The Numbers
Sydney-based Eucalyptus is selling to US telehealth giant Hims & Hers Health for US$1.15 billion ($1.6 billion). The deal structure: $340 million at close, deferred payments over 18 months in cash or stock, plus earnouts tied to financial targets through early 2029.
Eucalyptus posted $640 million ARR with triple-digit year-on-year growth in Q4 2025. The startup was not profitable: it reported a $15.2 million loss in FY2024 on revenue of $120.9 million. Now it exits at three times its April 2023 valuation of $520 million.
What This Means for Sales Teams
Telehealth M&A is accelerating. Thirty Madison, another US telehealth player, was acquired earlier this year, followed by layoffs across the sector. Eucalyptus employed sales teams across Australia, UK, Germany, and Japan selling direct-to-consumer health products through brands like Pilot (men's health), Juniper (weight loss), and Kin (fertility).
The earnout structure through 2029 suggests Hims & Hers is betting on the Eucalyptus sales engine to drive international expansion. That typically means the team stays intact short-term. Longer term, consolidation usually brings territory reshuffles and quota resets.
The Cap Table
Backers include Blackbird, Airtree, Woolworths VC fund W23, OneVentures, Athletic Ventures, and US investor Mary Meeker's BOND Capital. The company raised $8 million in Series A (May 2020), $30 million in Series B (July 2021), $60 million in Series C (January 2022), and $50 million in 2023.
Market Context
Healthcare sales job market remains volatile. Pharma and biotech layoffs continued through 2024 and into 2025, with Boston Scientific and Abbott both cutting staff. Digital health companies like Eucalyptus offered an alternative path for reps, but M&A creates uncertainty. The Thirty Madison acquisition earlier this year was followed by layoffs.
Eucalyptus founded in 2019, processed over 500,000 consults across its portfolio. The company acquired Jenny Craig Australia's digital assets in June 2023 and briefly tested a premium men's health offering in 2024 before suspending it.
Founder status post-acquisition was not disclosed in the announcement.