HIMS Stock Slips Overnight: Hims & Hers Bulks Up Debt Raise To $350M For Eucalyptus Buyout, AI Push

• The company expects net proceeds of up to $389.5 million from the debt offering.
• Hims’ $1.15 billion acquisition of Eucalyptus is expected to expand its footprint across Australia, Japan, Canada, Germany and the UK.
• The company has been accelerating its AI healthcare strategy through tools like Labs AI, an AI assistant that analyzes up to 130 biomarkers.

Shares of Hims & Hers Health, Inc. (HIMS) slipped 0.4% in overnight trading heading into Tuesday after the telehealth firm increased its convertible debt offering to $350 million as it ramps up funding for its proposed Eucalyptus acquisition and broader AI healthcare expansion plans.

HIMS stock slumped 11% on Monday to record its lowest levels in over a month. 

Hims Expands Debt Offering

Hims & Hers said it priced $350 million of 0.00% convertible senior notes due 2032, increasing the size of the offering from the previously announced $300 million. The company also granted purchasers an option to buy an additional $52.5 million in notes.

The company estimates net proceeds of $338.5 million, or about $389.5 million if the additional option is fully exercised. Hims said the proceeds will help preserve financial flexibility while supporting its international expansion strategy, including the proposed Eucalyptus acquisition expected to close in mid-2026. The company also plans to invest heavily in tech, fulfillment operations, and AI to improve customer experience and better leverage its closed-loop healthcare data ecosystem.

The notes carry an initial conversion price of $29.53 per share, representing a 32.5% premium to Hims & Hers’ last close. 

Hims x Eucalyptus Deal

The financing comes months after Hims & Hers announced plans to acquire Eucalyptus in a deal valued at up to $1.15 billion. The deal is expected to expand the company’s footprint across Australia, Japan, Canada, Germany and the UK.

Eucalyptus operates several telehealth brands including Juniper and Pilot and has served over 775,000 customers globally. CEO Andrew Dudum previously said that the acquisition would boost the company’s ability to deliver localized healthcare services globally, while expanding access to personalized digital care.

The acquisition structure also gives Hims & Hers flexibility to fund portions of future deferred and earnout payments using either stock or cash.

Hims Pushes AI Healthcare 

Hims & Hers has also been rapidly scaling its AI healthcare initiatives. Earlier this month, the company launched Labs AI, an AI healthcare assistant integrated into its platform that helps users interpret lab tests, biomarker trends and long-term health risks. According to the company, Labs AI can analyze up to 130 biomarkers alongside medical history, lifestyle data and longitudinal health to generate personalized insights.

Investor interest around Hims’ diagnostics also increased after Dudum hinted at interest in a blood-test company that claims it could predict heart attacks within 12 months with 86% accuracy.

Hims Expands Beyond Telehealth Prescriptions

The company’s broader healthcare strategy has moved beyond telehealth prescriptions into more integrated and recurring-care models. Recently, Hims launched Testosterone Rx+, a daily hormone-support pill combining Enclomiphene with zinc, vitamins and L-arginine. The product builds on earlier hormone-health offerings launched last year that focused on fertility-friendly testosterone support and combination therapies.

The company’s hormone-health programs also include at-home lab testing, symptom screening and virtual care services as Hims pushes toward more data-driven treatment ecosystems.

Investor focus has additionally shifted toward peptides as a future growth category, with potential upsides from the upcoming FDA discussions around peptide compounds eligible for compounding. Additionally, Hims has shifted towards branded therapies through partnerships with Novo Nordisk and Eli Lilly, offering drugs including Wegovy, Ozempic, Zepbound and Mounjaro through its platform.

Dudum previously compared the company’s broader healthcare strategy to Netflix’s early growth model, saying Hims aims to expand healthcare choice and accessibility rather than rely on a single treatment category.

How Do Retail Traders Feel About HIMS?

On Stocktwits, retail sentiment for HIMS was ‘bearish’ amid ‘low’ message volume.

One user said, “This allows us to close that Eucalyptus deal without using much dilution because of the Capped call attached to this convertible note..”

Another user said, “this stock is cooked. Back to mid teens. Will have green week in late July on fda peptide news  then sell off again until earnings.”

HIMS stock has declined 66% over the past year. 

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