Hims & Hers Health, Inc. (HIMS): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a major digital health player, and honestly, understanding how this model scales is key. As someone who's looked at balance sheets for decades, what stands out with this company is their aggressive direct-to-consumer play: nearly 2.5 million subscribers driving toward \$2.355 billion in 2025 revenue, all built on a subscription backbone with an \$80 Monthly Online Revenue Per Average Subscriber in Q3. But here's the trade-off you need to see: that growth comes with a hefty price tag, reflected in their Q3 gross margin hovering around 73.8% and massive marketing spend. Below, I've mapped out the full nine blocks of their Business Model Canvas-from their provider network to their vertical pharmacy integration-so you can see exactly where the opportunity and the risk truly lie.

Hims & Hers Health, Inc. (HIMS) - Canvas Business Model: Key Partnerships

You're building a digital health platform that scales by outsourcing clinical and fulfillment functions, so understanding the partners that make this possible is key to your valuation story. Here's the breakdown of the Key Partnerships Hims & Hers Health, Inc. relies on as of late 2025.

The clinical backbone of Hims & Hers Health, Inc. is its network of independent providers. The platform relies on contractual arrangements with Affiliated Medical Groups to enable the provision of clinical services across the U.S. As of September 2025, this network is supported by approximately 1,500 providers who scale the high-quality telehealth consultations.

The fulfillment of prescribed treatments is managed through a diversified network. This includes in-house operations, a 503B outsourcing facility, and external partner pharmacies. Specific contractual arrangements exist with partner pharmacies such as Curexa Pharmacy and ITC Compounding Pharmacy for the distribution of certain prescription and non-prescription products.

A major strategic push in late 2025 was the direct-to-consumer laboratory testing platform, Labs, launched in partnership with Quest Diagnostics. This allows customers to access testing at more than 1,000 Quest Diagnostics locations nationwide. The service is structured around two main annual plans:

Plan Tier	Annual Cost	Blood Draws	Biomarker Tests
Base Plan	$199	One	50
Advanced Plan	$499	Two	Over 120

Management projects this preventive care initiative will eventually grow into a $1 billion business. This is being layered onto a growing subscriber base, which reached 2.4 million as of June 30, 2025, and climbed to nearly 2.5 million by the third quarter of 2025.

For continuity of care, Hims & Hers Health, Inc. has forged relationships with strategic health systems to provide access to in-person care when necessary. These collaborations, which complement the digital platform, include systems like Mount Sinai Health System, Ochsner Health, and Hartford Healthcare. It's important to note that these relationships are structured to enhance customer experience and do not involve any monetary exchange, compensation, or other financial incentives between the parties.

International expansion is also a key partnership strategy, most recently marked by the acquisition of Livewell to enter the Canadian market.

• The acquisition of Livewell was an all-cash transaction, though the specific financial terms were not disclosed.
• Hims & Hers Health, Inc. is establishing local leadership, appointing Austin Kouri as General Manager of Canada.
• The company plans to leverage this entry to launch its comprehensive weight loss program in Canada in 2026.

The fulfillment network also includes contractual arrangements with three licensed pharmacies, sometimes referred to as Partner Pharmacies, for distribution.

Hims & Hers Health, Inc. (HIMS) - Canvas Business Model: Key Activities

You're looking at how Hims & Hers Health, Inc. (HIMS) actually makes the money flow, so let's focus on the core actions they must execute daily to keep that growth engine running. These aren't just ideas; these are the operational must-dos grounded in their late 2025 performance.

Operating and scaling the proprietary telehealth platform

The platform's scale is defintely impressive. As of the third quarter of 2025, Hims & Hers Health, Inc. reported nearly 2.5 million subscribers, which was a 21% year-over-year increase. This growth followed a Q2 2025 subscriber count of over 2.4 million, marking a 31% year-over-year jump. The platform supports processing over 10,000 medical visits daily. The company is focused on transitioning the platform from a single-issue fix to a place where customers proactively manage their overall health.

