Bask Health's Blog
Bask Health's Blog/
Hims and Hers Business Model: The Secret Behind Their $4B Success
Search
Hims and Hers Business Model: The Secret Behind Their $4B Success

Hims and Hers Business Model: The Secret Behind Their $4B Success

Tags
Tech
Startups
Telehealth
Published
March 7, 2025
Author
Bask Health Team
Keywords
hims and hers business model
<Highlight>
Hims and Hers's business model has powered remarkable growth to reach $872 million in revenue since its 2017 launch. The company stands as a dominant force in the $101.2 billion telehealth market, with 1.7 million subscribers and a 43% year-over-year subscriber growth rate.
</Highlight>
Their innovative healthcare delivery approach has transformed mental health, sexual health, hair care, skin care, and weight loss services. The platform's subscription model boasts an impressive 82% customer retention rate after three months. About 30% of their customers opt for tailored treatment plans.
This detailed analysis shows how Hims and Hers achieved their $4 billion success by exploring their subscription model, technology infrastructure, revenue streams, and expansion strategies. The piece explains their business operations and customer acquisition approach that projects growth to 2.2 million subscribers by 2024.

Key Takeaways

  • Hims & Hers achieved rapid growth, reaching $872M in revenue and 1.7M subscribers since 2017.
  • The subscription model drives success with 82% retention after three months and 30% of customers choosing tailored treatments.
  • The telehealth platform covers mental health, sexual health, dermatology, weight loss, and primary care.
  • AI-powered system, MedMatch, personalizes treatments and improves efficiency.
  • Strong security measures ensure data privacy and HIPAA compliance.
  • Revenue streams include subscriptions, one-time purchases, and retail partnerships, with 2024 revenue hitting $1.48B.
  • Expansion strategy includes at-home lab testing, affiliated pharmacies, and new product offerings.
  • Weight management and mental health sectors projected to generate over $100M each in revenue by 2025.
  • Retail presence spans 20,000+ locations, boosting brand awareness and revenue.
  • Future growth targets $2.3-$2.4B in revenue by 2025, with plans to scale daily medical visits from 10,000 to 40,000.

What is Hims and Hers Health

Andrew Dudum founded Hims & Hers Health in 2017, creating a trailblazing telehealth platform that connects consumers with licensed healthcare professionals. The company's vision aimed to break down healthcare barriers and remove the stigma around seeking help for personal health issues.

Origin story and founding vision

The platform started as Hims and tackled common but uncomfortable men's health concerns, with a focus on hair loss and sexual health treatments. The company grew and launched Hers in 2018 to serve women's health needs. This vision came to life through a direct-to-consumer model that made customized care available and convenient.

Core services and products

The company runs a reliable telehealth network across all 50 states and Washington, DC. Their service lineup includes:
  • Mental Health Services: Treatment for depression, anxiety and group therapy sessions
  • Sexual Health Solutions: Erectile dysfunction treatments, birth control, and fertility services
  • Primary Care: General health consultations and prescription renewals
  • Specialized Care: Dermatology, hair loss treatments, and weight management programs
The platform aids over 10,000 medical visits daily, working with more than 800 healthcare providers, including physicians, nurse practitioners, psychiatrists, and dermatologists. Each treatment plan starts with a detailed assessment based on your needs and medical history. Patients get ongoing provider support through their mobile application.

Target market segments

We focused on health-conscious people aged 25-45 who value convenience and customized healthcare solutions. Their core audience includes:
  • Tech-savvy consumers who prefer online healthcare services
  • Middle to upper-middle-class people looking for affordable wellness solutions
  • People with stigmatized health conditions
  • Health-conscious individuals who prioritize self-care and preventive treatments
The platform's impact shows in its remarkable growth to 2.2 million subscribers. Their approach blends medical expertise with user-friendly technology, making healthcare available to modern consumers who want clear pricing and treatment options.
The company sources ingredients that meet United States Pharmacopeia specifications. It also ensures quality through third-party lab testing to verify formulation potency and strength. This innovative approach to healthcare delivery has made Hims & Hers a trusted wellness partner, offering prescription and over-the-counter solutions that fit individual needs.
The platform builds lasting care relationships. Patients can message healthcare providers anytime and access educational resources through their mobile app. This detailed approach has made Hims & Hers a revolutionary force in telehealth, bringing quality healthcare within reach for millions of Americans.

