Hims & Hers nears 3M subscribers as U.S. growth picks up and international sales hit $131M.

Hims & Hers is approaching 3 million subscribers with renewed growth momentum in the U.S. and expanding international markets contributing significantly. International revenue reached $131 million, while the testosterone product line nears $100 million in annual U.S. sales. Despite a drop in gross margin to 64% and a negative free cash flow of $68 million in Q2, the company’s operating leverage will be key to sustaining growth. Currently trading at 2.39x forward EV/Sales and 26.04x EV/EBITDA, Hims must improve cash flow conversion to justify its valuation premium.