Hims & Hers Health announced a $200 million investment to build a new manufacturing and distribution center in New Albany, Ohio, and to create up to 400 new jobs. Construction is slated to begin in the first quarter of 2026, with the facility expected to be operational by late 2026 and reach full capacity by mid‑2027.
The expansion is part of the company’s broader strategy to vertically integrate its supply chain. By moving compounding, lab testing, and pharmacy operations in‑house, Hims & Hers aims to reduce reliance on third‑party compounding pharmacies, lower fulfillment costs, and gain tighter control over product quality and delivery times. The move also positions the company to better navigate the 503A migration headwinds that have pressured margins in recent quarters.
In Q3 2025, Hims & Hers reported revenue of $599 million, up 49% year‑over‑year, and an adjusted EBITDA of $78.4 million, a jump from $51.1 million in Q3 2024. Gross margin fell to 74% from 79% the prior year, largely because lower revenue per shipment in weight‑loss offerings and price reductions in compounded GLP‑1 treatment plans squeezed the margin. The new facility is expected to help offset these headwinds by improving operational efficiency and reducing fulfillment costs over time.
Segment analysis shows that weight‑loss and sexual‑health products continue to drive growth, while international expansion adds new revenue streams. However, the GLP‑1 segment has faced pricing pressure, contributing to the recent margin compression. The company’s focus on scaling high‑margin segments and investing in domestic manufacturing is intended to stabilize margins as it pursues its 10 million‑subscriber target by 2030.
Andrew Dudum, co‑founder and CEO, said the expansion reflects confidence in the company’s long‑term trajectory: “We’re excited to invest in infrastructure that will support our growth and deliver a simple, safe, and personalized experience for every customer.” Mike Chi, COO, added that the Ohio investment “strengthens our commitment to the community and enhances our ability to meet demand for affordable, high‑quality treatments.”
The expansion signals a strategic pivot toward greater supply‑chain control, which should improve cost structure and resilience. While the capital outlay may pressure short‑term margins, the company’s strong revenue growth and expanding subscriber base suggest that the investment will support long‑term profitability and help the firm navigate regulatory headwinds.
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