Hims & Hers Health Inc. (NYSE:HIMS) announced a definitive agreement to acquire Eucalyptus, a digital health platform with operations in Australia, the United Kingdom, Germany, Japan, and Canada, for up to $1.15 billion. The deal includes $240 million in cash payable at closing, with the remaining consideration structured as guaranteed deferred payments over 18 months and earnout payments tied to financial targets through early 2029. Hims & Hers also has the option to settle a portion of the deferred and earnout payments in Class A common stock.
Eucalyptus, founded in 2019, runs several consumer‑facing brands such as Juniper, Pilot, Software, and Kin. The company reported an annual revenue run‑rate north of $450 million, driven by triple‑digit year‑over‑year growth, and has expanded into the UK, Germany, Japan, Canada, and Australia. The acquisition brings a customer base that has already achieved significant traction in these markets and a proven ability to scale digital health services across multiple jurisdictions.
The transaction is intended to accelerate Hims & Hers’ international expansion and deepen its presence in key markets. "With Eucalyptus, we will not only enter new markets, we will expand our ability to serve customers globally, trusting local experts to be a key part of how we transform healthcare into a customer‑first, personalized industry. We believe this puts us on the path to becoming the leading global consumer health platform, where everyone can access the best care for their needs, regardless of where they live," said Andrew Dudum, founder and CEO of Hims & Hers. Tim Doyle, Eucalyptus’s CEO, added, "By joining Hims & Hers, we will help more people globally believe in the future of healthcare: simple, high‑quality, personal, and designed to help prevent disease, instead of merely treating it." The deal also positions Hims & Hers to leverage Eucalyptus’s local expertise and established customer base, complementing its AI‑driven personalized care model.
Hims & Hers has posted rapid revenue growth in recent quarters, with Q4 2024 revenue of $481.1 million, a 95% year‑over‑year increase, and net income of $26.0 million versus $1.2 million in Q4 2023. In Q1 2025, revenue rose to $586.0 million, up 111% year‑over‑year, and net income reached $49.5 million from $11.1 million in Q1 2024. Weight‑loss solutions, including GLP‑1 offerings, contributed approximately $230 million in Q1 2025, underscoring the strength of Hims & Hers’ core segments. The company’s three‑year compound annual growth rate of 62.4% and its target of $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030 illustrate the scale of its growth ambitions.
The acquisition also comes amid headwinds, including regulatory scrutiny and a $20–$25 million revenue headwind in Q4 2025 due to the migration of GLP‑1 fulfillment to 503(a) sterile facilities. Management expects this impact to normalize in the second half of 2026. Despite these challenges, the company’s strong cash position and operating cash flow from U.S. operations provide the financial flexibility to fund the transaction and continue investing in its global expansion.
The transaction is expected to close in mid‑2026, subject to customary regulatory approvals. Tim Doyle will join Hims & Hers as Senior Vice President of International, overseeing the integration of Eucalyptus’s operations and customer base. The deal is projected to enhance Hims & Hers’ global reach, diversify its revenue mix, and accelerate the company’s path toward becoming a leading global consumer health platform.
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