Hims & Hers Health, Inc.

Company Overview

Business Model: Hims & Hers Health, Inc. operates a consumer-first digital health and wellness platform that transforms how customers access health and wellness solutions. The platform provides access to a network of highly-qualified, technologically-innovative healthcare professionals, a clinically-focused electronic medical record system, digital prescriptions, cloud pharmacy fulfillment, and personalization capabilities. It enables access to treatments for chronic conditions such as sexual health, hair loss, dermatology, mental health, and weight loss. Prescriptions are fulfilled online through licensed pharmacies on a subscription basis. The company also offers access to a range of curated prescription and non-prescription health and wellness products, including "white-labeled" and co-branded products, available through its websites, mobile applications, and retail partnerships. Since its founding, Hims & Hers Health, Inc. has facilitated over thirty million telehealth consultations.

Market Position: Hims & Hers Health, Inc. positions itself as a leader in personalized, digital, and accessible healthcare, aiming to lead the migration of routine office visits to this format. The company believes its market share, in terms of both customer numbers and total sales, has increased in its sexual health, dermatology, and mental health specialties in recent years. While no direct competitor offers the full suite of solutions and direct-to-consumer touchpoints, the company competes with traditional healthcare providers, pharmacies, pharmaceutical companies, large retailers selling non-prescription products, and other telehealth providers. Hims & Hers Health, Inc. has established relationships with leading health systems, including Ochsner Health, Mount Sinai Health System, Carbon Health, ChristianaCare Health System, and Hartford Healthcare, to facilitate clinically focused, telehealth-enabled patient care collaborations.

Recent Strategic Developments:

• Weight Loss Offerings Expansion: Launched access to weight loss offerings, including compounded injectable semaglutide and branded injectable semaglutide, at the end of 2023 and expanded throughout 2024.
• Acquisition of MedisourceRx: In September 2024, Hims & Hers Health, Inc. acquired Seaview Enterprises, LLC (d/b/a MedisourceRx), a licensed 503B compounding outsourcing facility, for $31.0 million in cash and Class A common stock.
• Acquisition of Peptide Manufacturing Facility: In February 2025, the company acquired a peptide manufacturing facility and related assets from C S Bio Co. for up to approximately $65.0 million in cash and Class A common stock, aiming to expand supply chain capabilities.
• Acquisition of Lab Testing Services Business: In February 2025, Hims & Hers Health, Inc. acquired Sigmund NJ, LLC, marketed as Trybe Labs, a lab testing services business, for $5.0 million in cash, to add lab testing capabilities to its platform.
• New Credit Facility: In February 2025, the company entered into a three-year senior secured revolving line of credit for up to $175.0 million with JPMorgan Chase Bank, N.A. and other lenders.
• Facility Expansion: In January 2025, the company executed a 127-month lease for 289,463 square feet of office, warehouse, and pharmacy space in Mesa, Arizona, and a 120-month lease for a 38,483 square foot manufacturing facility in Menlo Park, California, to support acquired assets.
• Personalized Solutions Growth: The number of Subscribers utilizing personalized solutions grew to represent more than a majority of total Subscribers by the end of fiscal year 2024.

Geographic Footprint: Hims & Hers Health, Inc. operates across all 50 states in the United States and has expanded into the United Kingdom. Substantially all of its long-lived assets and a significant majority of its results of operations are attributable to the United States. The company's operations in the United Kingdom are currently considered insignificant.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 79% (2024) vs. 82% (2023)
• Operating Margin: 4% (2024) vs. -4% (2023)
• Net Margin: 9% (2024) vs. -3% (2023)

Investment in Growth:

