HIMS' Subscriptions Power Personalized Care & Recurring Revenue Growth

The renowned health and wellness platform, Hims & Hers Health, Inc. HIMS, has cemented its position as a leading direct-to-consumer healthcare platform by leveraging a subscription-based revenue model at the core of its operations. This model enables the company to provide continuous, personalized care while generating predictable, recurring revenue. As of the first quarter of 2025, Hims & Hers reported 2.4 million subscribers, a 38.4% year-over-year increase, with more than 1.4 million of them engaging in personalized solutions. This expansion directly contributed to $576.4 million in online revenue, representing 115.3% year-over-year growth, and forming nearly all of its $586 million in total revenues.

Hims & Hers’ focus on maximizing customer value is evident in the rise of its Monthly Online Revenue per Average Subscriber to $84, up 52.7% year over year from $55. This suggests not just subscriber growth, but deeper wallet share through upselling premium services, such as its newly launched GLP-1 weight loss offerings (e.g., Wegovy packages) and holistic wellness programs. Customers typically select from subscription cadences ranging from 30 to 360 days, offering both flexibility and continuity of care. With $110.8 million in deferred revenues as of March 2025, Hims & Hers has a robust pipeline of prepaid services yet to be delivered, underscoring the financial strength of this model.

Recent initiatives, including expanded GLP-1 access via partnerships with Novo Nordisk and NovoCare Pharmacy, further reinforce the value of the subscription model. By bundling medications, diagnostics, and 24/7 clinical support into recurring plans, Hims & Hers has not only addressed rising demand for weight management solutions but has also positioned itself to scale efficiently across new specialties. Subscriptions remain the company’s engine for long-term growth, operational leverage and customer loyalty.

Subscription-Led Growth Trajectories of LFMD & DOCS

LifeMD, Inc. LFMD reported that 86% of its first-quarter 2025 revenues came from recurring subscription services. The company’s offerings span chronic care, weight management and telehealth services, mostly delivered through multi-month patient subscriptions. As of March 2025, LifeMD had 291,000 active subscribers, reflecting strong demand momentum. Its strategic bundling of services and robust telehealth infrastructure helped drive 70% year-over-year telehealth revenue growth, reinforcing LifeMD's high retention and recurring revenue efficiency.

Doximity, Inc. DOCS relies on enterprise subscription contracts, generating the bulk of its revenue through its Marketing, Hiring and Workflow Solutions offered to healthcare systems and pharma clients. DOCS’ subscription revenues for fiscal 2025 constituted more than 95% of its total revenue base. These contracts are typically long-term, billed annually or quarterly, and recognized over time. Doximity reported a net revenue retention rate of 119%, underscoring the platform's ability to expand within its existing customer base and deepen recurring spend. A majority of Doximity’s revenues now stems from customers contributing over $500,000 annually, which demonstrates the depth and predictability of its enterprise-led model.

HIMS' Price Performance, Valuation and Estimates

Shares of Hims & Hers have surged 138.1% year to date compared with the industry’s gain of 29.7%.

HIMS' forward 12-month P/S of 5X is lower than the industry’s average of 6.3X, but is higher than its five-year median of 2.6X. It carries a Value Score of C.

The Zacks Consensus Estimate for HIMS’ 2025 earnings per share suggests a 170.4% improvement from 2024.

Hims & Hers stock currently carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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