 billion in adjusted EBITDA.

Decisions during each interaction.

We've implemented multiple safeguards to ensure providers never feel that they have been coerced or forced in any way to make clinical decisions for business purposes.

over time we expect more companies will recognize this as the future of healthcare, and the ones, who prioritize the customer above all else will be the ones who succeed

we look forward to partnering with those who share that vision.

Now, moving to where we're going next.

As we build upon this vision and embark on our next chapter of growth, we look forward to bringing the same focus into new specialties.

Andrew Dudum: Our upcoming launch in hormonal health marks a significant step forward along this path. For men, low testosterone often causes fatigue, decreased libido, and an overall diminished quality of life, while women face menopause challenges like hot flashes, sleep disturbances, and mood swings. Evidence also shows that treatment in these areas can help reduce the risks of heart disease and cognitive decline over the long term. Our approach will provide access to personalized solutions for both men and women to effectively manage these hormonal changes. We're excited to expand our offerings over time to help combat these conditions that are estimated to impact more than 50 million in the US alone and have been underrecognized in traditional healthcare for decades. A key component to addressing the undertreatment of these conditions will be the integration of comprehensive and accessible lab testing.

We believe these new Specialties will expand our ability to address each individual customer and position us to achieve the 2030 targets. We set out last quarter of at least 6.5 billion in revenue and 1.3 billion in adjusted ibaa.

Our upcoming launch in hormonal health marks a significant step forward along this path.

For men, low testosterone, often causes fatigue decreased libido, and an overall diminished quality of life.

While women face menopause, challenges that hot flashes sleep disturbances and mood swings.

Evidence also shows that treatment in these areas can help reduce the risks of heart disease and cognitive decline over the long term.

Our approach will provide access to personalized solutions for both men and women to effectively manage these hormonal changes.

We're excited to expand our offerings over time to help combat these conditions that are estimated to impact more than 50 million in the us alone and have been under recognized in traditional health care for decades.

Andrew Dudum: With our recent acquisition of a blood testing lab, we're in the process of verticalizing testing capabilities that will transform how we deliver access to care. Initially, we expect this will support our hormone launch offering, but in the coming quarters, we plan to begin offering lab testing as a standalone service. We expect this will result in a significant category on its own. We live in a country where normal biomarker ranges completely distort the perception of what optimal health looks like, and access to lab testing can be overwhelming, expensive, and intimidating. By offering access to simple, standardized tests tailored to the individual's need, we expect to empower customers to better understand their health and give them the ability to take proactive steps toward optimizing it. As we move into 2026, these insights will provide the foundation for our initial entry into longevity.

A key component to addressing the under treatment of these conditions will be the integration of comprehensive and accessible lab testing.

With our recent, acquisition of a blood testing lab, we are in the process of vertical capabilities that will transform how we deliver access to care.

Initially, we expect this will support our hormone launch offering, but in the coming quarters, we plan to begin offering lab testing as a standalone service.

We expect, this will result in a significant category on its own.

We live in a country where normal biomarker ranges completely distort the perception of what optimal health looks like. Access to lab testing can be overwhelmingly expensive and intimidating.

By offering access to simple, standardized tests tailored to the individual's needs, we expect to empower customers to better understand their health and give them the ability to take proactive steps toward optimizing it.

Andrew Dudum: In recent years, there has been an explosion of innovative treatments across immunity, recovery, and improved metabolic function. We believe that by combining access to comprehensive lab work with a growing network of compounding and peptide facilities, we are well positioned to unlock a broader access to thoughtful, proactive interventions that are not just reacting to certain conditions but focused on helping individuals live longer, healthier lives. We believe each of these initiatives is laying the foundation for a future where a membership at Hims & Hers will cover the majority of conditions that impact an individual's everyday health. Eventually, we expect that we'll transform our platform from a destination where customers come to treat issues to one where they come to prevent them. Alongside these opportunities, our teams are developing the technologies and data platform needed to deliver an increasingly comprehensive offering to tens of millions of subscribers.

As we move into 2026, these insights will provide the foundation for our initial entry into longevity.

In recent years, there has been an explosion of innovative treatments across immunity recovery and improved metabolic function.

We believe that by combining access to comprehensive lab work, with a growing network of compounding and peptide facilities. We are well positioned to unlock a broader access to thoughtful. Proactive interventions that are not just reacting to certain conditions, but focused on helping individuals live longer healthier lives.

We Believe each of these initiatives is laying the foundation for a future, where a membership at hims, and hers will cover the majority of conditions that impact an individual's everyday health.

Eventually, we expect that we will transform our platform from a destination where customers come to treat issues to 1 where they come to prevent them.

Andrew Dudum: I'm excited to introduce Mo Elshinawi, our new chief technology officer who is leading these efforts. Mo's experience in partnering with regulatory bodies to design industry-defining frameworks, along with his work scaling AI for life and death decisions, will be crucial in advancing Hims & Hers technological capabilities. While we'll dive deeper into our technology roadmap at a later date, I'd like to briefly turn it over to Mo to share his vision and approach to making us a truly technology-first healthcare platform.

Alongside these opportunities, our teams are developing the Technologies and data platform needed to deliver an increasingly comprehensive offering to tens of millions of subscribers.

I'm excited to introduce Mo, Eli our new Chief technology officer who is leading these efforts.

Mo's experience in partnering with regulatory bodies to design industry-defining frameworks, along with his work scaling AI for life and death decisions, will be crucial in advancing Hims & Hers' technological capabilities.

Mo Elshinawi: Thanks, Andrew. I'm excited to be here and join the Hims & Hers team at what I believe is a critical moment in healthcare. One of the main reasons I joined Hims & Hers is the clear opportunity to drive change in an industry that has seen limited innovation despite significant advances in technology. The pace of innovation in healthcare has frankly been unacceptable, but Hims & Hers is in a unique position to change that. With a trusted brand, a massive and engaged customer base, and consistent clinical support, we have already established a remarkable pipeline of structured data that providers and customers are benefiting from every day. We believe this will enable us to enhance every aspect of the patient journey, from initial intake to treatment, follow-up, and ongoing care.

While we'll dive deeper into our technology roadmap at a later date, I'd like to briefly turn it over to Mow to share his vision and approach to making us a truly technology-first health care platform.

Thanks Andrew. I'm excited to be here and join the HMS Anders team at what I believe is a critical moment in healthcare.

1 of the main reasons I joined hands and hers is the clear opportunity to drive change in an industry that has seen limited Innovation, despite significant advances in technology.

The pace of innovation in healthcare has, frankly, been unacceptable.

With a trusted brand, a massive and engaged customer base, and consistent clinical support.

We have already established a remarkable pipeline of structured data that providers and customers are benefiting from every day.

We believe this will enable us to enhance every aspect of the patient Journey.

Mo Elshinawi: And with the addition of lab testing capabilities and the eventual planned integration of wearables, we will continue to build on this experience, delivering access to tailored and proactive care that can evolve with each customer. Moving forward, our vision is ambitious. It's to reinvent healthcare by making high-quality, personalized care accessible to everyone, everywhere. In the near term, we will focus on several key pillars as we work towards realizing this vision. First, we will ensure care is supported by a unified data and intelligence platform. Our multi-source learning system will not only improve and personalize access to care at scale but also automate key processes like fulfillment, inventory, and routing to increase efficiency. And we believe our systems powered by AI will never plateau and will continuously improve over time. Second, we will be focused on building AI-powered personalized agents that are always on.

From initial intake to treatment follow-up, and ongoing care.

And with the addition of lab testing capabilities and the eventual planned integration of wearables. We will continue to build on this experience, delivering access to tailored and proactive care that can evolve with each customer.

Moving forward. Our vision is ambitious. It's to reinvent Healthcare by making high quality. Personalized care accessible to everyone everywhere.

In the near term, we will focus on several key pillars as we work towards realizing this vision.

First, we will ensure care is supported by a unified data and intelligence platform.

Our multi-source learning system, will not only improve and personalize access to care at scale. But also, automate key processes like fulfillment inventory and routing to increase efficiency.

And we believe our systems, powered by AI, will never plateau.

And will continuously improve over time.

Mo Elshinawi: This will create an end-to-end patient journey powered by AI that will be able to help personalize every interaction and provide 24/7 support to ensure continuous engagement and increase the likelihood of reaching a positive outcome. Third, our entire platform will be designed with global-ready architecture. Scalable modular architecture will allow us to continue to expand internationally, adapting different regulatory environments across regions. And we aim to build a secure, cost-effective platform that can seamlessly support millions of customers and begin fostering valuable partnership across the healthcare ecosystem. And finally, we will prioritize AI governance, safety, and ethics. We will foster responsible AI use with human oversight and bias mitigation and are committed to developing our technology in an ethical manner. We believe these pillars will lay the foundation for a healthcare system that can learn and improve with each new subscriber that joins the platform.

Second, we will be focused on building AI-powered personalized agents that are always on.

This would create an end-to-end patient Journey, powered by AI, that will be able to help personalize every interaction and provide 24/7 support.

To ensure continuous engagement and increase the likelihood of reaching a positive outcome.

Third, our entire platform will be designed with globally ready architecture.

Scalable modular architecture will allow us to continue to expand internationally, adapting to different regulatory environments across regions.

And we aim to build a secure, cost-effective platform that can seamlessly support millions of customers.

And begin fostering valuable partnership across the healthcare ecosystem.

And finally, we will prioritize AI governance, safety and ethics.

We will Foster responsible, AI use with human oversight and bias mitigation.

And are committed to developing our technology in an ethical manner.

Mo Elshinawi: And I could not be more excited for the opportunity to help build what I believe will be the future of healthcare. With that, I'll pass it back to Andrew.

We believe these pillars will lay the foundation for a healthcare system that can learn and improve with each new subscriber that joins the platform.

