Hims & Hers Revenue Continues to Surge. Is It Time to Buy the Stock?

Hims & Hers Health (HIMS) reported robust Q3 results, with revenue climbing 49% year-over-year to $599 million, surpassing guidance and analyst estimates, driven by a 21% increase in subscribers to 2.47 million and a 50% jump in personalized treatment users. Adjusted EBITDA surged 53% to $78.4 million, and the company narrowed its 2025 revenue and adjusted EBITDA guidance. Significantly, HIMS is in active discussions with Novo Nordisk to offer Wegovy on its platform, signaling continued strategic expansion and positioning the growth stock with an attractive valuation for long-term upside.

Analysis

Hims & Hers Health (HIMS) reported robust Q3 results, with revenue climbing 49% year-over-year to $599 million, exceeding both guidance and analyst consensus. Subscriber count increased 21% to 2.47 million, while monthly online revenue per subscriber rose 19%. The strategic shift to personalized treatment plans is proving effective, with customers using these plans jumping 50% and now comprising over 65% of the subscriber base.

Despite a 500 basis point gross margin decline to 74%, HIMS achieved improved operational efficiency, with operating expenses decreasing to 72% of revenue and adjusted EBITDA soaring 53% to $78.4 million. Marketing expenses notably fell to 39% of revenue. The company narrowed its 2025 revenue guidance to $2.335-$2.355 billion and adjusted EBITDA guidance to $307-$317 million, reflecting a more precise outlook.

HIMS is in active discussions with Novo Nordisk (NVO) to offer Wegovy, signaling a significant strategic expansion into high-demand therapeutic areas. From a valuation perspective, the stock appears attractive, trading at a forward P/E of 32.5 (2026 consensus) and a PEG ratio of approximately 1x. This suggests potential undervaluation for a growth stock, given its robust outlook and high-gross-margin subscription business model.

Key Decisions for Investors

• Investors should consider HIMS's consistent revenue growth and increasing adoption of personalized treatment plans as key drivers for long-term upside.
• Monitor the progress and terms of the potential Novo Nordisk collaboration for Wegovy, as this could significantly expand HIMS's market reach and product offerings.
• Evaluate the stock's attractive valuation metrics, including its PEG ratio of approximately 1x, but remain mindful of potential volatility inherent in growth stocks.