How HIMS (Hims & Hers Health) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a telehealth platform like Hims & Hers (formerly Hims & Hers Health, Inc.) makes money is essential for investors and anyone interested in the business of digital healthcare. In this post, we break down Hims & Hers's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Hims & Hers Overview

Hims & Hers operates as a leading telehealth platform providing personalized health and wellness solutions, including treatments for hair loss, sexual health, mental health, dermatology, and weight management. Revenue comes primarily from online subscriptions and product sales delivered directly to consumers. The company focuses on direct-to-consumer models with minimal wholesale activity.

Revenue Breakdown

• Total Revenue (Q3 2025): $0.599B (+49.2% YoY)
  • Online Revenue: $0.589B (98.4% of total)
  • Wholesale Revenue: $0.01B (1.6% of total)
  • Growth is powered by expanding subscriber base, new product launches in weight management, and increased demand for personalized telehealth services.

Gross Profit and Margins

• Gross Profit: $0.442B (73.8% gross margin)
  • Cost of Revenue: $0.157B (+87.5% YoY)
  • Hims & Hers maintains robust margins due to scalable digital business model, high-margin subscription recurring revenue, and efficient supply chain for compounded medications.
• Most costs come from product fulfillment, manufacturing of compounded drugs, and shipping logistics.

Operating Income and Expenses

• Operating Income: $0.012B (+-47.2% YoY, 2.0% margin)
• Operating Expenses: $0.430B (+45.6% YoY)
  • R&D: $0.041B (+92.4% YoY, 6.8% of revenue) — investments in clinical trials, new treatment formulations, and telehealth platform enhancements
  • SG&A: $0.313B (+37.9% YoY, 52.2% of revenue) — primarily marketing for customer acquisition, sales team expansion, and general administrative costs
  • Hims & Hers continues to prioritize innovation while expanding operations.

Net Income

• Pre-Tax Income: $0.012B (+-48.2% YoY, 2.0% margin)
• Income Tax: N/A (not disclosed)
• Net Income: $0.016B (+-79.1% YoY, 2.6% net margin)
• Hims & Hers converts a moderate portion of sales into profit due to scalability of its online platform and pricing power in personalized medicine.

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What Drives Hims & Hers's Money Machine?

• Online Revenue: 98.4%+ of revenue / direct-to-consumer subscriptions for treatments like GLP-1 weight loss drugs, hair restoration, and ED solutions
• Subscriber Growth: Key metric with rapid expansion fueling 50.1% YoY online revenue growth
• R&D Investments: strategic focus on compounding pharmacy capabilities and new wellness categories like heart health
• Future growth areas: international expansion and enterprise partnerships, though not yet profitable

Visualizing Hims & Hers's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant investments, 2.6% of revenue drops to the bottom line.

Key Takeaways

• Hims & Hers's money comes overwhelmingly from online subscriptions
• High gross and net margins illustrate the power of Hims & Hers's asset-light telehealth model
• Heavy investment in R&D, balanced by efficiency in operating costs
• Ongoing growth is driven by subscriber additions and category expansion

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FAQ About Hims & Hers's Income Statement

1. What is the main source of Hims & Hers's revenue in 2025?

Hims & Hers generates over 98.4% of its revenue from Online Revenue. Wholesale Revenue contributes a minor 1.6%.

2. How profitable is Hims & Hers in Q3 2025?

Hims & Hers reported net income of $0.016B in Q3 2025, with a net margin of approximately 2.6%, reflecting moderate profitability driven by high gross margins offset by heavy growth investments.

3. What are the largest expense categories for Hims & Hers?

The biggest expenses on Hims & Hers's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached $0.041B in Q3 2025, as Hims & Hers prioritizes new treatment development and platform tech.

4. Why does Wholesale Revenue operate at a relatively small scale?

Wholesale, despite generating $0.01B in revenue, remains minor at 1.6% of total in Q3 2025. This is because Hims & Hers aggressively invests in direct-to-consumer online channels, believing these will drive long-term growth—even if wholesale is not a focus today.

5. How does Hims & Hers's effective tax rate compare to previous years?

Hims & Hers's effective tax rate in Q3 2025 was not disclosed, [consistent with] previous quarters where details were limited. This [moderate] rate is primarily due to [tax benefits from share-based compensation, international structuring, etc.].