• R&D Expenditure: $78.8 million (5% of revenue) in 2024, an increase of 63% from $48.2 million in 2023.
• Capital Expenditures: $52.8 million in 2024, comprising $41.7 million for purchases of property, equipment, and intangible assets, and $11.1 million for investment in website development and internal-use software.
• Strategic Investments:
  • Acquisition of MedisourceRx for $31.0 million (cash and Class A common stock) in 2024.
  • Acquisition of a peptide manufacturing facility from C S Bio Co. for up to approximately $65.0 million (cash and Class A common stock) in February 2025.
  • Acquisition of Sigmund NJ, LLC (Trybe Labs) for $5.0 million in cash in February 2025.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $83.0 million (5,768,042 shares) in 2024 under the 2023 Share Repurchase Program and the 2024 Share Repurchase Program. In 2023, $2.0 million (237,458 shares) were repurchased.
• Dividend Payments: No cash dividends have been paid on Class A common stock to date, and the Board of Directors does not currently contemplate declaring any dividends in the foreseeable future.
• Dividend Yield: Not applicable.
• Future Capital Return Commitments: As of December 31, 2024, $65.0 million remains available under the 2024 Share Repurchase Program, which expires on August 31, 2027.

Balance Sheet Position:

• Cash and Equivalents: $220.6 million as of December 31, 2024.
• Total Debt: No long-term debt was reported on the balance sheet as of December 31, 2024. In February 2025, the company entered into a Revolving Credit and Guaranty Agreement for a three-year senior secured revolving line of credit in an amount up to $175.0 million.
• Net Cash Position: $300.3 million as of December 31, 2024, including cash and cash equivalents of $220.6 million and short-term investments of $79.7 million.
• Credit Rating: Not disclosed.
• Debt Maturity Profile: The Revolving Credit Facility entered in February 2025 has a three-year term.

Cash Flow Generation:

• Operating Cash Flow: $251.1 million in 2024, compared to $73.5 million in 2023.
• Free Cash Flow: $198.3 million in 2024, compared to $47.0 million in 2023.
• Cash Conversion Metrics: Not explicitly provided in the filing.

Operational Excellence

Production & Service Model: Hims & Hers Health, Inc. operates a consumer-first platform that integrates a highly-qualified provider network, a clinically-focused electronic medical record system, digital prescriptions, cloud pharmacy fulfillment, and personalization capabilities. The platform facilitates telehealth consultations for chronic conditions and offers access to prescription and non-prescription health and wellness products. The integrated technology stack, supported by proprietary algorithms, streamlines the patient and clinician experience from customer discovery and consultation to order fulfillment and ongoing clinical management. Care is delivered by licensed healthcare providers adhering to evidence-based clinical guidelines. Most offerings are sold on a subscription basis, providing recurring revenue and ongoing treatment access.

Supply Chain Architecture: Key Suppliers & Partners:

• Affiliated Medical Groups: Separate professional corporations owned by licensed physicians that engage licensed healthcare professionals (Providers) to offer telehealth consultations and related services exclusively through the Hims & Hers Health, Inc. platform. Hims & Hers Health, Inc. provides administrative services and support.
• Affiliated Pharmacies: XeCare, LLC (Ohio) and Apostrophe Pharmacy LLC (Arizona) are dedicated licensed mail order pharmacies that provide prescription fulfillment services solely to Hims & Hers Health, Inc. customers. The company is in the process of transitioning both Pharmacies to wholly owned subsidiaries.
• Outsourcing Facility: MedisourceRx, a wholly-owned licensed 503B compounding outsourcing facility acquired in 2024, compounds products primarily for Hims & Hers Health, Inc. customers.
• Peptide Manufacturing Facility: Acquired from C S Bio Co. in February 2025, this facility is intended to expand the company's supply chain capabilities.
• Lab Facility: Sigmund NJ, LLC (Trybe Labs), acquired in February 2025, will enable the company to add lab testing capabilities to its platform.
• Partner Pharmacies: EHT Pharmacy LLC (d/b/a Curexa Pharmacy), ITC Inc. (d/b/a ITC Compounding Pharmacy), and The London Specialist Pharmacy Limited are three licensed pharmacies with contractual arrangements for fulfillment and distribution of certain prescription and non-prescription products.
• Manufacturing Suppliers: Third-party suppliers and manufacturers provide certain products or product ingredients, including compounded GLP-1s, to the Pharmacies.
• Cloud Infrastructure Provider: Amazon Web Services ("AWS") hosts the company's platform and supports operations.
• Other Third-Party Service Providers: Includes shipping providers and contract manufacturers.

