Hims & Hers Charts North American Growth with Canadian Market Entry

The telehealth provider Hims & Hers Health is accelerating its international strategy with a decisive move into Canada. This expansion coincides with a strategic acquisition to bolster its diagnostic technology and a significant new share repurchase authorization. The company’s aggressive growth initiatives are unfolding against a backdrop of margin pressure, raising questions about the long-term payoff of its global and technological investments.

Financial Performance: Growth at a Cost

The company’s latest quarterly results, for Q3 2025, present a narrative of robust top-line expansion paired with declining profitability. Key figures illustrate this dynamic:

• Revenue reached $599 million, a substantial 49% year-over-year increase.
• The subscriber base grew to 2.5 million, up 21%.
• Average monthly online revenue per subscriber rose 19% to $80.
• However, net income fell sharply to $15.8 million from $75.6 million in the prior-year quarter.
• The gross margin contracted from 79% to 74%.

Management has narrowed its full-year 2025 revenue guidance to a range of $2.335 billion to $2.355 billion. The margin compression is attributed to heightened investments in technology, operational infrastructure, and integrating recent acquisitions like European telehealth firm ZAVA.

Canadian Foray via Livewell Acquisition

The centerpiece of the latest growth push is the entry into the Canadian healthcare market. Hims & Hers will establish its presence through the acquisition of Livewell, a digital health platform specializing in weight management programs. The all-cash transaction is viewed as a cornerstone for international growth.

The company has outlined a clear leadership structure for the Canadian launch:
* Austin Kouri will serve as General Manager for Canada.
* Dr. Sandy Van takes the role of Chief Medical Officer for the market.
* A dedicated weight reduction program is slated for a 2025 launch, timed to the anticipated availability of generic semaglutid.

This strategy targets a sizable addressable market, with nearly two-thirds of Canadian adults classified as overweight or obese. The move also positions the company in a strategically important regulatory environment for future GLP-1-based therapies.

Strengthening Diagnostics with YourBio Health

In a parallel technological upgrade, Hims & Hers has agreed to acquire YourBio Health, a specialist in blood collection technology. The deal, also funded from existing liquidity and expected to close in early 2026, centers on the TAP device. This platform uses microneedles to enable nearly painless at-home blood draws, aiming to simplify diagnostics for patients.

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The acquisition brings key talent, with YourBio Health CEO Paul Owen and Chief Scientific Officer Dr. Michael Mina joining Hims & Hers, providing expertise to further develop the company’s diagnostic capabilities.

Share Repurchase and Stock Price Context

Demonstrating confidence in its long-term value, the company’s board has authorized a new $250 million share repurchase program. This capital return initiative comes as the stock trades significantly below its February 2025 highs.

From a technical perspective, the share price remains in a challenging position. After peaking in February, the stock has declined over 50%. A recent closing price of 30.49 Euros places it approximately 25% below its 200-day moving average, suggesting a persistent downtrend despite a positive year-to-date performance. The 52-week range of 22.21 to 66.06 Euros highlights the stock’s considerable volatility.

Strategic Pivot in Weight Management

The weight loss segment remains a major growth driver but is undergoing strategic recalibration. The U.S. FDA’s decision to remove GLP-1 medications from its drug shortage list has increased competitive pressures, reducing the company’s previous unique market position.

In response, Hims & Hers is shifting its focus from reliance solely on brand-name drugs toward personalized, compounded formulations and generic alternatives. The company projects roughly $725 million in revenue from its weight reduction segment for 2025. The Canadian expansion is directly tied to this strategy, as generic semaglutid is expected to become available there earlier than in many other markets, providing early access to a key GLP-1 therapy landscape.

The Internationalization Roadmap

International growth is a consistent theme for Hims & Hers. Beyond its core U.S. market, the company now operates in the United Kingdom, Germany, France, Ireland, and, imminently, Canada. The July 2025 acquisition of ZAVA fortified its European footprint, while the Livewell deal creates a bridgehead for broader North American expansion outside the United States.

The company’s integrated strategy is clear: pursue broad geographic diversification, enhance technological capabilities in diagnostics, and concentrate on high-margin areas like digital subscriptions and weight management. The coming quarters will reveal whether this combination of rapid growth, strategic acquisitions, and shareholder returns can ultimately translate into recovering margins and a more stable equity performance.