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Hims & Hers Health Sees Major Growth: Is It Sustainable?

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 5/12/2025, 9:19 am ET 6 min read
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In this article

  • HIMS+5.55%
    HIMS - NYSEHims & Hers Health Inc. Class A
    $64.46+3.39 (+5.55%)
    Volume:  52.84M
    Float:  201.69M
    $60.45Day Low/High$64.60

Hims & Hers Health Inc. stocks have been trading up by 9.76 percent, indicating increased investor optimism and potential growth.

Recent Developments and Stock Impact

  • A strategic partnership with Novo Nordisk has contributed to a 26% surge in Hims & Hers stock. This collaboration aims at offering the obesity treatment drug, Wegovy, through Hims’ platform bundled with a membership, enriching the healthcare service.
  • Hims & Hers has reported an impressive Q1 2025 performance, showing significant year-over-year growth in revenue and net income, boosting investor confidence.
  • The appointment of Mo Elshenawy as Chief Technology Officer emphasizes Hims & Hers’ commitment to advancing its AI-driven healthcare vision, potentially bolstering the company’s future technological capabilities.
  • New Chief Operations Officer Nader Kabbani, previously with Amazon, brings experience likely to streamline operations, further improving efficiency within the company.
  • Hims & Hers has announced the pricing of a significant offering of convertible senior notes to enhance global expansion and the use of AI, demonstrating its aggressive growth strategy.

Candlestick Chart

Live Update At 09:18:52 EST: On Monday, May 12, 2025 Hims & Hers Health Inc. stock [NYSE: HIMS] is trending up by 9.76%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Performance Overview

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Hims & Hers Health Inc.’s latest earnings report painted a promising picture for investors and analysts alike. The company’s revenue for the first quarter of 2025 exceeded expectations, coming in at $586 million, surpassing FactSet’s estimates of $538.6 million. This impressive figure points towards the company’s robust business model and strategic execution in the telehealth sector. The gross margin stood at an attractive 77%, indicating efficient cost management and strong pricing power.

Digging into the income statement, a net income of $49.49 million was recorded, supported by a significant EBITDA of $68.77 million, showcasing the company’s operational efficiency at this juncture. Furthermore, Hims & Hers’ high price-to-sales ratio of 6.52 suggests investor willingness to pay a premium for anticipated future growth, corroborated by the strengthening stock price performance.

The balance sheet reflects a healthy financial structure with a total asset base of approximately $892 million, outpacing the total liabilities of $342 million, which ensures financial stability and capability to fund ambitious projects. Additionally, the current ratio of 1.6 and a quick ratio of 1.2 underscore the company’s ability to meet short-term obligations comfortably.

In the cash flow statement, an impressive operating cash flow of $109.09 million reflects the company’s ability to generate adequate cash, while a free cash flow of $50.05 million ensures sustainability and scope for strategic investments. Deployment of capital to expand reach and technological capabilities appears well-supported by the $590 million cash and cash equivalents, strengthening the company’s liquidity profile in the high-demand telehealth sector.

Key Ratios and Implications

Analyzing the key ratios, a notable return on equity (ROE) figure of 36.79% signifies strong shareholder returns, indicating efficient use of equity. However, the negative pretax profit margin reflects lingering issues that need resolution, perhaps tied to strategic expansions or other one-time costs.

The company’s market enthusiasm is also evident in its price-to-earnings (PE) ratio of 76.41 and its enterprise valuation, which stands near $11.37 billion, promising strong future gains as the market potential for personalized healthcare solutions continues to grow.

More Breaking News

Navigating Market Sentiments and Future Projections

Given the current financial narratives, Hims & Hers Health has taken decisive steps to position itself favorably in the market. The partnership with Novo Nordisk marks a pivotal moment, spotlighting the potential for growth in the field of personalized telehealth services. Through this collaboration, Wegovy’s inclusion under Hims & Hers’ platform aligns with long-term growth targets and adds significant value.

Historically, the telehealth sector has shown resilience and potential for growth, especially in a post-pandemic world that values convenience and remote accessibility. Hims & Hers’ focus on technological innovation through appointments like Mo Elshenawy is poised to bolster their AI-driven initiatives, which can enhance personalized healthcare offerings. The resulting widened customer base, along with potential enhancements in service quality, portrays an optimistic outlook.

Current market trends forecast promising momentum for Hims & Hers Health Inc., supported by their aggressive strategic growth initiatives, inclusive of issuing $870 million in convertible senior notes. This financial maneuver projects confidence in tapping even larger markets and intently investing in AI advancements, factors crucial for sustained growth.

Concluding Thoughts: Is It Sustainable?

The recent surge in stock value and strong quarterly performance suggest promising resilience and growth trajectory for Hims & Hers, yet cautious optimism is advocated. With ambitious expansion efforts and ongoing partnerships, maintaining operational efficiency is key. The tech-driven transformation can elevate Hims & Hers’ service value proposition, making it a compelling choice for traders seeking growth in a transforming healthcare landscape. As millionaire penny stock trader and teacher Tim Sykes says, “It’s better to go home at zero than to go home in the red.” This serves as a reminder that careful strategy and risk management remain crucial in trading.

Overall, Hims & Hers Health Inc., with its proactive strategic partnerships, robust financial performance, and aggressive growth initiatives in emerging digital health spaces, could very well sustain its upward trajectory, provided it adeptly navigates operational challenges and market fluctuations.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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In this article (YTD Performance)

  • HIMS+160.70%
    HIMS - NYSEHims & Hers Health Inc. Class A
    $64.46+3.39 (+5.55%)
    Volume:  52.84M
    Float:  201.69M
    $60.45Day Low/High$64.60

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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