Facility Network:

• Manufacturing: MedisourceRx (Gilbert, Arizona) for 503B compounding, and a newly acquired peptide manufacturing facility in Menlo Park, California.
• Research & Development: Supported by an internal Hims & Hers Health, Inc. Product Research & Development team.
• Distribution: Dedicated licensed mail order pharmacies XeCare, LLC (New Albany, Ohio) and Apostrophe Pharmacy LLC (Gilbert, Arizona). A new 289,463 square foot office, warehouse, and pharmacy facility in Mesa, Arizona, was leased in January 2025.
• Corporate: Principal executive office in San Francisco, California, and a corporate facility in New York, New York. The company maintains a remote-first policy for most corporate functions.

Operational Metrics:

• Total Employees: 1,637 as of December 31, 2024, a significant increase from 651 as of December 31, 2022.
• Medical Providers: 1,307 medical providers located throughout all 50 U.S. states provided services on the platform through Affiliated Medical Groups as of December 31, 2024.
• Telehealth Consultations: Over thirty million telehealth consultations facilitated since founding.
• Personalized Solutions: More than a majority of Subscribers were using a personalized solution as of the end of fiscal year 2024.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Primary revenue generation through direct sales of products and services via the company's websites (www.hims.com, www.forhers.com, www.apostrophe.com) and mobile applications.
• Channel Partners: Non-prescription products are sold through wholesale purchasing agreements with retailers, available in tens of thousands of top retail locations in the United States. The company also uses consignment arrangements with third-party platforms.
• Digital Platforms: The company's websites and mobile applications serve as core digital sales channels.

Customer Portfolio: Enterprise Customers: Hims & Hers Health, Inc. has established relationships with leading health systems, including Ochsner Health, Mount Sinai Health System, Carbon Health, ChristianaCare Health System, and Hartford Healthcare, to provide clinically focused, telehealth-enabled patient care collaboration. These collaborations aim to help Hims & Hers Health, Inc. customers obtain in-person care not accessible through the platform. Customer Concentration: No single customer represented more than 10% of total revenue for the years ended December 31, 2024, 2023, and 2022. However, four wholesale customers individually represented more than 10% of accounts receivable as of December 31, 2024 and 2023.

Geographic Revenue Distribution:

• United States: Substantially all of the company's results of operations are attributable to the United States.
• Growth Markets: Revenue from foreign countries was less than 10% of total revenue for the years ended December 31, 2024, 2023, and 2022. The company expanded into the United Kingdom in early 2021 and believes its model affords further international expansion opportunities in Europe and beyond.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The market for Hims & Hers Health, Inc.'s model is new, rapidly evolving, and increasingly competitive. The U.S. healthcare industry is undergoing significant structural change and consolidation. Demand for the company's offerings is driven by rising traditional healthcare costs, access difficulties, patient stigma, a shift towards patient-centric and personalized healthcare, technological advancements, and the general movement to telehealth. Widespread acceptance of technology-enabled personalized healthcare and pharmaceutical compounding is crucial for future growth. The adoption of subscription business models, particularly in healthcare, is still relatively new.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: Hims & Hers Health, Inc. faces no direct competitors offering its full suite of solutions and direct-to-consumer touchpoints. However, it competes with:

• Traditional Healthcare Providers: Expanding into the telehealth market.
• Pharmacies and Pharmaceutical Companies: Including those with compounding capabilities.
• Large Retailers: Selling non-prescription products such as nutritional supplements, dermatology products, and hair care treatments.
• Incumbent Telehealth Providers: Generally larger in scale and often providing telehealth on behalf of self-insured employers and insurance plans.
• New Entrants: Focused on direct-to-consumer healthcare or healthcare technology.
• Private Organizations: With similar product offerings in sexual health and hair loss markets.
• Public and Private Organizations: With similar product offerings in the behavioral health market.
• Enterprise-focused Companies: That may enter the direct-to-consumer healthcare industry.

Emerging Competitive Threats: New competitors or alliances with greater market share, larger customer bases, more widely adopted proprietary technologies, greater marketing expertise, and financial resources could emerge. Disruptive technologies, including artificial intelligence, and new devices, delivery technologies, sensing technologies, procedures, treatments, drugs, and other therapies for medical conditions could reduce the market for the company's offerings.

