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Here's Why You Should Add Hims & Hers Stock to Your Portfolio Now
HIMSHims(HIMS) ZACKS·2025-05-19 12:06

Core Insights - Hims & Hers Health is positioned for growth in a 360millionhealthcaremarket,focusingonmentalhealth,weightloss,anddermatology,withover2millionsubscribersdrivingrecurringrevenues[1][2]−Thecompanyaimstogenerate360 million healthcare market, focusing on mental health, weight loss, and dermatology, with over 2 million subscribers driving recurring revenues [1][2] - The company aims to generate 100 million from new categories by 2025, investing in GLP-1 weight-loss solutions and advanced technologies [1][9] Personalized Product Offering - Hims & Hers emphasizes personalized solutions, with over 70% of new subscribers opting for tailored products in Q1 2025, up from nearly 17% in 2022 [4][5] - Innovations include various dosage forms, enhancing customer preferences and clinical requirements [4] Rising Recurring Revenue - The subscriber base reached 2.4 million in Q1 2025, a 38% year-over-year increase, with monthly average revenue per subscriber rising 50% to 84[6]−Onlinerevenuessurged115.384 [6] - Online revenues surged 115.3% year-over-year to 576.4 million in Q1 2025, driven by increased platform traffic [12][13] Newer Categories to Achieve Scale - Hims & Hers plans to launch liraglutide, a generic GLP-1 medication, in 2025, aiming for significant revenue growth in weight loss [9] - The company is enhancing compounding pharmacy capabilities to support adjacent categories like mental health and dermatology [10] Strong Q1 Results - The company reported better-than-expected results in Q1 2025, with gross profit increasing 87.9% year-over-year to 430.7million[11][13]−Operatingprofitsurged484.6430.7 million [11][13] - Operating profit surged 484.6% from the previous year, indicating strong operational performance [13] Competitive Landscape - Hims & Hers faces competition from companies like Teladoc and Amazon Pharmacy but differentiates itself through personalized, vertically integrated solutions [16][17] - The company focuses on underserved areas like women's health to mitigate competitive risks [17] Estimate Trend - The Zacks Consensus Estimate for 2025 earnings per share has improved by 12.5% to 74 cents, reflecting positive market sentiment [18] - Full-year revenue estimates are pegged at 2.34 billion, indicating a 58.4% improvement from the previous year [19]