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Hims & Hers Plunges 29.1% in 6 Months: Time to Hold the Stock or Sell?
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Key Takeaways
Hims & Hers reported Q3 subscriber and revenue growth but saw weak margins and earnings.
HIMS warns that FDA scrutiny on compounded GLP-1s may limit future supply and pressure margins.
Hims & Hers faces integration risks from acquisitions and evolving telehealth regulations.
Hims & Hers Health, Inc.’s (HIMS - Free Report) investors have been experiencing some short-term losses from the stock lately, despite its bumpy ride over recent months. The San Francisco, CA-based health and wellness platform’s stock lost 29.1% compared with the industry’s 11.4% decline in the past six months. It has also underperformed the sector and the S&P 500’s gains of 7.5% and 16%, respectively, in the same time frame.
Two major recent developments of HIMS include its entry in Canada following the recent completion of its acquisition of Canadian digital health platform, Livewell, and the announcement of its third-quarter 2025 results (in December and November, respectively).
Hims & Hers had recorded a robust improvement in the top line and strength in both revenue channels in third-quarter 2025. The increase in subscribers and monthly online revenue per average subscriber during the quarter was encouraging. However, HIMS’ dismal bottom-line results in the third quarter of 2025 were disappointing. The contraction of both margins during the quarter does not bode well for the stock.
HIMS Six Months Price Comparison
Image Source: Zacks Investment Research
Over the past six months, the stock’s performance has remained weak, underperforming its peers like Teladoc Health, Inc. (TDOC - Free Report) . However, Hims & Hers has outperformed its other peer, GoodRx Holdings, Inc. (GDRX - Free Report) . Teladoc Health and GoodRx’s shares have gained 2.2% and lost 40.1%, respectively, in the same time frame.
HIMS expects revenues for the fourth quarter of 2025 and the full year in the bands of $605 million to $625 million (reflecting an uptick of 26%-30% year over year) and $2.335 billion to $2.355 billion (representing growth of 58%-59% from 2024 levels), respectively. The Zacks Consensus Estimate for revenues for the fourth quarter and the full year is currently pegged at $620.4 million and $2.35 billion, respectively, while the same for earnings per share is currently pegged at 4 cents and 48 cents, respectively.
HIMS’ Operating and Regulatory Overhangs
A key weight on the stock is Hims & Hers’ exposure to compounded GLP-1 weight-loss drugs. Management emphasizes that compounded GLP-1s face heightened FDA and state scrutiny, and that access to these treatments has largely depended on temporary drug-shortage exemptions. With the semaglutide shortage officially resolved, HIMS warns its ability to keep offering compounded semaglutide could be constrained once existing inventory clears, and future FDA actions — including potential restrictions through the Demonstrable Difficulties for Compounding List — could further limit supply, raise prices or compress margins.
Hims & Hers flags rapidly evolving telehealth and pharmacy regulation. Telemedicine rules vary by state and continue to develop, making the application and enforcement of licensing, prescribing and modality requirements uncertain or uneven. HIMS notes that changes in these frameworks could increase compliance costs or force operational adjustments, particularly given the complex corporate-practice-of-medicine boundaries under which it operates through affiliated medical groups.
HIMS highlights reliance on critical third-party partners and a concentrated supply chain. The platform depends on affiliated providers for consultations and on partner pharmacies, outsourcing facilities, and manufacturing suppliers for fulfillment, including GLP-1 ingredients that are primarily manufactured by one supplier. Any disruption, termination or cost increase across these relationships could impair service levels and hurt brand trust.
Hims & Hers’ Strategic and Execution Uncertainties
Investors are also weighing uncertainty around a branded Wegovy partnership. Management confirms active discussions with Novo Nordisk to offer Wegovy injections and a future oral version, but emphasizes that no definitive agreement exists, and one may never be executed. That leaves the long-term shape of HIMS’ weight-loss portfolio unclear.
Hims & Hers is contending with execution risk from rapid expansion and recent acquisitions. The company notes that newly acquired peptide manufacturing and lab-testing operations introduce unfamiliar regulatory regimes (cGMP, CLIA, additional licensure) that must be integrated smoothly. In parallel, the Canada entry underscores integration and rollout uncertainty typical of fast international scaling. Together, these initiatives raise the risk of cost overruns or delayed benefits.