Here are the subscriber metrics leading up to late 2025:

Metric	Q3 2025 Value	Q2 2025 Value	Q1 2025 Value
Total Subscribers (Approx.)	2.471 million	>2.4 million	2.4 million
YoY Subscriber Growth	21%	31%	38.4%

Prescription compounding and fulfillment (vertical integration)

Vertical integration is a major activity, allowing Hims & Hers Health, Inc. to control costs and personalize offerings. Strategic verticalization has already helped reduce GLP-1 treatment costs by 20%. The company is actively making meaningful investments to expand its internal 503A sterile fulfillment capacity to manage future order flow, especially for GLP-1 products. This control over fulfillment is key to their unit economics, even as gross margins saw pressure, falling to 74% in Q3 2025 from 79% in Q3 2024. The company also acquired a peptide manufacturing facility in February 2025 to further expand supply chain capabilities.

High-volume digital marketing and customer acquisition

Acquiring that massive user base requires significant marketing muscle. In Q3 2025, marketing expenses represented 39% of revenue. The payback period for customer acquisition costs (CAC) is typically under a year. Management has indicated an intention to gain 1 to 3 points of marketing leverage per year, meaning they plan to reduce marketing expenses as a percentage of revenue annually. For context, the CAC was reported at $929 in 2024.

Technology development and AI-driven personalization (MedMatch)

Technology development centers on using data to drive personalization, which boosts retention and revenue per user. The share of subscribers opting for personalized products grew to more than 58% by Q1 2025. In Q3 2025, subscribers using personalized treatment plans grew 50% year-over-year. The proprietary MedMatch AI tool was rolled out in November 2025 to personalize anxiety medication, using millions of de-identified data points to suggest treatments. This personalization is directly translating to higher revenue, as Monthly Online Revenue per Avg. Subscriber (MORAS) hit $80 in Q3 2025.

Expanding specialty offerings (e.g., menopause, diagnostics)

Expanding beyond core offerings like hair loss and sexual health is a critical activity for long-term growth. The company expects its HERS offering, which includes menopause/perimenopause support, to scale toward $1 billion in annual revenue in 2026. Furthermore, Hims & Hers Health, Inc. planned to launch comprehensive whole-body lab testing before the end of 2025, a significant step in offering affordable insights for monitoring overall health. The company is also in discussions to potentially offer Wegovy injections through its platform.

The full-year 2025 revenue guidance is set between $2.335 billion and $2.355 billion.

• Subscribers using personalized treatment plans: +50% YoY growth in Q3 2025.
• Projected HERS annual revenue run-rate by 2026: $1 billion.
• Whole-body lab testing launch: Planned before year-end 2025.
• Expected incremental revenue from Zava (Europe) in H2 2025: At least $50 million.

Finance: draft 13-week cash view by Friday.

Hims & Hers Health, Inc. (HIMS) - Canvas Business Model: Key Resources

You're looking at the core assets that power Hims & Hers Health, Inc.'s direct-to-consumer healthcare engine as of late 2025. These aren't just abstract concepts; they are tangible capabilities built through investment and acquisition that drive their recurring revenue model.

Proprietary technology platform and AI algorithms

The platform is the central nervous system, managing everything from initial customer discovery to ongoing clinical management. It integrates telehealth consultations, a proprietary electronic medical record (EMR), and digital prescribing capabilities. This technology stack is designed for massive scale and personalization.

Hims & Hers Health, Inc. is doubling down on embedding Artificial Intelligence across its operations. This includes intelligent routing systems, diagnostics support, and tailored treatment recommendations. The company appointed Mo Elshenawy as chief technology officer in 2025 to push this AI-driven healthcare agenda forward. This commitment shows up directly in the financials, too.

• Technology and development expenses jumped 92.4% year-over-year to \$40.6 million in the third quarter of 2025.
• Technology and development costs represented 7% of revenue in Q3 2025, reflecting ongoing investment in engineering and product talent.
• The platform connects consumers to a distributed provider network, enabling subscription-based care across major categories.

Vertically integrated pharmacy and compounding facilities

Vertical integration is a key differentiator, giving Hims & Hers Health, Inc. control over the supply chain, which helps with cost structure and personalization. They own and operate facilities that handle prescription fulfillment and compounding, which is critical for their personalized medicine approach.

This infrastructure was significantly bolstered by strategic acquisitions. In 2024, they acquired MedisourceRx, a licensed 503B compounding outsourcing facility. Then, in February 2025, they acquired a peptide manufacturing facility and related assets, expanding their supply chain for complex therapies like GLP-1s.

