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A dermatologist reveals 11 shampoo ingredients that could actually damage your hair

A dermatologist reveals 11 shampoo ingredients that could actually damage your hair

Yahoo25-06-2025
Finding the right shampoo, conditioner, and styling products can make all the difference in keeping your hair strong, healthy, and full of life.
At the root (pun intended) of healthy hair are three key factors:
The strength and hydration of your hair strands.
The health of your scalp (which houses the follicles that support growth).
Your overall well-being, since your body supplies the nutrients your hair needs to thrive.
But with so many options on the market, figuring out which ingredients actually support your hair — and what ingredients are bad for hair — can be overwhelming. Hers provides needed insights.
Though many hair care ingredients can nourish and protect, some can strip moisture, cause irritation, or even contribute to breakage, shedding, or acne breakouts around the scalp and hairline.
So, what ingredients are bad for hair? It's different for everyone (and every hair type), but here are several you might want to avoid:
Sulfates
Artificial fragrances
Silicones
Parabens
Formaldehyde
Alcohols
Bleaches and hair color products
Coal tar
Phthalates
Oils
Selenium sulfide
Below is a breakdown of the biggest culprits and why they might be worth skipping the next time you shop for hair care products, everyday habits that can impact hair health, and tips for keeping your strands in their best shape.
Sulfates are commonly used as foaming agents and cleansers in shampoos, liquid soaps, and detergents. They belong to a group of chemical compounds called surfactants.
When added to shampoo, sulfates can strip away extra sebum (an oily, waxy substance secreted by the sebaceous glands) from the scalp and hair follicles.
Examples of sulfates in hair care products:
Sodium lauryl sulfate (SLS)
Sodium laureth sulfate (SLES)
Ammonium lauryl sulfate
They can remove oil and buildup and create that rich, foamy lather you crave. But sulfates can also strip away too much moisture, leaving hair feeling dry, dull, or prone to tangling — particularly for those with sensitive scalps, curly, textured hair, or conditions like rosacea or eczema.
That said — and contrary to popular belief — sulfates aren't toxic ingredients or linked to serious health risks, especially not in the small quantities used in hair products.
Still, if you prefer a gentler cleanse or have a sensitive scalp, opting for sulfate-free formulas may be a better choice.
Fragrances in hair care products aren't necessarily harmful to hair, but they can be a common irritant — particularly for those with sensitive skin. Specifically, some synthetic fragrances contain allergens that may trigger irritation, dryness, or even contact dermatitis in people prone to skin reactions.
Research suggests that fragrances in hair products (particularly those that rinse out, like shampoo) may not have the same risk of irritation as leave-on skincare. But they can still be problematic for those with conditions like rosacea or eczema.
If you're sensitive to fragrances, opt for products labeled 'fragrance-free' rather than 'unscented,' as unscented formulas may still contain masking agents that could irritate your scalp.
Silicones are commonly found in hair products that promise to detangle and deliver silky, smooth strands. Though they can create a sleek, frizz-free finish, they also have a tendency to build up over time, leaving hair looking dull, dry, and weighed down.
Silicones aren't necessarily bad for your hair, but if you're noticing issues and want to switch, some types of silicones to avoid include:
Dimethicone
Phenyl trimethicone
Cyclomethicone
Cyclopentasiloxane
Cyclohexasiloxane
If you use products with silicones, think about adding a clarifying shampoo to your routine every few washes to prevent buildup and keep your hair feeling fresh.
Parabens are preservatives commonly used in makeup, skincare, and hair care products to prevent the growth of mold and bacteria. While they help extend shelf life, their potential effects on health (and hair health) are still up for debate.
Parabens found in hair products include:
Propylparaben
Methylparaben
Ethylparaben
Butylparaben
Research suggests that parabens can be absorbed into the body, with traces found in urine samples. They aren't considered highly toxic, but some studies on animals indicate parabens may act as endocrine disruptors, potentially interfering with hormone production (specifically estrogen, progesterone, and thyroid hormone). But this hasn't always been the case in human studies.
