Hims & Hers Soars on Q1 Surge, But Can Growth Stay Steady?

The healthcare subscription giant’s stock jumped 8% after a record-breaking quarter, yet lingering concerns over near-term hurdles leave investors torn between optimism and caution.

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Hims & Hers (NYSE: HIMS) delivered its strongest quarter to date on May 5, 2025, with revenue soaring 111% year-over-year to $586 million. The results sparked an immediate 8% stock surge, only for shares to waver as the company issued cautious Q2 guidance that missed Wall Street’s mark. This juxtaposition of triumph and tempered expectations underscores the dual narrative now defining the company: explosive growth meets strategic trade-offs.

The Q1 Triumph: A Foundation of Momentum

The first quarter of 2025 marked a milestone for Hims & Hers. Key highlights include:
- Revenue Explosion: $586 million in revenue, far exceeding the $538 million consensus, with online sales jumping 115% to $576 million.
- Profitability Leap: Net income quadrupled to $49.5 million, while Adjusted EBITDA hit $91.1 million—a 182% increase from 2024.
- Subscriber Growth: The company added 38% more subscribers year-over-year, reaching 2.4 million, with 1.4 million actively using personalized solutions.

CEO Andrew Dudum framed the results as proof of Hims & Hers’ “momentum in democratizing healthcare.” The company’s emphasis on affordability and convenience—such as its $84 monthly revenue per subscriber—appealed to a broader audience, fueling its rise.

The Q2 Hurdle: Growth vs. Prudent Strategy

The celebration was tempered by Hims & Hers’ Q2 outlook, which projected revenue of $530–$550 million—$14.6 million below analyst estimates. CFO Yemi Okupe cited two strategic shifts as the cause:
1. Discontinuing Semaglutide: The FDA’s decision to end a shortage of the weight-loss drug semaglutide forced Hims to pause its compounded version, stripping away a high-margin product.
2. Restructuring Sexual Health: The company is prioritizing long-term value over short-term sales in its sexual wellness division, a move that could reduce near-term revenue but improve sustainability.

These decisions, while logical for long-term health, spooked investors accustomed to relentless growth. Analysts questioned whether the company could maintain its pace without “easy wins” like semaglutide.

The Long Game: Ambition Meets Reality

Hims & Hers unveiled audacious 2030 targets: $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA. To reach these goals, the company emphasized three pillars:
- Deeper Personalization: Expanding its algorithm-driven care plans to new specialties like mental health and chronic conditions.
- Geographic Expansion: Entering international markets, starting with Canada and Europe.
- Partnerships: Collaborating with pharma giants like Novo Nordisk (Wegovy’s distributor) to access proven treatments.

Yet skeptics point to execution risks. For instance, the Wegovy partnership—announced in April 2025 and initially driving a 20% stock rally—faces hurdles. Novo’s strict distribution controls mean Hims cannot undercut competitors’ prices, limiting its ability to scale the product quickly.

Conclusion: A Balancing Act for the Future

Hims & Hers’ Q1 results are undeniably impressive, but its stock’s post-earnings volatility reveals a market divided. Investors must decide whether the company’s long-term vision—backed by $273.7 million in cash and a 16% EBITDA margin—is worth enduring short-term turbulence.

The 2030 targets are aggressive, requiring 18% annual revenue growth through 2029. If Hims can execute its strategy of prioritizing sustainable growth over quick wins, it could redefine personalized healthcare. But if operational challenges or regulatory headwinds persist, its valuation may prove overextended.

For now, the stock’s trajectory hinges on Q2 execution and clarity on how the company will replace lost revenue from semaglutide. Investors should watch for signs of subscriber retention and new product traction in the coming quarters—metrics that will determine whether Hims’ momentum is a flash in the pan or the start of a revolution.