Hims & Hers Health (HIMS) AI Stock Analysis

• Market Cap: $3.52B
• Dividend Yield: N/A
• Average Volume (3M): 29.38M
• Price to Earnings (P/E): 30.3
• Beta (1Y): 2.76
• Revenue Growth: 78.02%
• EPS Growth: 28.15%
• Country: US
• Employees: 1,637
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Equipment & Services
• EPS (TTM): 0.08
• Shares Outstanding: 219,561,140
• 10 Day Avg. Volume: 29,684,010
• 30 Day Avg. Volume: 29,376,696
• PEG Ratio: -33.00
• Price to Book (P/B): 13.50
• Price to Sales (P/S): 3.11
• P/FCF Ratio: 98.76
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 1.92
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 26.54
• 1Y Price Target: $26.57
• Price Target Upside: 67.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 0.57
• Revenue Forecast (FY): $2.74B

• Rating: 61 Neutral
• Price Target: $16.50 ▲(4.30% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is driven primarily by improving fundamentals (profitability and operating cash flow) but capped by higher balance-sheet risk from the 2025 leverage step-up and weaker recent cash conversion/margins. Technically, the stock is in a pronounced downtrend with very weak momentum, which further weighs on the overall rating. Guidance remains constructive for 2026, while valuation is moderate and the Eucalyptus deal adds growth potential alongside integration and capital-commitment risk.

Positive Factors

Strong revenue growth and scale

Sustained high revenue growth establishes scale and recurring demand for Hims & Hers’ direct-to-consumer platform. Multi-year expansion increases bargaining power with suppliers, supports marketing ROI improvements and cross-sell across categories, and creates a larger, stickier subscription base that underpins durable top-line visibility.

Positive profitability and cash generation

The company’s move to meaningful adjusted EBITDA and positive operating cash flow provides durable internal funding for growth and acquisitions. Strong cash balances and operating cash reduce dependence on external financing, give flexibility for product builds and international scale, and improve resilience to execution hiccups.

Accelerated international expansion via M&A

Acquiring Eucalyptus and prior buys meaningfully accelerate geographic reach and local regulatory knowledge, shortening time-to-market abroad. Building scale across multiple markets diversifies revenue, leverages a common platform for cross-border product rollouts, and supports long-term category leadership outside the U.S.

Negative Factors

Sharply higher leverage in 2025

The abrupt increase in leverage reduces financial flexibility and raises interest and refinancing exposure if growth or margins slow. Higher debt levels constrain the balance sheet’s ability to absorb execution delays or regulatory setbacks and increase the need for consistent cash generation to meet obligations and fund strategic investments.

Weakened cash conversion and margin compression

Declining FCF conversion and falling gross margin signal that revenue growth is costing more to sustain. This reduces the company’s ability to self-fund expansion, increases reliance on financing, and tightens the margin buffer for investments—making longer-term profitability and reinvestment outcomes more sensitive to execution and mix shifts.

Regulatory uncertainty on compounded GLP-1s

Potential restrictions or enforcement actions on compounded GLP-1s threaten a high-growth specialty (weight-loss) and could force fulfillment or product changes. Structural regulatory shifts would materially affect unit economics, fulfillment cadence and revenue recognition, increasing long-term demand and margin uncertainty in a core growth category.

Hims & Hers Health Business Overview & Revenue Model

Company Description

Hims & Hers Health, Inc. operates a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals. The company offers a range of health and wellness products and services available to purchase on its websites and mobile application directly by customers. It also provides prescription medication on a recurring basis and ongoing care from healthcare providers; and over-the-counter drug and device products, cosmetics, and supplement products, primarily focusing on wellness, sexual health and wellness, skincare, and hair care. The company's curated non-prescription products include vitamin C, melatonin, biotin, and collagen protein supplements in the wellness category; moisturizer, serums, and face wash in the skincare category; condoms, climax delay spray and wipes, vibrators, and lubricants in the sexual health and wellness category; and shampoos, conditioners, scalp scrubs, and topical treatments, such as minoxidil in the hair care category. In addition, it offers medical consultation services, as well as health and wellness products through wholesale partners. The company is based in San Francisco, California.

How the Company Makes Money

Hims & Hers Health generates revenue through multiple streams, primarily by selling prescription medications and health-related products directly to consumers. The company operates on a subscription-based model for certain products, which provides recurring revenue. Additionally, HIMS earns income from telehealth consultations, where customers pay for access to healthcare providers. Strategic partnerships with pharmacies and healthcare networks also contribute to its revenue, enabling HIMS to efficiently distribute its products. The company's focus on branding and marketing enhances customer acquisition, further driving sales and profitability.