If you prefer to play it safe, look for hair products labeled 'paraben-free.'
Formaldehyde is a strong-smelling, colorless gas that can irritate the eyes, nose, and lungs — causing symptoms like coughing, wheezing, and nausea when inhaled. It's also classified as a carcinogen, meaning prolonged exposure may increase the risk of cancer, according to the National Cancer Institute.
While formaldehyde isn't typically found in shampoos or conditioners, it's sometimes used in hair-smoothing treatments designed to straighten hair and reduce curls.
These treatments often contain:
Formalin, a liquid form of formaldehyde dissolved in water
Methylene glycol, a chemical that releases formaldehyde gas when exposed to heat
When these products are applied with a blow dryer or flat iron, they can release formaldehyde fumes, which may cause respiratory and skin irritation — especially in poorly ventilated environments.
Formaldehyde exposure might trigger allergic reactions, respiratory issues, or skin irritation, leading to rashes, coughing, and discomfort.
To avoid products containing formaldehyde and minimize your risk, ask your stylist before getting any hair-smoothing or straightening treatments, and check ingredient lists for formalin and methylene glycol.
Some types of alcohol can be drying to the hair and scalp. They're often added to hair care products to help shampoo ingredients penetrate the hair shaft more effectively. But they can also strip away moisture, leaving hair brittle and prone to frizz.
Short-chain alcohols evaporate quickly, which can contribute to dryness and irritation. Often found in styling products like hairsprays and gels, these include:
Isopropyl alcohol
Ethanol
SD (specially denatured) alcohol
Denatured alcohol
That said, not all alcohols are bad for hair. Fatty alcohols can actually be beneficial.
'Fatty alcohols can hydrate and smooth the hair and can be beneficial for all hair types,' says Sara Harcharik Perkins, MD, FAAD, board-certified dermatologist and Hims & Hers medical advisory board member.
Fatty alcohols include:
Cetyl alcohol
Stearyl alcohol
Cetearyl alcohol
Behenyl alcohol
So, if your hair is prone to dryness, avoid products with drying alcohols high up on the ingredient list. Opt for formulas with hydrating ingredients instead.
If you lighten your hair — whether at home or in a salon — you've likely used chemical bleaches. Common bleaching agents include:
Hydrogen peroxide
Ammonium persulfate
These chemicals work quickly to remove pigment, but they also weaken hair structure. Some research shows that bleached hair develops irregular, lifted cuticle scales, reducing tensile strength and making strands more prone to breakage.
Beyond causing hair damage, bleach and hair dyes can irritate the scalp. Hydrogen peroxide is a caustic chemical (something that can burn or corrode skin), and prolonged exposure can cause burning, itching, and irritant dermatitis. While rare, there are even case reports of people developing deep burns after getting bleaching and colored hair procedures.
To minimize damage, it's best to:
Seek professional help rather than bleaching at home
Limit color treatments, waiting at least eight to 10 weeks between sessions, as recommended by the American Academy of Dermatology
Opt for gentler coloring methods when possible, like ammonia-free dyes or glosses
Coloring your hair isn't inherently harmful, but taking a cautious approach can help keep your strands healthier in the long run.
Check out our guide on how to repair chemically damaged hair for more pointers.
Coal tar was once a byproduct of coal processing, but it's now usually derived from petroleum, according to the FDA (U.S. Food and Drug Administration). It's sometimes added to medicated shampoos, hair dyes, and scalp treatments for conditions like scalp psoriasis and dandruff since it has anti-itching and antibacterial effects.
Older animal studies linked long-term coal tar exposure to an increased risk of certain cancers.
Because of these concerns, coal tar is banned or restricted in Canada and many European countries. Though it's less common in hair care today, it may still be found in certain hair dyes, anti-dandruff shampoos, and styling gels.
To avoid coal tar, check ingredient labels for terms like:
Coal tar solution
Carbo-cort
Liquor carbonis detergens (LCD)
The FDA allows limited concentrations of coal tar in over-the-counter (OTC) products — it's labeled as a Category I substance, meaning it's a safe and effective OTC drug ingredient. But you might want to choose an alternative for scalp care and hair dyeing.
