Key Takeaways
- Hims & Hers reported spectacular Q1 2025 revenue growth of 111% year-over-year to $586 million, with its subscriber base expanding by 38% to 2.4 million.
- The company is pursuing an aggressive expansion strategy, including the acquisition of European digital health platform ZAVA and a planned entry into the Canadian market in 2026.
- Despite strong financial performance, the stock faces significant short interest, indicating a polarised investor base and the potential for volatility.
- Management has set ambitious long-term targets, aiming for at least $6.5 billion in revenue and $1.3 billion in Adjusted EBITDA by 2030, contingent on sustained growth and margin recovery.
Hims & Hers Health, Inc. (NYSE: HIMS) stands at a pivotal juncture in 2025, with aggressive revenue projections and international expansion plans fuelling investor interest. The sharpest observation lies in the company’s staggering first-quarter (Q1: Jan–Mar) 2025 revenue growth of 111% year-over-year, reaching $586 million, alongside a subscriber base swelling to 2.4 million. This performance underscores a robust demand for digital health solutions, yet questions linger over sustainability amid high short interest and ambitious long-term targets. This analysis dissects the company’s financial trajectory, strategic moves, and market risks to provide a clear-eyed view of its outlook.
Financial Performance: A Strong Start to 2025
The financials for Hims & Hers in Q1 2025 paint a picture of explosive growth, driven by personalised treatment offerings and an expanding subscriber base. For the full year 2024, the company reported a 69% increase in revenue from 2023. Looking ahead, guidance for 2025 remains firm, with the company raising its Adjusted EBITDA forecast. These figures suggest confidence in continued momentum, though the pace of growth may face headwinds as the base effect kicks in.
| Metric | Figure | Period / Target |
|---|---|---|
| Revenue | $586 million (+111% YoY) | Q1 2025 |
| Subscribers | 2.4 million (+38% YoY) | Q1 2025 |
| Net Income | $49.5 million | Q1 2025 |
| Adjusted EBITDA | $91.1 million | Q1 2025 |
| Revenue | $1.5 billion (+69% YoY) | Full Year 2024 |
| Revenue Guidance | $2.3 billion – $2.4 billion | Full Year 2025 |
| Adjusted EBITDA Guidance | $295 million – $335 million | Full Year 2025 |
| Revenue Target | ≥ $6.5 billion | By 2030 |
| Adjusted EBITDA Target | ≥ $1.3 billion | By 2030 |
Longer-term, the company has set an ambitious target of at least $6.5 billion in revenue by 2030, alongside $1.3 billion in Adjusted EBITDA. While these targets signal intent, they hinge on sustained subscriber growth and margin recovery, particularly in gross margins expected to strengthen in Q2 (Apr–Jun) 2025 following operational tweaks and economies of scale.
Strategic Expansion: Beyond Borders and Product Lines
Hims & Hers is not content to rest on domestic laurels. A notable strategic move includes the acquisition of ZAVA, a European digital health platform, which bolsters its international footprint with a significant user base. Further, plans to expand into Canada in 2026, timed with the anticipated availability of generic semaglutide for its weight loss programme, highlight a calculated approach to tapping new markets. This follows a broader trend in telehealth to leverage cost-effective generics to drive affordability and access, a strategy that could yield dividends if executed with precision.
Product diversification also features prominently. New offerings slated for 2025 target underserved segments, including treatments for low testosterone and menopause care. These categories address substantial unmet needs in the US market, potentially deepening the company’s revenue streams. However, success will depend on regulatory navigation and competitive positioning in crowded therapeutic areas.
Market Dynamics: Short Interest and Investor Sentiment
Despite the bullish narrative, Hims & Hers faces notable market friction. A high short interest, reportedly covering a significant portion of the float, suggests scepticism among some investors about the stock’s valuation or growth sustainability. This was subtly echoed in online discussions, with platforms like X hosting varied opinions on the stock’s trajectory, as noted by users such as Alex Capital. Such sentiment, while not definitive, hints at a polarised investor base, with potential for volatility if positive catalysts—such as further product launches or margin improvements—materialise.
