Hims & Hers Is Growing 38% a Year. The GLP-1 Pivot Is the Only Thing Investors Are Watching.

Key Stats for Hims & Hers Stock

• 52-Week Range: $13.74 to $65.30
• Street Mean Target: $31.23
• Market Cap: ~$6.5B
• LTM Gross Margin: 69.5%
• Forward 2-Yr Revenue CAGR: ~30%
• Dividend Yield: None

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Revenue Has Grown Nine-Fold Since 2021. The Business Model Is Being Tested Right Now.

Hims & Hers Health (HIMS) built one of the more remarkable consumer health growth stories of the past five years. The company operates a direct-to-consumer telehealth platform that connects patients with licensed providers and delivers prescription treatments for hair loss, sexual health, mental health, weight management, and a growing range of other conditions, all through a subscription-based model designed for convenience.

Revenue grew from $272 million in 2021 to $2.35 billion in 2025, compounding at roughly 65% annually over three years. The subscriber base reached nearly 2.9 million in Q2 2026, up 19% year over year.

The Q2 2026 print continued the momentum: revenue came in at approximately $753 million, up 38% year over year, and full-year 2026 guidance was raised to a range of $3.1 billion to $3.3 billion.

Estimates project the business reaching nearly $4 billion in revenue by 2027 and approaching $5 billion by 2029. The growth engine, viewed on its own, remains intact.

What has changed is the composition of that growth, and specifically, how the FDA’s decision to end the semaglutide shortage designation in early 2025 forced Hims to transition away from compounded GLP-1 medications, the high-margin weight-loss drugs it had been producing in-house, toward branded alternatives including Ozempic and Wegovy, which carry lower margins and different economics entirely.

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The Margin Compression Is Real, and the Chart Makes It Visible

Gross margins tell the GLP-1 story more clearly than almost any other metric. Hims expanded its gross margin from 75% in 2021 to a peak of 82% in 2023, driven in large part by the compounded semaglutide business, where in-house production allowed the company to capture economics unavailable through third-party branded drugs. The pivot has been costly in margin terms.

Annual gross margin fell to 79.5% in 2024 and dropped further to 73.8% in 2025, with the LTM figure now sitting around 69.5% as the branded medication mix continues to shift the cost structure.

Management is navigating a genuine trade-off: maintaining subscriber relationships built around weight-loss medications requires offering branded GLP-1 products, but doing so at meaningfully lower margins than the compounding business did.

The company also absorbed $47.5 million in legal contingency charges in the first half of 2026 related to the GLP-1 transition.

CEO Andrew Dudum told investors the company has never been better positioned, but the margin chart makes clear that the near-term financial reality is more complicated than the revenue line suggests.

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What Analysts Think, and Why the Consensus Has Gotten More Cautious

The shift in analyst sentiment over the past twelve months is one of the more telling data points on Hims. In mid-2025, there were four buy ratings and a Street mean target approaching $50.

By March 2026, the mean target had fallen to around $24, reflecting the market’s reassessment of GLP-1 margin risk. The most recent read shows just one outright buy among 13 covering analysts, with 11 holds, 1 underperform, and a mean target of around $31.

With the stock at roughly $28, the implied upside to the Street mean is only around 12%, a narrow gap for a company growing revenue at 38% annually.

The high target of $42 reflects a bull case where the branded GLP-1 offering stabilizes margins, subscriber growth continues, and the international expansion adds a new revenue layer.

The more cautious view, reflected in the cluster of hold ratings, is that the margin compression is structural rather than transitional, and that a business trading at roughly 20x forward EBITDA needs to demonstrate it can sustain growth while rebuilding its economics.

Should You Buy Hims & Hers Stock?

The bull case rests on the durability of the subscription model and the size of the addressable market. Hims has built genuine consumer brand equity in telehealth. The subscriber base is large and growing, and the GLP-1 transition, while painful, may ultimately prove manageable if retention holds and branded medication margins stabilize.

At under 2x forward revenue for a 30% growth business, the valuation is not obviously stretched.

The bear case is harder to dismiss than it was a year ago. Gross margins have fallen roughly 12 percentage points from their peak, legal and regulatory exposure around GLP-1 is ongoing, and the analyst community has moved decisively toward hold.

Hims needs to demonstrate over the next several quarters that the margin floor is in place, and the Street is not yet convinced.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!