Hims & Hers Stock Rally (NYSE: HIMS) Faces Up to Earnings – What Next?

Hims & Hers Health (NYSE: HIMS), once a niche telehealth provider focused on men’s wellness, has rapidly transformed into a formidable player in the broader digital health ecosystem. HIMS stock has been a huge outperformer YTD, with gains of 60% on the year, and an impressive 45% gain over the past month of trading standing in stark contrast to the volatility that has engulfed markets in recent months.

The most recent leg of the rally was largely driven by a landmark partnership with Novo Nordisk, positioning Hims at the forefront of the booming weight-loss therapeutics market.

With the company’s latest earnings coming today, upon market close, we take a look at the street expectations, along with some of the more recent developments at the firm.

First-quarter 2025 estimates are for $537.85 million in revenue (93% YoY growth) and EPS of $0.14. For 2025, management projected revenue between $2.3 billion and $2.4 billion, with adjusted EBITDA of $270–$320 million.

In recent periods, Hims & Hers reported $1.5 billion in 2024 revenue, a 69% year-over-year increase, driven by a 45% growth in subscribers (2.2 million total). The company achieved its first full-year GAAP profitability, with net income of $126 million and adjusted EBITDA of $177 million.

This performance underscores the scalability of its asset-light telehealth model, which connects users to licensed providers across all 50 states.

Strategic Partnership Accelerates Growth

On April 29, 2025, Hims & Hers announced a long-term collaboration with Novo Nordisk to distribute Wegovy®, a blockbuster weight-loss drug containing semaglutide. The agreement enables Hims to offer a bundled package starting at $599 per month, which includes all dose strengths of Wegovy® and a membership providing 24/7 clinical support, nutrition guidance, and telehealth services.

This partnership addresses two critical challenges: supply chain stability (Wegovy was removed from the FDA’s drug shortage list in February 2025) and patient accessibility.

The market reacted swiftly, with HIMS shares soaring 27% on April 29 and accumulating a 45% gain over the following week. Analysts attributed this surge to the deal’s potential to capture a significant share of the $5 billion U.S. weight-loss drug market, particularly as compounded semaglutide alternatives are phased out.

The Wegovy® bundle marks a strategic pivot for Hims & Hers, which previously relied on compounded semaglutide during supply shortages. While compounded drugs contributed to a 22% stock decline in February 2025 post-FDA enforcement, the Novo deal positions Hims as a legitimate distributor of branded therapies. This shift aligns with the company’s broader transition from a “male wellness” niche to a comprehensive telehealth ecosystem.

Wall Street remains divided on HIMS’s valuation. Firms like Canaccord Genuity and BTIG raised price targets to $68–$85, citing the Novo partnership and expanding gross margins. Conversely, Morgan Stanley and TD Cowen downgraded the stock to “Hold,” noting a forward P/E ratio of 63.52 and concerns over sustainability. The consensus price target of $42.53 suggests mild perceived upside from the current ~$41 price, with plenty looking to catch up after the recent rally.

🟩 The Bull Case for NYSE: HIMS

• Strategic Partnerships: The Novo Nordisk deal positions Hims as a key player in the fast-growing weight-loss therapeutics market.
• Recurring Revenue: Subscription model ensures predictable, stable cash flows.
• Rapid Growth: Record revenue and subscriber growth, with guidance for continued expansion.
• Telehealth Tailwinds: Increasing consumer adoption of digital health services.
• Short Squeeze Potential: High short interest could drive further upside.

🟥 The Bear Case for NYSE: HIMS

• Valuation Concerns: Elevated P/E and P/S ratios leave little margin for error.
• Margin Pressure: Potential for rising drug acquisition costs and pricing competition.
• Regulatory Uncertainty: Shifts in FDA policy or drug supply could disrupt growth.
• Competitive Threats: Intensifying rivalry from other telehealth platforms.
• Insider Selling: Recent large share sales by executives may signal caution.

As the company prepares to report Q1 2025 earnings, it is likely markets will focus on execution, particularly around the Novo Nordisk partnership, margin trends, and customer acquisition costs. Ultimately, Hims’ ability to integrate chronic care management and sustain rapid growth will determine whether it cements its place as a digital health mainstay or succumbs to the pressures of a crowded, fast-evolving market.