Hims & Hers: A Strategic Powerhouse in the Health & AI Infrastructure Surge

The healthcare sector is undergoing a seismic shift, driven by AI innovation and the rise of personalized medicine. Hims & Hers (NASDAQ: HIMS) is positioning itself at the epicenter of this transformation, leveraging partnerships, telehealth infrastructure, and emerging opportunities in AI-driven diagnostics. Its Q2 2025 earnings—set to be released on August 4—will be a critical test of whether this growth story holds up. Let's dissect how HIMS is building a “toll booth” model in healthcare and why its ecosystem could thrive alongside energy infrastructure plays tied to AI's rising power demands.

The Q2 Catalyst: Growth Amid Margins and Momentum

Hims & Hers' first quarter 2025 results were nothing short of explosive: revenue soared 111% to $586 million, with subscribers jumping to 2.4 million (+38% year-over-year). The company's Q2 guidance calls for revenue of $530–550 million, maintaining a blistering 68–74% growth rate. But the real story lies in its Adjusted EBITDA margin guidance of 12–14%—a critical hurdle as gross margins dipped to 73% in Q1 due to scaling costs.

Investors will scrutinize whether management can stabilize margins while expanding into high-margin areas like biotech partnerships (e.g., its deal with Novo Nordisk to distribute Wegovy, a GLP-1 weight-loss drug). The weight-loss market is rebounding strongly: , and HIMS' direct-to-consumer model could capture a disproportionate share.

Strategic Resilience: From Telehealth to AI-Driven Personalization

HIMS' core strength is its subscription-based model, which generates predictable revenue streams. Its shift from transactional sales to monthly billing ($84/month revenue per subscriber in Q1, +53% YoY) is a masterstroke. But what's next? The company's push into AI-infused services could be the next leg of growth.

Consider its peptide facility acquisition, which enables R&D into longevity-focused treatments. Pairing this with AI algorithms to analyze patient data could create a virtuous cycle: personalized treatments drive subscription renewals, while data from those treatments refine AI models. This creates a defensible “moat” against competitors like Teladoc or Amwell, which lack HIMS' vertical integration.

The AI Infrastructure Tipping Point: Energy Stocks as Complementary Plays

AI's hunger for computing power is straining energy grids. Data centers running AI models consume 1% of global electricity—*—and demand is rising. This creates an opportunity in *“toll booth” energy stocks like NextEra Energy (NEE), which owns green energy infrastructure and data center cooling systems.

Why pair NEE with HIMS? HIMS' AI-driven health platform and NEE's energy infrastructure are two sides of the same coin: one generates data-driven health solutions, the other ensures the energy to power them. Together, they form a symbiotic relationship in the AI-healthcare revolution.

Risks and Reality Checks

Margin pressures remain a red flag. If Q2's Adjusted EBITDA falls below guidance, investors may question HIMS' ability to scale profitably. Competitors are also circling: Walmart's $3 billion acquisition of Meow Wolf hints at Big Retail's push into health tech.

The Novo Nordisk partnership's success hinges on regulatory approvals and supply chain stability for Wegovy. Lastly, macroeconomic factors like tariffs and inflation could crimp gross margins further.

Investment Thesis: Buy the Dip Ahead of Earnings; Pair with NEE for Infrastructure Exposure

HIMS is trading at a P/S ratio of ~2x versus peers trading at 3.5x+, despite its 50%+ growth rate. This discount could narrow if Q2 results hit the top end of guidance. For aggressive investors, allocate 5% of a portfolio to HIMS ahead of its August 4 earnings.

Meanwhile, NextEra Energy (NEE) offers a safer “toll booth” play. Its 2.5% dividend yield and exposure to data center infrastructure growth provides downside protection while benefiting from AI's energy demands.

Final Take

Hims & Hers isn't just a telehealth disruptor—it's a pioneer in the fusion of healthcare and AI. Its Q2 results will test its ability to convert growth into profitability, but the long-term vision is undeniable. Pairing its stock with energy infrastructure leaders like NEE creates a portfolio that's primed to capitalize on two unstoppable trends: the AI revolution and the demand for personalized healthcare. Stay tuned for August 4—this could be the quarter that cements HIMS as a leader in the new health economy.

Disclosure: The author holds no positions in HIMS or NEE at the time of writing.