Eucalyptus: A Rising Force in Digital Healthcare

Founded in 2019, Eucalyptus has quickly established itself as a dominant player, particularly within the Australian market. The company operates under a “house of brands” model, featuring well-known consumer brands like Juniper and Pilot, mirroring the successful approach pioneered by Hims & Hers. This shared philosophy centers on a consumer-first experience and a streamlined approach to healthcare access.

Financial Performance and Growth Trajectory

Eucalyptus isn’t just aesthetically aligned with Hims & Hers; it’s a robust revenue generator. The company currently boasts an annual revenue run-rate (ARR) exceeding $450 million, demonstrating impressive financial strength. Furthermore, Eucalyptus has consistently delivered triple-digit year-over-year ARR growth throughout 2025, indicating a strong upward trajectory. To date, Eucalyptus has served over 775,000 customers and facilitated nearly two million telehealth consultations.

Regulatory Expertise and Clinical Rigor

A key asset Eucalyptus brings to the table is its deep understanding of local regulatory landscapes. Notably, it is the first Australian telehealth business to achieve accreditation from the Australian Council on Healthcare Standards (ACHS). This accreditation underscores Eucalyptus’s commitment to clinical rigor and quality of care, a crucial factor in navigating the complexities of healthcare regulations.

“Healthcare challenges are global, and so is the demand for simpler, transparent, and more personalized healthcare,” stated Andrew Dudum, founder and CEO of Hims & Hers. “With Eucalyptus, we will not only enter new markets, we will expand our ability to serve customers globally.”

Strategic Implications: A Global Expansion Play

This acquisition represents a significant strategic shift for Hims & Hers, accelerating its international expansion plans. Rather than building infrastructure from the ground up in new territories, Hims & Hers gains immediate access to Eucalyptus’s established presence and customer base. But what does this mean for the future of telehealth? Will this consolidation lead to increased innovation or reduced competition?

Financing the Acquisition: A Balanced Approach

Despite the substantial $1.15 billion price tag, Hims & Hers has structured the transaction to minimize financial risk. Upon closing, anticipated in mid-2026, approximately $240 million will be paid in cash. The remaining balance will be settled through a combination of guaranteed deferred payments over 18 months and performance-based earnout payments extending into early 2029. Importantly, Hims & Hers retains the flexibility to settle these deferred and earnout payments in either cash or stock, leveraging its existing cash reserves for the initial outlay.

Leadership Transition: Integrating Expertise

To ensure a smooth integration, Tim Doyle, the current CEO and co-founder of Eucalyptus, will assume the role of SVP of International at Hims & Hers. In this capacity, Doyle will oversee the combined company’s global business operations, leveraging his expertise to drive international growth and market penetration.

“We’ve spent 7 years helping customers around the world find the care that fits them, and we believe today’s news will be part of accelerating the movement towards affordable healthcare for everyone,” Doyle commented.

This acquisition underscores the growing trend of consolidation within the digital health sector. As telehealth continues to gain mainstream acceptance, we can expect to see further mergers and acquisitions as companies seek to expand their reach and solidify their market positions. MobiHealthNews provides ongoing coverage of these trends.

Frequently Asked Questions About the Hims & Hers and Eucalyptus Acquisition

• What is the primary benefit of the Hims & Hers acquisition of Eucalyptus?

  The primary benefit is Hims & Hers’s immediate expansion into new international markets, particularly Australia and Japan, and a strengthened presence in existing markets like the UK, Germany, and Canada.

• What is Eucalyptus’s current annual revenue run-rate (ARR)?

  Eucalyptus currently has an annual revenue run-rate exceeding $450 million, demonstrating significant financial performance.

• How will the acquisition be financed?

  The acquisition will be financed through a combination of approximately $240 million in cash upfront, deferred payments, and potential earnout payments settled in either cash or stock.

• What role will Tim Doyle play in the combined company?

  Tim Doyle, the current CEO of Eucalyptus, will become the SVP of International at Hims & Hers, overseeing global business operations.

• Is Eucalyptus accredited by any healthcare standards organizations?

  Yes, Eucalyptus is the first Australian telehealth business to receive accreditation from the Australian Council on Healthcare Standards (ACHS), demonstrating its commitment to clinical quality.

• What does this acquisition mean for the future of telehealth?

  This acquisition signals a trend of consolidation in the telehealth industry, potentially leading to increased innovation and broader access to digital healthcare solutions.