Eucalyptus will add $450 million in annual revenue growing at a triple digit rate to Hims & Hers.
The risk is in using the $1 billion in cash on the balance sheet to buy more growth.
Management isn't shying away from the risks currently facing the business.
Hims & Hers (NYSE: HIMS) announced the $1.15 billion acquisition of Australian telehealth company Eucalyptus, which will add $450 million in annualized revenue to the company. This isn't a company shying away from recent legal action, it's scaling internationally as fast as possible. In this video, I go through the upside from this acquisition as well as the downside of using most of the cash on the balance sheet, which was once a backstop for investors.
*Stock prices used were end-of-day prices of Feb. 19, 2026. The video was published on Feb. 19, 2026.
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Travis Hoium has positions in Hims & Hers Health. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.