The physical assets and personnel supporting this integration are substantial:

Facility/Resource Type	Location/Status	Key Detail
503A Compounding Pharmacies	Ohio and Arizona	Formulate solutions by adjusting dosage or combining medications.
503B Outsourcing Facility	MedisourceRx (acquired 2024)	Expertise in sterile compounding, supporting GLP-1 injections.
Peptide Manufacturing Facility	Acquired February 2025	Expands supply chain capabilities for peptide treatments.
Pharmacy Staffing (Across Pharmacies)	Internal Data	More than 70 pharmacists and nearly 150 pharmacy technicians.

Cash and short-term investments of $629.7 million (Q3 2025)

Liquidity remains a core strength, positioning Hims & Hers Health, Inc. to deploy capital strategically for organic growth and mergers and acquisitions (M&A). You need to watch the cash burn rate against this balance, especially given increased operating expenses.

As of the end of the third quarter of 2025, the company held \$629.7 million in cash and cash equivalents and short-term investments. This figure represented a decrease from the \$1.14 billion held at the end of the second quarter of 2025. Still, total cash, short-term, and long-term investments were reported as over \$1.1 billion at the Q3 2025 quarter end.

Here's a quick look at the operational cash flow supporting that balance:

• Cumulative net cash provided by operating activities through Q3 2025 was \$238.7 million.
• Free Cash Flow generated in Q3 2025 was \$79 million.

Network of affiliated licensed medical providers

The platform's scalability relies on its ability to connect consumers with licensed healthcare professionals across the United States and internationally. This distributed network allows for the delivery of care across numerous specialties, including sexual health, dermatology, mental health, and weight management.

The model is designed to ensure continuity of care, often through subscription-based arrangements. The platform supports over two million customers who trust Hims & Hers Health, Inc. daily with their care as of early 2025. The subscriber base itself is a key resource, growing sequentially by more than 30,000 in Q3 2025, representing a 20% year-over-year growth rate.

Strong, recognizable Hims and Hers consumer brands

Brand equity drives customer acquisition, which is evident in the marketing spend, and underpins the recurring revenue from engaged subscribers. The dual-brand strategy targets distinct segments effectively.

The company is actively expanding the reach of these brands through geographic expansion and new category launches. For instance, the HERS offering is specifically being scaled with a target of reaching \$1 billion in annual revenue in 2026. Furthermore, the company is using its brand strength to enter new international markets, having acquired Livewell to launch its weight loss program in Canada and ZAVA to establish a presence in Europe.

The performance of the core online business demonstrates the brand's pull:

• Online Revenues reached \$589.1 million in Q3 2025, a 50.1% surge year-over-year.
• Monthly online revenue per average subscriber was \$80 in the third quarter.

Finance: draft 13-week cash view by Friday.

Hims & Hers Health, Inc. (HIMS) - Canvas Business Model: Value Propositions

You're looking at how Hims & Hers Health, Inc. (HIMS) delivers value in late 2025. It's all about removing the friction points that keep people from seeking care for sensitive issues, while simultaneously layering in more complex, proactive health management tools.

Accessible, affordable, and discreet healthcare for stigmatized conditions

The core value proposition remains the ease of access for conditions people often avoid discussing face-to-face. This is quantified by the platform's sheer scale and the cost differential on key treatments. By the third quarter of 2025, Hims & Hers Health, Inc. served approximately 2.471 million subscribers, a 21% year-over-year increase. This scale helps keep costs down, which is critical for affordability. For example, their compounded GLP-1 medications are priced at $165 a month for a subscription, starkly contrasting with the branded versions which cost around $1,800 a month. The platform's success in this area is evident: in Q2 2025, subscribers using personalized treatment plans jumped 89% year-over-year to nearly 1.5 million. To be fair, discretion is key; a recent white paper showed that 94% of surveyed customers felt the quality of care accessed via Hims & Hers was as good as or better than their prior in-person experiences.