And I could not be more excited for the opportunity to help build what I believe will be the future of healthcare.

Andrew Dudum: Thanks, Mo. We're looking forward to seeing the impact you and your team will have on how our customers are able to engage in their health on a daily basis. Before passing it over to Yemi, I'd like to touch on one more recent development. In July, we closed our acquisition of Zava, expanding our presence in the UK and establishing a foundation in other strategic markets such as Germany, Ireland, and France. We believe this acquisition and the talent it provides will accelerate our ability to expand into markets beyond Europe. In 2026, we expect to enter Canada with an initial focus on a holistic weight loss program, timed to align with the anticipated first-ever availability of generic semaglutide globally. We believe this represents a significant opportunity in a country where two-thirds of adults are overweight or living with obesity.

With that, I'll pass it back to Andrew.

Thanks, Mo. We're looking forward to seeing the impact you and your team will have on how our customers are able to engage in their health on a daily basis.

Before passing it, over to Yami. I'd like to touch on 1 more, recent development.

In July, we closed our acquisition of Zava expanding our presence in the UK and establishing a foundation in other strategic markets such as Germany, Ireland and France.

We believe this acquisition and the talent it provides will accelerate our ability to expand into markets Beyond Europe.

In 2026. We expect to enter Canada with initial focus. On a holistic weight loss program time to align with the anticipated first ever. Availability of generic semi blue tide globally.

Andrew Dudum: While our initial focus in Canada will be centered on weight loss, we expect to launch additional specialties within the Canadian market over time. We believe our expanded operational and technological expertise established a strong foundation to extend the benefits enjoyed by our US subscribers to geographies across the globe. It has never been more clear that we are in the early stages of unlocking the full potential of a customer-centric, world-class platform in healthcare. Customers love our approach. They're demanding we do more, and we're meeting that demand with confidence and impact. Our success continues to prove that consumers are better served when healthcare is personalized, accessible, and driven by a relentless focus on putting the customer first. This is the future of healthcare, and we're proud to be building it person by person, specialty by specialty, and now market by market.

We believe this represents a significant opportunity in a country where 2/3 of adults are overweight or living with obesity.

While our initial focus in Canada will be centered on weight loss. We expect to launch additional Specialties within the Canadian Market over time.

We believe our expanded operational and technological expertise has established a strong foundation to extend the benefits enjoyed by our U.S. subscribers to geographies across the globe.

It has never been clearer that we are in the early stages of unlocking the full potential of a customer-centric, world-class platform in healthcare.

Customers love our approach, their demanding. We do more and we're meeting that Demand with confidence and impact.

Our success continues to prove that consumers are better served. When Health Care is personalized accessible and driven by a Relentless focus on putting the customer first.

Andrew Dudum: With that, I will pass it over to Yemi to walk through the financials.

This is the future of healthcare, and we're proud to be building it person by person, specialty by specialty, and now market by market.

Yemi Okupe: Thanks, Andrew. I'll start by providing an overview of our second quarter financial results before going deeper into our updated outlook for 2025. In the second quarter, we continue to see remarkable success across our platform, signaling that our strategy focused on democratizing access to precision medicine is resonating with consumers. Consumers are increasingly engaging with our platform across all stages of their care journey, from collaborating with providers to address and manage their conditions, benefiting from provider tools to access customized treatments, and utilizing app-based tools and provider access for their follow-up care. We believe we are just scratching the surface of what's possible, and over the course of the second quarter, have laid an even stronger foundation to elevate the future value we can bring to our subscribers. Our efforts translated into strong results in the second quarter.

With that, I will pass it over to Yami to walk through the financials.

Thanks Andrew. I'll start by providing an overview of our second quarter Financial results before going deeper into our updated outlook for 2025.

In the second quarter, we continue to see remarkable success across our platform, signaling that our strategy focused on democratizing access to Precision medicine is resonating with consumers.

Consumers are increasingly engaging with our platform across all stages of their care journey, from collaborating with providers to address and manage their conditions, benefiting from provider tools to assess customized treatments, and utilizing app-based tools and provider access for their follow-up care.

We believe we are just scratching the surface of what's possible and over the course of the second quarter have laid, an even stronger Foundation to elevate the future value. We can bring to our subscribers

Yemi Okupe: Revenue grew 73% year over year to $545 million, while we simultaneously maintained an adjusted EBITDA margin north of 15%. Expanding access to personalized treatment options and a wide array of tools is allowing us to attract new subscribers to the platform and also resulting in stronger retention. Subscribers increased 73,000 quarter over quarter to over 2.4 million, reflecting a year-over-year growth rate of 31%. We see continued robust subscriber growth across our dermatology, oral weight loss, and daily sexual health offerings that all sustain year-over-year subscriber growth rates above 55% in the second quarter. Strong performance across these offerings helped offset headwinds that came from offboarding GLP-1 subscribers on commercially available dosages, as well as a decline in our on-demand sexual health subscriber base.

Our efforts translated into strong results in the second quarter Revenue, grew 73% year-over-year to 545 million. While we simultaneously maintain an adjustable margin in north of 15%.

The expanding access to personalized treatment options, in a wide array of tools, is allowing us to attract new subscribers to the platform and also resulting in stronger retention.

Subscribers increased by 73,000 quarter-over-quarter to over 2.4 million, reflecting a year-over-year growth rate of 31%.

We see continued, robust subscriber growth across our Dermatology, oral weight loss, and daily Sexual Health offerings. That all sustained year-over-year subscriber growth rates above 55% in the second quarter.

Yemi Okupe: We expect headwinds from the rotation of our sexual health specialty toward more premium daily offerings for the next couple of quarters, but are excited to see over 40% of total sexual health subscribers and roughly 65% of new sexual health subscribers in the quarter benefiting from a daily offering, respectively. We are able to embed an expanding set of capabilities within our daily offerings that are not feasible to incorporate into our on-demand offerings. Today, our daily sexual health offerings allow subscribers to partner with providers to treat hair loss concerns, improve their cardiovascular health, support testosterone levels, and optimize vitamin levels. Over time, we expect this to have a meaningful benefit in retention and the customer lifetime value across our sexual health specialty.

Strong performance across these offerings helped offset. Headwinds that came from off-boarding glp1. Subscribers on commercially available doses as well as a decline in our on-demand Sexual Health, subscriber base.

We expect headwinds from the rotation of our Sexual Health specialty toward more premium daily offerings for the next couple of quarters, but we're excited to see over 40% of total Sexual Health subscribers and roughly 65% of new sexual subscribers in the quarter benefiting from a daily offering.

We are able to invest in expanding a set of capabilities within our daily offerings that are not feasible to incorporate into our on-demand offerings.

Today, our daily sexual health offerings allow subscribers to partner with providers to treat hair loss concerns, improve their cardiovascular health, support testosterone levels, and optimize vitamin levels.

Yemi Okupe: Continued subscriber adoption of personalized offerings, as well as the success of our weight loss specialty, continue to drive year-over-year growth in our monthly average online revenue per subscriber. However, in the second quarter, we saw a monthly average revenue per subscriber decline quarter over quarter to $74 from $84, primarily as a result of the offboarding of a portion of our GLP-1 subscribers. Now shifting to profitability, the second quarter was an exceptional demonstration of our team's ability to remain agile and deliver on the high standards outlined in our capital allocation framework across even the most volatile environments. Our platform drew up 82 million of adjusted EBITDA in the second quarter. The complexity of our platform and future ambitions will necessitate a more nuanced organizational structure, one that is able to move in an even more agile manner and scale globally.

Over time, we expect us to have a meaningful benefit and retention and the customer lifetime value across our Sexual Health specialty.

Continued subscriber adoption of personalized offerings as well as the success of our weight loss specialty. Continue to drive year-over-year growth in our monthly, average online Revenue per subscriber,

However, in the second quarter, we saw a monthly average revenue per subscriber declined. Quarter of a quarter to 74 dollars from 84 dollars primarily as a result of the off-boarding of a portion of our glp1 subscribers.

Now, Shifting the profitability, the second quarter was an exceptional demonstration of our team's ability to remain agile and deliver on the high standards outlined in our Capital allocation framework across even the most volatile environments.

Our platforms are up 82 million of adjusted ebit in the second quarter.

Yemi Okupe: In the second quarter, we took action to adjust to that new reality. Adjusted EBITDA was negatively impacted by approximately 7 million in the second quarter as a result of severance payments to former employees and sign-on bonuses used to attract new talent. Leverage on marketing and investment and gross margin expansion were the primary levers that resulted in second quarter adjusted EBITDA margins expanding nearly three points year over year. Marketing as a percentage of revenue was 40%. Investment was slowed at various points throughout the quarter as we saw volatility in marketing efficiency as a result of the onboarding and offboarding of a previous collaboration within the second quarter.

The complexity of our platform and future ambitions will necessitate a more nuanced organizational structure that is able to move in an even more agile manner and scale globally.

In the second quarter, we took action to adjust to that new reality.

Adjusted EBITDA was negatively impacted by approximately $7 million in the second quarter, as a result of severance payments to former employees and sign-on bonuses used to attract new talent.

Leverage on marketing and investment in gross margin expansion. Where the primary levers, that resulted in second quarter adjusted ebit. Margins expanding nearly 3 points a year over year.

Marketing, as a percentage of Revenue was 40%.

Yemi Okupe: Strong performance outside of our non-weight loss offerings as a result of improving retention from adoption of personalized treatment plans and rollout of new offerings was able to offset some of the volatility we observed within our weight loss specialty. Gross margins expanded three points quarter over quarter to 76%, primarily as a result of growth in specialties outside of weight loss. G&A costs were pressured in the second quarter as a result of the onboarding of new executives, as well as additional costs stemming from the decision to reassess our organizational structure. G&A as a percentage of revenue improved one point year over year, but deleveraged four points quarter over quarter as the result of these dynamics. A similar dynamic was seen in operations and support costs.

