Hims & Hers (HIMS) Stock: Company Acquires Eucalyptus for Up to $1.15 Billion

TLDR

• Hims & Hers Health (HIMS) will acquire Australian digital health company Eucalyptus for up to $1.15 billion.
• The deal includes ~$240 million cash at closing, deferred payments over 18 months, and performance-based earnouts through early 2029.
• Eucalyptus runs a ~$450 million annual revenue business with brands like Juniper and Pilot, serving 775,000+ customers.
• The acquisition expands HIMS into Australia and Japan, and deepens its presence in the UK, Germany, and Canada.
• Eucalyptus CEO Tim Doyle will head international operations at Hims & Hers post-closing.

Hims & Hers Health announced Thursday it will acquire Australian digital health company Eucalyptus in a deal valued at up to $1.15 billion.

Hims & Hers Health, Inc., HIMS

The transaction will be structured with roughly $240 million payable in cash at closing, followed by deferred payments over 18 months and additional performance-based earnouts running through early 2029.

Hims & Hers said it plans to fund most of the deal using existing cash and U.S. operating cash flows. The company also retains the option to settle a majority of deferred and earnout obligations in either cash or stock.

The deal is expected to close around mid-2026, subject to regulatory approvals and customary closing conditions.

Eucalyptus brings a fast-growing business to the table. The Australian company is running at nearly $450 million in annual revenue and has served more than 775,000 customers across its portfolio of consumer health brands.

Those brands include Juniper, a weight-loss program, and Pilot, a men’s telehealth service. Both operate across multiple international markets.

A Foothold in New Markets

For Hims & Hers, the strategic appeal is clear. The deal would give it direct operations in Australia and Japan, two markets where it currently has no presence.

It also strengthens existing partnerships in the UK, Germany, and Canada — markets where Hims & Hers has been building out its telehealth footprint.

Post-closing, Eucalyptus CEO Tim Doyle is set to lead all international operations at Hims & Hers. The Eucalyptus brands will be folded into the Hims & Hers platform over time.

Management said the combined business is expected to support category leadership in Australia and reinforce HIMS as a major telehealth provider in Europe.

The Wegovy Shadow

The deal comes at a complicated time for Hims & Hers domestically. The company is currently facing a lawsuit from Novo Nordisk after the FDA crackdown forced it to pull its $49 compounded copy of Wegovy from the market.

That regulatory setback hit a key growth driver for HIMS, making the international diversification story behind this acquisition particularly timely.

The most recent analyst rating on HIMS stock is a Buy with a $30.00 price target.

HIMS shares were up 2.65% in after-hours trading following the announcement, though the stock was down 2.64% during the regular session on Thursday.

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