Competitive Response Strategy: The company plans to continue investing in growth for current offerings and new products and services. Its platform is designed for efficient scaling and seamless addition of new offerings. Key strategies include rapid specialty expansion into new conditions (e.g., weight loss, testosterone treatment, menopause, sleep disorders, PTSD, fertility, diabetes, cholesterol, hypertension), leveraging and expanding existing capabilities (e.g., affiliated pharmacies, compounding outsourcing facility, peptide manufacturing, lab testing) to improve operations and penetrate new sales channels.

Risk Assessment Framework

Strategic & Market Risks

• Market Dynamics: Rapid growth experienced in recent fiscal years may not be sustained. The company's ability to expand and maintain its offerings, attract and retain customers, and adapt to evolving market demands is crucial. Failure of offerings to achieve and maintain market acceptance, or a slowdown in the growth of technology-enabled personalized healthcare, could adversely affect revenue.
• Technology Disruption: The introduction of new products, services, or disruptive technologies by competitors (including artificial intelligence) could render the company's offerings obsolete or unmarketable.
• Customer Concentration: While no single customer accounts for more than 10% of total revenue, four wholesale customers individually represent over 10% of accounts receivable, posing some concentration risk.

Operational & Execution Risks

• Supply Chain Vulnerabilities: The company faces risks from global supply chain disruptions, particularly for branded and compounded GLP-1 offerings, which are subject to constraints and primarily manufactured by a single supplier. Loss or disruption of supply arrangements, or batch failures at facilities, could impact product availability and reputation.
• Geographic Concentration: A significant majority of operations and long-lived assets are concentrated in the United States, exposing the company to regional risks.
• Capacity Constraints: Supply chain constraints and limited manufacturing capacity, particularly for GLP-1s, could affect the ability to meet customer demand.
• Provider Relationships: Dependence on Affiliated Medical Groups and their Providers for healthcare consultations. Disruptions in these relationships, inability to attract and retain high-quality Providers, or reclassification of Providers as employees could materially affect the business.
• Third-Party Dependencies: Reliance on Amazon Web Services, Partner Pharmacies, shipping providers, contract manufacturers, and payment processors means disruptions in their services could interrupt platform access or delay customer treatment.
• Acquisition Integration: Acquisitions (e.g., MedisourceRx, peptide manufacturing facility, lab testing business) present risks related to integration difficulties, diversion of management attention, loss of key employees, regulatory complexities, and failure to realize anticipated benefits.
• International Expansion: Expansion into international markets introduces additional business, political, legal, regulatory, operational, financial, and economic risks.
• Mobile Device Experience: Failure to deliver a rewarding experience on mobile devices could impair customer attraction and retention.

Financial & Regulatory Risks

• Market & Financial Risks: The company's ability to maintain profitability is not assured, with expected increases in costs for growth investments. Fluctuations in results of operations and key metrics may occur. Dependence on subscription-based prescription products means declines in usage could impact revenue. Additional capital may be required for growth, which may not be available on acceptable terms. Pricing decisions could affect customer acquisition and profitability. Inaccurate accounting estimates could adversely affect financial results.
• Regulatory & Compliance Risks: The company operates in a highly regulated and dynamic environment, subject to complex federal and state healthcare, privacy, and consumer protection laws. New regulatory requirements for peptide manufacturing and lab testing will increase compliance obligations. Non-compliance with laws related to the practice of medicine, telehealth, pharmacy operations, compounding (especially for GLP-1s), product safety, advertising, and data privacy (HIPAA, CCPA, CPRA, UK GDPR) could result in substantial penalties, fines, and reputational harm. Changes in public policy or healthcare reform legislation could also adversely affect the business.
• Legal Proceedings: Subject to ordinary course legal proceedings, including intellectual property disputes, marketing claims, and regulatory inquiries (e.g., FTC Civil Investigative Demand), which can be costly and disruptive.