Investment was slowed at various points throughout the quarter as we saw volatility in marketing efficiency as a result of the on-boarding and off-boarding of a previous collaboration within the second quarter.

Strong performance outside of our non-weight loss offerings, as a result of improving retention from adoption of personalized treatment plans and roll out of new offerings, was able to offset some of the volatility we observed within our weight loss specialty.

Gross margins, expanded 3 points quarter of a quarter to 76% primarily as a result of growth and Specialties outside of weight loss.

GNA costs were pressured in the second quarter as a result of the onboarding of new executives, as well as additional costs stemming from the decision to reassess our organizational structure. As a percentage of revenue, it improved 1.0 year over year, but de-levered 4 points quarter over quarter as a result of these dynamics.

Yemi Okupe: Technology and development costs as a percentage of revenue increased one point year over year and two points quarter over quarter to 7%, reflecting increased investment in technology talent across the organization. This is an area that we expect to continue to invest in across the coming quarters as we believe it will translate into an even better customer experience and be long-term financially accretive. In the second quarter, we meaningfully strengthened our balance sheet with the completion of a convertible debt offering in May. We ended the second quarter with a cash and short-term investments balance of over $1.1 billion. Meaningful investment was made in the second quarter to expand our ability to offer new form factors, automate processes within our facilities, and strengthen supply chains through significant investment in working capital. Free cash flow for the second quarter was negative $69 million as a result.

A similar Dynamic was seen in operations and support costs.

Technology and development costs. As a percentage of Revenue, increased 1.0 year-over-year and 2 points. Quarter of a quarter to 7% reflecting increased investment in technology Talent across the organization. This is an area that we expect to continue to invest in across the coming quarters. As we believe, it will translate into an even better customer experience and be long-term financially accretive

In the second quarter, we meaningfully strengthen our balance sheet with the completion of a convertible debt offering in May.

Investment was made in the second quarter to expand our ability to offer new form factors, automate processes within our facilities, and strengthen supply chains through significant investment in working capital.

Yemi Okupe: We expect to return to positive free cash flow generation in the second half of the year. Our balance sheet provides a meaningful opportunity to deploy capital across both organic and strategic M&A opportunities. We will not loosen our capital allocation standards as a result of this flexibility but have even greater confidence in our ability to accelerate efforts across the strategic growth levers that we believe will shape the future for Hims & Hers. I'll double-click into areas that we expect to receive the most meaningful share of investment. First, we expect to continue investing in deeper personalization capabilities, which we view as a critical component of our ability to democratize access to precision medicine. Our ambition is to move from a world of hundreds of treatment options to thousands over time.

Free cash flow for the second quarter was -$69 million as a result.

We expect to return to positive free cash flow generation in the second half of the year.

Our balance sheet provides a meaningful opportunity to deploy Capital across both organic and strategic m&a opportunities. We will not lose our Capital allocation standards as a result of this flexibility, but have even greater confidence in our ability to accelerate efforts across the Strategic growth levers that we believe will shape the future for him and hers.

I'll double-click in the areas that we expect to receive the most meaningful share of investment.

First, we expect to continue investing in deeper personalization capabilities, which we view as a critical component of our ability to democratize access to Precision medicine.

Yemi Okupe: We expect this to unlock greater flexibility for our subscribers across form factors, as well as enable customized treatments to address multiple concerns concurrently, such as vitamin deficiencies and side effects within our specialties. This will necessitate upgraded equipment, additional facilities, and more extensive automation capabilities over time. Second, we intend to invest in capabilities that will enable us to gain deeper insights to better serve our subscribers while simultaneously increasing investment in our platform to better leverage that data to address subscriber needs. We believe that responsibly harnessing data from potential future capabilities, such as lab testing and wearables, will allow us to better serve subscribers across multiple stages of their treatment journeys, including diagnostics, treatment, and follow-up care, and that investing in our platform will allow us to elevate the subscriber experience through even more expansive tools such as AI coaches, chatbots, and more dynamic customer support models.

Our ambition is to move from a world of hundreds of treatment options to thousands over time. We expect this to unlock greater flexibility for our subscribers across form factors, as well as enable customized treatments to address multiple concerns. Concurrently such as Vitamin deficiencies and side effects within our specialties.

This will necessitate upgraded equipment, additional facilities and more extensive automation capabilities over time.

Second, we intend to invest in capabilities that will enable us to gain deeper, insights to better serve our subscribers. While simultaneously increasing investment in our platform to better leverage that data to address subscriber needs.

We believe that responsibly harnessing data from potential feature capabilities such as lab testing and wearables will allow us to better serve subscribers across multiple stages of their treatment Journeys, including Diagnostics treatment and follow-up care.

Yemi Okupe: Our belief is that these elements will increase demand for our platform as well as drive stronger retention. Lastly, we believe that demand for a consumer-oriented healthcare model transcends borders. Our recent acquisition of Zava provides a foundation to build upon and deliver value to millions of potential future customers across the globe. With Zava, we have gained the infrastructure to serve consumers across markets such as Germany, France, and Ireland in the second half of the year. Zava will also play a foundational role in supporting our Canadian expansion efforts in 2026. We believe the combination of Zava's platform with our expanding engineering bench sets a foundation that unlocks the potential to expand in Latin American and Asian markets in the coming years as well. We expect our capital investment will bias toward unlocking new capabilities to drive subscriber value in the coming years.

And that investing in our platform will allow us to elevate the subscriber experience through even more expensive, tools, such as AI, coaches, chat Bots and more Dynamic customer support models.

Our belief is that these elements will increase demand for our platform, as well as Drive stronger retention.

Lastly, we believe that demand for a consumer-oriented healthcare model transcends borders. Our recent acquisition of Zava provides a foundation to build upon and deliver value to millions of potential future customers across the globe.

With Zava, we have gained the infrastructure to serve, consumers across markets such as Germany, France, and Ireland in the second half of the year.

Zavo will also play a foundational role in supporting our Canadian expansion efforts in 2026. We believe the combination of Zava platform with our expanding engineering bench sets a foundation that unlocks the potential to expand in Latin American and Asian markets in the coming years as well.

Yemi Okupe: However, a robust balance sheet and strong free cash flow generation allow us to take advantage of moments when we believe the market value of our stock meaningfully disconnects from its intrinsic value. As of the end of the second quarter, $65 million is remaining in our buyback program. With that, I will walk through our outlook for 2025. In the third quarter, we expect revenue to be between $570 million to $590 million, representing a year-over-year growth rate of between 42% and 47%. We are anticipating adjusted EBITDA in the range of $60 million to $70 million, reflecting an 11% margin at the midpoint. For the full year, we expect revenue to be between $2.3 million and $2.4 billion, reflecting a year-over-year increase that ranges from 56% to 63%.

We expect our capital investment will bias toward unlocking new capabilities to drive subscriber value in the coming years.

However, a robust balance sheet and strong free cash flow generation allow us to take advantage of moments when we believe the market value of our stock meaningfully disconnects from its intrinsic value.

As of the end of the second quarter, 65 million is remaining in our buyback program.

With that, I will walk through our outlook for 2025.

In the third quarter, we expect Revenue to be between 500 and 770 to 500 and 590 million representing a year-over-year growth rate of between 42 and 47%.

We are anticipating to adjust to ibida in the range of 60 to 70 million reflecting in 11% margin at the midpoint.

Yemi Okupe: We are anticipating adjusted EBITDA in the range of $295 million to $335 million, reflecting a 13% margin at the midpoint. Our outlook for the remainder of the year is based on the following assumptions. First, the fulfillment of compounded GLP-1 treatment available through our platform no longer utilizes 503(b) outsourcing facilities. This will result in a shorter duration shipment cadence for these products and lower revenue recognized per order. We expect temporary headwinds from in-quarter revenue recognized from shipments to subscribers who were previously on a shipment cadence of 90 days or more. Given the strength of the oral offering and the demand for management of side effects through compounded GLP-1s, we remain confident in our weight loss specialty's ability to deliver at least $725 million of revenue this year. Second, we close our acquisition of Zava in July.

For the full year, we expect revenue to be between $2.3 billion and $2.4 billion, reflecting a year-over-year increase that ranges from 56% to 63%.

We are anticipating adjusted ebit on the range of 295 to 335 million reflecting a 13% margin at the midpoint.

Our outlook for the remainder of the year is based on the following assumptions.

First, the fulfillment of compound GLP-1 treatment available through our platform no longer utilizes 503B outsourcing facilities. This will result in a shorter duration and shipment cadence for these products and lower revenue recognized per order.

We expect temporary headwinds from Inquirer revenue recognized from shipments to subscribers who were previously on a shipment cadence of 90 days or more.

Given the oral offering and the demand for management of side. Effects. Through compounded, glp ones we remain confident in our weight loss of Specialties ability to deliver. At least 725 million of Revenue, this year.

Yemi Okupe: Over time, our plan is to integrate our existing UK business with our Zava operation. We are still assessing the impact of this but expect the Zava acquisition to deliver at least $50 million of net incremental revenue for the remainder of 2025. Third, we expect that we are entering an investment period for at least the next year, particularly in marketing and technology. Augmentation of our engineering talent with expertise in AI development and the scaling of global platforms is expected in the coming quarters. Marketing investment will be higher as a result of seasonality, in addition to investment to support the scaling of new geographies and offerings such as labs and hormonal support. We expect that adherence to our capital allocation framework that called for a payback period of less than a year will enable us to continue driving one to three points of marketing leverage per annum.

Second, we close our acquisition of Zava in July.

Over time, our plans to integrate our existing UK business with our Zava operation.

We are still assessing the impact of this but expect the Zava acquisition to deliver at least $50 million of net incremental revenue for the remainder of 2025.

