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

We came across a bullish thesis on Hims & Hers Health, Inc. (HIMS) on M. V. Cunha’s Substack. In this article, we will summarize the bulls’ thesis on HIMS. Hims & Hers Health, Inc. (HIMS)'s share was trading at $52.77 as of 5^th June. HIMS’s trailing and forward P/E were 77.60 and 86.96 respectively according to Yahoo Finance.

Hims & Hers delivered an extraordinary Q1 2025, with revenue soaring 111% YoY to $586M — the company’s fastest top-line growth ever, powered largely by explosive demand for compounded GLP-1s. Though management expects this contribution to taper as commercial semaglutide becomes widely available, full-year revenue is still projected to grow over 60%, underpinned by the company’s expanding portfolio and subscriber base.

While non-GLP-1 revenue growth slowed to ~30%, this was largely due to a strategic shift in marketing spend toward weight loss, which is now being reversed. Subscriber count rose 38% to 2.37M, and average monthly revenue per user surged 53% YoY, reinforcing strong unit economics.

Although Q2 guidance disappointed and gross margins contracted to 73% due to product mix, management expects margin recovery as semaglutide supply stabilizes. Meanwhile, adjusted EBITDA more than doubled to $91M, and FCF hit $50M despite increased capex — all signs of strong operational leverage and disciplined capital allocation.

To sustain momentum and support its ambitious 2030 targets of $6.5B in revenue and $1.3B in EBITDA, HIMS is focused on five key growth levers.

First, it’s deepening personalization, which now touches over 60% of subscribers and has meaningfully boosted retention across legacy and newer categories like dermatology, weight loss, and sexual health.

Second, it’s expanding into high-impact specialties like hormone therapy, longevity, and early cancer detection, backed by diagnostic acquisitions and a new peptide manufacturing facility aimed at democratizing cutting-edge treatments.

Third, HIMS is enhancing platform capabilities through proprietary data and AI tools like MedMatch are making care more intelligent, adaptive, and engaging.

Fourth, the company is partnering selectively with blue-chip pharma, most notably Novo Nordisk, to gain clinical credibility and expand access to branded medications. Though regulatory overhang persists, these alliances reduce risk and solidify HIMS as a trusted distribution partner.

Lastly, the company is scaling internationally, with early success in the UK validating its model abroad. While insurance partnerships remain off the table by design, the platform’s low-friction, consumer-first approach offers flexibility as it targets other English-speaking markets.

Taken together, these levers reinforce HIMS’ strategic evolution from a DTC telehealth brand to a vertically integrated, precision-based, proactive care platform. Having already surpassed its original 2025 targets a year early, the company now faces a higher bar — but also a significantly larger opportunity. If execution continues with the same discipline, HIMS could emerge as one of the defining consumer health platforms of the next decade.

Previously, we covered a bullish thesis on Hims & Hers (HIMS) by Oliver | MMMT Wealth ON Substack, highlighting its breakout growth, strong FCF, and accelerating subscriber monetization. M. V. Cunha’s follow-up in June 2025 reinforces this view, emphasizing HIMS’s long-term evolution into a vertically integrated, precision-based care platform. While both agree on the company’s upside, Oliver positioned HIMS as a rare public-market disruptor—high-growth, cash-generative, and trading at a steep discount to long-term potential.

Hims & Hers Health, Inc. (HIMS) 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 risk and potential of HIMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.