Phthalates are chemical compounds used as solvents and preservatives in hair care products, including shampoos, conditioners, and styling sprays. They help formulations last longer and can improve product texture, but their safety has been called into question.
Emerging research suggests that phthalates cause hormone disruption, particularly in the reproductive system. Due to these concerns, phthalates are banned in several countries, including Canada and the European Union.
In the U.S., manufacturers aren't required to list phthalates on ingredient labels, making them harder to avoid. So, to play it safe, look for products labeled 'phthalate-free,' or avoid products with vague terms like 'fragrance,' which can sometimes contain hidden phthalates.
Many shampoos, conditioners, and styling products contain oils to help protect hair from damage, boost hydration, and enhance shine.
Most oils are beneficial in moderation. However, some heavier oils (like mineral oil or castor oil) and natural fats — such as shea butter and coconut oil — can lead to buildup, clog hair follicles, and contribute to acne breakouts along the scalp and hairline.
If you're prone to breakouts, check ingredient labels for rich oils that may be comedogenic. Switching to 'non-comedogenic' or 'oil-free' hair products might help keep your skin clear.
If you're wondering what ingredients cause hair loss, selenium sulfide might be one of the culprits.
Selenium sulfide is often found in prescription shampoos designed to treat scalp itchiness and flaking, but it can be irritating for some people.
Side effects of selenium sulfide can include hair loss and discoloration. If you notice these issues or experience irritation on your scalp or skin, be sure to reach out to your healthcare provider.
Beyond harmful ingredients, certain hair care habits, styling techniques, and lifestyle factors can contribute to brittle strands, thinning, and scalp irritation. Some can even exacerbate damage from ingredients in hair care products.
In addition to avoiding the ingredients listed above, be aware of the following common sources of hair damage.
Excessive heat weakens hair cuticles, leading to frizz and breakage. Research shows that even a standard hair dryer temperature can cause damage when held too close, with higher temperatures worsening the effect.
To minimize heat damage:
Use lower heat settings on styling tools and limit use to every other day
Keep your hairdryer at least six inches from your scalp and move it continuously
What does damaged hair look like? Explore the signs in our blog.
Believe it or not, brushing your hair a hundred times a day doesn't stimulate growth. In fact, it's much more likely to prevent you from maintaining healthy hair.
Excessive hair-brushing can contribute to split ends — when the tips of your hair become frayed. Brushing wet hair can be particularly harmful, as hair is more likely to break when it's wet.
But there's one exception to this rule: If you have curly hair or textured hair, brushing when wet is actually helpful for preventing breakage.
In any case, it's best to brush your hair only when you need to.
Just like skin, hair is vulnerable to UV (ultraviolet) damage. Sun exposure can be especially harmful if your hair is bleached or dyed (or if you do any hair treatments that break down keratin bonds), making strands brittle and dry.
To limit the combined effects of sun exposure and chemical dyes, you can:
Use a leave-in conditioner with UV protection before sun exposure
Wear a hat or scarf when spending extended time outdoors
Is sun ever good for your hair? Our blog has answers.
Maintaining healthy hair is largely about choosing the right products, building good hair care habits, and making healthy lifestyle choices.
To keep your hair healthy and strong and avoid potentially harmful chemicals, keep these key takeaways in mind:
Watch out for harsh ingredients. What are bad ingredients in shampoo? Sulfates, parabens, artificial fragrances, and certain alcohols and oils can strip moisture, cause irritation, or disrupt the scalp's balance. Avoid formaldehyde-releasing compounds when possible, while being mindful that others, like silicones or oils, may be fine depending on your hair type.
Choose the right products for your hair type. Look for products tailored to your specific needs — whether you're fighting hair loss or just want to maintain healthy, hydrated hair. Consider an anti-shedding shampoo and conditioner set if you're prone to hair loss, for example.
