Hims & Hers Health (HIMS) AI Stock Analysis

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Hims & Hers Health

(NYSE:HIMS)

Rating:66Neutral

Price Target:

$49.00

▲(11.34% Upside)

Hims & Hers Health demonstrates strong financial performance and strategic growth initiatives, particularly in international expansion and technology. However, high leverage, declining cash flow, and bearish technical indicators present significant risks. The stock's high valuation further tempers its attractiveness.

Positive Factors

Investment in Infrastructure

HIMS has been increasingly investing in diagnostic and supply chain capabilities to support greater personalization across its platform.

New Product Launch

HIMS is expected to launch Hormone Replacement Therapy (HRT) in the coming months, which could drive new revenue.

Negative Factors

App Downloads

Further deterioration in app downloads, down 20% y/y, raises concerns about growth in the core business and strategy to expand internationally.

Competition

Increasing competition is leading to higher CACs as search and social ad inventory costs rise.

Revenue Guidance

Revenue guidance for the second half of the year is 4% below estimates, excluding contributions from recent acquisitions, suggesting potential earnings pressure.

Hims & Hers Health (HIMS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$10.25B

Dividend YieldN/A

Average Volume (3M)32.79M

Price to Earnings (P/E)56.8

Beta (1Y)2.57

Revenue Growth88.69%

EPS Growth947.74%

CountryUS

Employees1,637

SectorConsumer Defensive

Sector Strength47

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)0.17

Shares Outstanding217,641,950

10 Day Avg. Volume23,271,663

30 Day Avg. Volume32,786,255

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.24

Enterprise Value/Revenue6.31

Enterprise Value/Gross Profit8.28

Enterprise Value/Ebitda82.06

Forecast

1Y Price Target

$47.91

Price Target Upside8.86% Upside

Rating ConsensusHold

Number of Analyst Covering12

Hims & Hers Health Business Overview & Revenue Model

Company DescriptionHims & Hers Health (HIMS) is a telehealth company that operates in the healthcare and wellness sectors. The company provides a digital platform offering a range of health and wellness services, including prescription and over-the-counter medication, personal care products, and access to licensed healthcare professionals. Their services target common conditions such as hair loss, sexual health, skin care, and mental health, providing consumers with convenient and affordable healthcare solutions.

How the Company Makes MoneyHims & Hers Health generates revenue primarily through the sale of its products and services via its online platform. The company's business model includes a direct-to-consumer approach, where customers can subscribe to monthly plans for recurring shipments of prescription medications and personal care products. Revenue streams are diversified across various health categories, including sexual health, dermatology, mental health, and primary care. Key factors contributing to its earnings include its ability to leverage telemedicine to reduce costs and improve accessibility, its subscription-based model that ensures recurring revenue, and strategic partnerships with healthcare professionals and pharmaceutical companies to broaden its service offerings.

Hims & Hers Health Key Performance Indicators (KPIs)

Any

Subscriptions

Subscriptions
Tracks the number of active subscriptions, highlighting recurring revenue streams and customer retention strength.

Chart InsightsHims & Hers Health has seen a robust upward trend in subscriptions, reaching nearly 2.4 million by Q1 2025, a 38% increase year-over-year. This growth aligns with their strategic focus on personalization and new specialties, such as weight loss, which has become a major revenue driver. Despite challenges in the sexual health vertical and gross margin pressures, the company's strategic partnerships and product expansions are expected to sustain subscriber growth and engagement, supporting their ambitious revenue and EBITDA targets for 2030.

Data provided by:

Main Street Data

Hims & Hers Health Earnings Call Summary

Earnings Call Date:Aug 04, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 10, 2025

Earnings Call Sentiment Neutral

The earnings call highlights strong revenue growth, international expansion, and technological advancements, signaling a positive outlook for the company's future. However, challenges such as the decline in GLP-1 subscribers and increased costs present hurdles. The balance of positive growth metrics against operational challenges results in a mixed sentiment.

