Hims & Hers Health, a direct-to-consumer virtual care company, reported a 77% year-over-year revenue increase, reaching $401.6 million in Q3 2024 from $226.7 million in the same quarter of 2023. The San Francisco-based company also posted a net income of $75.6 million for Q3, reversing a $7.6 million loss in the prior year’s quarter, largely due to a $60.8 million tax benefit from releasing a tax valuation allowance.

Adjusted EBITDA for Q3 2024 rose to $51.1 million from $12.3 million in Q3 2023, while free cash flow increased to $79.4 million from $19.3 million in the same period. Net cash from operating activities was $85.3 million, compared to $25.2 million a year earlier.

The company raised its full-year 2024 revenue forecast to between $1.46 billion and $1.465 billion, with adjusted EBITDA expected at $173 million to $178 million, or a 12% margin.

“Our model is scaling quickly, driving revenue growth, enhanced profitability, and strong cash flow,” said CFO Yemi Okupe. “Subscriber growth, excluding compounded GLP-1 solutions, is up 40% year-over-year, benefiting from increased brand awareness, enhanced personalization, and new customers managing multiple conditions.”

Hims & Hers’ stock surged up to 12% in premarket trading after Monday’s close, with shares on the NYSE (NYSE: HIMS) trading around $21.50. The company also announced plans to introduce a generic version of Novo Nordisk’s GLP-1 diabetes medication liraglutide in 2025, aiming to support weight loss and diabetes management. Hims & Hers has already secured a core supplier and expects to finalize test validations soon, according to Reuters.

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