Third, we expect that we are entering an investment period for at least the next year, particularly in marketing and technology.

Augmentation of our engineering talent with expertise in AI development and the scaling of global platforms is expected in the coming quarters.

Marketing investment will be higher as a result of seasonality. In addition to investment to support the scaling of new geographies, and offerings such as labs and hormonal support.

Yemi Okupe: Lastly, we expect the continued transition toward personalized offerings to be instrumental in helping us drive long-term revenue retention of 85% or higher. Our expectation is that our on-demand sexual health business will continue to experience declines, but the effect will start to meaningfully dissipate in 2026 as we benefit from stronger retention gains from daily sexual health subscribers. We are entering the second half of 2025 with a great deal of momentum. More importantly, we've established a foundation of talent and capabilities that serves as a critical step in our ability to unlock immense value for millions of individuals across the world by democratizing access to precision medicine. We believe we are just scratching the surface of what's possible with a transformative healthcare model and, as a result, see significant opportunity across each of the future growth levers we've laid out.

Framework that calls for a payback period of less than a year will enable us to continue driving 1 to 3 points of marketing leverage per ANM.

Lastly, we expect to continue the transition toward personalized offerings to be instrumental in helping us drive long-term revenue retention of 85% or higher.

Our expectation is that our on-demand Sexual Health business will continue to experience declines, but the effect will start to meaningfully dissipate in 2026 as we benefit from stronger retention gains from daily Sexual Health subscribers.

We are entering the second half of 2025 with a great deal of momentum.

More importantly, we've established a foundation of talent and capabilities that serves. As a critical step in our ability to unlock men's value for millions of individuals across the world by democratizing access to Precision medicine

Yemi Okupe: As always, I want to thank our subscribers, our partners, and our employees for their continued support in our mission to help the world go great through the power of better health. Our success would not be possible without their support. With that, I will turn it back to Bill to kick off Q&A with two questions from our retail community. Thanks, Yemi, and thank you to all the investors who sent in questions over the weekend. We received quite a few on the recently announced acquisition of Zava and our growing efforts to expand internationally. This is a multi-part question from the Hims Hubs community. Why was now the right time to expand internationally, and what made Zava the right company to acquire?

We believe we are just scratching the surface of what's possible with a transformative Healthcare model. And as a result, see significant opportunity across each of the future growth, levers, we've laid out.

as always, I want to thank our subscribers, our partners, and our employees for their continued, support in our mission, to help the world feel great through the power of Better Health,

Our success would not be possible without their support with that. I will turn it back to Bill to kick off Q&A with 2 questions from our retail community.

Thanks, Tammy. And thank you to all the investors who sent in their questions over the weekend. We received quite a few on the recently announced acquisition of Zava and our growing efforts to expand internationally. The multi-part question from the HMS House community is as follows:

Yemi Okupe: There are investors that are questioning the size of the opportunity here, given the presence of government-run healthcare systems and the complexity that comes with operating across multiple countries. How would you respond to those concerns and the potential that this could distract from scaling the US business?

Andrew Dudum: Yeah, thanks, Bill, and thanks, Hims Hubs, for the question. You know, from my perspective, I think it's a really powerful opportunity to take a leadership role in bringing what we believe is this personalized, high-touch, affordable, precision medicine consumer experience globally. And so I think the acquisition of Zava was the first step in us taking a leadership position in replicating this model in the key markets. Now, I think with Zava specifically, you know, we felt that the team and their ability to build a platform that has been scalable in unique markets with unique regulatory challenges was a testament to their execution and operational abilities. It's a team that we believe can continue to expand into new markets, helping us to launch in Canada in 2026, as well as in markets like Brazil, where you've got new generic semaglutide going live in the new year.

Why was now the right time to expand internationally and what made Zava the right company to acquire, there are investors that are questioning the sides of the opportunity here. Given the presence of government-run Healthcare Systems in the complexity that comes with operating across multiple countries. How would you respond to those concerns and the potential that this could distract from scaling the US business?

Yeah, thanks, Bill, and uh, thanks, House, for the question.

You, you know, from my perspective, I think it's a really powerful opportunity to take a leadership role in bringing what we believe is this personalized high-touch affordable, Precision medicine, consumer experience globally. And so, I think the acquisition of zavo was the first step in us taking a leadership position in, in, in replicating this model in the key markets.

Now, I think with Zama specifically, you know, we felt that the team and their ability to build a platform that has uh, been scalable in unique markets with unique regulatory, challenges was a testament to their execution and operational abilities. Um, it's a team that we believe can continue to expand into new markets helping us to to launch in Canada in 2026 as well as in markets, like Brazil where you

Andrew Dudum: So their ability to replicate, scale, and have flexibility with the technology platform with the range of regulatory environments we felt was incredibly powerful. And I think, you know, we've had the privilege of seeing dozens of companies that have tried this. And so the pattern recognition of what truly was unique was really there. Ultimately, you know, we believe the international market is a focused effort, right? It's not a spray-and-pray model. We don't believe that there are dozens of markets that are required for a substantial revenue footprint. I think long-term, we believe there's a multi-billion dollar revenue opportunity in just a handful of key markets. And I think you'll see us in the next, you know, one to three years going after those focused markets.

You've got new generics in my blue tide, uh, going live in the new year, so their ability to replicate scale and have flexibility with the technology platform. With the the range of regulatory environments, we felt was incredibly powerful. Um, and I think, you know, we've had the privilege of seeing dozens of companies that have tried this and so, the pattern recognition of what truly was unique was was really there.

Ultimately, you know, we believe the international market is a a focused effort, right? It's not a spray and prey model. We don't believe that there are dozens of markets that are required for a substantial Revenue footprint. Um, I think long term, we believe there's a multi-billion dollar Revenue opportunity in just a handful of key markets. Uh and I think you'll see us in the next uh, you know, 1 to 3 years, going after those focused markets.

Yemi Okupe: Thanks, Andrew. We also received a number of questions on the new capabilities and specialties that we'll be bringing to the platform in the coming quarters. Here's another multi-part question from @onderG. How does the launch of at-home lab testing improve the business and support the broader mission of Hims & Hers? What impact do you expect it to have on the development of new business verticals? And do you expect this will allow you to introduce membership options that are more widely accessible, similar to what's been done with Amazon, Netflix, and Costco?

Thanks, Andrew. We also received a number of questions on the new capabilities and specialties that we'll be bringing to the platform in the coming quarters. Here's another multi-part question from Andre G.

Andrew Dudum: Yeah, thanks, Andrew. That's a great question. You know, altruistically, I have a real passion to get people access to this type of information at as low a cost as possible. I think it's absolutely critical when you think about transitioning the American healthcare system as well as the global healthcare system from one where patients are coming into the system to treat an issue versus coming to the platform to take advantage of preventable options. And I think at-home testing is going to be absolutely foundational across all of our categories going forward, as well as opening up membership opportunities, like you mentioned. I think the simplification of not only what tests truly matter and when for a patient, but also really what gold standard optimized biomarkers look like is really critical for this offering. Right?

How does the launch of at home lab testing improve the business and support the broader mission of of pens and hers? Um what impact do you expect to have on the development of new business verticals and do you expect this will allow you to introduce a membership options that are more widely accessible similar to what's been done with Amazon Netflix and Costco.

Andrew Dudum: We live in a country where the majority of us die from preventable disease. And so there's a massive disconnect in access and education with regard to what these test outcomes should be. You know, being the average or being the median in the United States on your lipid profile, where you know the majority of us die from a heart attack, is not great. And so I think there's going to be an incredible opportunity to educate patients on what tests are necessary so it's not massively overwhelming, make those tests incredibly affordable and accessible and non-intimidating, and also educate patients based on who they are, their age, their dynamics, what those optimal outcomes and metrics can be. Now, ultimately, I think we can then not only get them that data but help them with the next steps.

Really critical for this offering, right? We we live in a country where the majority of us die from preventable disease and so there's a massive disconnect in Access and education with regard to what these test outcomes should be, um, you know, being the average or being the median in the United States, uh, on your lipid profile. Where, uh, you know, the majority of us die from a heart attack is not great and so I think there's going to be an incredible opportunity to educate patients on what tests are necessary. So it's not massively overwhelming make those tests incredibly affordable and accessible and not intimidating.

Andrew Dudum: And I think you'll see in these offerings that we bring to market that the lab testing is just the beginning. It's the beginning of then an opportunity to have very seamless abilities to treat and optimize your core risk areas. I think this will be ultimately a foundation infrastructure, as you can imagine, that then allows for a Prime-like or Costco-like healthcare membership, right? That transitions patients from coming to us for a single condition all the way to moving them towards ultimately a goal of preventative health. I think you can see this in the steps that we are taking, not only in the testing roadmap that we've been outlining, but also in the recent leadership additions like Nayara Kabani from Amazon, as well as Deirdre, who led product at Robinhood and owning her, you know, the membership platform over there.

And also educate patients, uh, based on who they are their age, their Dynamics, what those optimal outcomes and metrics can be. Now, ultimately, I think we can then not only get them that data, but help them with the next steps. And I think you'll see in these offerings that we bring to Market that the lab testing is just the beginning. It's the beginning of, then an opportunity to, to have very seamless abilities, to treat and optimize your core risk areas. Um, I think this will be ultimately a foundation and infrastructure as you can imagine that then allows for a um, uh crime like or Costco like healthcare membership, right? That transitions patients from coming to us for a single conditions, uh, all the way to moving them towards ultimately, a goal of preventive health.

Andrew Dudum: You know, I think we're staffing both the technology, the infrastructure, the raw capabilities in our facilities, as well as the team to go after what we think is a broad membership that sets a new standard for what healthcare ultimately should be for everybody globally.

