HIMS Stock: After a 57% Surge, Is It Time to Buy Hims & Hers?

Hims & Hers Health [HIMS] is a telehealth platform that connects patients with healthcare providers, delivers medications, offers blood testing services and provides personalized treatment plans.

The company generates most of its revenue through subscription-based prescriptions, which are fulfilled via its wholly owned and partner pharmacy network.

Hims & Hers currently specializes in areas such as sexual health, hair loss, hormone health, dermatology and weight loss. The US remains its primary market, while the company has expanded into Canada, Europe, Japan and Australia through acquisitions.

In the second week of March, the HIMS share price surged more than 57% after drugmaker Novo Nordisk [NVO] dismissed its lawsuit against the telehealth company for selling copycat versions of its weight-loss pills.

Hims Changes Business Model After Lawsuit

Weight loss is a highly lucrative and fast-growing vertical for Hims & Hers, helping the company surpass $1bn in annual revenue for the first time in 2024.

The company capitalized on a shortage of semaglutide — the key ingredient in Novo Nordisk’s blockbuster weight-loss medications Ozempic and Wegovy — by selling copycat versions of the drugs through a regulatory pathway known as compounding, driving revenue up 71% to more than $1.47bn in 2024 and a further 59% to about $2.35bn in 2025.

During drug shortages, the US Food and Drug Administration (FDA) allows drugmakers to produce copies of FDA-approved drugs to help meet demand. Compounded drugs do not go through clinical trials and do not have to comply with stringent manufacturing and processing standards set by the FDA.

With the semaglutide shortage declared over by the FDA in early 2025, Hims & Hers started facing scrutiny from the FDA for advertising its compounded semaglutide drugs as having the same “clinically proven ingredients” as FDA-approved Ozempic and Wegovy.

In February 2026, Hims & Hers began offering a compounded version of Novo Nordisk’s Wegovy weight-loss pill at a $100 discount, prompting Novo to file a patent infringement lawsuit seeking to block the company from selling compounded drugs.

The pressure sent HIMS stock tumbling as much as 81%, from an all-time high of $72.98 in February 2025 to a low of $13.74 by February 2026.

In early March, Novo Nordisk dismissed the lawsuit after Hims & Hers agreed to change its weight loss business model away from compounded drugs and toward FDA-approved medicines. HIMS also agreed to sell Novo Nordisk’s Ozempic and Wegovy pills and injections on its platform.

The HIMS share price jumped sharply following the announcement, helping the stock post its best-ever weekly return, of over 57%.

Hims’ Financial Health

In fiscal 2025, Hims & Hers reported a 59% year-over-year jump in revenue to $2.35bn.

The US market contributed 94% of annual revenue. Share of revenue earned from international markets increased to 5.7% from 1.8% in 2024.

Subscribers increased 13% to over 2.5 million in 2025, while monthly revenue per average subscriber increased to $83 in 2025 from $65 a year ago.

After achieving profitability for the first time in 2024, the company reported net income of $128.4m in 2025, up 1.9% year-over-year.

Positive cash flows supported acquisition-driven expansion plans as Hims & Hers acquired a Europe-based digital health platform called Zava in July 2025. Later in November, the company acquired Medici Technologies to kickstart its Canadian operations.

The largest deal was the $1.15bn acquisition of Australian telehealth firm Eucalyptus, expected to close in mid-2026.

To fund acquisitions and general corporate purposes, in May 2025, the company issued $1bn in 0% convertible senior notes due 2030, with an initial conversion price valuing HIMS shares at $70.67.

Hims & Hers ended 2025 with $228.6m in cash. The company also announced a $250m share buyback in November to be executed over three years, marking its third repurchase program since 2021.

Below is a table comparing the valuation metrics and growth estimates of HIMS with two telehealth peers, LifeMD [LFMD] and Teladoc Health [TDOC].

Source: Yahoo Finance

The Investment Case for Hims & Hers

The Bull Case for HIMS Stock: Verticalization and Expanded Offerings

Although the market has valued Hims & Hers Health primarily based on its weight loss segment in recent years, in the company’s Q4 2025 earnings call, management reminded investors that “the majority of our revenue and profitability is driven by offerings outside of weight loss.”

The company does not want to be associated with a single segment and plans to launch a new specialty each year. In 2025, it expanded into testosterone treatment for men and menopause care for women, while introducing laboratory testing services.

Looking ahead, the company plans to explore areas such as preventive care, sleep, recovery and performance by integrating wearable data. Combined with lab diagnostics and artificial intelligence-driven insights, the goal is to guide subscribers toward more personalized treatments and improve conversion. Verticalized healthcare services lie at the core of the company’s strategy as it targets $6.5bn in revenue by 2030.

The Bear Case for HIMS Stock: Shrinking Margins and Slower Growth

The move away from high-margin compounded weight-loss drugs is expected to drag the company’s margins and revenue growth in the near term. 

During the Q4 2025 earnings call, management said that the company would lose $65m in Q1 2026 due to changes in the shipping of weight-loss products.

Hims & Hers expects a Q1 2026 adjusted EBITDA margin of 6–9%, down from 15.5% reported in the same quarter a year ago and 13.4% in the prior quarter.

Revenue for Q1 2026 is projected to reach $600m–625m, representing 2.4–6.7% year-over-year growth, a sharp slowdown from the 111% growth recorded in Q1 2025 and 28% growth reported in the previous quarter.

Conclusion

Hims & Hers has built a fast-growing telehealth platform with expanding specialties, rising subscribers and global ambitions. Yet while the Novo Nordisk lawsuit’s dismissal removed a major legal overhang, questions about slowing growth and margin pressure remain as the company pivots away from compounded weight-loss drugs.