Practice healthy hair care habits. Good habits matter! Excessive heat styling, brushing too often, and prolonged sun exposure can damage hair. Use protective products like heat protectants, and avoid overexposure to the sun.
Healthy lifestyle can support healthy hair. Nourishing your body and maintaining good habits like eating well and managing stress can make a significant difference in your hair health.
Want to learn more about taking care of your hair? Check out these simple hair tips for different hair types.
This story was produced by Hers and reviewed and distributed by Stacker.
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HIMS Stock Plunges Following Q2 Earnings Miss, Gross Margin Down

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Hims & Hers Health, Inc. Reports Second Quarter 2025 Financial Results
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Hims & Hers Health, Inc. Reports Second Quarter 2025 Financial Results

SAN FRANCISCO--(BUSINESS WIRE)--Hims & Hers Health, Inc. ('Hims & Hers' or the 'Company', NYSE: HIMS), the leading health and wellness platform, today announced financial results for the second quarter ended June 30, 2025, in a shareholder letter that is posted at 'It's never been more clear that we are delivering exactly what millions of people have been waiting for: access to personalized, high-quality care that meets people where they are. From the momentum of our business to the results our customers are achieving, we are more confident than ever that our model is helping people optimize their health and realize the benefits of precision medicine,' said Andrew Dudum, co-founder and CEO. 'We believe we're entering an exciting period of growth where we'll enter new, high-impact specialties that bring millions of people in need of care into the market. We expect this broadening offering will transform our platform from a place where customers come to solve a single issue, to one where customers can proactively manage their overall health.' Yemi Okupe, CFO, stated, 'We're seeing consistent growth across our business as we continue to democratize access to precision care. In the second quarter, revenue grew 73% and Adjusted EBITDA more than doubled relative to the prior year; both were driven by robust growth in Subscribers utilizing personalized treatment plans. As we move into the second half of 2025, our focus is on investing in capabilities that will deepen the value customers can access on our platform. This includes plans to strengthen the personalization infrastructure in our pharmacies, to expand lab testing capabilities to further tailor care, and to grow our international presence in key markets.' Second Quarter 2025 Financial Highlights Revenue was $544.8 million for the second quarter of 2025 compared to $315.6 million for the second quarter of 2024, an increase of 73% year-over-year. Gross margin was 76% for the second quarter of 2025 compared to 81% for the second quarter of 2024. Net income was $42.5 million for the second quarter of 2025 compared to $13.3 million for the second quarter of 2024. Adjusted EBITDA was $82.2 million for the second quarter of 2025 compared to $39.3 million for the second quarter of 2024. Net cash used in operating activities was $(19.1) million for the second quarter of 2025 compared to net cash provided by operating activities of $53.6 million for the second quarter of 2024. Free Cash Flow was $(69.4) million for the second quarter of 2025 compared to $47.6 million for the second quarter of 2024. Reconciliations of Adjusted EBITDA and Free Cash Flow, non-GAAP measures, to net income and net cash (used in) provided by operating activities, respectively, their most comparable financial measures under generally accepted accounting principles in the United States ('U.S. GAAP'), have been provided in this press release in the accompanying tables. Additional information about Adjusted EBITDA and Free Cash Flow is also included below under the heading 'Non-GAAP Financial Measures'. Financial Outlook Hims & Hers is providing the following guidance: For the third quarter 2025, we expect: Revenue of $570 million to $590 million. Adjusted EBITDA of $60 million to $70 million, reflecting an Adjusted EBITDA margin of 11% to 12%. For the full year 2025, we expect: Revenue of $2.3 billion to $2.4 billion. Adjusted EBITDA of $295 million to $335 million, reflecting an Adjusted EBITDA margin of 13% to 14%. The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the 'Cautionary Note Regarding Forward-Looking Statements' safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. We have relied upon the exception in Item 10(e)(1)(i)(B) of Regulation S-K and have not reconciled forward-looking Adjusted EBITDA to its most directly comparable U.S. GAAP measure, net income or loss, because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income