Inside Their Subscription Model

The subscription-based revenue model of Hims & Hers Health stimulates steady growth through recurring payments and lasting customer relationships. Their platform retains 82% of subscribers beyond the first three-month period.

Monthly subscription plans

<Highlight>
The company tailors flexible subscription options to various treatment needs. Simple plans cost $20 to $40 monthly, while premium services range between $50 and $75. Their specialized treatments come with specific pricing:
  • Primary care consultations: $39-$59
  • Mental health sessions: $60-$85
  • Sexual health consultations: $30-$45
<Highlight>
Subscribers get automatic product deliveries and ongoing care support. The billing cycle lines up with each subscription plan: monthly subscribers receive charges on the same day each month, and annual subscribers pay once yearly.

Product pricing strategy

Hims & Hers uses a dynamic pricing model throughout its product range. Their weight management products showcase this approach well. Compounded GLP-1 medications begin at $165 monthly with a 12-month plan. These products generated about $200 million in sales during 2024.
The platform keeps pricing transparent with no hidden costs. Their pricing decisions have produced remarkable results:
  • Monthly online revenue per subscriber reached $73, showing 38% growth from last year
  • Core business revenue hit $1.20 billion, with 43% growth
Customers can pause, cancel, or restart their subscriptions between billing cycles. The platform schedules first refills earlier to ensure continuous medication access.

Customer lifetime value

The platform's customer lifetime value (CLTV) metrics show robust financial health. With an estimated CLTV of $350, substantially above industry standards, Hims & Hers keeps customer acquisition costs in check. Customer annual revenue jumped from $495 to $668, showing successful monetization efforts.
Their subscription model proves its worth through:
  • Recovery periods under one year
  • 85% user retention for at least two years
  • Steady subscriber growth, reaching 2.2 million
The platform excels at maintaining high customer lifetime value through its detailed healthcare delivery approach. Hims & Hers creates extra value with unlimited provider messaging support and educational resources. This strategy works well, as subscribers spend more and stay with the service.
notion image

Technology Platform Deep Dive

Hims & Hers Health's success stems from its advanced technology platform that handles over 10,000 medical visits each day. Their strong infrastructure blends cutting-edge telehealth capabilities with artificial intelligence to deliver tailored healthcare solutions.

Telehealth infrastructure

The platform's Electronic Medical Record (EMR) system acts as its backbone and streamlines processes for healthcare providers. This custom-built technology offers:
  • Automated SOAP (Subjective, Objective, Assessment, and Plan) notes generation
  • Built-in safety tools for risk assessment
  • Smart screening protocols based on patient history
Dynamic workflows create detailed “medical fingerprints” by gathering complete patient information. This method delivers consistent quality care that often exceeds traditional in-person visits in thoroughness.

AI-powered personalization

The company launched MedMatch, which represents a significant step forward in AI-driven healthcare. This smart solution analyzes millions of anonymized data points to:
  • Find optimal treatment formulations
  • Set appropriate dosage strengths
  • Create tailored care plans that match patient profiles
The smart routing system has cut average customer wait times by more than 40% in specialized services like weight management. The AI-driven approach shows its value in treatment adherence rates—only 13% of GLP-1 users cancel their subscription after the first month.

Data security measures

Strong security protocols protect sensitive medical information. Essential security features include:
  • SOC2 compliance standards for data handling
  • HIPAA-aligned privacy protocols
  • Encryption of all patient data, both in transit and at rest
  • Strict access controls for medical providers
Patient authentication follows a three-step security verification process. Users must upload a government-issued photo ID first. They then submit a selfie for verification. An algorithm checks the ID and matches it against the selfie. The fraud team reviews any mismatches.
Healthcare providers can access complete patient profiles through this integrated system that manages detailed histories of interactions, prescriptions, and treatment outcomes. The platform maintains data privacy and security compliance throughout.
A quality assurance program tracks provider-patient interactions to verify adherence to evidence-based guidelines. The platform's medical team reviews content regularly to keep educational resources accurate and relevant. The infrastructure can handle 20,000-40,000 daily visits, showing its readiness for future growth.

