Hims & Hers Health, Inc. (HIMS): A Bull Case Theory

We came across a bullish thesis on Hims & Hers Health, Inc. on PatchTogether Investing’s Substack. In this article, we will summarize the bulls’ thesis on HIMS. Hims & Hers Health, Inc.'s share was trading at $48.11 as of September 4^th. HIMS’s trailing and forward P/E were 60.90 and 62.50 respectively according to Yahoo Finance.

Hims & Hers (NYSE: HIMS) saw its stock fall 30% after Q2 2025 earnings as investors questioned whether its growth story is losing steam. Revenue fell sequentially for the first time, from $586M in Q1 to $545M in Q2, driven by weakness in weight loss and a strategic shift in sexual health. Core revenue held flat at $355M, but weight loss dropped from $230M to $190M, as compounded GLP-1s faced availability headwinds. Management emphasized that the transition from one-off sexual health prescriptions to premium daily-use subscriptions will temporarily weigh on growth but ultimately strengthen retention and customer lifetime value by 2026.

Guidance for 2025 stands at $2.3–$2.4B, with ~15% of revenue exposed to GLP-1 regulation risk. Even in a downside scenario where GLP-1 compounds fall to zero, the $2B base business growing at 20% annually could still reach $5B by 2030. Hims is also expanding into new categories including menopause, TRT, lab testing, and AI-enabled care, with total potential revenue of $650M–$1.6B by 2030. This could lift revenue to $5.6–$6.6B even without GLP-1, supporting management’s $6.5B target.

Valuation scenarios suggest $600M–$780M in net income by 2030, translating to $15–$19.5B in market cap, or 1.5x–2x upside from current levels. Near term, volatility from GLP-1 and sexual health rotation will keep results choppy, but the long-term thesis rests on execution in new verticals, higher retention, and optionality from international expansion and eventual generic semaglutide opportunities.

Previously we covered a bullish thesis on Hims & Hers Health, Inc. (HIMS) by Oliver | MMMT Wealth in May 2025, which highlighted explosive revenue growth, strong profitability, and international expansion potential. The company’s stock price has depreciated ~8% since our coverage as momentum stalled post-Q2. The thesis still stands given long-term fundamentals. PatchTogether Investing shares a similar view but emphasizes near-term GLP-1 volatility and sexual health transitions.

Hims & Hers Health, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held HIMS at the end of the first quarter which was 38 in the previous quarter. While we acknowledge the potential of HIMS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.