Hims & Hers Health, Inc.

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 HIMSS and 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.

Good afternoon, everyone, and welcome to the HIMS and 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 El-Shanawi. 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. 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 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.

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 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. 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 HIMSS and HERS apps. 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. Our belief is that this strong retention is the 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 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. 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. 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 under-recognized in traditional healthcare for decades. 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'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. 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 HIMSS 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 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. I'm excited to introduce Mo El-Shanawi, 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 and 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.