Eucalyptus Telehealth Sold to US Rival for $1.6B

Australian telehealth startup Eucalyptus has been acquired by US-based health and wellness company Hims & Hers Health in a deal valued at US$1.15 billion (A$1.6 billion). The acquisition marks a significant milestone for the rapidly growing startup, which was founded in 2019.

A Rapid Rise in Valuation

Eucalyptus, initially valued at A$520 million following a $50 million funding round in April 2023, saw its valuation more than triple through this acquisition. The company’s cap table includes prominent investors such as Blackbird Ventures, Airtree Ventures, Woolworths’ venture capital fund W23, OneVentures, Athletic Ventures, and Mary Meeker’s BOND Capital.

The startup made its mark with four key online healthcare brands tailored to specific demographics: Pilot (men’s health), Juniper (women’s weight and menopause care), Kin (fertility), and Software (prescription skincare). Eucalyptus briefly ventured into high-end men’s health products under the brand Compound in 2024 but suspended the initiative due to early challenges, later reintroducing it in 2025.

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Deal Structure and Financial Performance

The acquisition includes an initial payment of US$240 million (A$340 million) with deferred payments in cash or stock over an 18-month period. Additionally, there are potential earnout payments contingent on financial performance through early 2029.

Eucalyptus has demonstrated robust growth, achieving an annual revenue run-rate (ARR) exceeding US$450 million (A$640 million). Hims & Hers noted the company delivered triple-digit year-on-year ARR growth in 2025. Despite these achievements, Eucalyptus had not yet reached profitability, with its last reported after-tax loss of A$15.2 million in FY2024.

Leadership Transition and Global Growth

Tim Doyle, Eucalyptus cofounder and CEO, will join Hims & Hers as Senior Vice President of International, overseeing the company’s global operations. Doyle is expected to receive approximately $160 million from the acquisition.

Hims & Hers plans to leverage Eucalyptus to expand its reach into new markets, including Australia and Japan, while also enhancing its presence in the UK, Germany, and Canada. Hims & Hers founder and CEO Andrew Dudum expressed optimism about the acquisition, stating, "With Eucalyptus, we will not only enter new markets, we will expand our ability to serve customers globally, trusting local experts to be a key part of how we transform healthcare into a customer-first, personalized industry."

"We believe this puts us on the path to becoming the leading global consumer health platform", Dudum added.

Doyle reflected on the company’s journey, saying, "Eucalyptus started seven years ago as a bet that generalist talent from Australia could build a globally competitive consumer healthcare business. In many ways, this is the achievement of that aspiration." He also described the acquisition as an opportunity to "accelerate the movement towards affordable healthcare for everyone."

Market Reaction

Hims & Hers, with a market capitalization of approximately US$3.6 billion (A$5.1 billion), announced the deal to mixed market reactions. The company’s shares fell by around 2.5% following the news.

The acquisition sets the stage for Eucalyptus to continue expanding its global footprint under the Hims & Hers banner while fulfilling its mission to provide accessible healthcare solutions worldwide.

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