I think you can see this in the steps that we are taking not only in the testing road map, that we've been outlining. But also in the recent leadership additions, like not our company from Amazon, as well as deer jug, who led product at Robin Hood, uh, and owning her, you know, the membership platform over there. Um, you know, I think we are Staffing, both the technology, the infrastructure, the raw capabilities in our facilities, as well as the team to go after. What we think is a broad membership that sets a new standard for what Healthcare ultimately should be for everybody globally.

Yemi Okupe: Thanks, Andrew. And thanks again to everyone who sent in questions. With that, I will pass it back to the operator to begin the regular way analyst Q&A.

Tiffany: At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one again. We kindly ask that you limit your questions to one and one follow-up for today's call. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Maria Ritz with Canaccord. Please go ahead.

Thanks, Andrew, and thanks again to everyone who's sending questions. With that, I will pass it back to the operator to begin the regular analyst Q&A.

At this time, if you would like to ask a question, press star, then the number 1 on your telephone keypad to withdraw your question, simply press star 1 again.

We kindly ask that you limit your questions to one and one follow-up for today's call.

We will pause for just a moment to compile the Q&A roster.

Maria Ripps: Great. Thanks so much for taking my questions. First, can you maybe help us understand a little bit better sort of some of the core dynamics between your core business and the weight loss segment both in Q2 and sort of expectations for Q3? So I know you iterated your weight loss target for this year, but anything you can add in terms of sort of underlying trends within your personalized GLP-1 offering? And then I have a quick follow-up.

Your first question comes from the line of Maria Ritz with Canaccord. Please go ahead.

Uh, great thanks so much for taking my questions. First, can you please help us understand a little bit better? Sort of some of the core Dynamics between your core business, and the weight loss segment, both in Q2 a sort of expectations for Q3. Uh, so I know you reiterated your weight loss Target for this year. Um, but anything you can add in terms of sort of underlying Trends with the new personalized, chili 1 offering. And then I have a quick follow-up.

Yemi Okupe: Yeah, thanks for the question, Maria. Maybe I can start. So I think that what we saw quarter over quarter in Q2, there's obviously some pretty material headwind in the GLP-1 footprint as we offboarded the folks that were on commercially available dosages. Across the weight loss specialty, we see continued success within our oral offering as well as personalized sema. But when we look at kind of like the core business, I think we've spoken around this a couple of times before. What we're seeing is really, you know, there's a drag coming from the sexual health on-demand component of the business. And that's really a conscious effort. What we've observed over the last couple of quarters is as we've expanded the sexual health daily offering, that continues to grow north of 55%. We also do see very strong retention across the daily relative to the on-demand business.

Yemi Okupe: And so if you pull out the on-demand sexual health business, many other specialties such as our dermatology business, the oral weight loss, the sexual health daily are all growing north of 55%. We're doing a conscious effort just to make the overall base of our sexual health customer a lot healthier. As we start to lap these dynamics in 2026, we would actually expect to receive a benefit both from lapping but also the stronger retention on the daily health users. And so really, I would say it's like the area where we're seeing, you know, the most softness, obviously, quarter on quarter, has been the GLP-1 side of the house, mainly employing commercially available dosages. But then there's also just the dynamic of the sexual health on-demand business. Outside of that, we're seeing strong growth across many of our other specialties.

Yeah, thanks for the question, Maria. Maybe I can start. Um, so I think that what we saw, uh, quarter of a quarter in, in, in Q2, um, there's always a, you know, some pretty material headwinds in the glp1 footprint. As we off boarded, uh, the folks that run commercials to be available with dosages, uh, across the weight loss specialty. We see, you know, continued success within our oral offering, uh, as well as personalized them. Um, um, but when we look at kind of like the big Core Business, um, I think we've we've spoken around this, um, a couple times before what we're seeing is, uh, really, you know, there's a drag coming from the, uh, the sexual health on demand, um, component of the business, and that's really a conscious effort. We'll be observed over the last couple quarters is, as we've expanded the sexual health daily offering. Uh, that continues to grow, uh, north of 55%. We also do see, um, very strong, um, retention, uh, across the, the daily relative to the on demand business. And so, if you pull out the, um, on demand Sexual Health business, many other Specialties such as our Dermatology business

Maria Ripps: Got it. That's very helpful, Yemi. Thank you. And then secondly, with the generic GLP-1 sort of expected to launch in Canada next year, could you maybe talk about some of the sort of cross-border dynamics that we should keep in mind? Are there any certain sort of legal nuances that sort of could make in.Education

Throw weight loss. Um, the sexual daily are all grow in north of 55%. Um, we're doing a conscious effort just to make the overall base of our Sexual Health, customer a lot healthier, uh, as we start to lap these Dynamics, uh, in 2026, we would actually expect, um, to receive the benefit, but from lapping, but also, the stronger retention on the, on the daily Health users. And so, really, I would say is like, the, the area where we're seeing, um, you know, the most softness. Obviously, quote on quarter has been the glp 1, uh, side of the house, mainly from pulling out commercially available dosages. But then there's also just that Dynamic of the sexual health on demand business. Uh outside of that we're seeing strong growth across many of our other specialties,

Tiffany: feasible from a consumer or provider perspective?

Sort of legal nuances that could make implication feasible from a consumer or provider perspective.

Andrew Dudum: Yeah, Maria, I can take that question. You know, generally speaking, our approach with bringing the generic semaglutide to market in Canada is going to be very, very by the book, right? And so there will be, from our perspective, no cross-border dynamics between the Canadian markets and the US. Shipments will be sent to Canadian addresses. They'll be through partnerships with large generic manufacturers who are manufacturing and bringing them into the Canadian market. So there should be no cross-border dynamics that we will be expecting from our standpoint.

Yeah, Marie, I can take that question. Um,

you know, generally speaking our approach with bringing the the generic semi blue tied to marketing Canada is is going to be very, uh, uh,

Tiffany: Got it. Thank you, Andrew. Thank you, Yemi. I appreciate the call.

varied by the book, right? And so, um, there will be from our perspective, no cross or Dynamics between, uh, the Canadian markets and the US, uh, shipments will be sent to Canadian addresses. They will be through Partnerships with, uh, large generic manufacturers, who are manufacturing and bringing them into the Canadian market. So there, there should be no cross-border dynamics, that, that we will be, uh, expecting from our standpoint.

Got it. Thank you, Andrew. I appreciate the call.

Bill Newby: Your next question comes from Craig Huttenbach with Morgan Stanley. Please go ahead.

Your next question comes from Craig Hettenbach with Morgan Stanley. Please go ahead.

Yemi Okupe: Yes, thank you. A question on the Hers business, whether it's a rough percentage of revenue or subscribers, just kind of an update on how that business is performing and some of the key growth drivers seen on the Hers side.

Yes, thank you. Uh, a question on the hers business. Um, whether it's a rough percentage of Revenue or subscribers, just kind of an update on how that business is performing and some of the key growth drivers seeing on the her side.

Andrew Dudum: Yeah, thanks for the question, Craig. You know, we still see the Hers business continuing to grow at a very robust pace. It's primarily benefiting from the dermatology business, both in terms of skin as well as hair. We're also seeing a strong demand for the weight loss offering and specialty continue, as well as our mental health offering. And then in the latter half of this year, I think we're very excited to bring on hormonal support, specifically for menopause in the Hers category as well. And so we do still see several catalysts continuing to drive a strong outlook for the Hers business.

Yeah, thanks for the question, Craig. Um, you know, we still see the hers business continued continuing to grow at a very, uh, robust Pace. Um, it's primarily benefiting from, uh, the Dermatology business, both in terms of skin, as well as hair. Uh, we're also seeing, you know, strong demand for, uh, the weight loss offering and Specialty. You know, continue uh, as well as our mental health offering, and then in the latter half of this year, I think we're very excited to bring on um, hormonal, hormonal support, uh, specifically for for menopause. Um, the first category is well and so we do still see several catalysts, uh, you know, continuing to to drive a strong outlook for the the, the first business

Yemi Okupe: Got it. And then just a follow-up question, and I appreciate the call around kind of the near-term investment cycle. Specific to AI, can you talk about how you're approaching that, whether it's the returns you expect to get on that or just reasonable timeline of that having an impact on the business as you move forward?

Got it. And then just to follow up question and appreciate the color on kind of the near-term investment cycle specific to AI. Can you talk about how you're approaching that, whether it's the returns, you expect to get on that, or just reasonable timeline of that? Having an impact on on the business as you move forward?

Andrew Dudum: Yes, Craig, thanks for the question on that. We aim to build the AI strategy in such a way where you're making very tangible and tactical improvements very quickly. I think in the age of the AI explosion, we are really benefited by the fact that our platform touches tens of thousands of patients every single day. And that allows for us to build use cases for both providers and patients or pharmacists that we can see nearly immediately driving results. And so I think there's going to be an agent-centric model here that delivers on-demand, 24/7 access and support across the stack, whether it's the provider side, the patient side, the pharmacist side, etc. But we aim in the next three to six months to be building out technologies that are immediately improving efficiency, improving engagement, providing support across the stack.

Yeah, Craig, thanks for the question on that. Um, we aim to build the AI strategy in such a way where you're making very tangible and tactical improvements very quickly. Now, I think in the age of the AI explosion, we are really benefited by the fact that our platform touches tens of thousands of patients every single day. Um, that allows for us to build use cases for both providers and patients or pharmacists. Um, that...

We can see nearly immediately driving results. Um, and so I think there's going to be, you know, an agent-centric model here that delivers on-demand 24/7 access and support across the stack, whether it's the provider side, the patient side, the pharmacist side, etc. Um, but we aim in the next 3 to 6 months to be building out technology that are immediately, uh, improving efficiency, improving engagement, um, providing support across the stack.

Yemi Okupe: That's helpful. Thank you.

It's helpful. Thank you.

