HIMS Stock: Is This Health Disruptor a Buy or a Sell?! Find Out!
Hims & Hers Health, Inc. (HIMS) has been making waves in the consumer healthcare market. The stock has seen a remarkable surge, jumping 90.4% in just three months, significantly outperforming the industry's 13.9% rise and the S&P 500's 18.6% growth during the same period. But what's fueling this rally, and is it sustainable?
Key Growth Drivers for HIMS
Several factors contribute to HIMS's impressive performance. The company's recent announcement of its expansion into Canada, following the acquisition of ZAVA, a European digital health platform, signals ambitious growth plans. Strong first-quarter 2025 results showed robust improvements in both top and bottom lines, driven by online revenue growth. The increase in subscribers and monthly online revenue per average subscriber was particularly encouraging.
In Q1 2025, HIMS reported revenue of $586 million, a staggering 111% year-over-year increase, fueled by a 115% surge in online sales. Its subscriber base reached 2.4 million, a 38% increase year-over-year, with monthly online revenue per average subscriber rising 53% to $84. Adjusted EBITDA hit $91.1 million, up from $32.3 million in the same period last year, with margins expanding from 12% to 16%. HIMS has raised its full-year 2025 revenue guidance to $2.3–$2.4 billion and Adjusted EBITDA to $295–$335 million.
Challenges and Considerations
Despite the positive momentum, HIMS faces challenges. Lower wholesale revenues in the first quarter were disappointing, and the gross margin contracted due to rising product costs. These factors could potentially impact the stock's future performance. Competitors like Teladoc Health, Inc. (TDOC) and American Well Corporation (AMWL) are also vying for market share, although HIMS has outperformed them recently.
The GLP-1 Opportunity
HIMS's strategic pivot toward GLP-1 medications could be a game-changer. By offering these medications through its platform, HIMS taps into a rapidly growing market. However, this also brings increased scrutiny and regulatory considerations.
Investors should closely watch HIMS's second-quarter 2025 results, scheduled for release on August 4, 2025. These results will provide further insights into the company's growth trajectory and profitability. While the stock has shown strong performance, its volatility warrants careful consideration before making investment decisions. The company's ability to maintain its growth momentum and manage costs will be crucial for its long-term success.
Ultimately, whether HIMS is a buy or sell depends on individual risk tolerance and investment goals. The company's strong growth fundamentals and strategic positioning make it an attractive option, but its volatility and challenges must be carefully weighed.