Q2-2025 Updates

Positive Updates

Record Revenue Growth

Revenue grew 73% year-over-year to $545 million, with an adjusted EBITDA margin north of 15%. Subscribers increased by 73,000 quarter-over-quarter to over 2.4 million, reflecting a year-over-year growth rate of 31%.

Strong Subscriber Retention

In the weight loss specialty, subscribers on a personalized treatment plan reported losing an average of 10.3% of their body weight, with only a 25% discontinuation rate at 6 months compared to 80% in other studies.

International Expansion

Closed acquisition of ZAVA, expanding presence in the U.K. and other strategic markets such as Germany, Ireland, and France. Plans to enter Canada in 2026 with a focus on a holistic weight loss program.

Technological Advancements

Introduction of Mo Elshenawy as the new CTO to enhance technology-first healthcare platform with investments in AI and data to improve patient care and engagement.

Negative Updates

GLP-1 Subscriber Offboarding

Offboarding subscribers on commercially available GLP-1 dosages led to a decline in monthly average revenue per subscriber from $84 to $74.

Challenges in Sexual Health Segment

Continued decline in on-demand sexual health subscriber base, with efforts to transition towards daily offerings for better retention and customer lifetime value.

Increased Costs

Adjusted EBITDA was negatively impacted by approximately $7 million due to severance payments and sign-on bonuses for new talent. G&A costs increased due to onboarding new executives.

Company Guidance

During the Hims & Hers Second Quarter 2025 Earnings Call, the company provided substantial guidance and metrics indicating positive momentum and future growth strategies. The company reported a year-over-year revenue growth of 73%, reaching $545 million, with an adjusted EBITDA margin exceeding 15%. They serve over 2.4 million subscribers, with nearly 1.5 million receiving personalized treatments. Customer retention is strong, particularly in their weight loss specialty, where only 25% discontinued treatment after six months, contrasting with an 80% discontinuation rate in some studies. Looking ahead, Hims & Hers plans to expand into new specialties like hormonal health and longevity, aiming for a 2030 revenue target of at least $6.5 billion and adjusted EBITDA of $1.3 billion. The acquisition of a blood testing lab will support these expansions, and the company anticipates entering the Canadian market in 2026 with a focus on weight loss. International expansion is also a priority, with the recent acquisition of ZAVA to facilitate entry into European markets. The company aims to leverage AI and technology to enhance personalization and efficiency, envisioning a future where its platform evolves from treating conditions to preventing them.

Hims & Hers Health Financial Statement Overview

Summary

Hims & Hers Health shows strong revenue growth and profitability with a healthy gross profit margin. However, high leverage and declining free cash flow growth present potential risks. The company needs to focus on improving cash flow conversion and reducing debt.

Income Statement

Very Positive

Hims & Hers Health has shown impressive revenue growth with a TTM increase of 12.84%, indicating strong market demand. The company maintains a healthy gross profit margin of 76.20% and a net profit margin of 9.62%, reflecting efficient cost management and profitability. The EBIT and EBITDA margins have improved significantly, showcasing operational efficiency. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

Positive

The balance sheet reveals a high debt-to-equity ratio of 1.86, indicating significant leverage which could pose financial risk. However, the company has a strong return on equity of 38.17%, demonstrating effective use of equity to generate profits. The equity ratio stands at 29.96%, suggesting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Positive