Bill Newby: Your next question comes from the line of Eric Percher with Nephron Research. Please go ahead.

Mo Elshinawi: Thank you. I appreciate the incremental disclosure in the queue around the GLP-1 value. And I want to make sure I'm understanding that we see a value of 190 million this quarter, down from 230. Sounds like there's some revenue headwind. Should we assume that there's a pretty significant continued decline in Q3 and Q4 as we're modeling out the year?

Your next question comes from the line of Eric Percher. With nephron research, please go ahead.

Thank you, uh, I appreciate the incremental disclosure in the queue around the GLP-1 value. I want to make sure I'm understanding that, you know, we see a value of $190 million this quarter, down from $230 million. Sounds like there's some revenue headwinds. Should we assume that there's a pretty significant continued decline in Q3 and Q4 as we're modeling out the year?

Andrew Dudum: No, I think it's a great question, Eric. We saw the meaningful step down primarily as a result of offboarding folks that were on commercially available dosages of GLP-1. I think what's remaining for the duration of kind of Q3 and the rest of the year are products that we intend to tap on the platform, whether that's the oral weight loss product or personalized semaglutide. So our expectation is to see renewed and continued growth. There are some revenue recognition dynamics that will result in a steeper acceleration in the fourth quarter. We're just shipping in smaller batches, which also carries implications for the revenue recognition. But on a go-forward basis, we see very strong demand for the weight loss specialty holistically. And as of now, we're expecting that to continue.

Um, no, I think, yeah, it's a great question, Eric. Um, we you know, saw the, the meaningful stuff down, um, primarily as a result of of off-boarding, uh, folks that were on commercially available dosages of of of glp ones. I think what's remaining for, um, you know, the duration of of kind of Q3 and the rest of the year, uh, our products that we intend to tap on the platform, whether that's the oral weight loss.

Mo Elshinawi: And we should think of the 725 inclusive of oral, which you've stated is over 100 million. Is that the right way to think about the balance of these components?

Need a product or personalize, something like we've tied. Uh, so expectation is to see, you know, renewed and continued growth. There are some Revenue recognition dynamics, that will result in a steeper acceleration in the fourth quarter. Um, we're just shipping um, on in smaller batches which also carries implications for the the revenue recognition. Um, but I'm going to go forward basis. We see very strong demand for the weight loss, specialty holistically. Uh, and as of now are expecting that to, uh, to continue

Is that the right way to think about the balance of these?

Andrew Dudum: Yeah, correct. So the 725 is holistic across all of the weight loss components. So it's the full holistic weight loss offering.

Mo Elshinawi: Appreciate the detail.

Components. Uh, yeah, correct. So, like the the 725 as as as holistic across all of the, the weight loss components so it's the full holistic, weight loss offering

Andrew Dudum: And Eric, that includes you know liraglutide, branded medications, oral, personalized, etc. It's the whole specialty.

Appreciate the detail.

And Eric that includes, uh, you know, ler glue tide branded medications oral personalized, Etc. It's the whole specialty.

Bill Newby: Your next question comes from the line of Ryan McDonald with Needham & Company. Please go ahead.

Your next question comes from the line of Brian McDonald with Nita and Company. Please go ahead.

Maria Ripps: All right, thanks for taking my questions. Maybe first on the Canadian expansion. Are you intending to expand in Canada under the Hims & Hers brand or the Zava brand, given sort of the acquisition there? And as we think about the opportunity with generic semaglutide in Canada, pricing for the branded already is at a fairly affordable price, the $200 to $400 range. Do you expect a sort of a similar magnitude of sort of unlocking of that market at the generic price point relative to the difference in pricing in the US we saw from branded versus compounded? Thanks.

Andrew Dudum: Yeah, Ryan, great question. We will be leveraging a lot of the expertise of the Zava team and technology stack that has already proven to be able to replicate a lot of diversity in models across regulatory environments. But the actual presentation of the offerings in Canada will be the Hims & Hers brands, both brands independently. On the second question, so right now, the average pricing we're seeing in the Canadian market for the branded pharmaceuticals, as you said, range from $200 to $400. We see it most of the time in the mid $300 to $400 range. Given the conversations we've had with the major generic manufacturers, of which there's quite a few who are going through the process with Health Canada to get their generic approved, we expect the consumer price point to be around $75 to $100.

All right, thanks for taking my questions. Um, let me first on the Canadian expansion. Are you intending to expand in Canada, under the hens and hers brand or the Zava brand, uh, given sort of the acquisition there. And as we think about the opportunity with generic smaglo um in Canada um pricing for the Branded already is that you know fairly affordable price to 200 to 400 dollar range, you expect the sort of a a similar magnitude of sort of unlocking of that Market at the generic price point. Um relative to the difference in pricing in the US we saw from branded versus compounded. Thanks.

Andrew Dudum: So upwards of a third or so of the current branded price. So we do think there's going to be really structural access unlocks with that type of pricing distinction. And in the Canadian market where roughly two-thirds of the population is struggling with weight loss or struggles with obesity, we think that reduction is going to be incredibly material.

Yeah, Ryan, great question. Um, we will be leveraging a lot of the, the expertise of the Zava team. And, and Technology stack that has already proven to be able to replicate a lot of diversity and models across regulatory environments. But the, the the actual presentation of the offerings in Canada will be the hims and hers Brands both Brands independently, um, on the second question. So right now, uh, the average pricing, we're seeing in the Canadian market for the, the Branded Pharmaceuticals, as you said range from 2 to 400, we see it most of the time in the mid-30s to to 400 range. Um, given the conversations we've had with the major generic manufacturers of which there's quite a few, who are, you know, going through the process with, with health Canada to to get their generic approved. Um, we expect the Consumer Price Point, uh, to be around 75 to $100, uh, you know, so upwards of, uh, you know, a third

Or so of the current branded price. So we do think there's going to be really structural access on locks with that type of pricing distinction. Um, and in a, you know, in the Canadian Market where you know, roughly 2/3 of the population is is

Struggling with weight loss or struggling with obesity, we think that reduction is going to be incredibly material.

Maria Ripps: Super helpful, the clarification there. Thanks, Andrew. Maybe follow-up for Yemi. In your prepared remarks around the outlook for the remainder of the year, did you say that average revenue recognized per order will be down in the second half versus first half? And if so, does that imply an acceleration in subscriber growth expectations on a quarter-over-quarter basis? Thanks.

Super helpful, the clarification there. Thanks, Andrew. Um, maybe a follow-up for Yemi. In your prepared remarks around the outlook for the remainder of the year, did you say that average revenue recognized per order will be down in the second half versus the first half? And if so, does that imply acceleration in subscriber growth expectations on a quarter-over-quarter basis? Thanks.

Andrew Dudum: Yeah, thanks for the question, Ryan. I think when we were stating that there would be a change where we'd recognize or we would have lower revenue recognized per order, that was specifically to the personalized GLP-1 component, just given the regulatory dynamics there of the pivot towards 503As for that specific specialty. What will happen is you'll have, on each order, a lower amount of revenue recognized, but then the order velocity will be more frequent. And so that's why you see an acceleration also happening in Q4 is that there's just greater compounding of orders over time as you progress the course.

Yeah, thanks for the question, Ryan. I think we, you know, when we were, um, you know, stating that there would be a change where we recognize, um,

Maria Ripps: Okay, so average monthly order or average revenue per subscriber is not necessarily going to be down sequentially?

Uh, or we we, we would have, uh, lower Revenue recognized per per order. That was specifically to the um, the personalized G, lp1 component just giving the regulatory uh, Dynamics there um of the pivot towards 503.8 is for that specific specialty. Um, what will happen is, you'll have on each order. Um, a lower amount of Revenue recognized, but then the order of velocity will be more frequent. Um, and so, that's why you, you see an acceleration also happening in Q4 is that there's just greater compounding of of orders over time as you progress the course,

Andrew Dudum: Yeah, no, not necessarily. So it's specifically in reference to the Q1 offering.

Okay, so the average monthly order, or average revenue per subscriber, is not necessarily going to be down sequentially.

Maria Ripps: All right, thanks for the clarification.

Yeah. No, not necessarily. So it's specifically referred to the 1 offering.

All right, thanks for the clarification.

Bill Newby: Your next question comes from the line of Brian Finkwillett with Jefferies. Please go ahead.

Eric Percher: Hey, good afternoon, guys. Maybe just a follow-up to some of the discussions. As I think about just the marketing spend that you're planning for the back half of the year, how should we be thinking about patient or client acquisition costs on a per-person basis, per-cabinet basis? I mean, how are you trying to manage that?

Your next question comes from the line of Brian Tenquille. Please go ahead.

Hey, good afternoon guys, maybe just to follow up just some of the discussions. I think about just the marketing spend that you're you're planning for the back half of the year. How should we be thinking about, you know, patient or client acquisition cost and a per person basis per capita basis? I mean, how how are you trying to manage that?

Andrew Dudum: Yeah, thanks for the question. You know, so we do intend to invest in a pretty robust fashion in the second half. That said, I think we still are going to hold to our standard and our capital allocation framework. So we do expect to be able to manage a payback period well below a one-year period. That said, I think we are looking to, as we progress through the year and launch new specialties, have the firepower to lean in those. The environment in Q2 was volatile, as we mentioned in the prepared remarks. And so really giving the teams the ability to learn in the third quarter with a more stable product suite, particularly in weight, is something that we're excited by. But then kind of what you see happens as we turn the corner around these investment periods, the benefits accrue pretty quickly.

Andrew Dudum: And so you kind of see that taking place in the second quarter where we were able to maintain very robust growth while also holding back investment, particularly in the core categories for a period of time. And so if you kind of look at how quickly the margins expanded to north of 15%, we expect that to be our ability to be able to do that again in the future as well. But really in the second half, we're leaving flexibility for marketing to new specialties as well as newer geographies, the ability to learn within some of our existing specialties, and then also just talent acquisition. As Andrew mentioned, we do expect to lean into AI and realize returns there very quickly. That also does come with a cost to talent and that's reflected in our guidance assumption in the back half of the year.

