Hims & Hers Raises $870M to Fuel Global Expansion, AI-Driven Healthcare

Hims & Hers Health has raised $870 million in an upsized convertible senior notes offering to fund its global expansion and invest in AI and personalized treatments. The funds will be used to improve data systems and create AI-driven personal treatments. The company also appointed Mo Elshenawy as its new CTO to lead its AI healthcare expansion. HIMS stock has a Hold consensus rating and an average price target of $45.54, implying an 11.4% downside potential.

Hims & Hers Health, Inc. (HIMS) has successfully raised $870 million in an upsized convertible senior notes offering, aimed at funding its global expansion and investment in artificial intelligence (AI) and personalized treatments. The funds will be allocated to enhance data systems and develop AI-driven personalized treatments, as well as appoint Mo Elshenawy as the new Chief Technology Officer (CTO) to lead the AI healthcare expansion [2].

The company's convertible senior notes, due 2030, were offered in a private placement to qualified institutional buyers under Rule 144A. The proceeds will support both organic growth and strategic acquisitions, as well as deeper investment in AI, diagnostics, and personalized treatments to scale access and meet rising demand for high-quality care [2].

The recent earnings report showed mixed results for the first quarter of 2025, with adjusted earnings per share (EPS) of 20 cents missing expectations but quadrupling year over year. The company also reported $586 million in sales, beating forecasts and showing a significant 111% increase from the year-ago period. The stock price reacted negatively to the earnings outlook, dropping more than 7% in early trading [1].

HIMS stock has a Hold consensus rating and an average price target of $45.54, implying an 11.4% downside potential. The company's long-term outlook projects $2.3 billion to $2.4 billion in sales for the year and $6.5 billion in revenue by 2030, with $1.3 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) [1].

References:
[1] https://www.investors.com/news/technology/hims-stock-hims-hers-health-earnings-q1-2025/
[2] https://investors.hims.com/news/news-details/2025/Hims--Hers-Health-Inc--Announces-Proposed-Convertible-Senior-Notes-Offering-to-Accelerate-Global-Expansion-and-Utilization-of-AI-in-Healthcare/default.aspx