Hims & Hers Health Stock Plummeting Amidst 73% Revenue Surge and 109% EBITDA Growth as 590M Trading Volume Ranks 180th in Market Activity

On September 2, 2025, Hims & Hers Health (HIMS) fell 1.94% with a trading volume of $0.59 billion, ranking 180th in market activity. The telehealth platform reported Q2 2025 revenue of $544.8 million, a 73% year-over-year increase, though it missed consensus estimates by 1.2%. Adjusted EBITDA surged 109% to $82.2 million, driven by 2.44 million subscribers and expanded offerings in weight management, mental health, and dermatology. The company highlighted its GLP-1 treatments, achieving average 10.3% weight loss in six months, and plans to enter hormonal health and longevity markets through lab and peptide acquisitions.

Despite strong revenue growth, gross margin contracted to 76% from 81% in Q2 2024, attributed to lower-margin weight loss programs and increased infrastructure spending. Free cash flow turned negative at -$69.4 million, contrasting with $47.6 million in the prior year, as inventory doubled to $141.8 million. Management emphasized strategic investments in technology and partnerships, including Novo Nordisk for branded GLP-1 drugs, to support long-term subscriber retention and specialty expansion.

Hims & Hers maintains a forward P/S ratio of 3.6x, below its three-year median of 2.4x but lower than the industry average of 5.7x. Earnings estimates for 2025 suggest a 122.2% improvement year-over-year, though recent revisions have declined. The company’s Zacks Rank of #3 (Hold) reflects mixed signals in valuation and operational efficiency. Full-year 2025 guidance remains at $2.3–2.4 billion in revenue and $295–335 million in adjusted EBITDA.

Backtest results indicate the stock’s 30-day price movement aligns with its Zacks Rank #3 rating, showing limited deviation from broader market trends. Recent earnings estimate revisions and cash flow dynamics underscore near-term uncertainty, though subscriber growth and strategic partnerships remain key drivers for long-term potential.