Personalized treatment plans, including compounded medications

Hims & Hers Health, Inc. is shifting focus toward deeper personalization, which drives both retention and higher revenue per user. The company saw more than 500,000 customers benefiting from treatment plans for multiple conditions by Q2 2025, representing an almost 170% year-over-year increase. This stickiness is a major advantage; in the weight loss specialty, 25% of customers on a personalized GLP-1 plan discontinued treatment at 6 months, compared to studies showing 80% drop-off elsewhere. The Monthly Online Revenue Per Average Subscriber (MORAS) in Q3 2025 hit $80, a 19% year-over-year increase, showing that personalization is successfully driving up the value of each customer relationship.

Convenience of online consultation and direct-to-door delivery

The convenience factor is baked into the digital-first model, which translates directly into financial metrics. The overall revenue for the full year 2025 is guided to be between $2.335 billion and $2.355 billion. This massive revenue stream relies on seamless digital intake and delivery. In Q3 2025, online revenue accounted for $589.10 million of the total $598.98 million in revenue. The platform's ability to convert interest into recurring revenue is strong, as evidenced by the 31% year-over-year subscriber growth in Q2 2025.

Proactive health management via new Labs diagnostics offering

The move into diagnostics is designed to transform the platform from reactive treatment to proactive, data-driven health management. Hims & Hers Health, Inc. launched its Labs offering, which the CEO projects will eventually become a $1 billion business. This service allows customers to get insights across areas like heart health, metabolism, hormones, inflammation, and stress. You can access this data-driven care through two main tiers:

Labs Plan Tier	Annual Cost	Biomarker Tests Included	Blood Draws Per Year
Base	$199	50	One
Advanced	$499	Over 120	Two

The base plan, for instance, provides 50 biomarker tests for $199 a year. This capability is intended to power a more intelligent platform, helping providers tailor care based on objective data.

Low-cost access to generic weight loss treatments

The commitment to low-cost generic alternatives is a major differentiator, especially given the regulatory environment around compounded drugs. Hims & Hers Health, Inc. expects its entire weight loss specialty business to deliver at least $725 million in revenue for 2025, even after pivoting away from compounded semaglutide by Q1 2025. This revenue is now driven by oral medications and other generic options. The company's strategic verticalization efforts have already helped reduce GLP-1 treatment costs by 20%. This focus on affordability within weight management is a clear driver of customer acquisition and retention.

Finance: review the Q4 2025 marketing spend as a percentage of revenue against the Q3 39% figure by next Tuesday.

Hims & Hers Health, Inc. (HIMS) - Canvas Business Model: Customer Relationships

You're building a relationship with a customer who values convenience and discretion above all else. Hims & Hers Health, Inc. (HIMS) locks in that relationship through a model designed for compounding value over time, not just one-off transactions. The core of this is the subscription engine, which provides the financial durability that analysts look for in a high-growth tech-enabled healthcare company.

Subscription-based model for recurring revenue and high retention

The entire structure rests on recurring revenue, making the customer relationship inherently sticky. As of the third quarter of 2025, the company reported reaching 2.47 million customers, a base that grew 21% year-over-year for that quarter. Subscription revenue makes up a massive portion of the top line, consistently reported as ~95% of total revenue. This focus on recurring revenue is what drives confidence in the FY2025 revenue guidance of $2.335 billion to $2.355 billion.

Retention is the proof point of the subscription value. The overall retention rate hovers near 85% as of mid-2025, a strong signal for a direct-to-consumer model. This high retention, combined with increasing customer spend, is key to their unit economics.

Metric	Value (Late 2025)	Context
Total Subscribers	2.47 million (Q3 2025)	Up from 2.2 million at the end of 2024.
Subscription Revenue Share	~95%	The vast majority of total revenue.
Customer Retention Rate	Over 85%	A key driver of predictable revenue.
Monthly Online Revenue per Average Subscriber (Q3 2025)	$80	Up 19% year-over-year for the quarter.

The math shows that even if new customer acquisition costs remain high, the lifetime value (LTV) is being extended by this stickiness. Honestly, that's the whole game in this space.

Digital-first, self-service platform for initial consultation

The initial touchpoint is entirely digital, designed to remove the friction of traditional healthcare access. The company has invested heavily in making the initial clinical intake process feel trustworthy and easy. A recent survey showed that 91% of customers found the intake process easy to complete. Furthermore, 83% of those surveyed stated that the intake process increased their confidence in starting treatment on the platform.

