Eucalyptus is banking on the rising global interest in weight-loss medication to power its next phase of growth. The company has doubled its annual revenue to $248 million and is targeting a market valuation of $1.37 billion. This growth is being fuelled largely by the UK, now its biggest market, although increasing marketing costs and sustained losses may temper how far it can go.
Backed by Woolworths, the telehealth provider launched in 2018 with a focus on consumer health brands. It has since grown into Australia's largest online weight-loss business via digital platforms such as Pilot and Juniper. These brands offer access to GLP-1 weight-loss medication, which continues to see strong demand in markets like Australia, the UK and Germany. Following its overseas expansion, especially in the UK, the business has become cash flow break-even, a key achievement for a rapidly scaling health tech provider.
Over the past year, Eucalyptus nearly doubled its total revenue, rising from $120.9 million to $248.1 million. Most of this growth came from the UK where revenue quadrupled to $143.5 million, overtaking the $96.3 million it generated in Australia. In Germany, though still a smaller contributor, revenue tripled to $6.9 million. However, the success has not come without costs. Marketing expenses tripled to $86.1 million and net losses widened to $24.6 million, up from $15.2 million in the previous year. To ease supply pressures, Eucalyptus briefly paused new sign-ups in the UK and later relaunched its men's health brand, Compound, at a lower price point.
Despite the increasing losses, the company is pressing ahead with its global plans. It has secured an additional $39 million from existing investors through a SAFE (Simple Agreement for Future Equity) note. This is part of a larger $190 million fundraising campaign, backed by venture capital firms that have supported Eucalyptus from the beginning. The company plans to convert the note into equity soon, pushing its valuation to $1.37 billion.
If interest in medical weight-loss support continues to rise and supply chains remain stable, Eucalyptus could become one of Australia's top digital health exports. However, with high expenditure and growing competition abroad, consistent profitability remains a few years away.
