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what it is
Hims sells recurring healthcare online, from weight loss to ED to mental health, and ships the treatment to your door.
how it gets paid
Last year Hims & Hers Health made $2.3B in revenue. Weight loss was the main engine at $0.74B, or 32% of sales.
why it's growing
Revenue grew 59.0% last year. The past two quarters disappointed investors, who had previously bid up the stock expecting sustained top-line growth to lead to near-term expense leverage.
what just happened
Hims missed on EPS by 60%, even with annual revenue up 59% to $2.3B.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
15.5x trailing p/e — the market's not buying it — or you found a deal
25.5% return on capital — every dollar works hard here
xvary composite: 43/100 — below average
What they do
Hims sells recurring healthcare online, from weight loss to ED to mental health, and ships the treatment to your door.
Hims wins by making awkward healthcare feel like online shopping. You tap an app, answer a few questions, and get recurring treatment without sitting in a waiting room. That convenience shows up in the numbers: revenue hit $2.3B in 2025, up 59%, while gross margin was 74.5% (gross margin → money left after product costs → room to spend on growth and still make money).
How they make money
$2.3B
annual revenue · their business grew +59.0% last year
Weight loss
$0.74B
Sexual health
$0.58B
Mental health
$0.46B
Dermatology and hair
$0.37B
Primary care and other
$0.15B
The products that matter
direct-to-consumer telehealth business
Prescription & Wellness Products
$2.3B revenue · 2.5M subscribers
it generated the company’s entire $2.3B in revenue last year and did it at an 11.0% net margin. That focus makes the model easy to understand. It also means product concentration is the story, not a side note.
entire business
compounded weight-loss offering
GLP-1 weight loss
$49 a month · legal overhang
this is the category tied to the 59% revenue surge. At $49 a month versus Wegovy at $1,350, you do not need a long marketing memo to understand why demand showed up — or why branded drugmakers and regulators care.
growth engine
legacy subscription treatments
Hair loss, ED and skincare
2.5M subscriber base
this is the steadier part of the story. The page does not break out category revenue, which matters because you need to know how much of the $2.3B base still stands if weight-loss momentum cools.
core base
Key numbers
$2.3B
annual revenue
That is the proof this is not a tiny telehealth experiment anymore. You are looking at a scaled platform.
59.0%
revenue growth
This is why the stock still has believers. Few companies at a $4B market cap are growing this fast.
74.5%
gross margin
Gross margin → money left after product costs → so what: Hims has room to advertise, hire clinicians, and still protect profits.
25.5%
return on capital
Return on capital → profit generated from money invested → so what: Hims turns growth spending into earnings better than many peers.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- long-term debt $971M (21% of capital)
- net profit margin 11.1% — keeps 11 cents of every dollar in revenue
- return on equity 44% — $0.44 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in HIMS 3 years ago → it's now worth $17,050.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Hims missed on EPS by 60%, even with annual revenue up 59% to $2.3B.
The contrast is the story. Revenue is still growing fast, but earnings disappointed and fourth-quarter growth slowed versus the full year. That is why the stock feels cheaper and riskier at the same time.
$2.3B
revenue
$0.08
eps
74.5%
gross margin
the number that mattered
The 60% EPS miss mattered most because it told you Hims can grow fast and still disappoint when costs or mix move the wrong way.
-
wall street’s increased skepticism about the business model of hims & hers health is weighing on the stock price. (note: our 2025 earnings figures have been restated to conform with the non-gaap format.) hims is 75% off its all-time high.the past two quarters disappointed investors, who had previously bid up the stock expecting sustained top-line growth to lead to near-term expense leverage.
-
however, fourth-quarter revenues and ebitda likely grew only 30% and 10%, respectively.
-
these rates represent a dramatic slowdown from the estimated 59% and 13% figures achieved over 2025 as a whole.
-
the company was slated to release 2025 earnings results shortly after we went to press.
-
a highly-anticipated new weight-loss solution is on hold.
source: company earnings report, 2026
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What could go wrong
Hims is not facing abstract risk. The core issue is specific: a big piece of the recent acceleration appears tied to compounded GLP-1 access, while the page gives you limited category detail on how much of the $2.3B base depends on it.
med
compounded GLP-1 access
the fastest growth appears tied to low-cost compounded semaglutide. If regulators tighten the rules or litigation goes the wrong way, the product category behind the 59% revenue jump gets hit first.
impact: this would pressure the assumptions behind $2.7–$2.9B guidance and force investors to value the business more around the legacy categories.
med
growth normalization
Q4 revenue and EBITDA likely grew 30% and 10%, far below the 59% full-year revenue pace. That does not mean the business broke. It does mean the easy comparisons may be gone.
impact: if 59% growth fades toward the Q4 pace while margins stall, the 15.5x multiple may be a warning, not an opportunity.
med
product concentration without clean disclosure
the page does not break out revenue by category. When one new product line becomes the center of the story, limited segment detail becomes a real analytical problem because you cannot cleanly separate durable demand from temporary demand.
impact: you are being asked to underwrite a ~$4B market cap with incomplete visibility into how much of the $2.3B base comes from the hottest category.
if compounded GLP-1 access tightens while growth slips toward the roughly 30% Q4 pace, Hims stops looking like a breakout telehealth company and starts looking like a narrower subscription business with a lower ceiling.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
whether growth stays anywhere near 59%
the rerating case depends on proving last year’s 59% revenue growth was not a one-category spike on a $2.3B base.
risk
compounded GLP-1 access
the legal and regulatory status of low-cost compounded weight-loss drugs matters more here than almost any other single variable on the page.
earnings
whether EPS rebounds from $0.20 in Q4
full-year EPS was $1.05, but the Q4 print was softer. You want to know whether that was a pause or the start of a slower earnings slope.
trend
volatility is part of the package
the stock’s 52-week range already runs from $16 to $36, and price stability is just 5 / 100. If you own this, you own the swings too.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think near-term performance could lag even if the longer setup still gets people interested.
risk profile
below average
stability score 4 — more volatile than most stocks. This is not a sleep-well-at-night name.
chart momentum
top 5%
technical score 1 — the tape has been strong while the fundamental debate got louder. Welcome to a stock where the chart and the business argument are not telling the same story.
earnings predictability
35 / 100
earnings are harder to model here than at steadier healthcare companies, so surprises should be treated as part of the setup.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 295 buyers vs. 234 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$13
$51
$16
current price
$32
target midpoint · +96% from current · 3-5yr high: $65 (+300% · 42% ann'l return)
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