Hims & Hers Enters Canadian Market Amid Analyst Scrutiny

Hims & Hers US4330001060

The telehealth company Hims & Hers is launching operations in Canada, a strategic international move that comes as market analysts express concerns over the firm's growth trajectory. This expansion highlights the company's aggressive strategy even as questions linger regarding the long-term sustainability of its current business model.

Hims & Hers has finalized its entry into the Canadian market through the acquisition of Livewell, a digital weight loss platform based in Canada. The company has deliberately timed this move, anticipating the global availability of generic semaglutide next year—a development with significant implications for its service offerings.

The potential in Canada is substantial, with nearly two-thirds of the adult population classified as overweight or obese. To establish a local presence, Hims & Hers has appointed a Canadian leadership team, including Austin Kouri as General Manager and Dr. Sandy Van as Chief Medical Officer for the region.

Analyst Reservations and Financial Forecasts

Despite the expansion, sentiment from some Wall Street observers remains cautious. BofA Securities has reaffirmed its Underperform rating on the stock, maintaining a price target of $32 per share. The bank's projections for fourth-quarter online revenue fall between $584 million and $609 million, slightly below the consensus estimate of $608 million.

Key concerns outlined by analysts include:
* Sluggish trends in new orders and mobile application downloads.
* Doubts about achieving the consensus target of $440 million in additional online revenue growth by 2026.
* The ongoing pivotal role of GLP-1 weight-loss medications in the company's future performance.

On a positive note, BofA acknowledged the growing base of monthly active users on the Hers platform. The firm also noted that investments in laboratory infrastructure and new product development could yield benefits over the long term.

Regulatory Headwinds and a Tech-Focused Deal

A looming regulatory challenge adds complexity to the outlook. The proposed bipartisan "SAFE Drugs Act of 2025" seeks to restrict the distribution of compounded GLP-1 medications, a major growth driver for Hims & Hers. This potential legislation casts a shadow over future revenue streams from this category.

Financially, the company reported strong results for the third quarter of 2025, with revenue reaching approximately $600 million—a 49% year-over-year increase. Its full-year 2025 guidance is set between $2.335 billion and $2.355 billion.

In a separate development, Hims & Hers has signed an agreement to acquire YourBio Health, a company specializing in nearly painless capillary blood collection technology that uses hair-thin microneedles to obtain samples in seconds. This transaction is expected to close in early 2026.