Revenue Streams Breakdown

Hims & Hers Health shows remarkable growth, with revenue reaching $1.48 billion in 2024. Their success comes from three distinct revenue channels. These channels are the foundations of their business model.

Subscription revenue

Subscription-based services are crucial to Hims & Hers's revenue generation. These services make up most of their online revenue. Customers get automatic medication deliveries and ongoing care support through this model. The platform's subscription offerings cover:
  • Prescription medications with required ongoing subscriptions
  • Optional subscriptions for over-the-counter products
  • Flexible subscription management options
<Highlight>
Their online revenue metrics prove this approach works, hitting $1.44 billion in 2024. The platform keeps customers coming back. First-time buyers in 2021 spent an average of $363 in their original twelve months, up from $191 in 2019.
</Highlight>

One-time purchases

Hims & Hers makes substantial revenue from single purchases of health and wellness products. This revenue stream includes:
  • Non-prescription wellness items
  • Over-the-counter treatments
  • Personal care products
  • Skincare solutions
They keep one-time purchase prices competitive yet profitable. Their weight management programs start at $79 monthly for oral medication kits. This strategy has paid off. The weight management specialty has grown to roughly $100 million in annual revenue.

Retail partnerships

Hims & Hers has built mutually beneficial alliances to reach broader markets. These alliances have expanded its wholesale revenue stream. Their retail presence now reaches over 20,000 locations across the United States. Their wholesale strategy includes:
  • Direct partnerships with major retailers
  • Consignment arrangements with third-party platforms
  • White-label services for healthcare networks
Wholesale revenue makes up a smaller piece of total sales at 3% or $6.30 million through the third quarter of 2021. This segment shows strong growth potential. Retail market expansion serves two purposes: it drives immediate revenue and builds brand awareness among potential subscribers.
Their revenue diversification strategy has delivered impressive results. Annual revenue jumped 69.33% in 2024. They serve several high-value segments:
  • Hair loss treatments ($3 billion market)
  • Erectile dysfunction solutions ($4 billion market)
  • Anxiety and depression care ($14 billion market)
  • Dermatology services ($44 billion market)
This multi-channel approach strengthens Hims & Hers' position in the telehealth market. They expect more growth ahead. Revenue projections for 2025 range between $2.30 billion and $2.40 billion. These numbers highlight how well its diversified revenue strategy works.

Growth Strategy and Expansion

Hims & Hers Health continues to grow its market presence through smart acquisitions and tech advances. The company reached a significant milestone when it turned profitable in its first quarter of 2024, with revenue climbing to $872 million.

New market entry

The company's acquisition of Trybe Labs now allows it to provide complete at-home lab testing services. This smart move makes it possible to:
  • Perform blood draws and diagnostic services
  • Move into hormone management
  • Help with menopausal care
  • Tailor treatment plans
The company also bought a California-based peptide facility to build a stronger domestic supply chain. This purchase opens new possibilities in preventive health, metabolic optimization, and cognitive performance improvement.

Product line expansion

Five core specialties form the foundation of the platform's growth strategy:
  • Sexual Health
  • Men's and Women's Dermatology
  • Mental Health
  • Weight Loss
Each specialty shows remarkable progress as tailored offerings gain momentum. By late 2023, 30% of subscribers will have chosen customized solutions. Hers Dermatology saw even better results, with 75% of subscribers picking personalized treatments.
The company expects each main specialty—Hers Dermatology, Mental Health, and Weight Loss—to bring in over $100 million in revenue by 2025. The weight management division should reach $725 million in revenue.