Geopolitical & External Risks

• Geopolitical Exposure: Global economic and trade conditions, including ongoing conflicts (e.g., Russian invasion of Ukraine, Middle East hostilities), tariffs, economic sanctions, and trade restrictions, could adversely affect business.
• Catastrophic Events: Vulnerability to natural disasters, power loss, telecommunications failures, cyber-attacks, and other force majeure events, particularly affecting facilities in Ohio and Arizona, could disrupt operations.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: Hims & Hers Health, Inc. focuses on leveraging its proprietary algorithms and customizable, integrated technology stack to deliver a streamlined, personalized patient and clinician experience. Key areas include a clinically-focused electronic medical record system, digital prescriptions, cloud pharmacy fulfillment, and personalization capabilities. The company is also investing in the use of data analytics and artificial intelligence to enhance its solutions. Innovation Pipeline: The company is pursuing a roadmap of rapid specialty expansion into new conditions treatable via telehealth, requiring ongoing customer relationships, and for which generic medication is effective. Recent launches include new prescription products in weight loss, sexual health, dermatology, and mental health, as well as hair care and supplement retail products. Future opportunities identified include testosterone treatment, menopause, sleep disorders, post-traumatic stress disorder, fertility, diabetes, cholesterol, and hypertension.

Intellectual Property Portfolio:

• Patent Strategy: Hims & Hers Health, Inc. owns or is licensed to use valuable intellectual property, including trademarks, service marks, patents, copyrights, trade secrets, and other proprietary information. The company actively pursues the registration of domain names, trademarks, and service marks in the United States and internationally.
• Licensing Programs: The company makes its technology and other intellectual property available to others under license agreements, including open-source licenses and trademark licenses for co-branding or co-marketing initiatives.
• IP Litigation: The company has faced and may in the future face claims of intellectual property infringement or misuse, including those related to open-source software or celebrity influencer assets.

Technology Partnerships: The company relies on Amazon Web Services ("AWS") as a provider of cloud infrastructure services for hosting its platform and supporting operations.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The company's success is highly dependent on the continued services of its key executive officers. The replacement of executive officers or other key employees could involve significant time and costs, potentially delaying or preventing the achievement of business objectives.

Board Composition: As of December 31, 2024, seven of the nine directors on the Board of Directors are independent. The company has an independent compensation committee and an independent audit committee. It does not have a nominating and corporate governance committee, with its functions addressed by the full Board of Directors. As a "controlled company" due to Andrew Dudum's concentrated voting power, Hims & Hers Health, Inc. qualifies for exemptions from certain NYSE corporate governance requirements.

Human Capital Strategy

Workforce Composition:

• Total Employees: As of December 31, 2024, Hims & Hers Health, Inc. had 1,637 employees across various functions, a significant increase from 651 employees as of December 31, 2022.
• Geographic Distribution: The company has maintained an official remote-first policy for all corporate functions since June 2020, with most non-fulfillment operations performed remotely. Fulfillment operations and certain facilities require on-site employees.
• Skill Mix: The company focuses on hiring talent with diverse lived experiences and expertise in areas such as programming, machine learning, and artificial intelligence.
• Providers: As of December 31, 2024, 1,307 medical providers located throughout all 50 U.S. states provided services on the Hims & Hers Health, Inc. platform through the Affiliated Medical Groups.

Talent Management: Acquisition & Retention: The company aims to attract, develop, and retain top talent, acknowledging intense competition for qualified employees. It utilizes an equity incentive program for key executive officers and other employees to attract and retain personnel. Retention Metrics: Not explicitly disclosed. Employee Value Proposition: Hims & Hers Health, Inc. offers a holistic total rewards package, including medical, dental, and vision coverage, health savings and flexible spending accounts, employee assistance programs, short-term and long-term disability coverage, life insurance, fertility benefits, a 401(k) Savings Plan, and an Employee Stock Purchase Plan. It also provides parental leave benefits and various perks like backup childcare, family forming resources, fitness, and coworking space reimbursements.

Diversity & Development:

• Diversity Metrics: The company prioritizes hiring team members with a diversity of lived experiences to gain multi-faceted insights into its customer base. Quantitative diversity metrics are not explicitly provided.
• Development Programs: Formalized employee development programs focus on feedback, coaching, and career advancement. Regular people manager training, labs, and effective communication training are provided across the organization.
• Culture & Engagement: The company strives to create an environment of mutual trust, confidence, and inclusion, gauging employee engagement and satisfaction through ongoing surveys to inform learning pathways and experiences.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: The weight loss specialty is expected to introduce new seasonality, with increased traffic and higher Subscriber and Monthly Online Revenue per Average Subscriber growth in the first quarter due to New Year's resolutions.
• Economic Sensitivity: Economic uncertainty or downturns, including inflation and recessionary pressures, could cause customers to reduce spending on the company's offerings.
• Industry Cycles: The U.S. healthcare industry is subject to significant structural change and rapid evolution, which can influence demand for the company's services.