Hims & Hers Health Financial Statement Overview

Summary

Strong multi-year revenue growth and a clear turn to profitability with positive operating cash flow support the score. Offsetting this, 2025 saw sharp leverage increase (debt-to-equity ~2.1x), weaker free-cash-flow conversion, and margin pressure (gross margin down to ~74% in 2025 and net margin compression), raising financial risk.

Income Statement

Revenue growth has been very strong over the last several years (2021–2025 annual growth rates remain high, with 2025 showing an exceptional step-up), and profitability has meaningfully improved from sizable losses in 2021–2022 to positive net income in 2024–2025. Gross margin remains high, but it has trended down from prior peaks (from ~82% in 2023 to ~74% in 2025), and net margin also compressed in 2025 versus 2024—suggesting higher costs to support growth. Overall, the trajectory is favorable, but recent margin pressure keeps this from scoring higher.

Balance Sheet

The balance sheet shows a notable increase in leverage in 2025, with debt rising sharply and debt-to-equity moving to ~2.1x versus very low leverage in 2021–2024. While equity is positive and assets have expanded, the abrupt shift toward debt financing increases financial risk and reduces flexibility if profitability or growth moderates. This is the key weak point across the statements.

Cash Flow

Cash generation has improved materially from negative operating and free cash flow in 2020–2022 to solid positive operating cash flow in 2023–2025. However, free cash flow declined significantly in 2025 (down ~44% year over year), and free cash flow covered only a modest portion of net income in 2025—indicating profits are not translating into cash as efficiently as in 2024. The business is generating cash, but conversion and consistency weakened recently.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.35B	1.48B	872.00M	526.92M	271.88M
Gross Profit	1.39B	1.17B	714.95M	408.72M	204.49M
EBITDA	178.43M	78.99M	-19.94M	-61.22M	-110.97M
Net Income	128.37M	126.04M	-23.55M	-65.68M	-107.66M
Balance Sheet
Total Assets	2.15B	707.54M	441.19M	366.34M	420.58M
Cash, Cash Equivalents and Short-Term Investments	577.49M	300.25M	220.98M	179.63M	247.27M
Total Debt	1.26B	11.35M	9.95M	5.31M	5.48M
Total Liabilities	1.61B	230.82M	97.16M	54.60M	85.97M
Stockholders Equity	540.93M	476.72M	344.03M	311.74M	334.62M
Cash Flow
Free Cash Flow	73.96M	198.33M	46.99M	-33.78M	-39.42M
Operating Cash Flow	300.01M	251.08M	73.48M	-26.53M	-34.41M
Investing Cash Flow	-1.02B	-19.05M	-12.11M	34.70M	-156.27M
Financing Cash Flow	729.62M	-107.84M	-11.47M	-33.13M	235.04M

Hims & Hers Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIMS, the sentiment is Negative. The current price of 15.82 is below the 20-day moving average (MA) of 20.21, below the 50-day MA of 28.02, and below the 200-day MA of 44.51, indicating a bearish trend. The MACD of -4.02 indicates Negative momentum. The RSI at 19.27 is Positive, neither overbought nor oversold. The STOCH value of 39.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIMS.

Hims & Hers Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCS	71 Outperform	$4.45B	20.49	23.82%	―	20.21%	44.14%
HIMS	61 Neutral	$3.52B	30.30	25.23%	―	78.02%	28.15%
GDRX	60 Neutral	$804.46M	28.52	4.90%	―	1.30%	―
NUS	58 Neutral	$408.60M	2.67	22.00%	2.39%	-12.10%	―
TDOC	53 Neutral	$805.73M	-3.63	-15.42%	―	-2.37%	77.85%
EPC	52 Neutral	$1.05B	-26.44	1.62%	3.51%	-1.34%	-73.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Hims & Hers Health Corporate Events

Hims & Hers to Acquire Eucalyptus in Global Expansion

On February 19, 2026, Hims & Hers Health agreed to acquire Australian digital health company Eucalyptus for up to $1.15 billion, in a deal structured with about $240 million payable in cash at closing, further deferred payments over 18 months, and additional earnouts tied to performance through early 2029. The company can settle a majority of deferred and earnout obligations in cash or stock, plans to fund most of the transaction from existing cash and U.S. operating cash flows, and expects closing around mid-2026 subject to regulatory and customary conditions.

The acquisition is intended to accelerate Hims & Hers’ push to become a leading global consumer health platform by adding Eucalyptus’ fast-growing, nearly $450 million annual revenue run-rate business and strong local regulatory expertise in Australia, Europe, Canada, and Japan. Post-closing, Eucalyptus CEO Tim Doyle will lead international operations at Hims & Hers, its brands will be folded into the Hims & Hers platform over time, and management expects the combined capabilities to support category leadership in Australia and bolster its position as a major telehealth provider in the U.K. and Germany.

The most recent analyst rating on (HIMS) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Hims & Hers Health stock, see the HIMS Stock Forecast page.