Can Platform Strength Support Hims & Hers Stock Before Q4 Earnings?

Hims & Hers Health, Inc. HIMS is scheduled to report fourth-quarter 2025 results on Feb. 23, after the closing bell.

In the last reported quarter, the company’s earnings per share (EPS) of 6 cents lagged the Zacks Consensus Estimate by 33.3%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on one occasion and missed thrice, delivering an earnings surprise of 4.9%, on average.

Let’s check out the factors that have shaped HIMS’ performance prior to this announcement.

Factors to Note Before Hims & Hers Reports

Hims & Hers’ fourth-quarter 2025 results are likely to reflect continued momentum in its personalized, multi-specialty platform strategy. The company has been expanding into adjacent, high-demand categories such as low testosterone through a new men’s health vertical and menopause and perimenopause care under the Hers brand, both of which broaden its addressable market and deepen engagement across life stages. These newer specialties, combined with strong subscriber growth and potential rise in monthly online revenue per average subscriber, likely supported higher average order values and improved customer lifetime value heading into the to-be-reported quarter.

International expansion efforts may have further contributed to growth. HIMS officially entered Canada following its acquisition of Livewell and launched its comprehensive Weight Loss Programme in the U.K., positioning the platform to capture incremental demand outside the United States. Additionally, the introduction of Labs, offering in-depth biomarker testing and personalized action plans, likely enhanced cross-selling opportunities and reinforced subscriber stickiness through a more proactive care model.

However, fourth-quarter 2025 results may have been dampened by rising operating expenses tied to aggressive marketing, technology investments and infrastructure build-out, as reflected in elevated marketing and operating costs in recent quarters. Moreover, ongoing legal and regulatory scrutiny around compounded semaglutide products, including litigation initiated by Novo Nordisk, may have created uncertainty around certain GLP-1 offerings, potentially pressuring growth and margins in the weight-loss segment.

HIMS’ Estimate Picture

For fourth-quarter 2025, the Zacks Consensus Estimate for revenues is pegged at $619.2 million, implying an improvement of 28.7% from the prior-year quarter’s reported figure.

The consensus estimate for EPS is pegged at 2 cents, indicating a plunge of 81.8% from the prior-year period’s reported number.

What Our Model Suggests About Hims & Hers

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.

Earnings ESP: HIMS has an Earnings ESP of -153.01%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Hims & Hers Health, Inc. Price and EPS Surprise

Hims & Hers Health, Inc. price-eps-surprise | Hims & Hers Health, Inc. Quote

HIMS’ Share Price Performance

Over the past three months, Hims & Hers’ shares have lost 52.9%, underperforming Medical Info Systems’ 25.8% decline. HIMS’ shares also underperformed the Zacks Medical sector and the S&P 500’s gain of 3.1% and 5.3%, respectively.

Three Months Price Comparison

Hims & Hers’ peers like American Well Corporation AMWL, popularly known as Amwell, Veeva Systems Inc. VEEV and Inspire Medical Systems, Inc. INSP have all outperformed the company. AMWL, VEEV and INSP’s shares are up 54.5%, down 32.9% and down 25.7%, respectively, in the same time frame.

Hims & Hers’ Key Valuation Metric

From a valuation standpoint, HIMS’ forward 12-month price-to-sales (P/S) is 1.3X, a discount to the industry's average of 3.7X and its five-year median of 2.7X.

The company is trading at a discount to its peers, Veeva Systems and Inspire Medical. However, Hims & Hers is trading at a premium to its other peer, Amwell. Veeva Systems and Inspire Medical’s P/S currently stand at 8.4X and 1.8X, respectively, while the ratio for Amwell stands at 0.4X.

This suggests that investors may be paying a lower price relative to the company's expected sales growth.

HIMS’ Long-Term Investment Visibility

Hims & Hers’ long-term investment visibility is underpinned by deliberate capital allocation and structural platform expansion rather than near-term specialty launches. The company’s upsized $870 million convertible senior notes offering provides substantial financial flexibility to accelerate global expansion, pursue strategic acquisitions and deepen investment in AI-driven healthcare infrastructure. This capital infusion meaningfully strengthens the balance sheet and enables HIMS to scale its vertically integrated model across diagnostics, pharmacy capabilities and fulfillment — reinforcing control over margins and customer experience over time.

A central pillar of this strategy is Hims & Hers’ accelerated investment in artificial intelligence (AI). The appointment of AI veteran Mo Elshenawy as chief technology officer signals a strategic shift toward building a data-rich, AI-powered care platform designed to enhance diagnostic precision, personalize treatment pathways and standardize high-quality care delivery at scale. By integrating advanced data systems with its direct-to-consumer infrastructure, Hims & Hers is positioning itself to unlock operating leverage, improve clinical efficiency and create a defensible competitive moat. Collectively, disciplined capital deployment, technology-driven infrastructure buildout and expanding international reach provide durable visibility into sustained revenue growth and long-term margin expansion.

Our Final Take on Hims & Hers

There is no denying that Hims & Hers continues to offer an attractive long-term narrative, supported by its expanding, technology-led healthcare platform and the financial flexibility to keep investing behind that roadmap. Its sharpened focus on building an AI-enabled care infrastructure also reinforces durability and scalability over time, which should help sustain growth visibility beyond any single quarter.

However, the near-term picture around fourth-quarter 2025 remains less encouraging. While revenues are expected to rise meaningfully, earnings are projected to drop sharply. Additionally, the recent sharp stock decline indicates that investor sentiment is already fragile heading into the release.

For those exploring new additions, the current setup suggests it may be better to stay on the sidelines until the fourth-quarter results and outlook provide greater clarity. However, if investors are already holding the stock, it would be prudent to hold on to it at present, given the company’s longer-term platform-led growth opportunity remains intact.

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This article originally published on Zacks Investment Research (zacks.com).

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