or loss. See 'Non-GAAP Financial Measures' for additional important information regarding Adjusted EBITDA. Conference Call Hims & Hers will host a conference call to review the second quarter 2025 results on August 4, 2025, at 5:00 p.m. ET. The conference call can be accessed by dialing +1 (888) 510-2630 for U.S. participants and +1 (646) 960-0137 for international participants, and referencing conference ID #1704296. A live audio webcast will be available online at A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call at the same link. About Hims & Hers Health, Inc. Hims & Hers is the leading health and wellness platform on a mission to help the world feel great through the power of better health. We believe how you feel in your body and mind transforms how you show up in life. That's why we're building a future where nothing stands in the way of harnessing this power. Hims & Hers normalizes health & wellness challenges—and innovates on their solutions—to make feeling happy and healthy easy to achieve. No two people are the same, so the Company provides access to personalized care designed for results. For more information, please visit Cautionary Note Regarding Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the use of forward-looking terminology, including the words 'believe,' 'estimate,' 'anticipate,' 'expect,' 'assume,' 'imply,' 'intend,' 'plan,' 'may,' 'will,' 'potential,' 'project,' 'predict,' 'continue,' 'could,' 'confident,' 'confidence,' or 'should,' or, in each case, their plural, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include, but are not limited to, any statements relating to our financial outlook and guidance, including our mission to drive top-line growth and profitability and our ability to attain our financial and operational targets; our expected future financial and business performance, including with respect to the Hims & Hers platform, our marketing campaigns, investments in innovation, the solutions accessible on our platform, and our infrastructure, and the underlying assumptions with respect to the foregoing; statements relating to events and trends relevant to us, including with respect to our regulatory environment, financial condition, results of operations, short- and long-term business operations, objectives, and financial needs; expectations regarding our mobile applications, market acceptance, user experience, customer retention, brand development, our ability to invest and generate a return on any such investment, customer acquisition costs, operating efficiencies and leverage (including our fulfillment capabilities), the effect of any pricing decisions, changes in our product or offering mix, the timing and market acceptance of any new products or offerings, the timing and anticipated effect of any pending or recently completed acquisitions, the success of our business model, our market opportunity, our ability to scale our business and expand internationally, the growth of certain of our specialties, our ability to innovate on and expand the scope of our offerings and experiences, including through the use of data analytics and artificial intelligence, our ability to reinvest into the customer experience, our ability to comply with the extensive, complex and evolving legal and regulatory requirements applicable to our business, including without limitation state and federal healthcare, privacy and consumer protection laws and regulations, and the effect or outcome of litigation or governmental actions in relation to any such legal and regulatory requirements. These statements are based on management's current expectations, but actual results may differ materially due to various factors. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the 'Risk Factors' section of each of our most recently filed Quarterly Report on Form 10-Q, our most recently filed Annual Report on Form 10-K, and any of our subsequent filings with the Securities and Exchange Commission (the 'Commission'). Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation (and expressly disclaim any obligation) to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These risks and others described in the 'Risk Factors' section of each of our most recently filed Quarterly Report on Form 10-Q, our most recently filed Annual Report on Form 10-K, and any of our subsequent filings with the Commission may not be exhaustive. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in reports we have filed or will file with the Commission, including our most recently filed Annual Report on Form 10-K, our most recently filed Quarterly Report on Form 10-Q, and any of our subsequent filings with the Commission. In addition, even if our results of operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in such reports, those results or developments may not be indicative of results or developments in subsequent periods. Key Business Metrics 'Online Revenue' represents the sales of products and services on our platform, net of refunds, credits, and chargebacks, and includes revenue recognition adjustments recorded pursuant to U.S. GAAP, primarily relating to deferred revenue and returns reserve. Online Revenue is generated by selling directly to consumers through our websites and mobile applications. Our Online Revenue consists of products and services purchased by customers directly through our online platform. The majority of our Online Revenue is subscription-based, where customers agree to be billed on a recurring basis to have products and services automatically delivered to them. 'Wholesale Revenue' represents non-prescription product sales to retailers through wholesale purchasing agreements. Wholesale Revenue also includes non-prescription product sales to third-party platforms through consignment arrangements. In addition to being revenue generative and profitable, wholesale partnerships and consignment arrangements have the added benefit of generating brand awareness with new customers in physical environments and on third-party platforms. 'Subscribers' are customers who have one or more 'Subscriptions' pursuant to which they have agreed to be automatically billed on a recurring basis at a defined cadence. The Subscription billing cadence is typically defined as a number of days (for example, billed every 30 days or every 90 days), which are excluded from our reporting when payment has not occurred at the contracted billing cadence. Subscribers can cancel or snooze Subscriptions in between billing periods to stop receiving additional products and/or services and can reactivate Subscriptions to continue receiving additional products and/or services. 'Monthly Online Revenue per Average Subscriber' is defined as Online Revenue divided by 'Average Subscribers', which amount is then further divided by the number of months in a period. 'Average Subscribers' are calculated as the sum of the Subscribers at the beginning and end of a given period divided by 2. December 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,124,582 $ 220,584 Short-term investments 20,033 79,667 Inventory 141,800 64,427 Prepaid expenses and other current assets 69,151 31,153 Total current assets 1,355,566 395,831 Restricted cash 368 856 Goodwill 117,753 112,728 Property, equipment, and software, net 205,480 82,083 Intangible assets, net 40,657 43,410 Operating lease right-of-use assets 71,661 10,881 Deferred tax assets, net 84,229 61,603 Other long-term assets 1,868 147 Total assets $ 1,877,582 $ 707,539 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 105,009 $ 91,180 Accrued liabilities 65,671 53,013 Deferred revenue 98,417 75,285 Operating lease liabilities 3,135 1,889 Total current liabilities 272,232 221,367 Convertible senior notes, net 969,467 — Operating lease liabilities 71,786 9,456 Other long-term liabilities 1,401 — Total liabilities 1,314,886 230,823 Commitments and contingencies Stockholders' equity: Common stock – Class A shares, par value $0.0001, 2,750,000,000 shares authorized and 217,381,434 and 212,459,586 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively; Class V shares, par value $0.0001, 10,000,000 shares authorized and 8,377,623 shares issued and outstanding as of June 30, 2025 and December 31, 2024 23 22 Additional paid-in capital 711,998 719,155 Accumulated other comprehensive income (loss) 822 (324 ) Accumulated deficit (150,147 ) (242,137 ) Total stockholders' equity 562,696 476,716 Total liabilities and stockholders' equity $ 1,877,582 $ 707,539 Expand CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In Thousands, Except Share and Per Share Data, Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 544,833 $ 315,648 $ 1,130,843 $ 593,819 Cost of revenue 128,637 59,035 283,958 108,111 Gross profit 416,196 256,613 846,885 485,708 Gross margin % 76 % 81 % 75 % 82 % Operating expenses: (1) Marketing 217,862 144,922 449,097 275,475 Operations and support 66,490 41,453 129,523 80,200 Technology and development 37,848 18,654 67,762 33,978 General and administrative 67,273 40,554 115,883 75,122 Total operating expenses 389,473 245,583 762,265 464,775 Income from operations 26,723 11,030 84,620 20,933 Other income and expense, net 6,130 2,394 8,728 4,894 Income before income taxes 32,853 13,424 93,348 25,827 Benefit (provision) for income taxes 9,652 (127 ) (1,358 ) (1,402 ) Net income 42,505 13,297 91,990 24,425 Other comprehensive income (loss) 986 (6 ) 1,146 (44 ) Total comprehensive income $ 43,491 $ 13,291 $ 93,136 $ 24,381 Net income per share attributable to common stockholders: Diluted $ 0.17 $ 0.06 $ 0.37 $ 0.11 Weighted average shares outstanding: Basic 224,373,375 214,618,037 223,187,936 214,035,065 Expand CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands, Unaudited) Six Months Ended June 30, 2025 2024 Operating activities Net income $ 91,990 $ 24,425 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 18,741 6,644 Stock-based compensation 60,584 43,074 Net accretion on securities (1,060 ) (2,281 ) Benefit for deferred taxes (10,346 ) — Impairment of long-lived assets — 114 Amortization of debt discount and issuance costs 1,047 — Non-cash operating lease cost 4,594 1,221 Non-cash acquisition-related costs 2,985 — Non-cash other (1,315 ) 412 Changes in operating assets and liabilities: Inventory (77,373 ) (18,124 ) Prepaid expenses and other current assets (38,081 ) (1,430 ) Other long-term assets (10 ) (47 ) Accounts payable 5,146 16,156 Accrued liabilities 11,737 (24 ) Deferred revenue 23,132 13,257 Operating lease liabilities (1,798 ) (1,140 ) Earn-out payable — (2,825 ) Net cash provided by operating activities 89,973 79,432 Investing activities Purchases of investments — (97,539 ) Maturities of investments 60,569 126,095 Investment in website development and internal-use software (7,961 ) (6,191 ) Purchases of property, equipment, and intangible assets (101,392 ) (13,793 ) Acquisition of business, net of cash acquired (5,100 ) — Net cash (used in) provided by investing activities (53,884 ) 8,572 Financing activities Proceeds from issuance of convertible senior notes, net of debt discount 970,000 — Purchases of capped calls related to convertible senior notes (47,800 ) — Proceeds from exercise of vested stock options 6,497 16,472 Payments for taxes related to net share settlement of equity awards (62,475 ) (22,281 ) Proceeds from employee stock purchase plan 2,970 1,622 Payments for debt issuance costs (3,041 ) — Repurchases of common stock — (47,996 ) Payments for acquisition-related earn-out consideration — (3,190 ) Net cash provided by (used in) financing activities 866,151 (55,373 ) Foreign currency effect on cash and cash equivalents 1,270 1 Increase in cash, cash equivalents, and restricted cash 903,510 32,632 Cash, cash equivalents, and restricted cash at beginning of period 221,440 97,519 Cash, cash equivalents, and restricted cash at end of period $ 1,124,950 $ 130,151 Reconciliation of cash, cash equivalents, and restricted cash Cash and cash equivalents $ 1,124,582 $ 129,295 Restricted cash 368 856 Total cash, cash equivalents, and restricted cash $ 1,124,950 $ 130,151 Supplemental disclosures of cash flow information Cash paid for taxes $ 23,047 $ 3,468 Non-cash investing and financing activities Purchases of property and equipment included in accounts payable and accrued liabilities $ 16,954 $ 1,256 Deferred debt issuance costs included in accounts payable and accrued liabilities 249 — Right-of-use asset obtained in exchange for lease liability 63,434 2,174 Issuance of common stock in connection with asset acquisition 12,760 — Common stock to be issued for asset acquisition indemnification holdback 6,380 — Issuance of common stock for acquisition-related earn-out consideration — 1,396 Expand Non-GAAP Financial Measures In addition to our financial results determined in accordance with U.S. GAAP, we present Adjusted EBITDA (which is a non-GAAP financial measure), Adjusted EBITDA margin (which is a non-GAAP ratio), and Free Cash Flow (which is a non-GAAP financial measure) each as defined below. We use Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow, when taken together with the corresponding U.S. GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. We believe that the use of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow is helpful to our investors as they are used by management in assessing the health of our business, our operating performance, and our liquidity. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures or ratios differently or may use other financial measures or ratios to evaluate their performance, all of which could reduce the usefulness of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow as tools for comparison. Reconciliations are provided below to the most directly comparable financial measures stated in accordance with U.S. GAAP. Investors are encouraged to review our U.S. GAAP financial measures and not to rely on any single financial measure to evaluate our business. Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. 'Adjusted EBITDA' is defined as net income before stock-based compensation, depreciation and amortization, acquisition and transaction-related costs (which includes (i) consideration paid for employee and nonemployee compensation with vesting requirements incurred directly as a result of acquisitions, and (ii) transaction professional services), payroll tax expense related to stock-based compensation, impairment of long-lived assets, interest income and expense, net, and income taxes. 