Hims & Hers: From Telehealth to Wellness Hub: Bright Future Ahead

Hims & Hers Health's stock has surged 24% since the last coverage, with a drop in pre-market price following the Q2'25 earnings report. The company, which started as a telehealth provider, is expanding to become a wellness hub. As a finance expert with experience at Bloomberg, I believe Hims & Hers has a bright future due to its diversified offerings and growing market demand.

Hims & Hers Health (NYSE: HIMS), a leading telehealth provider, reported its Q2'25 earnings on Monday, August 4, after U.S. markets closed. The company's stock saw a significant drop in pre-market trading following the report, with shares falling as much as 5% [3]. Despite the volatility, the stock has surged 24% since the last coverage, reflecting investor optimism about the company's long-term prospects.

The earnings report showed revenue of $544.8 million, marking a 73% year-over-year (YoY) increase, but this figure fell short of analysts' expectations of $552 million [3]. The company maintained its full-year revenue guidance of $2.3 billion to $2.4 billion. Earnings per share (EPS) came in at $0.17, exceeding expectations of $0.15 [3]. The stock had dropped as much as 11% in premarket trade.

The company's stock has been a big winner this year, rising more than 150% year to date, compared to a more than 40% slide for Novo Nordisk (NVO) shares, which ended its partnership with Hims & Hers in June [3]. The partnership had allowed Hims & Hers access to Novo Nordisk's viral weight-loss drug Wegovy, but the company faced allegations of illegal mass compounding and deceptive marketing, leading to the partnership's termination [1].

Hims & Hers is trying to diversify its product offerings. Management announced in May that its vision involves expanding from hundreds of personalized treatments to potentially thousands [3]. The company's stock has been a big winner this year relative to GLP-1 leaders like Novo Nordisk and Eli Lilly, rising more than 150% year to date against a more than 40% slide for Novo Nordisk shares [3].

The company's subscriber base continues to grow, with a 38% increase in Q1'25, reaching 2.4 million [1]. However, the company's weight-loss GLP-1 offerings are a swing factor, and analysts estimate that up to half of Hims' projected weight-loss revenue could be at risk due to the Novo Nordisk partnership termination [1]. Investors will closely watch marketing spend, revenue per average user, and progress on the ZAVA integration.

The company's valuation is stretched, with a forward P/E of roughly 57 [1]. Even a top-line beat may disappoint if churn ticks up or compliance costs bite. Q2'25 will test whether the telehealth disruptor can scale responsibly before regulators step in.

Hims & Hers Health's stock has surged 24% since the last coverage, with a drop in pre-market price following the Q2'25 earnings report. The company's diversified offerings and growing market demand suggest a bright future, but investors should closely monitor the company's regulatory compliance and subscriber growth.

References:
[1] https://finance.yahoo.com/news/hims-hers-q2-2025-know-122652170.html
[2] https://www.globenewswire.com/news-release/2025/08/05/3127154/28124/en/Patient-Data-Hub-Solutions-Market-Size-Share-Trends-Analysis-Report-2025-2033-with-Profiles-of-IQVIA-WellSky-Veeva-Systems-Capgemini-Optum-ZS-Equipo-Health-NXGN-Management-and-Inte.html
[3] https://www.aol.com/finance/hims-hers-stock-slides-5-135849048.html