NEW YORK, June 2, 2026, 10:13 a.m. EDT
- Hims & Hers shares dipped a bit in early New York trade after the company said it closed the Eucalyptus deal.
- Hims will get a bigger international presence from the deal, picking up over 850,000 Eucalyptus customers.
- Investors still have to balance growth in overseas markets with execution risk and shifts in the U.S. weight-loss drug plan.
Hims & Hers Health shares moved lower Tuesday morning after the company announced it wrapped up its buyout of Australia’s Eucalyptus. The telehealth firm called the deal part of a push for expansion outside the U.S. as changes keep coming to its American weight-loss business. Hims was down 0.9% at $27.52 in early trade after starting the session at $27.93 and hitting a high of $28.85.
Hims shares didn’t move much. The company wants to prove it can grow past the GLP-1 hype cycle—those are the diabetes and weight-loss drugs like Novo Nordisk’s Wegovy and Ozempic. Last month, first-quarter revenue came in below analysts’ forecasts, though Hims lifted its full-year outlook.
Hims said buying Eucalyptus gives it a wider footprint in the U.S., U.K., Australia and Canada, with more reach in France, Germany, Ireland, Spain and Japan. The company reiterated its 2030 goals for $6.5 billion in revenue and $1.3 billion in adjusted EBITDA, which excludes interest, taxes, depreciation, amortization and certain other costs.
Andrew Dudum, CEO, said the deal is about more than expanding geography: “The future of health isn’t inside of a doctor’s office.” Tim Doyle, formerly CEO of Eucalyptus and now a senior VP of international at Hims, said the best care is “local in its understanding and global in its ambition.” SEC
The deal was first announced in February with a value of up to roughly $1.15 billion. According to a securities filing, the package includes around $240 million paid up front, $710 million in deferred payments, and up to $200 million in earnout payments based on future performance.
The company on May 29 changed its revolving credit deal to support the Eucalyptus buy. According to the filing, the updated terms give a grace period for certain covenant requirements related to the deal, add obligations for key foreign subsidiaries, and bump up limits on downstream investments. Core loan terms are otherwise the same.
Broader moves were muted. The SPDR S&P 500 ETF dipped 0.1%, while the Invesco QQQ Trust ticked up 0.1%. The Health Care Select Sector SPDR Fund dropped 1.5% in early trading. Hims largely tracked the weaker healthcare sector, not reacting much to the deal closing.
Competition in weight loss is still strong. Novo Nordisk agreed in March to let Hims sell Wegovy and Ozempic after fighting over compounded GLP-1s. Reuters said Eli Lilly has taken the lead in the weight-loss drug market. LifeMD and Ro are also seeking out cash-pay weight-loss customers through telehealth.
Hims’ May report put some pressure on numbers. First-quarter revenue landed at $608.1 million, missing the $616.85 million analysts had called for. Monthly revenue per average subscriber slipped to $80, down from $85 a year ago. The company forecasts $680 million to $700 million in revenue for the second quarter, and $2.8 billion to $3.0 billion for the year.
Hims CFO Yemi Okupe told Reuters that operating cash flow is still the company’s “North Star” and said he expects the company to be “well-positioned for profitability in 2027.” Morningstar’s Keonhee Kim said it may be too soon for the Novo deal to have a real impact, with the forecast hinging on more acquisitions. Reuters
The main issue is execution. Hims said its outlook could change if it can’t pull off the Eucalyptus integration, hold on to important staff, expand to more regions, manage healthcare and privacy rules, keep customers, or hit long-term goals. Another slip in compounded drugs—those custom pharmacy-made meds used in certain cases—would be another drag.
Hims picking up Eucalyptus widens its reach, but it doesn’t settle things yet. The company still has to show that a bigger international business will bring in revenue, boost subscriber quality and lift margins fast enough to ease worries about U.S. weight-loss swings.