When customers compare their digital experience to their previous in-person care, the results are telling: 94% of customers said the overall quality of care accessed via Hims & Hers was as good as or better than their prior in-person healthcare experiences. This digital efficiency is what allows them to scale so quickly.

Personalized, longitudinal relationship with a licensed provider

The relationship moves beyond a single transaction by focusing on longitudinal care and personalization. This is where the platform deepens its hold. Subscribers engaging with personalized treatment plans grew 50% year-over-year in Q3 2025. More importantly, the platform is successfully cross-selling and bundling services: subscribers trusting Hims & Hers with multiple conditions increased 80% year-over-year, now representing over 20% of the total subscriber base.

This longitudinal engagement is particularly evident in high-demand areas like weight management. For GLP-1 drug customers on their platform, only 25% had discontinued treatment at the 6-month mark, which is significantly better than the reported industry average of 80% discontinuation. This suggests the continuous provider check-ins and personalized adjustments are working to keep patients engaged long-term.

• 83% of customers reported receiving clear treatment instructions from their care team.
• 74% reported that care team interactions made them feel supported throughout treatment.
• The company is actively expanding into new, chronic-care focused specialties like Menopause and Low Testosterone.
• Over 60% of new testosterone customers in Q3 2025 were already subscribed to another Hims offering.

Automated re-ordering and prescription management

The subscription model inherently automates re-ordering, but the relationship is reinforced by the system's ability to manage ongoing care needs efficiently. This is tied directly to the personalization engine, which helps providers tailor ongoing prescriptions and manage refills without constant manual intervention from the patient. The growth in multi-condition subscribers, up 80% year-over-year, shows the system is effectively automating the management of several chronic needs under one roof.

Community and educational content for health awareness

Building trust in a digital-only environment requires transparency about quality, which acts as a substitute for the in-person reassurance you get from a local clinic. The company emphasizes its clinical quality reviews and adherence to standards. In a recent survey, 85% of respondents indicated that knowledge about quality and safety practices increases their trust in telehealth platforms like Hims & Hers. This focus on educating the customer about the how and why of their care reinforces the provider relationship, even when the interaction is asynchronous.

Hims & Hers Health, Inc. (HIMS) - Canvas Business Model: Channels

You're looking at how Hims & Hers Health, Inc. gets its personalized care products and services into the hands of customers. The Channels block is all about distribution, and for Hims & Hers Health, Inc., it's heavily weighted toward digital direct-to-consumer (DTC).

Online Platform and Digital Reach

The core channel is definitely the online platform, which includes the website and mobile applications. This is where the vast majority of the revenue flows through. For the third quarter of 2025, this channel generated $589.1 million in revenue. That's a 50.1% surge year-over-year, showing the platform's continued scaling power. Honestly, the growth here is what drives the whole story. The Monthly Online Revenue per Average Subscriber (MORPUS) hit $80 in Q3 2025, which is up 19.4% compared to the prior year, reflecting the success of pushing personalized treatment plans. You'll want to watch that MORPUS number closely; it shows how much value you are extracting from each active user on the site.

The subscriber base is the engine feeding this channel. By the end of Q3 2025, the total subscriber count was approximately 2.5 million, representing a 20.7% year-over-year increase. This traffic growth is fueled by marketing activities and improved onboarding experiences across the digital touchpoints.

Here's a quick look at the Q3 2025 revenue segmentation:

Channel Segment	Q3 2025 Revenue (USD)	Year-over-Year Growth
Online Platform (Website/App)	$589.1 million	50.1%
Wholesale Channel	$9.9 million	9.9%
Total Reported Revenue	~$600 million	49%

Direct-to-Consumer Shipping and Logistics Network

Behind the digital storefront is the physical fulfillment. Hims & Hers Health, Inc. relies on a direct-to-consumer shipping and logistics network to deliver prescriptions and non-prescription products. This network is critical to maintaining the DTC promise, but it also introduces operational complexities. For instance, management noted that shorter shipping cadences for some weight-loss offerings, which is a customer service positive, contributed to gross margin pressure in Q3 2025. If onboarding or fulfillment takes longer than expected, churn risk definitely rises, so you want to ensure their logistics partners are performing consistently.