Marketing channels

The platform focuses on making treatments tailored and available. Their AI-powered system, MedMatch, makes treatment matching easier and helps providers work more efficiently. This technology learns from hundreds of thousands of interactions to create better user experiences.
Moving to affiliated pharmacies represents another smart step forward, as these partnerships now handle about 90% of orders. This change leads to:
  1. Lower treatment costs
  1. Better availability
  1. Improved operations
  1. Faster prescription filling
The future looks bright for Hims & Hers, which expects to reach $1.2 billion in revenue and $100 million in EBITDA by 2025. The platform handles over 10,000 daily visits and plans to grow to 20,000-40,000 visits.
The company's dedication to personalization goes beyond current offerings. Throughout 2024, Hims & Hers will introduce different product forms and unique dosages to meet various patient needs. Their affiliated pharmacy network helps deliver affordable treatments, making healthcare available to people who previously couldn't afford needed medications.

Conclusion

Hims & Hers Health shows evidence of successful digital healthcare innovation. The company has evolved from a small telehealth provider into a $4 billion game-changer. Their detailed approach combines advanced technology, customized care delivery, and mutually beneficial market expansion. This strategy has led to an impressive 82% subscriber retention rate.
The company's remarkable growth comes from three essential elements. A resilient subscription model creates steady revenue streams. Their advanced infrastructure processes over 10,000 daily medical visits. Their mutually beneficial alliances have expanded their reach to 20,000 locations nationwide. These strengths set Hims & Hers on track to reach $2.3-2.4 billion in revenue by 2025.
The company's customized healthcare solutions work well, especially when you have 30% of customers selecting personalized treatments. On top of that, the platform now offers specialized services like weight management and mental health. This shows their market adaptability, with each specialty expected to generate over $100 million in revenue.
Hims & Hers' future looks bright as they scale operations, improve their AI-powered systems, and deepen their affiliated pharmacy network's commitment. These strategic moves help the company stay true to their original mission: making quality healthcare available, affordable, and convenient for millions of Americans.

