Hims & Hers Health Inc. (HIMS) is making its biggest move yet to become a global telehealth powerhouse. The company announced Thursday it's acquiring Eucalyptus, a digital health platform operating across multiple countries, in a deal valued at up to $1.15 billion. Shares rallied in premarket trading as investors digested the company's international ambitions.

This isn't just an acquisition—it's a geographic expansion on steroids. Eucalyptus currently operates in Australia, the U.K., and Germany, and the deal will give Hims & Hers a foothold in new markets including Japan and Canada. For a company that's built its brand on making healthcare more accessible through telehealth, this represents a significant bet that the model works globally.

Breaking Down the Billion-Dollar Deal

Here's how the transaction shakes out: Hims & Hers will pay approximately $240 million in cash when the deal closes, expected around mid-2026. The remaining consideration consists of guaranteed deferred payments spread over 18 months after closing, plus additional earnout payments tied to hitting specific financial targets through early 2029.

The structure is telling. By spreading payments out and tying a chunk to performance milestones, Hims & Hers maintains financial flexibility while ensuring Eucalyptus has skin in the game. The company plans to finance most of the transaction using existing cash and future operating cash flows, which suggests confidence in its ability to generate cash even as it expands.

What Exactly Is Hims & Hers Buying?

Eucalyptus isn't some struggling startup—it's a legitimate growth business. The company currently has an annual revenue run-rate north of $450 million and is delivering triple-digit year-over-year ARR growth in each quarter of 2025. Even better, it's operating within striking distance of profitability, which means Hims & Hers isn't inheriting a cash furnace.

With strong domestic margins already, Hims & Hers believes this acquisition will help establish category leadership in key markets. The company expects to dominate in Australia immediately and become a leading telehealth provider in the U.K. and Germany within two years. That's an aggressive timeline, but with Eucalyptus's existing infrastructure and local expertise, it's not entirely unrealistic.

The Bigger Picture: Why This Matters

Hims & Hers has built a successful business model around personalized healthcare solutions delivered digitally. The international expansion through Eucalyptus lets them replicate that model in markets where telehealth adoption is accelerating. Canada, Europe, Australia, and emerging markets like Japan all represent significant opportunities for a company that knows how to navigate regulatory complexity and scale consumer healthcare platforms.

But let's not pretend everything is sunshine and rainbows. Earlier in February, Novo Nordisk A/S (NVO) filed a lawsuit against Hims & Hers, sending the stock tumbling. The legal uncertainty has created headwinds that even a splashy acquisition announcement can't fully offset.

Technical Picture: Still in the Penalty Box

The charts tell a sobering story. HIMS is trading 31.1% below its 20-day simple moving average and 57.4% below its 100-day SMA, painting a clearly bearish picture in the short to medium term. Over the past 12 months, shares have plummeted 76.96%, and the stock is currently hugging its 52-week lows.

There's a glimmer of hope, though. The RSI sits at 16.67, deep in oversold territory, which could signal a potential rebound if buying interest materializes. However, the MACD shows a value of -4.4398 with the signal line at -3.7562, indicating bearish momentum remains intact. It's a classic case of oversold but not yet recovering—the stock needs a catalyst beyond just being cheap.

Key levels to watch:

• Resistance: $22.50
• Support: $15.50

Earnings Ahead and Analyst Skepticism

Hims & Hers is scheduled to report earnings on February 23, which should provide clarity on how the core business is performing amid all this expansion activity. Analysts are expecting EPS of 3 cents (down from 11 cents) and revenue of $619.08 million (up from $481.14 million). The stock trades at a P/E of 29.9x, which indicates investors are still paying a premium despite the recent selloff.

The analyst community remains cautious. The stock carries a Hold rating with an average price target of $35.89, suggesting significant upside from current levels if the company can execute. But recent moves from major firms tell a more nervous story:

• TD Cowen: Hold rating, lowered target to $20.00 (February 9)
• Citigroup: Sell rating, lowered target to $16.50 (February 9)
• B of A Securities: Underperform rating, lowered target to $21.00 (February 9)

Those downgrades all came on the same day, which suggests a coordinated reassessment of the company's prospects following the Novo Nordisk lawsuit and broader concerns about the telehealth space.

HIMS Price Action: Hims & Hers Health shares were up 3.09% at $16.33 during premarket trading on Thursday.