The stock has seen a remarkable run, up 94.2% year-to-date as of early July 2025, though it remains below its 52-week high of $68.74 from February. This discrepancy indicates room for upside but also underscores the risk of a correction if growth expectations falter. Analyst coverage, including from Morgan Stanley, points to concerns over slowing growth rates as the company scales, a factor that warrants close monitoring in upcoming quarters.
Risks and Considerations
Several risks temper the optimism surrounding Hims & Hers. First, the high short interest could precipitate sharp price swings, particularly if quarterly results disappoint or if macroeconomic conditions tighten consumer spending on discretionary health services. Second, international expansion, while promising, carries execution risks, including regulatory hurdles and localisation challenges. Finally, the telehealth sector remains fiercely competitive, with rivals potentially undercutting on price or innovating faster in key categories like weight loss and personalised care.
A comparative look at historical data reveals the scale of the challenge. In 2023, revenue growth was strong but less explosive at 65% year-over-year, suggesting that maintaining triple-digit growth rates in 2025 and beyond will require exceptional execution. Subscriber growth, too, must keep pace; the jump from 1.5 million in 2023 to 2.2 million in 2024 and 2.4 million in Q1 2025 is impressive, but retention and acquisition costs will be critical metrics to watch.
Conclusion: A Balanced Outlook
Hims & Hers Health is carving a bold path in the digital health landscape, with financial results in 2025 demonstrating undeniable strength and strategic moves positioning it for broader reach. Revenue growth, subscriber expansion, and international plans are compelling, yet high short interest and competitive pressures inject a dose of caution. Investors would do well to monitor gross margin recovery in Q2 2025 and the rollout of new products as key indicators of whether the company can sustain its trajectory towards its lofty 2030 targets. For now, the story is one of promise, tempered by the realities of a dynamic and unforgiving market.
References
Alex Capital [@alexis04613]. (2025, July 10). *[Post on HIMS stock performance]*. X. Retrieved from https://x.com/alexis04613/status/1941965526332526826
Hims & Hers Health, Inc. (2025, February 24). *Hims & Hers Health, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results*. Retrieved from https://investors.hims.com/news/news-details/2025/Hims–Hers-Health-Inc.-Reports-Fourth-Quarter-and-Full-Year-2024-Financial-Results/
Hims & Hers Health, Inc. (2025, May 5). *Hims & Hers Health, Inc. Reports First Quarter 2025 Financial Results*. Retrieved from https://investors.hims.com/news/news-details/2025/Hims–Hers-Health-Inc–Reports-First-Quarter-2025-Financial-Results/
Hims & Hers Newsroom. (2025). *How Healthcare Will Transform in 2025*. Retrieved from https://news.hims.com/newsroom/how-healthcare-will-transform-in-2025
Investing.com. (2025, July 14). *Morgan Stanley Maintains Hims and Hers Stock Rating Amid Slowing Growth*. Retrieved from https://in.investing.com/news/analyst-ratings/morgan-stanley-maintains-hims-and-hers-stock-rating-amid-slowing-growth-93CH-4910405
MarketScreener. (2025, July 9). *Hims & Hers to Launch Weight Loss Program in Canada in 2026, Shares Up Pre-Bell*. Retrieved from https://marketscreener.com/quote/stock/HIMS-HERS-HEALTH-INC-65220697/news/Hims-Hers-to-Launch-Weight-Loss-Program-in-Canada-in-2026-Shares-Up-Pre-Bell-50470324
Seeking Alpha. (2025, July 14). *Hims And Hers Health: Unlocking A $6 Billion Future*. Retrieved from https://seekingalpha.com/article/4799879-hims-and-hers-health-unlocking-a-6-billion-future
StockStory. (2025, July 9). *Hims and Hers Health (HIMS) Stock Is Up; What You Need To Know*. FinancialContent. Retrieved from https://markets.financialcontent.com/stocks/article/stockstory-2025-7-9-hims-and-hers-health-hims-stock-is-up-what-you-need-to-know
Yahoo Finance. (2025, July 2). *Hims & Hers Health, Inc. (HIMS) Stock Price, News, Quote & History*. Retrieved from https://finance.yahoo.com/quote/HIMS/
Yahoo Finance. (2025, July 9). *Hims & Hers Announces Planned 2026 Expansion to Canada, Following ZAVA Acquisition Completion*. Retrieved from https://finance.yahoo.com/news/hims-hers-announces-planned-2026-130000420.html