Planning & Forecasting: Economic uncertainty and macroeconomic conditions make it challenging for the company and its partners to accurately forecast and plan future business activities.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations: Hims & Hers Health, Inc. operates in a highly regulated environment, subject to complex federal and state healthcare, privacy, and consumer protection laws. Key areas of regulation include:

• Practice of Medicine and Telehealth: State and federal laws govern provider qualifications, telehealth modalities (e.g., synchronous vs. asynchronous), and remote supervision.
• Corporate Practice of Medicine and Fee Splitting: State laws generally prohibit non-physicians from practicing medicine or splitting professional fees, influencing the company's contractual arrangements with Affiliated Medical Groups.
• Fraud and Abuse Laws: Federal laws like the Anti-Kickback Law, False Claims Act, and Stark Law (physician self-referral) are currently not directly applicable due to the company's direct-to-consumer, non-third-party-payor model, but changes in scope or business model could trigger applicability.
• Medical and Wellness Products: Products (prescription, OTC drugs, devices, cosmetics, dietary supplements) and their suppliers are subject to extensive FDA and other authorities' regulations, including cGMP, labeling, and advertising.
• Compounded Drugs: Compounded drug products are subject to Section 503A or Section 503B of the FDCA, which provide exemptions from new drug approval requirements but impose specific conditions. The availability of compounded GLP-1s is currently permitted due to FDA drug shortages, which could be resolved, impacting the company's ability to offer these products.
• New Operational Areas: Recent acquisitions of a peptide manufacturing facility and a lab testing services business will subject the company to new regulatory requirements, including those for FDA-registered API manufacturers (cGMP), CDPH Food & Drug Branch oversight, and CLIA for laboratory testing. The regulation of laboratory-developed tests (LDTs) by the FDA is an evolving area.
• Health Information Privacy and Security: Numerous federal, state (e.g., California Confidentiality of Medical Information Act, CCPA, CPRA), and foreign (e.g., UK GDPR) laws govern the collection, use, privacy, and security of health information and personally identifiable information (PII). The company believes it is not a covered entity or business associate under HIPAA for its current customer services but could become subject to it if it accepts third-party payments.

Trade & Export Controls: The company is subject to export and import restrictions, trade sanctions, and anti-bribery/anti-corruption laws like the U.S. Foreign Corrupt Practices Act (FCPA), particularly as it expands internationally.

Legal Proceedings: The company is subject to legal proceedings in the ordinary course of business, including allegations, lawsuits, and regulatory inquiries related to data privacy, security, labor, consumer protection, telehealth, pharmaceuticals, and intellectual property. In October 2023, the Federal Trade Commission (FTC) issued a Civil Investigative Demand as part of a non-public investigation.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: Hims & Hers Health, Inc. focuses its R&D on enhancing its proprietary algorithms, customizable and integrated technology stack, clinically-focused electronic medical record system, digital prescriptions, cloud pharmacy fulfillment, and personalization capabilities. The company is actively investing in and developing mobile phone technology, including its mobile applications, to improve the customer experience. Innovation Pipeline: The company is committed to a roadmap of rapid specialty expansion into new conditions that can be safely and effectively treated via telehealth and require recurring customer relationships. Recent product launches include new prescription offerings in weight loss, sexual health, dermatology, and mental health, as well as hair care and supplement retail products. Future care opportunities identified include testosterone treatment, menopause, sleep disorders, post-traumatic stress disorder, fertility, diabetes, cholesterol, and hypertension. The company also emphasizes the utilization and integration of artificial intelligence in its offerings.