Fundamentals to Drive HIMS
Hims & Hers’ first fundamental driver is the scaling of its personalized digital-care platform, with weight loss as the lead growth engine. Management points to obesity care as a large, durable demand pool and positions HIMS’ model — pairing medication access with longitudinal coaching and tailored dosing — as a differentiator that improves retention and outcomes. The company is strengthening this engine by verticalizing compounding through owned capabilities, sourcing active ingredients from FDA-registered facilities, and widening treatment options such as microdosing. At the same time, it is extending the same personalization playbook into new U.S. categories like low testosterone and menopause, which management says are gaining traction and should deepen subscriber relationships over time.
The second driver is international expansion that materially enlarges HIMS’ addressable market and diversifies growth beyond the United States. The planned ZAVA acquisition gives the company an established European footprint, including local medical teams and existing patients, enabling faster rollout of its core specialties across the U.K., Germany, France and Ireland, with management expecting accretion as integration progresses. In Canada, the Livewell acquisition has already enabled an official market entry, and Hims & Hers is moving to launch a full weight-loss program there, citing a sizable local obesity opportunity. Together, these moves create a longer runway for scaling the platform in multiple geographies.
Hims & Hers’ Stock Valuation
HIMS’ forward 12-month P/S of 3.3X is lower than the industry’s average of 5X but is higher than its three-year median of 2.6X.
Image Source: Zacks Investment Research
Teladoc Health and GoodRx’s forward 12-month P/S currently stand at 0.5X and 1.1X, respectively, in the same time frame.
HIMS’ Estimate Movement
Estimates for Hims & Hers’ 2025 earnings per share (EPS) have moved 20% south to 48 cents in the past 60 days.
Image Source: Zacks Investment Research
Estimates for Teladoc Health’s 2025 loss per share have narrowed from $1.17 to $1.15 in the past 60 days.
Estimates for GoodRx’s 2025 EPS have moved a penny south to 37 cents in the past 60 days.
Our Final Take on Hims & Hers
There is no denying that Hims & Hers is poised favorably in terms of core business strength, earnings prowess, robust financial footing and global opportunities. However, holding on to this Zacks Rank #3 (Hold) company at present does not seem prudent, as near-term headwinds are building around its weight-loss business. Regulatory scrutiny of compounded GLP-1 offerings and the potential for tighter FDA action could curb availability and pressure margins, while the lack of a finalized branded Wegovy agreement with Novo Nordisk keeps the long-term stability of its obesity portfolio uncertain. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, the valuation indicates superior performance expectations compared with its industry peers. It is still valued lower than the industry, which suggests potential room for growth if it can align more closely with overall market performance. The favorable Zacks Style Score with a Growth Score of A suggests turnaround potential for HIMS.
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Hims & Hers Plunges 29.1% in 6 Months: Time to Hold the Stock or Sell?
Key Takeaways
Hims & Hers Health, Inc.’s (HIMS - Free Report) investors have been experiencing some short-term losses from the stock lately, despite its bumpy ride over recent months. The San Francisco, CA-based health and wellness platform’s stock lost 29.1% compared with the industry’s 11.4% decline in the past six months. It has also underperformed the sector and the S&P 500’s gains of 7.5% and 16%, respectively, in the same time frame.
Two major recent developments of HIMS include its entry in Canada following the recent completion of its acquisition of Canadian digital health platform, Livewell, and the announcement of its third-quarter 2025 results (in December and November, respectively).
Hims & Hers had recorded a robust improvement in the top line and strength in both revenue channels in third-quarter 2025. The increase in subscribers and monthly online revenue per average subscriber during the quarter was encouraging. However, HIMS’ dismal bottom-line results in the third quarter of 2025 were disappointing. The contraction of both margins during the quarter does not bode well for the stock.
HIMS Six Months Price Comparison
Image Source: Zacks Investment Research
Over the past six months, the stock’s performance has remained weak, underperforming its peers like Teladoc Health, Inc. (TDOC - Free Report) . However, Hims & Hers has outperformed its other peer, GoodRx Holdings, Inc. (GDRX - Free Report) . Teladoc Health and GoodRx’s shares have gained 2.2% and lost 40.1%, respectively, in the same time frame.
HIMS expects revenues for the fourth quarter of 2025 and the full year in the bands of $605 million to $625 million (reflecting an uptick of 26%-30% year over year) and $2.335 billion to $2.355 billion (representing growth of 58%-59% from 2024 levels), respectively. The Zacks Consensus Estimate for revenues for the fourth quarter and the full year is currently pegged at $620.4 million and $2.35 billion, respectively, while the same for earnings per share is currently pegged at 4 cents and 48 cents, respectively.