The ability to learn in the third quarter with a more, uh, stable product suite, particularly in weight, is something that, you know, we're excited by. But then kind of what you see happen, you know, as we, you know, turn the corner around these investment periods, the benefits accrue pretty quickly. And so you kind of see that taking place in the second quarter where, you know, we were able to maintain very robust growth while also holding back investment, particularly in the core categories during that period of time. And so if you kind of...

Eric Percher: Okay, that makes a lot of sense. Maybe just to follow up on inventories, pretty steep increase quarter over quarter. So just curious how we should be thinking about inventory levels going forward and their specific drivers pushing that or that drove that increase quarter over quarter. Thank you.

You know, look at how quickly the the margins expanded to, um, you know, north of 15%. We expect that, you know, to, to be our ability to be able to do that again in the future as well. But really, in the second half, we're leaving flexibility for marketing and a new Specialties, as well as new, um, new geographies. Um, the ability to learn within some of our existing Specialties, and then also just Talent acquisition as Andrew mentioned, we do expect to lean into Ai and realize returns that are very quickly. Um that also does come with a, a cost of to to talent and that's reflected in our guidance, assumption in the back half of the year.

Andrew Dudum: Yeah, I think just as we historically look to, I think there's a couple of factors. As we historically look to launch new specialties, we want to ensure that there is a durable supply of inventory available. Then as we also just looked at the strength of our balance sheet, some of the volatility occurring around the world right now with tariff uncertainty, the ability to leverage the balance sheet and the free cash flow now to take advantage of predictability was something that the management team opted to want to lean into right now at the moment. It's not to say that we're going to have similar step-ups in inventory each quarter. This is more probably of a quarter where there's a little bit of an anomaly just as we look to strengthen our supply chain across several of the specialties, given some of the dynamics going on now.

Okay, that makes a lot of sense. Maybe just to follow up on inventories, um, pretty steep increase quarter over quarter. So, I'm just curious how we should be thinking about inventory levels going forward, and if there are specific drivers pushing you that, or that drove that increase quarter over quarter. Thank you.

Yeah, I think just as we, you know, historically looked to, um, I think there's a couple factors that we've historically looked to launch new specialties. We want to ensure that there is um, a durable supply of inventory available. Then as we also just looked at the strength of our balance sheet, um, you know, some of the volatility occurring around the world right now with tariff uncertainty, uh, the ability to, you know, leverage the balance sheet and the free cash flow, uh, now to take advantage.

Eric Percher: Awesome. Thank you.

Of predictability, uh, was something that the management team opted to want to lean into. Uh, right now at the moment, uh, it's not to say that we're going to have similar stuff up some inventory each quarter. Um, this is more probably of a quarter with a little bit of an anomaly, uh, just as we look to strengthen our supply chain across, um, you know, several of the specialties, uh, given some of the dynamics going on, okay?

Awesome. Thank you.

Bill Newby: Your next question comes from the line of George Hill with Deutsche Bank. Please go ahead.

Your next question.

George Hill: Yeah, good afternoon, guys, and thanks for taking the question. Yemi, you kind of leaned into where I was going with your last answer, but I guess I wanted to talk about the front end of the Sema franchise. And I guess, can you guys confirm that you kind of source all your Sema API from a high-quality FDA-inspected CGMP-type facilities? And if it's coming from overseas, I was going to ask if you could talk about the tariff risks, particularly if it's coming from China, and if any, that's an issue. And then I had a very quick follow-up, which is, what's the right way to think about your 503A capacity, given how quickly the business is ramping? I don't know if the right way to think about it is in dollars and doses. Would love any commentary on that. Thank you.

From the line of George Hill with Deutsche Bank. Please go ahead.

Yeah. Good afternoon guys. And thanks for taking the question. Yeah, I mean you kind of leaned into where I was going with your last answer but I guess I wanted to talk about the front end of the summer franchise and I guess, uh, can you guys confirm that you kind of source, all your semi API from a high quality, FDA inspected, cgmp type facilities? Uh, and if it's coming from overseas, I was going to ask. If you could talk about the Tariff risks, uh, particularly if it's coming from China. And if any of that's an issue and then I had a very quick follow-up, which is what's the right way to think about your 5038 capacity, given how quickly the business is ramping? Um, I don't know if there.

Way to think about those in dollars and doses. Would love any commentary on that. Thank you.

Andrew Dudum: And George, I can probably take the first half and Yemi cover the second. We have a number of API suppliers across the stack, both domestically and overseas that we leverage to serve all the customers on the platform. I think to your point, the most important question there is all of these are through FDA-registered facilities, CGMP. They undergo rigorous testing for things like potency, identity, and they're all verified with third-party testing, which I think gives our team, our safety team, and our patients a great deal of confidence.

Andrew Dudum: And then it gets back to your questions around tariff and capacity. At this moment, we don't see any meaningful pressure coming embedded in our outlook is that there will not be any meaningful pressure coming from tariffs. Capacity, I think we have found numerous different ways to ensure that we do have the capacity to be able to support the build-up subscriber base, not just for this year, but over the coming years. And so the CapEx investments and other vehicles that we've laid give us the confidence that we'll have the ability to fulfill all of our customers' needs for years to come.

Hey, George. I can probably take the first half and do you have any other second? We have a number of API suppliers across the stack of both domestically and overseas that we leverage to serve all the customers on the platform. I think to your point the most important question there is all of these are through FDA registered facilities, cgmp they undergo, uh, rigorous testing for things like potency identity. Uh and they're all verified with third party testing which I think gives our team or safety team and and our patient to a great deal of confidence.

And respect to your questions around, you know, tariff, and and capacity. Like, at this moment, we don't we don't see, uh, any meaningful pressure. Um, you know, come in and embed it in our in our Outlook is is that there will not be any meaningful pressure coming from inaros. Uh, capacity. I think we um, you know, have have found a numerous different ways to ensure that we do have the capacity to be able to support the build up. The subscriber base, not just for, you know this year but over the coming years and so, uh, the capex Investments and, you know, other vehicles, you know that we've laid give us the confidence that, uh, we'll have the ability to follow all of our customers needs for for years to come.

George Hill: Thank you.

Thank you.

Bill Newby: Your next question comes from the line of Johnna Kim with TD Cohen. Please go ahead.

Your next question comes from the line of Janna Kim. With TD Cohen, please go ahead.

Daniel Grosslight: Question. Last quarter, you mentioned the 2030 target. Just wanted to get a sense of the mix of international and the US business in that long-term target, if you can give us any color about how big the international business could be over time. And then just a follow-up question. Any changes in your marketing strategy? Do you plan to still focus more on the weight loss side or the core offering? We'd love to get any color there. Thank you very much.

Um, last quarter you mentioned the 2030 target. I just wanted to get a sense of the mix of international and the U.S. business in that long-term target. If you can give us any color about how big the international business could be over time. And then just a follow-up question: any changes in your marketing strategy? Do you plan to still focus more on the weight loss side or the core offering? Would love to get any color there. Thank you very much.

Andrew Dudum: Yeah, thanks for the question, Jenna. So I think that we see several future growth levers to achieve or exceed the 2030 targets. You know, international will definitely be a component, but we also still see an immense amount of opportunity here in the US, whether that's in the form of the new capabilities or specialties that Andrew went through in his prepared remarks. So there's not necessarily an exact split that we're giving right now, but each should be elements and growth levers that we are currently investing in. We believe our billion-dollar-plus opportunities individually. So whether that's new geographies internationally or a combination of new specialties that we're going into, or continuing to invest and deepen the breadth of personalization offerings and consumer experience on the platform, all of those are things that we believe have the ability and the potential to have outsized returns.

But we also still see an immense amount of opportunity here in the US. Um, whether that's in the form of the new capabilities or Specialties. Um, you know, the Andrew went through and has prepared remarks. Um so there's not necessarily an exact split that we're giving uh right now. But each of the uh elements and growth levers that we

Andrew Dudum: And so that gives us the conviction to be able to release a target that's about five years out. With respect to the investment in marketing, I think we are going to continue to hold a very high bar on the spend and look for the one-year payback period or less. That said, I think over the last couple of quarters, we've received several learnings across the investments. And so you will see us do specialty-specific investments, both across the core offerings as well as multi-condition marketing as well. We'll continue to iterate and look to calibrate that spend. But really, I think as we're doing that, we do expect to still hold to the capital allocation framework that calls for the payback period of a year or less.

Uh, are currently investing in, uh, we believe, you know, our Billion Dollar Plus opportunities, um, you know individually. So whether that's new geographies, um, internationally or new accommodation of these Specialties that we're going into, um, or uh, continuing to invest and deepen, the, the breadth of personalization offerings and consumer experience on the, on the platform. All of those are things, uh, you know, that we believe have, uh, the ability and the potential to have outside returns. Uh, and so uh, that gives us the conviction to be able to, you know, release the target. Uh, that that's about 5 years to 5, 5 years out.

Um, with respect to you, uh, the investment, you know, in in marketing, I think we are going to continue to, to hold a very, uh, High bar on the spend and then look for the, the 1, that your payback, period or less. Uh, that said, I think over the, the last couple of quarters we've received, uh, several learnings, uh, across the, you know, the Investments and so you will see us do, uh, specialty specific Investments, um, both across, uh, the, the core offerings as well as multi-conductor as well. Uh, we'll continue to iterate and look to to calibrate that spend. But, you know, really I think as we're doing that.

We do expect to still hold to the kind of allocation framework that calls for the good of a year or less.

Daniel Grosslight: Got it. Thank you.

Got it. Thank you.