Intellectual Property Portfolio:

• Patent Strategy: Hims & Hers Health, Inc. owns or is licensed to use valuable intellectual property, including trademarks, service marks, patents, copyrights, trade secrets, and other proprietary information. The company actively pursues the registration of domain names and its trademarks and service marks in the United States and certain international jurisdictions.
• Licensing Programs: The company makes its technology and other intellectual property available to others under license agreements, including open-source license agreements and trademark licenses for co-branding or co-marketing purposes.
• IP Litigation: The company has faced and may in the future face claims of intellectual property infringement or misuse, including those related to open-source software or the use of celebrity influencers' likeness and trademarks.

Technology Partnerships: Hims & Hers Health, Inc. utilizes Amazon Web Services ("AWS") for its cloud infrastructure services, which is critical for hosting its platform and supporting operations.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The company's success is highly dependent on the continued services of its key executive officers. The replacement of one or more executive officers or other key employees could involve significant time and costs, potentially delaying or preventing the achievement of business objectives.

Board Composition: As of December 31, 2024, seven of the nine directors on the Board of Directors have been determined to be independent. The company has an independent compensation committee and an independent audit committee. The typical functions of a nominating and corporate governance committee are addressed by the full Board of Directors. As a "controlled company" under NYSE listing standards, due to Andrew Dudum's concentrated voting power, Hims & Hers Health, Inc. qualifies for exemptions from certain corporate governance requirements.

Human Capital Strategy

Workforce Composition:

• Total Employees: As of December 31, 2024, Hims & Hers Health, Inc. had 1,637 employees across various functions, a significant increase from 651 employees as of December 31, 2022.
• Geographic Distribution: The company has a remote-first policy for most corporate functions since June 2020, with significant investment in software and tools to support this environment. Fulfillment operations and certain facilities require on-site personnel.
• Skill Mix: The company focuses on attracting and retaining talent with diverse lived experiences and expertise, particularly in areas like programming, machine learning, and artificial intelligence.
• Providers: As of December 31, 2024, 1,307 medical providers located throughout all 50 U.S. states provided services on the Hims & Hers Health, Inc. platform through the Affiliated Medical Groups.

Talent Management: Acquisition & Retention: The company aims to attract, develop, and retain top talent in a competitive industry. It utilizes an equity incentive program for key executive officers and other employees to align incentives and provide opportunities to share in the company's financial success. Retention Metrics: Not explicitly disclosed. Employee Value Proposition: Hims & Hers Health, Inc. offers a comprehensive total rewards package, including premier medical, dental, and vision coverage, health savings and flexible spending accounts, employee assistance programs, short-term and long-term disability coverage, life insurance, and certain fertility benefits. Employees can participate in a 401(k) Savings Plan and an Employee Stock Purchase Plan. The company also provides generous parental leave benefits and various perks such as backup childcare, family forming resources, fitness, and coworking space reimbursements.

Diversity & Development:

• Diversity Metrics: The company prioritizes hiring team members with a diversity of lived experiences to gain multi-faceted and nuanced insights into its customer base. Quantitative diversity metrics are not explicitly provided.
• Development Programs: Formalized employee development programs focus on feedback, coaching, and career advancement. This includes a formalized performance review process and regular training for people managers and communication across the organization.
• Culture & Engagement: The company strives to create an environment of mutual trust, confidence, and inclusion, using ongoing engagement surveys to gather employee feedback and manifest its value set.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: The company anticipates new seasonality driven by its weight loss specialty. New Year's resolutions are expected to increase traffic to the platform and boost Subscriber numbers for weight loss offerings, potentially leading to higher Subscriber and Monthly Online Revenue per Average Subscriber growth in the first quarter compared to the rest of the year.
• Economic Sensitivity: Economic uncertainty or downturns, including inflation and recessionary pressures, could cause customers to reduce or delay spending on the company's offerings.
• Industry Cycles: The U.S. healthcare industry is subject to continuous structural change and rapid evolution, which can influence demand for the company's services.

