Oddity Enters Telehealth Skincare, Targeting Hims’ Dermatology Niche

What happened

Oddity, the parent of Il Makiage and Spoiled Child, has launched Methodiq, a telehealth platform focused on medical skincare, offering 28 products for acne, hyperpigmentation and eczema priced roughly $29–$59. The move explicitly targets Hims & Hers’ fast-growing dermatology and skincare franchise, one of several categories (along with hair loss, sexual health, weight management and mental health) within its vertically integrated telehealth and pharmacy platform. Hims currently serves over 2.4 million subscribers with $74 in monthly online revenue per average subscriber and is guiding to $2.3–$2.4 billion of FY25 revenue and $295–$335 million of adjusted EBITDA, supported by a net cash balance sheet. Methodiq introduces a well-funded DTC beauty player into telehealth skincare, potentially intensifying competition for online skincare patients, advertising inventory and influencer/brand mindshare. For now, Methodiq is limited to skincare SKUs and is early-stage relative to Hims’ multi-condition, subscription-led model, so the development is more of a medium-term competitive watch point than an immediate threat to Hims’ FY25 trajectory.

Implication

For Hims investors, Oddity’s Methodiq launch underscores that attractive, consumer-facing telehealth verticals like skincare will continue to attract new, brand-savvy entrants. Over time this could pressure customer acquisition costs and limit pricing power in dermatology, slightly narrowing upside in that subsegment versus a blue-sky scenario where Hims faced mostly traditional clinic and pharmacy competitors. However, dermatology is only one component of Hims’ diversified portfolio, and the company’s scale, subscription base, in-house pharmacy, and lab/personalization roadmap should help it defend share and cross-sell into other higher-value categories. Near term, the news does not change the probability of Hims achieving its reiterated FY25 revenue and EBITDA guidance, and valuation remains the primary constraint on upgrading the stock. Investors should monitor signs of competitive response in Hims’ marketing mix and promotional intensity within dermatology, as well as any commentary on category-level growth or ARPU pressure on future earnings calls.

Thesis delta

Our overall stance on HIMS remains HOLD/NEUTRAL: the company is executing well and its guidance and profitability targets are unchanged, but valuation already embeds robust growth. The Methodiq launch incrementally raises medium-term competitive intensity in dermatology, so we modestly temper our long-run share and margin assumptions in that subsegment, though the impact is not thesis-changing at the consolidated level.