Wholesale Channel

While the focus is DTC, there is a smaller, but growing, wholesale component for non-prescription products. This channel brought in $9.9 million in Q3 2025. That's a 9.9% increase from the year prior. It's a minor piece of the pie compared to the online platform, but it shows a willingness to use traditional retail pathways where it makes sense for certain product categories.

International Expansion via Acquired Platforms

Hims & Hers Health, Inc. is actively using acquisitions to jumpstart international channel access. The planned acquisition of European digital health provider ZAVA was expected to close in the second half of 2025. This move is designed to immediately establish a foundation in key markets.

The ZAVA integration is projected to contribute $50M+ in revenue during the second half of 2025 alone. ZAVA previously served over 1.3 million active customers and completed nearly 2.3 million consultations in 2024 across its existing footprint. The plan is to leverage ZAVA's established operations to offer personalized care in the UK, Germany, France, and Ireland, using local language providers.

Key elements of the international channel strategy include:

• Acquisition of ZAVA, expected to close in H2 2025.
• Immediate expansion into Germany, France, and Ireland.
• Leveraging ZAVA's local care network and language capabilities.
• Projected contribution of $50M+ in H2 2025 revenue from the integration.
• Future plans mentioned for a Canadian launch, possibly in 2026.

Finance: draft 13-week cash view by Friday.

Hims & Hers Health, Inc. (HIMS) - Canvas Business Model: Customer Segments

You're looking at Hims & Hers Health, Inc. (HIMS) and need to map out exactly who is using the platform as of late 2025. The customer base is broad but unified by a preference for digital access to care.

The total platform size is significant. Hims & Hers Health, Inc. reported nearly 2.5 million total subscribers as of Q3 2025. This represents a year-over-year growth of 21% in the subscriber base for that quarter.

The customer base is segmented across the Hims and Hers platforms, addressing specific, often sensitive, health needs. Consumers are actively choosing this route because they value privacy and convenience over the traditional in-person care model.

Here is a breakdown of the key customer groups driving that growth:

• Men (Hims) seeking treatment for hair loss, ED, and low testosterone.
• Women (Hers) seeking treatment for sexual health, mental health, and menopause.
• Individuals seeking affordable, long-term chronic care (e.g., weight loss, mental health).
• Consumers valuing privacy and convenience over traditional in-person care.

The platform has successfully expanded beyond its initial focus areas. For instance, the Weight Loss business alone was projected to bring in $725 million in revenue for the full year 2025. Furthermore, new specialties like Testosterone and Menopause support were launched in 2025 to capture more of the chronic care market.

To give you a sense of the financial engagement across these segments, here's how the overall platform metrics looked in Q3 2025:

Segment Context	Metric	Value (Q3 2025)
Total Platform Size	Total Subscribers	2.47 million to 2.5 million
Customer Engagement	Monthly Online Revenue Per Average Subscriber	$80
Core Growth Driver	Online Revenue Year-over-Year Growth	50.1%
High-Impact Specialty	Projected Weight Loss Revenue	$725 million (Full Year 2025 Estimate)

The success in attracting these segments is tied directly to the value proposition. Patients are active participants, choosing providers based on convenience, price, and anonymity. If onboarding takes 14+ days, churn risk rises, so speed is a key factor for this customer base.

Finance: draft 13-week cash view by Friday.

Hims & Hers Health, Inc. (HIMS) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Hims & Hers Health, Inc. (HIMS) engine, the costs that power its direct-to-consumer healthcare platform. The structure is heavily weighted toward acquiring and serving customers, which is typical for a high-growth, digitally-native model.

High variable cost of fulfillment (COGS) impacting gross margin

The cost of goods sold (COGS), which includes fulfillment, is a major variable cost component. This has put some pressure on the overall profitability metric. For the third quarter of 2025, the gross margin came in at 73.8%. Management noted that a shift in fulfillment for certain weight-loss offerings, moving to shorter shipping cadences and a change in compounding pharmacy sourcing (shift to 503(a) facilities), directly increased fulfillment costs and subsequently pressed this margin down. You should expect this area to be closely watched as the company works through these fulfillment dynamics.

Significant marketing and advertising spend

Acquiring subscribers is expensive, and Hims & Hers Health, Inc. (HIMS) commits substantial capital here. In Q3 2025, the marketing and advertising spend totaled $232.2 million. To put that in perspective relative to the top line, marketing represented 39% of revenue for the quarter. The company did point to leverage, as marketing spend as a percentage of revenue was down year-over-year, showing that revenue growth outpaced marketing investment somewhat.