Planning & Forecasting: Economic uncertainty and associated macroeconomic conditions make it challenging for the company, its partners, and suppliers to accurately forecast and plan future business activities.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations: Hims & Hers Health, Inc. operates in a highly regulated and dynamic environment, subject to extensive federal, state, and local healthcare, privacy, and consumer protection laws. Key regulatory areas include:

• Practice of Medicine and Telehealth: Laws governing provider qualifications, professional practice standards, and the provision of remote care, including limitations on telehealth modalities (e.g., synchronous vs. asynchronous communication) and remote supervision of mid-level providers.
• Corporate Practice of Medicine and Fee Splitting: State laws prohibiting non-physicians from practicing medicine or splitting professional fees, which influence the company's contractual arrangements with Affiliated Medical Groups.
• Fraud and Abuse Laws: Federal laws such as the Anti-Kickback Law, False Claims Act, and Stark Law (physician self-referral) are currently not directly applicable due to the company's direct-to-consumer, non-third-party-payor model. However, changes in these laws or the company's business model could trigger their applicability.
• Medical and Wellness Products: Products (prescription pharmaceuticals, over-the-counter drugs and devices, cosmetics, dietary supplements) and their third-party suppliers are subject to extensive regulation by the FDA and other authorities, including requirements for testing, production, compounding, quality control (cGMP), safety, labeling, packaging, storage, shipping, advertising, and promotion.
• Compounded Drugs: Compounded drug products are marketed under exemptions from premarket approval requirements (Sections 503A and 503B of the FDCA). Compliance with specific conditions is required, and the FDA's "Drug Shortage List" impacts the ability to offer compounded GLP-1s. The FDA resolved the semaglutide shortage on February 21, 2025, which could constrain the company's ability to continue providing access to compounded semaglutide once current inventory is sold.
• New Operational Areas: Recent acquisitions of a peptide manufacturing facility and a lab testing services business introduce new regulatory requirements, including those for FDA-registered active pharmaceutical ingredient (API) manufacturers (cGMP), CDPH Food & Drug Branch oversight, and CLIA for laboratory testing. The regulatory landscape for laboratory-developed tests (LDTs) is evolving.
• Health Information Privacy and Security: The company's use, disclosure, and processing of personally identifiable information (PII), including health information, is subject to numerous federal (e.g., HIPAA, though currently not a covered entity or business associate for customers), state (e.g., California Confidentiality of Medical Information Act, CCPA, CPRA), and foreign (e.g., UK GDPR) privacy and security regulations.

Trade & Export Controls: The company is subject to export and import restrictions, trade sanctions, and anti-bribery/anti-corruption laws, such as the U.S. Foreign Corrupt Practices Act (FCPA), particularly with international expansion.

Legal Proceedings: The company is routinely involved in legal proceedings, claims, and regulatory inquiries in the ordinary course of business, including those related to data privacy, security, labor, consumer protection, telehealth, pharmaceuticals, and intellectual property infringement. In October 2023, the Federal Trade Commission (FTC) issued a Civil Investigative Demand as part of a non-public investigation.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: The company reported a benefit for income taxes of $54.3 million for the year ended December 31, 2024, compared to a provision for income taxes of $2.0 million in 2023. This change was primarily driven by the release of a valuation allowance on domestic deferred tax assets. The federal statutory income tax rate is 21%.
• Geographic Tax Planning: The company files income tax returns in the United States, United Kingdom, and various state and local jurisdictions.
• Tax Reform Impact: The application of federal, state, local, and international tax laws to electronically provided services is evolving, and new tax laws or changes to existing ones could be enacted, potentially affecting the company's financial position and results of operations.

Deferred Tax Assets: As of December 31, 2024, the company had gross deferred tax assets of $81.4 million. During 2024, a valuation allowance of $68.0 million was released, primarily due to sustained tax profitability, resulting in net deferred tax assets of $61.6 million. Net Operating Losses (NOLs) & Credits: As of December 31, 2024, the company had $60.8 million in federal, $97.2 million in state, and $9.9 million in foreign loss carryforwards (not tax effected). A substantial majority of these, including $60.2 million federal, $3.3 million state, and $9.9 million foreign, do not expire. The company also had $6.9 million in federal tax credit carryforwards (expiring starting 2041) and $3.6 million in state tax credit carryforwards (non-expiring).

Insurance & Risk Transfer

Risk Management Framework:

• Insurance Coverage: Hims & Hers Health, Inc. maintains insurance coverage for medical malpractice claims, product liability claims, and cyber liability. The company believes its coverage amounts are appropriate for the risks inherent in its business.
• Risk Transfer Mechanisms: Not explicitly detailed in the filing.