Hims & Hers Health (HIMS): Is This Volatile Disruptor a Strong Buy for the Future of Consumer Healthcare?

In the ever-shifting landscape of consumer healthcare, Hims & Hers Health (HIMS) has emerged as a polarizing yet undeniably influential player. The company's recent financial performance, strategic pivot toward GLP-1 medications, and ambitious long-term goals position it at the crossroads of some of the most transformative secular trends in modern medicine. Yet, its stock price has been anything but calm, swinging wildly between euphoric highs and sharp corrections. For investors, the question is whether this volatility is a red flag or a buying opportunity—and whether HIMS's fundamentals justify its lofty aspirations.

Growth Fundamentals: A Recipe for Scalability

Hims & Hers has demonstrated a rare blend of explosive top-line growth and improving profitability. In Q1 2025, the company reported revenue of $586 million, a 111% year-over-year surge, driven by a 115% increase in online sales. Its subscriber base now stands at 2.4 million, up 38% year-over-year, with monthly online revenue per average subscriber rising 53% to $84. This monetization per user is critical: it suggests the company is not just acquiring customers but extracting sustainable value from them.

Profitability metrics are equally compelling. Adjusted EBITDA hit $91.1 million in Q1 2025, up from $32.3 million in the same period last year, with margins expanding from 12% to 16%. The company raised its full-year 2025 revenue guidance to $2.3–$2.4 billion and Adjusted EBITDA to $295–$335 million, reflecting confidence in its ability to scale efficiently. These numbers aren't just impressive—they're indicative of a business model that can handle rapid growth without sacrificing margins.

Strategic Positioning: Riding the GLP-1 and Telehealth Waves

Hims & Hers is uniquely positioned to capitalize on two of the most powerful secular trends in healthcare: the GLP-1 revolution and the rise of telehealth.

The company's pivot to FDA-approved generic liraglutide—after a controversial partnership with Novo Nordisk collapsed—demonstrates agility in a regulatory-sensitive market. While the loss of the Wegovy partnership was a blow, HIMS's shift to a scalable, compliant alternative mitigates long-term risks. The GLP-1 category alone is expected to grow into a $100+ billion market, and HIMS's membership model (which bundles medication, telehealth, and nutrition coaching) is a compelling value proposition for price-sensitive consumers.

Meanwhile, the company's telehealth platform is a masterclass in convenience. By integrating virtual consultations, lab diagnostics, and wearable data, HIMS offers a “Netflix-style” healthcare experience—personalized, on-demand, and frictionless. This aligns perfectly with the Gen Z and millennial demographics, who prioritize digital-first solutions.

Analyst Sentiment: A Split in the Camps

Analyst price targets for HIMS range from $26 to $85, reflecting a spectrum of optimism and caution. The average 12-month target of $39.83 implies a 20% downside from the current price of $50.36, but bullish firms like Canaccord Genuity and BTIG Research argue that the company's long-term potential is undervalued.

The Zacks Rank #1 (Strong Buy) rating underscores confidence in HIMS's ability to outperform earnings estimates, a trend that has persisted despite recent volatility. However, skeptics at Bank of America and UBS cite concerns over slowing core growth, litigation risks, and the regulatory uncertainty surrounding compounded drugs. These voices are not to be ignored, but they often underestimate HIMS's capacity to adapt.

Recent Volatility: A Storm or a Signal?

The most dramatic event in HIMS's 2025 narrative was the dissolution of its Novo Nordisk partnership in June, which triggered a 35% stock plunge. Novo Nordisk accused HIMS of “illegal mass compounding,” a charge that raised eyebrows in regulatory circles. Yet, HIMS's pivot to generic liraglutide and its subsequent resilience (a 6.76% rebound after a downgrading by Scotiabank) suggest the company is more resilient than its critics assume.

This volatility, while unnerving, is not without precedent. The stock has swung between $13.47 and $72.98 in the past year—a range that reflects both the company's disruptive potential and its regulatory exposure. For long-term investors, the key is to differentiate between temporary setbacks and existential threats. HIMS's ability to maintain a 38% subscriber growth rate despite the partnership loss is a testament to its brand strength and product stickiness.

Investment Considerations: Balancing Risk and Reward

So, is HIMS a strong buy? The answer hinges on three factors:

1. Regulatory Resilience: HIMS must navigate the GLP-1 space without falling afoul of the FDA. Its shift to FDA-approved generics is a step in the right direction, but vigilance is required.
2. Margin Sustainability: With Adjusted EBITDA margins expanding to 16%, the company has proven it can scale profitably. Maintaining this as it expands into new markets (e.g., menopause care) will be critical.
3. Valuation Attraction: At a forward P/S ratio of 1.5x, HIMS is significantly cheaper than peers like Teladoc (2.8x). This discount, while partly due to post-pandemic telehealth skepticism, may not reflect the company's full potential.

For risk-tolerant investors, HIMS's long-term targets—$6.5 billion in revenue and $1.3 billion in Adjusted EBITDA by 2030—are audacious but achievable. The company's ability to blend technology, personalization, and affordability is rare in healthcare, and its subscriber base is growing faster than most competitors.

Final Verdict: A High-Risk, High-Reward Bet

Hims & Hers Health is not for the faint of heart. Its stock will continue to be volatile, and regulatory headwinds are inevitable. But for those who believe in the future of consumer-centric, tech-driven healthcare, HIMS represents a unique opportunity to invest in a company that's redefining the industry.

If the stock remains above key support levels (e.g., $42) and continues to execute on its growth strategies—deepening personalization, expanding into new specialties, and entering new geographies—then the long-term outlook is bullish. However, investors should approach with caution, diversify exposure, and monitor regulatory developments closely. Historically, when HIMS has reached support levels, the stock has demonstrated a 52.33% win rate over three days, rising to 64.05% over 30 days, with a maximum return of 22.28% observed 59 days after support was reached.

In the end, HIMS is a company that's trying to fix healthcare by making it more accessible, affordable, and human. Whether it succeeds depends on its ability to navigate the storms ahead. But for those willing to ride the turbulence, the destination could be transformative.