Hims & Hers Health: Company Overview and Investment Potential

Hims & Hers Health, Inc. ($HIMS) is a leading telehealth platform that connects consumers directly with licensed healthcare professionals, offering personalized prescription and non-prescription solutions for various health and wellness needs. Founded in 2017, the company focuses on areas often stigmatized or underserved, such as sexual health, hair loss, skincare, mental health, and weight management.

It operates primarily in the United States, the United Kingdom, and is expanding internationally, providing products like melatonin, biotin, moisturizers, condoms, shampoos, and prescription medications through its websites and mobile app. Hims & Hers went public via a SPAC merger in 2021 and has since positioned itself as a disruptor in the direct-to-consumer healthcare space, emphasizing accessibility, affordability, and discretion.

Business Model & Growth Metrics

The company's business model revolves around a subscription-based service, with over 90% of revenue coming from recurring subscriptions, which supports predictable cash flows and customer retention. As of November 3, 2025, Hims & Hers boasts approximately 2.47 million subscribers, up 21% year-over-year, highlighting its rapid user growth.

It also partners with wholesalers and is exploring expansions into new markets like Brazil and Australia, as well as specialties such as hormone health (expected launch in late 2025) and longevity treatments in 2026.

Recent Financial Performance

Hims & Hers has demonstrated explosive growth in 2025:

Q1 2025 Results

• Revenue: $586 million (111% increase YoY)
• Net Income: $49.5 million

Q2 2025 Results

• Revenue: $544.8 million (73% increase YoY)
• Net Income: $42.5 million
• Adjusted EBITDA: $82.2 million

Q3 2025 Results

• Revenue: $599 million (beat estimates of $580 million)
• Adjusted EBITDA: $78 million (above $68 million expected)
• EPS: $0.06 (missed $0.10 consensus due to heavy marketing investments)

Full-year 2025 guidance was raised slightly to $2.35 billion in revenue (inline with estimates) and $312 million in EBITDA, signaling continued momentum.

Stock Performance

The stock has been volatile: It hit an all-time high of $72.98 in February 2025 but has since declined, trading around $45 as of November 3, 2025—down 8.97% over the past week and 18.68% over the month, yet up 137.89% year-over-year. Following the Q3 earnings, shares rose about 5.2% in after-hours trading, reflecting investor relief over top-line beats despite the EPS miss.

Investment Thesis: The Bull Case

1. Telehealth Sector Tailwinds

The telehealth sector is booming, driven by post-pandemic shifts toward convenient, digital healthcare, and Hims & Hers is capitalizing on this with its focus on high-demand areas like weight loss (via GLP-1 drugs) and menopause treatments.

2. Explosive Revenue Growth

Revenue has scaled dramatically from $150 million in 2020 to an expected ~$2.3 billion in 2025, fueled by subscriber growth and increasing average revenue per user (up 19% YoY in Q3).

3. Path to Profitability

The company's pivot to profitability is evident, with positive net income in recent quarters and projections for EBITDA to reach $505 million by 2027.

4. Strategic Partnerships

Key growth drivers include strategic partnerships, such as ongoing talks with Novo Nordisk ($NVO) to add branded Wegovy injections and oral versions to its platform, which could significantly boost its weight management offerings.

5. International Expansion

International expansions (e.g., potential launches in Canada by 2026, and eyeing the UK, Germany, Brazil, and Australia) expand its addressable market, while new specialties like peptides (e.g., BPC-157) could benefit from favorable regulatory changes.

6. Strong Unit Economics

High gross margins (74% in Q3) and recurring revenue provide a strong moat, making it resilient in a competitive landscape.

Valuation & Price Targets

From a valuation perspective, some analyses suggest the stock is undervalued, with a fair value "considerably higher" than its current $45 price, and potential for 77-150% upside based on peer comparisons and growth trajectories.

Investor sentiment on platforms like X remains bullish, with users highlighting the company's "monstrous" potential and long-term price targets as high as $500 in three years.

Analyst Views & Risks

Analyst Consensus

• Rating: Hold
• Average 12-month price target: $37.2 (implying ~17% downside from $45)
• Range: Some firms like Deutsche Bank have raised targets to $48, with highs reaching $85

Key Risks

• Regulatory scrutiny on telehealth and compounded drugs
• Competition from giants like Amazon or traditional pharmacies
• Stock volatility (implied 14.94% move post-Q3 earnings)
• Decelerating growth and tougher year-over-year comparisons
• Reliance on compounded GLP-1 demand amid supply chain issues

Investment Outlook

Overall, Hims & Hers Health offers a positive investment case for those bullish on telehealth and consumer health innovation. Its rapid scaling, subscriber loyalty, and expansion plans position it for sustained growth, potentially making it a multi-bagger over the long term—especially if partnerships like Novo materialize.

At current levels, it could appeal to growth-oriented investors willing to weather short-term volatility for high-upside potential. However, with mixed analyst views and recent misses on guidance, conservative investors might wait for clearer signs of profitability acceleration.

Key Metrics to Watch

• Subscriber growth rate
• Average revenue per user (ARPU)
• International expansion milestones
• Partnership announcements (especially Novo Nordisk)
• Regulatory developments in telehealth

Remember: This is for informational purposes only and not personalized investment advice. Always conduct your own due diligence before making investment decisions.