'Adjusted EBITDA margin' is defined as Adjusted EBITDA divided by revenue. In the second quarter of 2025, we revised our definition of Adjusted EBITDA to include payroll tax expense related to stock-based compensation, which comprises employer taxes incurred upon vesting of restricted stock units and upon exercise of nonqualified stock options. As a result of recent trends in our stock price, this amount was not considered significant for prior periods and, accordingly, prior period disclosures were not recast to conform to the current presentation. Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital commitments to be paid in the future, and (ii) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures. In evaluating Adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items. We compensate for these limitations by providing specific information regarding the U.S. GAAP items excluded from Adjusted EBITDA. When evaluating our performance, you should consider Adjusted EBITDA in addition to, and not as a substitute for, other financial performance measures, including our net income and other U.S. GAAP results. Free Cash Flow is a key performance measure that our management uses to assess our liquidity. Because Free Cash Flow facilitates internal comparisons of our historical liquidity on a more consistent basis, we use this measure for business planning purposes. 'Free Cash Flow' is defined as net cash (used in) provided by operating activities, less purchases of property, equipment, and intangible assets and investment in website development and internal-use software in investing activities. Some of the limitations of Free Cash Flow include (i) Free Cash Flow does not represent our residual cash flow for discretionary expenditures and our non-discretionary commitments, and (ii) Free Cash Flow includes capital expenditures, the benefits of which may be realized in periods subsequent to those in which the expenditures took place. In evaluating Free Cash Flow, you should be aware that in the future we will have cash outflows similar to the adjustments in this presentation. Our presentation of Free Cash Flow should not be construed as an inference that our future results will be unaffected by these cash outflows or any unusual or non-recurring items. When evaluating our performance, you should consider Free Cash Flow in addition to, and not as a substitute for, other financial performance measures, including our net cash (used in) provided by operating activities and other U.S. GAAP results.

Hims & Hers stock falls 10% on revenue miss
Hims & Hers stock falls 10% on revenue miss

CNBC

time2 days ago

  • CNBC

Hims & Hers stock falls 10% on revenue miss

Shares of Hims & Hers Health fell 9% in extended trading on Monday after the telehealth company reported second-quarter results that missed Wall Street's expectations for revenue. Here's how the company did based on average analysts' estimates compiled by LSEG: Revenue at Hims & Hers increased 73% in the second quarter from $315.6 million during the same period last year, according to a release. Hims & Hers reported a net income of $42.5 million, or 17 cents per share, compared to $13.3 million, or 6 cents per share, during the same period a year earlier. For its third quarter, Hims & Hers said it expected to report revenue between $570 million to $590 million, while analysts were expecting $583 million. The company said its adjusted EBITDA for the quarter will be between the range of $60 million to $70 million. Analysts polled by StreetAccount were expecting $77.1 million. Hims & Hers has faced controversy in recent months over its continued sale of compounded GLP-1s, which are cheaper, unapproved versions of the blockbuster diabetes and weight loss drugs. Compounded drugs can be mass produced when brand-name treatments are in shortage, but the U.S. Food and Drug Administration announced in February that ongoing supply issues had been resolved. Some telehealth companies, including Hims & Hers, have continued to offer the compounded medications. It's legal for patients to access personalized doses of the knockoffs in unique cases, like if they are allergic to an ingredient in a branded product, for instance. Hims & Hers has said consumers may still be able to access personalized doses through its site if clinically applicable. In June, Hims & Hers shares tumbled more than 30% after a short-lived collaboration with Novo Nordisk fell apart. The drugmaker said Hims & Hers "failed to adhere to the law which prohibits mass sales of compounded drugs" under the "false guise" of personalization. Hims & Hers reported adjusted EBITDA of $82 million for its second quarter, up from $39.3 million last year and above the $73 million expected by StreetAccount. Hims & Hers will host its quarterly call with investors at 5 p.m. ET.

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