Hims & Hers Health (NYSE: HIMS) has been on a rollercoaster ride in recent months, with the telehealth company’s stock experiencing significant volatility. After surging over 137% year-to-date and more than doubling in value this year alone, HIMS stock recently faced headwinds following the termination of its partnership with Novo Nordisk. This development has raised questions about the company’s growth trajectory and business practices, particularly regarding compounded weight loss drugs.
Recent HIMS Stock Performance
HIMS stock has demonstrated remarkable strength in 2025, despite recent turbulence. Currently trading around $57, the stock has delivered impressive returns for early investors. With a market capitalization approaching $13 billion, Hims & Hers Health has established itself as a significant player in the telehealth sector.
Key Performance Metrics
- Year-to-date growth: 137.21%
- 3-month performance: 103.83%
- Current P/E ratio: ~84
- Revenue (TTM): $1.78 billion
- Net income (TTM): $164.40 million
The company’s most recent earnings report revealed a 111% year-over-year revenue increase to $586 million, with adjusted EBITDA nearly tripling to $91 million. This growth has been fueled by expanding its subscriber base to 2.4 million users, with nearly 60% utilizing personalized treatments.
Key Drivers Behind HIMS Stock Movement
Business Model Expansion
Hims & Hers has successfully evolved from a niche telehealth provider to a comprehensive health and wellness platform. The company’s direct-to-consumer model has resonated with customers seeking convenient, personalized healthcare solutions.
“Hims & Hers has been a growth beast over the years. It went from just $272 million in revenue in 2021 to $1.8 billion in sales over the trailing 12 months.”
Novo Nordisk Partnership Termination
A significant recent development affecting HIMS stock was the termination of its partnership with Novo Nordisk, the maker of popular weight loss drugs Ozempic and Wegovy. The partnership, announced in April, was intended to make Wegovy more accessible through the Hims & Hers platform at $599 per month.
Novo Nordisk cited concerns over Hims & Hers’ marketing practices, which it referred to as “deceptive,” and alleged that the company “failed to adhere to the law which prohibits mass sales of compounded drugs.”
Compounding Controversy
At the heart of the controversy is Hims & Hers’ practice of selling compounded drugs—copies of FDA-approved medications using adjusted formulas. The company justifies this approach by offering “personalized” compounded versions it claims are medically necessary, while Novo Nordisk and other pharmaceutical companies have expressed concerns about this practice.
Expert Opinions on HIMS Stock
Analyst Ratings
Wall Street remains cautiously optimistic about HIMS stock, with the consensus among analysts being a “Hold” rating. The average price target stands at approximately $47, suggesting potential downside from current levels. However, analyst opinions vary widely, reflecting the uncertainty surrounding the company’s business model and regulatory environment.
Recent Analyst Actions
| Date | Firm | Action | Rating Change | Price Target |
| Jun 23, 2025 | Needham | Downgrade | Buy → Hold | – |
| Jun 04, 2025 | Needham | Reiterated | Buy | $61 → $65 |
| Apr 29, 2025 | TD Cowen | Downgrade | Buy → Hold | $30 |
| Feb 18, 2025 | Morgan Stanley | Downgrade | Overweight → Equal-Weight | $42 → $60 |
“The business has evolved by offering a wider range of products, including obesity treatments. But in doing so, it has been pushing the envelope with compounded drugs, and the danger is that patients could experience side effects that may otherwise not happen with FDA-approved drugs.”
Future Outlook for HIMS Stock
Growth Catalysts
Expanding Product Portfolio
Hims & Hers continues to diversify its offerings beyond its initial focus areas. The company has successfully expanded into weight management, mental health, and primary care services, broadening its addressable market significantly.
International Expansion
The company recently announced plans to expand into Canada in 2026, following its acquisition of European telehealth provider ZAVA. This international growth strategy could open new revenue streams and reduce dependence on the U.S. market.
Subscription Model Strength
With 2.4 million subscribers generating 95% recurring revenue and over 85% retention rates, Hims & Hers has built a stable foundation for future growth. Average monthly revenue per subscriber has increased by 50% year-over-year, demonstrating effective monetization.
Technological Innovation
The company continues to invest in AI-driven personalization to enhance its telehealth platform, potentially creating competitive advantages and improving customer retention over time.
Potential Risks
Strengths
- Strong revenue growth (111% YoY)
- High customer retention (85%+)
- Expanding product portfolio
- International expansion opportunities
- Improving profitability metrics
Challenges
- Regulatory scrutiny of compounded drugs
- Loss of major pharmaceutical partnerships
- Potential legal liabilities
- High valuation (P/E ratio ~84)
- Increasing competition in telehealth
Investors should closely monitor regulatory developments regarding compounded medications, as changes in this area could significantly impact Hims & Hers’ business model and growth trajectory.
Frequently Asked Questions About HIMS Stock
Is HIMS Stock a Buy in 2025?
The answer depends on your risk tolerance and investment horizon. While HIMS has shown impressive growth, its high valuation and regulatory uncertainties suggest caution. Most analysts currently rate the stock as a “Hold,” indicating a balanced risk-reward profile at current prices.
How has the Novo Nordisk partnership termination affected HIMS stock?
The end of the Novo Nordisk partnership initially caused a significant drop in HIMS stock price, reflecting investor concerns about the company’s business practices and future growth potential. However, the stock has since recovered some ground as the market reassesses the long-term impact on the company’s overall business model.
What are the main growth drivers for Hims & Hers Health?
Key growth drivers include expanding product offerings, increasing average revenue per user, high customer retention rates, and planned international expansion. The company’s ability to personalize healthcare solutions and create recurring revenue streams has been central to its success.
The Bottom Line on HIMS Stock
Hims & Hers Health represents both significant opportunity and notable risk for investors. The company has demonstrated impressive growth and improving profitability, but faces regulatory uncertainties and competitive pressures. The termination of its Novo Nordisk partnership highlights potential vulnerabilities in its business model, particularly regarding compounded medications.
For investors considering HIMS stock, a balanced approach is advisable. The company’s strong revenue growth and expanding subscriber base suggest continued momentum, but its high valuation and regulatory risks warrant careful consideration. As the telehealth landscape evolves, Hims & Hers’ ability to navigate regulatory challenges while maintaining its growth trajectory will be crucial to its long-term success.
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