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Hims & Hers Expands Health Access Through Subscription Revenue Model
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Key Takeaways
HIMS drives revenue through subscriptions covering meds, wellness products and provider consultations.
Hims & Hers' new launches in testosterone and mental health aim to deepen subscriber engagement.
HIMS' tech platform streamlines care delivery, enhancing margins and supporting long-term growth strategy.
The renowned health and wellness platform, Hims & Hers Health, Inc.’s (HIMS - Free Report) revenue model is anchored in its subscription and recurring revenue base. Most offerings across its websites and mobile applications are sold through subscription plans, giving customers convenient access to ongoing treatments while providing the company with predictable cash flows. Flexible cadences — from 30 to 360 days — allow patients to tailor delivery schedules, and billing occurs on a recurring basis. These subscriptions cover prescription medications, wellness products and provider consultations, enabling continuity of care and reinforcing retention. The integrated technology platform supports this model by streamlining the customer journey — from discovery and telehealth visits to fulfillment and follow-up care — driving efficiency and strong gross margins.
The model also underpins Hims & Hers’ expansion strategy. The company continues to add new categories — such as weight loss, dermatology, mental health and sexual health — that naturally involve recurring treatments. Recent launches, including exclusive testosterone offerings, are designed to deepen engagement and broaden the subscriber base. This not only attracts new customers but also encourages cross-selling to existing ones, as patients expand into multiple recurring treatments over time.
By centering operations on long-term relationships rather than one-time sales, Hims & Hers prioritizes lifetime value and predictable revenues. The flexibility for customers to pause, cancel or re-engage with subscriptions builds trust and strengthens loyalty. Marketing and brand investments, combined with scalable technology, further expand adoption and allow the seamless addition of new categories. Hims & Hers’ recurring revenue framework remains a cornerstone of its growth, stability and ability to scale across health and wellness verticals.
AMWL & MED’s Subscription-Driven Recurring Models
American Well Corporation (AMWL - Free Report) , popularly known as Amwell, derives the majority of its recurring revenues from multi-year subscriptions to its Amwell Converge digital care platform. AMWL’s contracts with health systems, health plans and government agencies include base subscription fees complemented by configurable modules, enabling hybrid care delivery at scale. Beyond software, Amwell drives predictable revenue by layering ongoing services such as Carepoint devices, integration support and Amwell Medical Group staffing. This blend ensures stable income, strengthens client retention and positions Amwell to expand recurring revenue as digital adoption accelerates.
Medifast, Inc. (MED - Free Report) builds its recurring revenue foundation through the subscription-based OPTAVIA program, where customers engage in continuous meal plan purchases guided by independent coaches. Medifast’s revenue model is reinforced by predictable consumption cycles, with members ordering structured multi-week kits that integrate seamlessly with coaching support. Automatic replenishment, high engagement and the community-driven model generate strong repeat sales. Medifast benefits from this steady flow of recurring purchases, with the OPTAVIA framework fostering both customer loyalty and revenue visibility across nutrition and wellness categories.
HIMS’ Price Performance, Valuation and Estimates
Shares of Hims & Hers have gained 139.4% year to date, outperforming the industry’s growth of 38.9%.
Image Source: Zacks Investment Research
HIMS’ forward 12-month P/S of 4.9X is lower than the industry’s average of 6.1X, but is higher than its three-year median of 2.5X. It carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HIMS’ 2025 earnings per share suggests a 122.2% improvement from 2024.
Image: Bigstock
Hims & Hers Expands Health Access Through Subscription Revenue Model
Key Takeaways
The renowned health and wellness platform, Hims & Hers Health, Inc.’s (HIMS - Free Report) revenue model is anchored in its subscription and recurring revenue base. Most offerings across its websites and mobile applications are sold through subscription plans, giving customers convenient access to ongoing treatments while providing the company with predictable cash flows. Flexible cadences — from 30 to 360 days — allow patients to tailor delivery schedules, and billing occurs on a recurring basis. These subscriptions cover prescription medications, wellness products and provider consultations, enabling continuity of care and reinforcing retention. The integrated technology platform supports this model by streamlining the customer journey — from discovery and telehealth visits to fulfillment and follow-up care — driving efficiency and strong gross margins.
The model also underpins Hims & Hers’ expansion strategy. The company continues to add new categories — such as weight loss, dermatology, mental health and sexual health — that naturally involve recurring treatments. Recent launches, including exclusive testosterone offerings, are designed to deepen engagement and broaden the subscriber base. This not only attracts new customers but also encourages cross-selling to existing ones, as patients expand into multiple recurring treatments over time.
By centering operations on long-term relationships rather than one-time sales, Hims & Hers prioritizes lifetime value and predictable revenues. The flexibility for customers to pause, cancel or re-engage with subscriptions builds trust and strengthens loyalty. Marketing and brand investments, combined with scalable technology, further expand adoption and allow the seamless addition of new categories. Hims & Hers’ recurring revenue framework remains a cornerstone of its growth, stability and ability to scale across health and wellness verticals.
AMWL & MED’s Subscription-Driven Recurring Models
American Well Corporation (AMWL - Free Report) , popularly known as Amwell, derives the majority of its recurring revenues from multi-year subscriptions to its Amwell Converge digital care platform. AMWL’s contracts with health systems, health plans and government agencies include base subscription fees complemented by configurable modules, enabling hybrid care delivery at scale. Beyond software, Amwell drives predictable revenue by layering ongoing services such as Carepoint devices, integration support and Amwell Medical Group staffing. This blend ensures stable income, strengthens client retention and positions Amwell to expand recurring revenue as digital adoption accelerates.
Medifast, Inc. (MED - Free Report) builds its recurring revenue foundation through the subscription-based OPTAVIA program, where customers engage in continuous meal plan purchases guided by independent coaches. Medifast’s revenue model is reinforced by predictable consumption cycles, with members ordering structured multi-week kits that integrate seamlessly with coaching support. Automatic replenishment, high engagement and the community-driven model generate strong repeat sales. Medifast benefits from this steady flow of recurring purchases, with the OPTAVIA framework fostering both customer loyalty and revenue visibility across nutrition and wellness categories.
HIMS’ Price Performance, Valuation and Estimates
Shares of Hims & Hers have gained 139.4% year to date, outperforming the industry’s growth of 38.9%.
Image Source: Zacks Investment Research
HIMS’ forward 12-month P/S of 4.9X is lower than the industry’s average of 6.1X, but is higher than its three-year median of 2.5X. It carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HIMS’ 2025 earnings per share suggests a 122.2% improvement from 2024.
Image Source: Zacks Investment Research
Hims & Hers currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.