Hims & Hers: A Growth Story Battling Market Skepticism

Hims & Hers US4330001060

The telehealth sector is experiencing intense competition, yet Hims & Hers Health, Inc. continues to post impressive operational results. This creates a stark divergence: the company's business fundamentals are strengthening rapidly, while its share price struggles in a persistent downtrend. In a direct response to this valuation gap, management has initiated a significant share repurchase plan.

Recent quarterly figures from Hims & Hers tell a story of robust expansion. For the third quarter, the company reported revenue approaching $600 million, marking a substantial 49% year-over-year increase. Its subscriber base also expanded significantly, growing 21% to reach approximately 2.5 million users.

This operational strength sharply contrasts with the equity's performance in 2025. Since peaking in February, the stock has declined by roughly 48%. Although shares saw a weekly gain of 12.53%, the broader chart remains dominated by the corrective trend. Market participants appear primarily concerned with mounting competition in the digital healthcare space, which is weighing on the valuation despite the company's clear scaling success.

Management Counters with Capital Return

To address the share price decline and signal confidence, the board has authorized a new $250 million stock buyback program. This strategic move underscores the leadership's belief that the current market capitalization fails to reflect the firm's long-term prospects adequately.

Concurrently, Hims & Hers has reaffirmed its full-year 2025 guidance. The company anticipates annual revenue to land between $2.335 billion and $2.355 billion. Its projected adjusted EBITDA is forecast to be in the range of $307 million to $317 million.

Cautious Stance from the Analyst Community

Despite the strong fundamentals and a price-to-sales ratio hovering around a relatively low 3.5, Wall Street analysts maintain a guarded outlook. The consensus rating currently stands at "Hold." The average price target among experts is $45.50, which implies a theoretical upside potential of about 32% from recent levels. However, many are awaiting signs of a sustained price floor before turning more bullish.

By confirming its annual targets and launching the repurchase initiative, Hims & Hers has set its strategic course for the upcoming fiscal period. The future trajectory of the stock will likely hinge on the company's ability to continue enhancing its profitability within the fiercely competitive U.S. healthcare market.