What's Next For HIMS Stock?

Core Insights - Hims & Hers Health Inc. reported Q2 revenue of $544.8 million, a 73% increase year-over-year, but fell short of the $552 million consensus estimate, leading to a 13% drop in after-hours trading [2][3] - The company's adjusted EBITDA improved significantly to $82 million, more than doubling from $39.3 million in the same quarter last year, resulting in earnings per share of $0.17, surpassing the $0.15 consensus estimate [3] - Hims & Hers benefits from compounded GLP-1 sales, which are less expensive alternatives to established diabetes and weight loss drugs, although this reliance introduces regulatory risks [3][4] Financial Metrics - The stock trades at premium valuations: Price-to-Sales Ratio of 6.9x compared to 3.0x for the S&P 500, Price-to-Free Cash Flow of 51.9x versus 20.6x for the S&P 500, and Price-to-Earnings of 74.7x against 22.8x for the S&P 500 [7] - Despite strong revenue growth, the stock remains above the average analyst price target of approximately $50, indicating potential downside risk [5] Regulatory and Competitive Challenges - The short-lived partnership with Novo Nordisk highlighted the regulatory and competitive challenges associated with the company's dependence on compounded medications, raising uncertainty about the viability of this strategy [4] - Increased regulatory scrutiny and potential challenges from established pharmaceutical manufacturers could impact the compounded sector, posing risks to Hims & Hers' business model [4][6]