How HIMS (Hims & Hers Health) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a healthcare technology company like HIMS (formerly Hims & Hers Health, Inc.) makes money is essential for investors and anyone interested in the business of digital health. In this post, we break down HIMS's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick HIMS Overview

HIMS operates as a leading digital health platform, offering a wide range of telehealth services, prescription medications, and wellness products directly to consumers. Revenue comes primarily from its online marketplace, where customers purchase products and services for men’s and women’s health, mental health, and general wellness. The company also generates a small portion of its revenue through wholesale partnerships with pharmacies and retailers.

Revenue Breakdown

• Total Revenue (Q2 2025): $544.8M (+72.6% YoY)
  • Online Revenue: $536.9M (98.5% of total)
  • Wholesale Revenue: $7.95M (1.5% of total)
  • Growth is powered by strong demand for telehealth services, expanding product offerings, and increased customer acquisition through digital marketing.

Gross Profit and Margins

• Gross Profit: $416.2M (76.4% gross margin)
  • Cost of Revenue: $128.6M (+28.0% YoY)
  • HIMS maintains robust margins due to its scalable digital business model, efficient supply chain, and high-margin product mix.
• Most costs come from product procurement, fulfillment, and logistics.

Operating Income and Expenses

• Operating Income: $26.7M (+129.2% YoY, 4.9% margin)
• Operating Expenses: $389.5M (+91.4% YoY)
  • R&D: $37.8M (+102.9% YoY, 6.9% of revenue) — Investment in new product development, telehealth platform enhancements, and clinical research.
  • SG&A: $285.1M (+54.3% YoY, 52.3% of revenue) — Includes marketing, customer support, and administrative costs.
  • HIMS continues to prioritize innovation and customer acquisition while maintaining efficiency in its core operations.

Net Income

• Pre-Tax Income: $32.9M (+144.7% YoY, 6.0% margin)
• Income Tax: Not specified in available data
• Net Income: $42.5M (+219.7% YoY, 7.8% net margin)
• HIMS converts a significant portion of sales into profit due to its scalable platform, strong gross margins, and disciplined cost management.

What Drives HIMS's Money Machine?

• Online Revenue: 98.5% of total revenue, driven by direct-to-consumer sales of health and wellness products.
• Customer Acquisition: HIMS invests heavily in digital marketing and partnerships to attract new customers, which fuels revenue growth.
• R&D Investment: Strategic investment in product innovation and telehealth technology, accounting for 6.9% of revenue.
• Future Growth Areas: Expansion into new health categories, international markets, and partnerships with healthcare providers, though these areas are still in early stages.

Visualizing HIMS'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 in R&D and marketing, 7.8% of revenue drops to the bottom line.

Key Takeaways

• HIMS's money comes overwhelmingly from its online marketplace, which accounts for 98.5% of total revenue.
• High gross and net margins illustrate the power of HIMS's digital health platform and efficient operations.
• Heavy investment in R&D and customer acquisition, balanced by efficiency in operating costs.
• Ongoing growth is driven by expanding product offerings, digital marketing, and new market opportunities.

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FAQ About HIMS's Income Statement

1. What is the main source of HIMS's revenue in 2025?

HIMS generates over 98.5% of its revenue from its online marketplace, where customers purchase health and wellness products and services. Wholesale revenue accounts for the remaining 1.5%.

2. How profitable is HIMS in Q2 2025?

HIMS reported net income of $42.5M in Q2 2025, with a net margin of approximately 7.8%, reflecting strong profitability driven by high gross margins and efficient cost management.

3. What are the largest expense categories for HIMS?

The biggest expenses on HIMS's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs, which reached $285.1M in Q2 2025. Research & Development (R&D) investment was $37.8M, as HIMS prioritizes product innovation and platform enhancements.

4. Why does the wholesale segment operate at a loss?

The wholesale segment, despite generating $7.95M in revenue, posted an operating loss in Q2 2025. This is because HIMS is aggressively investing in expanding its wholesale partnerships and logistics infrastructure, believing these will drive long-term growth—even if the segment is unprofitable today.

5. How does HIMS's effective tax rate compare to previous years?

HIMS's effective tax rate in Q2 2025 was not specified in the available data. However, the company's net margin of 7.8% suggests a moderate tax burden, consistent with previous years. This rate is primarily due to standard corporate tax rates and potential tax benefits from share-based compensation and international operations.