Hims & Hers Plunges 29.4% in Three Months: How to Play the Stock?

Hims & Hers Health, Inc.’s HIMS investors have been experiencing some short-term losses lately. However, the stock is currently experiencing an uptrend in its price performance. The San Francisco, CA-based health and wellness platform’s stock has lost 29.4% compared with the industry’s 21.5% decline in the past three months. It has also underperformed the sector and the S&P 500’s losses of 4.4% and 0.6%, respectively, in the same time frame.

Two major recent developments of HIMS are the announcement Hims & Hers Benefits (a new way for subscribers to access the innovations in whole body health) and a collaboration with Novo Nordisk as part of a new strategy for weight loss care treatments involving GLP-1s (both in this month). The company also announced fourth-quarter 2025 results last month.

Hims & Hers delivered strong top-line growth during the fourth quarter of 2025, supported by continued expansion of its subscriber base and higher revenue generated per user. The company benefited from increasing engagement on its platform as more consumers adopted its personalized health offerings. However, profitability came under pressure during the period. Net income declined year over year, while gross margins also contracted, reflecting higher costs and investments associated with scaling new offerings and expanding the platform.

HIMS Three Months Price Comparison

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Over the past three months, the stock’s performance has remained weak, underperforming its peers like Teladoc Health, Inc. TDOC and LifeMD, Inc. LFMD. Teladoc Health and LifeMD’s shares have lost 26.3% and gained 23.2%, respectively, in the same time frame.

HIMS expects revenues for the first quarter of 2026 and the full year in the bands of $600 million to $625 million (reflecting an uptick of 2%-7% year over year) and $2.7 billion to $2.9 billion (representing growth of 15%-24% from 2025 levels), respectively. The Zacks Consensus Estimate for revenues for the first quarter and the full year is currently pegged at $621.4 million and $2.81 billion, respectively, while the same for earnings per share is currently pegged at 2 cents and 53 cents, respectively.

Hims & Hers’ Growth Investments and Expansion Pressures

Hims & Hers has been making substantial investments to build out the infrastructure required to support its long-term growth strategy. The company has expanded its operational footprint across pharmacy operations, laboratory testing and research and development facilities to support personalized treatments and new healthcare services. While these investments strengthen HIMS’ long-term competitive positioning, they also increase capital expenditures and operating costs in the near term, creating pressure on profitability and weighing on investor sentiment.

Hims & Hers is rapidly expanding its platform by entering new international markets and launching additional healthcare specialties. While these initiatives open up new revenue opportunities, they also introduce execution risks and require meaningful upfront spending to build local operations, regulatory capabilities and distribution infrastructure. International expansion and the introduction of new product lines may take time to reach scale and profitability, creating uncertainty around the pace at which these initiatives can generate meaningful returns.

As the business grows, Hims & Hers continues to invest heavily in technology, product development and talent to support its evolving platform. Expanding engineering teams, building AI capabilities and developing new healthcare offerings have increased operating expenses. Although these initiatives are intended to enhance the customer experience and strengthen HIMS’ digital health ecosystem, the elevated cost structure has limited near-term operating leverage and contributed to pressure on margins.

HIMS’ Regulatory and Industry Risks

Hims & Hers operates in a highly regulated healthcare environment that spans telehealth services, pharmaceutical distribution and digital health platforms. The company must comply with a broad range of laws governing the practice of medicine, telehealth delivery, pharmacy operations and patient data protection. Regulatory changes or increased enforcement actions could require modifications to HIMS’ operating model, increase compliance costs or restrict certain services offered on the platform.

Hims & Hers platform also offers access to certain compounded medications, which are subject to specific regulatory requirements and oversight. Authorities have recently signaled tighter scrutiny around the marketing and distribution of some compounded treatments. Any policy changes or enforcement actions affecting these products could limit their availability, disrupt supply channels or force adjustments to HIMS’ product offerings, creating additional uncertainty around growth and profitability.

Fundamentals to Drive Hims & Hers

Hims & Hers’ expanding digital health platform continues to support investor confidence as the company broadens its range of specialties and services. New offerings such as diagnostic testing, hormone therapies and personalized treatment pathways deepen engagement across its subscriber base while reinforcing the platform’s long-term vision of delivering accessible, personalized care. By steadily expanding into adjacent healthcare categories and building recurring relationships with users through subscription-based services, HIMS is positioning itself as a comprehensive consumer health ecosystem rather than a single-category telehealth provider.

Another key driver is Hims & Hers’ strategic partnerships and global expansion initiatives. Collaborations with pharmaceutical companies to distribute branded weight-loss medicines through its platform strengthen credibility while widening treatment options for patients. At the same time, acquisitions and market entries across Europe, Canada and other regions reflect a deliberate push to scale its consumer health model internationally. These moves expand HIMS’ addressable market and reinforce its ambition to build a globally recognized digital healthcare platform.

HIMS Stock’s Valuation

HIMS’ forward 12-month P/S of 2.1X is lower than the industry’s average of 3.5X and its five-year median of 2.7X.

Image Source: Zacks Investment Research

Teladoc Health and LifeMD’s forward 12-month P/S currently stand at 0.4X and 0.9X, respectively.

Hims & Hers’ Estimate Movement

Estimates for Hims & Hers’ 2026 earnings per share have moved 18.5% south to 53 cents in the past 60 days.

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Estimates for Teladoc Health’s 2026 loss per share have widened from 80 cents to 90 cents in the past 60 days.

Estimates for LifeMD’s 2026 loss per share have narrowed from 64 cents to 61 cents in the past 60 days.

Our Final Take on HIMS

Hims & Hers, a Zacks Rank #3 (Hold) company, remains an attractive long-term digital health story, supported by its expanding care ecosystem, broader diagnostic and personalized treatment capabilities and growing international presence. The company is steadily evolving beyond a narrow telehealth model into a wider consumer health platform, which strengthens its strategic appeal over time.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, the stock’s recent weakness suggests that the market is focused less on the long-term vision and more on near-term execution. Margin pressure, elevated investment spending, regulatory sensitivities around certain offerings and the complexity of integrating acquisitions have created a more cautious backdrop. Earnings expectations have also softened somewhat, reinforcing the view that the path forward may remain uneven in the near term.

For existing investors, the stock looks more like a hold-with-caution than an aggressive buy. While Hims & Hers’ long-term growth narrative remains supported by its expanding platform and international opportunities, near-term uncertainties around margins, regulatory developments and execution continue to influence sentiment. The recent decline suggests the market is reassessing the balance between growth prospects and profitability visibility.

For new investors, this may not be the ideal entry point for building a full position. Factors such as the evolving regulatory environment, ongoing platform investments and the pace at which growth translates into consistent earnings are likely to remain key considerations shaping investor perception.

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This article originally published on Zacks Investment Research (zacks.com).

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