The cash flow statement shows a decline in free cash flow growth by 46.10%, which is a concern for liquidity. The operating cash flow to net income ratio is close to 1, indicating that the company is generating sufficient cash from operations to cover its net income. However, the free cash flow to net income ratio of 48.72% suggests that a significant portion of earnings is not being converted into free cash flow, highlighting potential cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.01B	1.48B	872.00M	526.92M	271.88M	148.76M
Gross Profit	1.53B	1.17B	714.95M	408.72M	204.49M	109.45M
EBITDA	154.78M	78.99M	-19.94M	-61.22M	-110.97M	-14.09M
Net Income	193.60M	126.04M	-23.55M	-65.68M	-107.66M	-18.11M
Balance Sheet
Total Assets	1.88B	707.54M	441.19M	366.34M	420.58M	118.70M
Cash, Cash Equivalents and Short-Term Investments	1.14B	300.25M	220.98M	179.63M	247.27M	100.21M
Total Debt	1.04B	11.35M	9.95M	5.31M	5.48M	0.00
Total Liabilities	1.31B	230.82M	97.16M	54.60M	85.97M	265.57M
Stockholders Equity	562.70M	476.72M	344.03M	311.74M	334.62M	-146.87M
Cash Flow
Free Cash Flow	119.51M	198.33M	46.99M	-33.78M	-39.42M	-6.71M
Operating Cash Flow	261.63M	251.08M	73.48M	-26.53M	-34.41M	-2.48M
Investing Cash Flow	-81.50M	-19.05M	-12.11M	34.70M	-156.27M	-39.70M
Financing Cash Flow	813.68M	-107.84M	-11.47M	-33.13M	235.04M	47.74M

Hims & Hers Health Technical Analysis

Technical Analysis Sentiment

Negative

Last Price44.01

Price Trends

50DMA

50.68

Negative

100DMA

48.23

Negative

200DMA

40.87

Positive

Market Momentum

MACD

-2.70

Positive

RSI

40.11

Neutral

STOCH

57.27

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 44.01 is below the 20-day moving average (MA) of 48.53, below the 50-day MA of 50.68, and above the 200-day MA of 40.87, indicating a neutral trend. The MACD of -2.70 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 57.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIMS.

Hims & Hers Health Risk Analysis

Hims & Hers Health disclosed 63 risk factors in its most recent earnings report. Hims & Hers Health reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Hims & Hers Health Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELF	77 Outperform	$6.53B	68.24	12.97%	―	18.61%	-21.36%
NUS	74 Outperform	$604.37M	6.09	13.68%	2.01%	-11.79%	―
HIMS	66 Neutral	$10.25B	56.76	41.88%	―	88.69%	947.74%
IPAR	65 Neutral	$3.66B	22.81	20.68%	2.66%	7.04%	13.52%
Sector *	63 Neutral	$20.42B	14.38	-3.60%	3.17%	2.07%	-6.17%
EPC	58 Neutral	$1.08B	17.10	4.12%	2.55%	-2.92%	-43.06%
COTY	46 Neutral	$3.22B	40.12	-9.98%	―	-3.68%	-631.67%

* Consumer Defensive Sector Average

Performance Comparison

HIMS

Hims & Hers Health

44.12

29.39

199.52%

IPAR

Inter Parfums

116.53

-6.52

-5.30%

NUS

Nu Skin

11.94

2.92

32.37%

COTY

Coty

4.33

-4.92

-53.19%

EPC

Edgewell Personal Care

23.63

-15.79

-40.06%

ELF

e.l.f. Beauty

129.35

-20.72

-13.81%

Hims & Hers Health Corporate Events

Business Operations and StrategyFinancial Disclosures

Hims & Hers Health Reports Strong Q2 2025 Financial Growth

Positive

Aug 4, 2025

Hims & Hers Health, Inc. reported significant financial growth in the second quarter of 2025, with a 73% increase in revenue year-over-year, reaching $544.8 million. The company also saw a 31% increase in subscribers, totaling over 2.4 million, and a net income of $42.5 million. The company is focusing on expanding its capabilities, including enhancing personalization in pharmacies, expanding lab testing, and growing its international presence, which is expected to further strengthen its market position.

Shareholder Meetings

Hims & Hers Health Annual Stockholders Meeting Results

Positive

Jun 17, 2025

On June 12, 2025, Hims & Hers Health, Inc. conducted its Annual Meeting of Stockholders where three proposals were voted on. The election of eight directors, the ratification of KPMG LLP as the independent registered public accounting firm, and the advisory approval of executive compensation were all passed, reflecting shareholder support for the company’s governance and financial strategies.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025