References

  1. DCF Modeling. (n.d.). Hims history, mission, ownership. Retrieved from https://dcfmodeling.com/blogs/history/hims-history-mission-ownership
  1. Wikipedia contributors. (n.d.). Hims & Hers Health. Wikipedia. Retrieved from https://en.wikipedia.org/wiki/Hims_%26_Hers_Health
  1. Hims & Hers. (n.d.). Official website. Retrieved from https://www.hims.com/
  1. King, R. (2024, February 15). Hims & Hers bullish on weight loss business despite GLP-1 market shift. Fierce Healthcare. Retrieved from https://www.fiercehealthcare.com/health-tech/hims-hers-bullish-weight-loss-business-despite-glp-1-market-shift
  1. Hims & Hers. (n.d.). About us. Retrieved from https://www.hims.com/about
  1. Canvas Business Model. (n.d.). Hims and Hers marketing strategy. Retrieved from https://canvasbusinessmodel.com/blogs/marketing-strategy/hims-and-hers-marketing-strategy
  1. Simply Wall St. (n.d.). Hims & Hers Health financial analysis. Retrieved from https://simplywall.st/stocks/us/healthcare/nyse-hims/hims-hers-health
  1. Bask Health. (n.d.). Hims and Hers telehealth. Retrieved from https://bask.health/blog/hims-and-hers-telehealth
  1. Hims & Hers. (n.d.). Do I need a subscription? Retrieved from https://support.hims.com/hc/en-us/articles/25010275531931-Do-I-need-a-subscription
  1. Hims & Hers. (n.d.). When will I be charged? Retrieved from https://support.hims.com/hc/en-us/articles/13543777469339-When-will-I-be-charged
  1. Hims & Hers. (n.d.). Weight loss drug pricing. Retrieved from https://www.hims.com/weight-loss/drug-pricing
  1. Hims & Hers. (2025). Hims & Hers Health Inc. reports fourth-quarter and full-year 2024 financial results. Retrieved from https://investors.hims.com/news/news-details/2025/Hims--Hers-Health-Inc.-Reports-Fourth-Quarter-and-Full-Year-2024-Financial-Results/
  1. Sener, B. (n.d.). The remarkable rise of Hims & Hers: A case study in sustainable growth. LinkedIn. Retrieved from https://www.linkedin.com/pulse/remarkable-rise-hims-hers-case-study-sustainable-growth-sener
  1. Hims & Hers. (n.d.). How it works. Retrieved from https://www.hims.com/how-it-works
  1. Hims & Hers. (n.d.). How our technology powers a world-class customer experience. Retrieved from https://news.hims.com/newsroom/how-our-technology-powers-a-world-class-customer-experience
  1. For Hers. (n.d.). Under the hood: How the Hims & Hers telehealth platforms enable quality care. Retrieved from https://www.forhers.com/blog/under-the-hood-how-the-hims-hers-telehealth-platforms-enable-quality-care
  1. Hims & Hers. (2023). Hims & Hers introduces MedMatch: The next generation of intelligent diagnostic services. Retrieved from https://investors.hims.com/news/news-details/2023/Hims--Hers-Introduces-MedMatch-The-Next-Generation-of-Intelligent-Diagnostic-Services/default.aspx
  1. Healthcare IT News. (n.d.). How Hims & Hers built a business entirely centered on telehealth. Retrieved from https://www.healthcareitnews.com/news/how-hims-hers-built-business-entirely-centered-telehealth
  1. MobiHealthNews. (n.d.). Hims & Hers unveils new app security procedures. Retrieved from https://www.mobihealthnews.com/news/north-america/hims-hers-unveils-new-app-security-procedures
  1. Hims & Hers. (n.d.). Privacy policy. Retrieved from https://www.hims.com/privacy-policy
  1. TradingView. (n.d.). Hims & Hers financials. Retrieved from https://www.tradingview.com/symbols/NYSE-HIMS/financials-revenue/
  1. Hims & Hers. (n.d.). Quarterly financial results. Retrieved from https://investors.hims.com/financials/quarterly-results/default.aspx
  1. Danziger, P. (2022, January 20). Digitally native Hims & Hers Health adds Walmart to its 10,000-strong base of retail doors. Forbes. Retrieved from https://www.forbes.com/sites/pamdanziger/2022/01/20/digitally-native-hims--hers-health-adds-walmart-to-its-10000-strong-base-of-retail-doors/
  1. Accounting Insights. (n.d.). Hims earnings breakdown: Revenue, profit margins, and market reaction. Retrieved from https://accountinginsights.org/hims-earnings-breakdown-revenue-profit-margins-and-market-reaction/
  1. Fierce Healthcare. (2024). Hims & Hers projects 2024 revenue to hit $1.37B, buoyed by demand for weight loss drugs. Retrieved from https://www.fiercehealthcare.com/health-tech/hims-hers-projects-2024-revenue-hit-137b-buoyed-demand-weight-loss-drugs
  1. Hims & Hers. (2022). Hims & Hers and GNC to collaborate on health and wellness solutions. Retrieved from https://investors.hims.com/news/news-details/2022/Hims--Hers-and-GNC-to-Collaborate-on-Health-and-Wellness-Solutions/default.aspx
  1. Hims & Hers. (2024). Hims & Hers Health Inc. reports fourth-quarter and full-year 2023 financial results. Retrieved from https://investors.hims.com/news/news-details/2024/Hims--Hers-Health-Inc.-Reports-Fourth-Quarter-and-Full-Year-2023-Financial-Results/
  1. MacroTrends. (n.d.). Hims & Hers Health revenue trends. Retrieved from https://www.macrotrends.net/stocks/charts/HIMS/hims-hers-health/revenue
  1. Hims & Hers. (n.d.). Achieving profitability and what comes next. Retrieved from https://news.hims.com/newsroom/achieving-profitability-and-what-comes-next
  1. Hims & Hers. (2025). Hims & Hers acquires at-home lab testing facility, expanding capabilities to ultimately include affordable whole-body testing for subscribers. Retrieved from https://investors.hims.com/news/news-details/2025/Hims--Hers-Acquires-At-Home-Lab-Testing-Facility-Expanding-Capabilities-to-Ultimately-Include-Affordable-Whole-Body-Testing-for-Subscribers/default.aspx