Bill Newby: Your next question comes from the line of Daniel Grosslight with CITI. Please go ahead.

Maria Ripps: Hi, thanks for taking the question. You mentioned launching hormone therapy in the coming months. I was hoping maybe if you could put a bit of a finer point on that, is that more of a 4Q launch now? And if you can dig in a bit more on what investments you need to make ahead of the launch and the cadence of that, both from a CapEx and OpEx standpoint. And if you're going to be compounding these offerings in your own pharmacies. Thanks.

Your next question comes from the line of Daniel Grasslight with Citi. Please go ahead.

Hi, thanks for taking the question. Um, you mentioned launching hormone therapy in the coming months. I was hoping maybe if you could uh, put a bit of a finer point on on that, is that more of a 4 q. Uh, launched now and if you can dig in a bit more on what investments, you need to make ahead of of the launch and the Cadence of that, both from a capex and Opex standpoint. Um and if you're going to be compounding these offerings in your uh your own uh Pharmacy. Thanks.

Andrew Dudum: Thanks, Daniel. I can take some of that. Probably can't give you too much on the specific date where the communications team might be a little bit frustrated with me, but would expect it relatively soon. The offering, I think, is going to have a really wide range of treatments inclusive of compounded generics. And I think eventually, you know, branded and specialty offerings through a network of partners and offerings, which we're really excited by. And this will be delivered predominantly through our facilities long-term, as well as through partner facilities in the beginning, both across perimenopause, menopause, and then low testosterone on the men's side of the business. And Yemi, if there's anything on the financial preparation that you want to reference.

Thanks, Danielle. I can take some of that. Um, probably probably can't give you too much on.

The specific date, or the communications team, might, uh, be a little bit frustrated with me, but I would expect it relatively soon. Um,

The offering I think it's going to have a really wide range of treatments inclusive of of compounded. Uh, generics and I think eventually, uh, you know, branded and Specialty offerings, uh, through a network of of Partners and offerings, which were really excited by it. And this will be uh, delivered predominantly through our facilities long term as well as through partner facilities in the beginning both across par menopause menopause and then low testosterone on the men's side of the business and yummy. If there's anything on the financial

Andrew Dudum: Yeah, I think a lot of it we've actively done and are continuing to do. And so the embedded in our guidance is all the investment around needing to prepare for the new launches.

Preparation that you want to reference?

Maria Ripps: Okay, got it. And maybe if I can just tackle the core revenue with my follow-up. You know, the revenue ex-GLP-1 was down slightly sequentially. Yemi, you mentioned derm, oral weight loss, and daily sexual health is growing 55% plus. So I suppose much of that was offset by the on-demand sexual health rotation. Is that right? Can you just dig in a little bit more on why we aren't seeing more sequential growth outside of GLP-1s?

Yeah, I think I think a lot of it we we have actively done in your continuing to do. And so the uh, embedded in our guidance is, is all the Investments around needing to, um, needing to prepare for the new launches.

Andrew Dudum: Yeah, I think that's a fair interpretation. You know, I think the second quarter also had the nuance of it was the first quarter where the apostrophe business was no longer present. But the vast majority of the headwinds that we're seeing is a result of the deliberate rotation toward a higher quality sexual health consumer. I think over time, we expect a few things to happen as we kind of hit 2026. One is you just get the benefit of what we have already observed to be inherently stronger retention of that user base. The second is the pivot as the business and the subscribers can track starts to wind down and wane. And so I think that this is probably a conscious multi-quarter transition.

Okay, got it. And maybe if I can just tackle the um, the core Revenue, um, with my follow-up, you know, the the revenue xgp 1 was down slightly sequentially. Uh, yummy, you mentioned, Derm oral weight loss and uh, daily sexual health is growing 55% plus I suppose Mo much of of that was offset by the on demand Sexual Health rotation is that right? Can you just dig in a little bit more on why we aren't seeing more sequential growth outside of glp once?

Yeah, I think that's a fair interpretation. Um, you know, I think in the second quarter also of the new on, it was the first quarter where, um, you know, the apostrophe business was no longer present, but the vast majority of the headwinds that we're seeing are as a result of the delivery rotation. Um, uh, uh, uh,

Andrew Dudum: But as we kind of hit the back half of 2026, we would expect it to be a creative and probably the right long-term move for the business.

Toward a higher quality of sexual consumer. I think over time we expect, you know, a few things to happen. Um, you know, as as you kind of hit 2026 1 is you just get the benefit of of what we have already observed to be inherently stronger retention, uh, you know, about user base. Uh, the second is, is just the pivot, you know, as as the business. Um, and the subscribers can track, you know, starts to, uh, wind down and, and Wayne. And so, I think that this is a probably a conscious multi-quarter transition. But as we kind of hit the back up in 2026.

We would expect it to be creative and probably the right long-term move from the business.

Maria Ripps: Got it. Thank you.

Got it. Thank you.

Bill Newby: Your next question comes from the line of David Larson with BTIG. Please go ahead.

Your next question comes from the line of David Larsen with BTIG. Please go ahead.

George Hill: Congratulations on the good quarter. Can you talk a bit about the 503A revenue growth rate year over year? I'm assuming last year, a good portion of the GLP-1 revenue was personalized. So just any sense for what the 503A growth was year over year? It seems to me like you're guiding to 100 million of GLP-1 revenue in 3Q and 100 million in 4Q, which would be a significant decline. Maybe I'm being sort of overly conservative with my view there, but just thoughts on the 503A growth going forward would be helpful. Thank you.

The last year, a good portion of the GOP 1 Revenue was personalized. So, just any sense for what, like, the 503a growth was year-over-year. It seems to me, like, you're guiding to a 100 million of glp1 Revenue in 3Q and 100 million in 4q, which would be a significant decline. Maybe. Um, I'm, I'm being sort of overly conservative with my, my view there, but just thoughts on the 503. A growth going forward would be helpful. Thank you.

Andrew Dudum: Yeah, so I think that the concept of 503A growth versus 503B is not really nuanced with bear as a result of the shortage dynamics that were present last year. The revenue was filled out of a 503B partner. And so I think that the way that we more think around it is the weight loss specialty in aggregate and then the various components underneath that. We expect to see continued robust quarter growth across each of the components of the weight loss specialty, the oral side, and the GLP-1 throughout the duration of the year.

George Hill: Okay, great. And then, Andrew, I think you were talking about preventive care, things like perhaps counting steps, counting calories, looking at your food intake, your water intake. I love the sounds of that. It sounds like it's all natural. We've had some growth and some new businesses in that area. Sending more color there would be very helpful.

Yes, I think that um, the, you know, the the concept of 5038 versus 503 B is, is is not really, you know, um, you know, nuances there as a result of the shortage dynamics that were present last year. Uh, the revenue was filled out of a 503b um, 5033 partner. And so I think that, you know, the way that we more think around it is the weight loss specialty, you know, in Aggregate and then the various components, you know, under underneath that. Um, we expect to see continued um, you know, robust quarter of across each of the components of of the weight loss specialty. The oral, the oral side, and the glp1 throughout the duration of the year of the year.

Okay, great. And then Andrew, I think you were talking about preventive care, things like perhaps counting steps, counting calories, looking at your food intake, and your water intake. Um, I love the sounds of that. It sounds like it's all natural. We've had some growth and some new businesses in that area. So any more color there would be very helpful.

Andrew Dudum: Yeah, absolutely. This is something that I think the platform is really uniquely positioned to deliver on. You know, when we think about personalized treatment plans, it's not just about personalized medicine, right? It's personalized content, personalized agents, personalized gamification, and technologies that they're able to use to stay adherent and to stay motivated. You can imagine, for example, an individual who's getting treated with a personalized medication for weight loss, also having access to an on-demand 24/7 nutritionist agent, right, who knows everything about them, who is right there with them, checking in on them throughout the day, helping them with recipes, helping proactively count their calories with photos of the foods that they're eating. Same thing on the mental health platform, right?

Yeah. Absolutely. This is something that I think the platform is really uniquely positioned to deliver on. You know, when we think about personalized treatment plans it's not just about personalized medicine, right? It's personalized content personalized agents, uh personalized uh gamification and and technologies that they're able to use to stay adherent and to stay motivated you can imagine. For example, a a, an individual who's getting treated with a personalized medication for weight loss. Also having access to an on-demand 24/7, uh, nutritionist agent, right? Who knows everything about them, who is right there with them checking in on them, throughout the day. Helping them with recipes, helping proactively Count Their calories with photos of the food that they're eating.

Andrew Dudum: Patients that are struggling with sleep, you can imagine an agent that is on-demand available with advanced cognitive behavioral therapy training to help that patient improve their insomnia. So I think there's a real technology-forward transition that the company is making right now, led by Mo Al-Shinawi, our new CTO. And there's a reason we brought him in for this exact reason. But we believe a lot of the future unlocks the stickiness of the platform, the benefits of the platform are going to be in the layering of technology across the stack that then enhances the personalized medications you're getting.

Same thing on the mental health platform right patients that are struggling with sleep, you can imagine an agent that is on demand available with Advanced cognitive behavioral therapy training to help that patient uh improve their insomnia. So the I think there's a, a real technology forward um transition that the company is making right now. Uh led by mobile shawi, our our new CTO and there's a reason we brought him in for this exact reason but we believe a lot of the future, unlocks the stickiness of the platform, the benefits of the platform are going to be in the layering of Technology across the stack. That then enhances the personalized medication.

Your day.

George Hill: Fantastic. Thanks very much.

Fantastic. Uh, thanks very much.

Bill Newby: Ladies and gentlemen, we have reached the end of the question and answer session. This will conclude today's call. Thank you all for joining. You may now disconnect.

Ladies and gentlemen, we have reached the end of the question-and-answer session. This will conclude today's call. Thank you all for joining; you may now disconnect.