Technology and development investment

Building out the platform, improving the customer experience, and developing new features requires ongoing investment in engineering and product talent. Technology and development expenses for Q3 2025 were reported at $40.6 million. This investment represented about 7% of revenue in the quarter, reflecting an ongoing commitment to infrastructure that management believes will lead to future cost efficiencies and unlock new growth factors.

Operations, support, and general administrative expenses

These are the overhead costs necessary to run the business, including customer support, corporate functions, and the recent Zava integration. For Q3 2025, the combined Selling, General, and Administrative (SG&A) and Operations & Support costs were substantial. Here is the breakdown:

Expense Category	Q3 2025 Amount (Millions USD)
General and Administrative (G&A)	$80.7 million
Operations and Support	$76.8 million
Combined Total	$157.5 million

The combined total for these two categories in Q3 2025 was exactly $157.5 million. G&A costs, in particular, saw pressure due to leadership hiring and the Zava integration.

Costs associated with vertical integration and compounding pharmacy operations

The move toward vertical integration is a strategic cost lever, even if it creates short-term fulfillment cost volatility. The goal is to gain control over the supply chain and potentially lower long-term costs, especially for high-volume personalized treatments.

• Strategic verticalization efforts reportedly reduced GLP-1 treatment costs by 20%.
• The shift in sterile weight-loss product fulfillment to 503(a) facilities created a recognized revenue headwind of $20 million to $25 million expected in Q4 2025 due to shorter shipment cadences.
• Management expects this fulfillment dynamic to normalize in the second half of 2026 as refill cohorts stack up.
• The acquisition of Zava Global is projected to contribute at least $50 million in incremental revenue in the second half of 2025, which will impact the cost base as that operation scales.

Finance: draft 13-week cash view by Friday.

Hims & Hers Health, Inc. (HIMS) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Hims & Hers Health, Inc. (HIMS), and it's built on recurring revenue. The primary way Hims & Hers Health, Inc. brings in money is through its online subscription model, which is definitely the dominant stream.

For the full-year 2025, the company has guided its total revenue to a tight range between $2.335 billion to $2.355 billion. This projection shows the expected scale of the platform as it continues to onboard new subscribers across its various specialties.

The strength of the subscription model is visible in the key metric of Monthly Online Revenue Per Average Subscriber (MORAS). As of the third quarter of 2025, the MORAS stood at $80. This figure reflects the success of driving subscribers toward personalized treatment plans, which generally carry a higher value and better retention than one-off purchases. You see, the shift to personalization is directly converting into higher revenue per user.

Here's a quick look at the revenue breakdown from the third quarter of 2025, showing just how central the online channel is:

Revenue Component	Q3 2025 Amount
Total Revenue	$598.98 million
Online Revenue	$589.10 million
Wholesale Revenue	$9.88 million

The wholesale revenue from retail distribution, while present, is a small fraction of the total. In Q3 2025, this channel contributed $9.88 million. This channel serves a different purpose, perhaps brand building or reaching customers outside the core direct-to-consumer (DTC) platform, but it's not the growth driver.

Revenue from new diagnostics and personalized care offerings is a critical area for future growth, underpinning that $80 MORAS. The company is actively building out these capabilities to increase customer lifetime value and deepen the platform's utility. For instance, the Hers offerings are on pace to deliver revenue of over $1 billion in 2026, driven by expansion into areas like menopause/perimenopause specialty, and the imminent launch of comprehensive lab testing. This testing capability is the foundation for a planned Longevity specialty in 2026.

To be fair, the company is investing heavily to secure these future revenue streams, including expanding its US operational footprint with an additional 350,000 square feet facility in Ohio. This investment is meant to bring the majority of compounded GLP-1 compounding orders in-house by the end of 2026, which should eventually help stabilize margins while supporting the personalized care revenue base.

You should keep an eye on these key revenue drivers:

• Online subscription revenue growth rate.
• Adoption rate of personalized treatment plans.
• Contribution from new specialties like Hers menopause care.
• Progress on international expansion following the ZAVA acquisition.

Finance: draft 13-week cash view by Friday.