HIMS’ Operating and Regulatory Overhangs
A key weight on the stock is Hims & Hers’ exposure to compounded GLP-1 weight-loss drugs. Management emphasizes that compounded GLP-1s face heightened FDA and state scrutiny, and that access to these treatments has largely depended on temporary drug-shortage exemptions. With the semaglutide shortage officially resolved, HIMS warns its ability to keep offering compounded semaglutide could be constrained once existing inventory clears, and future FDA actions — including potential restrictions through the Demonstrable Difficulties for Compounding List — could further limit supply, raise prices or compress margins.
Hims & Hers flags rapidly evolving telehealth and pharmacy regulation. Telemedicine rules vary by state and continue to develop, making the application and enforcement of licensing, prescribing and modality requirements uncertain or uneven. HIMS notes that changes in these frameworks could increase compliance costs or force operational adjustments, particularly given the complex corporate-practice-of-medicine boundaries under which it operates through affiliated medical groups.
HIMS highlights reliance on critical third-party partners and a concentrated supply chain. The platform depends on affiliated providers for consultations and on partner pharmacies, outsourcing facilities, and manufacturing suppliers for fulfillment, including GLP-1 ingredients that are primarily manufactured by one supplier. Any disruption, termination or cost increase across these relationships could impair service levels and hurt brand trust.
Hims & Hers’ Strategic and Execution Uncertainties
Investors are also weighing uncertainty around a branded Wegovy partnership. Management confirms active discussions with Novo Nordisk to offer Wegovy injections and a future oral version, but emphasizes that no definitive agreement exists, and one may never be executed. That leaves the long-term shape of HIMS’ weight-loss portfolio unclear.
Hims & Hers is contending with execution risk from rapid expansion and recent acquisitions. The company notes that newly acquired peptide manufacturing and lab-testing operations introduce unfamiliar regulatory regimes (cGMP, CLIA, additional licensure) that must be integrated smoothly. In parallel, the Canada entry underscores integration and rollout uncertainty typical of fast international scaling. Together, these initiatives raise the risk of cost overruns or delayed benefits.
Fundamentals to Drive HIMS
Hims & Hers’ first fundamental driver is the scaling of its personalized digital-care platform, with weight loss as the lead growth engine. Management points to obesity care as a large, durable demand pool and positions HIMS’ model — pairing medication access with longitudinal coaching and tailored dosing — as a differentiator that improves retention and outcomes. The company is strengthening this engine by verticalizing compounding through owned capabilities, sourcing active ingredients from FDA-registered facilities, and widening treatment options such as microdosing. At the same time, it is extending the same personalization playbook into new U.S. categories like low testosterone and menopause, which management says are gaining traction and should deepen subscriber relationships over time.
The second driver is international expansion that materially enlarges HIMS’ addressable market and diversifies growth beyond the United States. The planned ZAVA acquisition gives the company an established European footprint, including local medical teams and existing patients, enabling faster rollout of its core specialties across the U.K., Germany, France and Ireland, with management expecting accretion as integration progresses. In Canada, the Livewell acquisition has already enabled an official market entry, and Hims & Hers is moving to launch a full weight-loss program there, citing a sizable local obesity opportunity. Together, these moves create a longer runway for scaling the platform in multiple geographies.
Hims & Hers’ Stock Valuation
HIMS’ forward 12-month P/S of 3.3X is lower than the industry’s average of 5X but is higher than its three-year median of 2.6X.
Image Source: Zacks Investment Research
Teladoc Health and GoodRx’s forward 12-month P/S currently stand at 0.5X and 1.1X, respectively, in the same time frame.
HIMS’ Estimate Movement
Estimates for Hims & Hers’ 2025 earnings per share (EPS) have moved 20% south to 48 cents in the past 60 days.
Image Source: Zacks Investment Research
Estimates for Teladoc Health’s 2025 loss per share have narrowed from $1.17 to $1.15 in the past 60 days.
Estimates for GoodRx’s 2025 EPS have moved a penny south to 37 cents in the past 60 days.
Our Final Take on Hims & Hers
There is no denying that Hims & Hers is poised favorably in terms of core business strength, earnings prowess, robust financial footing and global opportunities. However, holding on to this Zacks Rank #3 (Hold) company at present does not seem prudent, as near-term headwinds are building around its weight-loss business. Regulatory scrutiny of compounded GLP-1 offerings and the potential for tighter FDA action could curb availability and pressure margins, while the lack of a finalized branded Wegovy agreement with Novo Nordisk keeps the long-term stability of its obesity portfolio uncertain. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, the valuation indicates superior performance expectations compared with its industry peers. It is still valued lower than the industry, which suggests potential room for growth if it can align more closely with overall market performance. The favorable Zacks Style Score with a Growth Score of A suggests turnaround potential for HIMS.