Hims & Hers Health, Inc. HIMS

Key data

The business

Hims & Hers sells prescription treatment by subscription, straight to the consumer. Someone fills out a questionnaire online, an affiliated clinician reviews it, and medication arrives every month after that. The founding categories were the ones people do not want to raise with a doctor face to face: hair loss, erectile dysfunction, skin. The category that rebuilt the company is weight loss, specifically compounded and branded GLP-1 medications.

The economics are subscription economics with a pharmacy bolted on. Gross margin ran 73.8% in 2025, marketing is the largest cost line, and the model depends on a subscriber staying past the payback period. What changed is the plumbing underneath. Capital spending went from $41.7M in 2024 to $226.0M in 2025 as the company built its own pharmacy and fulfilment network, funded with $918.8M of newly issued debt.

Business read. A software gross margin on a physical product, now carrying a factory and a mortgage.

Things you might not know

Management missed its own internal revenue goal in 2025. The annual bonus plan paid 93.72% of target on roughly 94% of the revenue target and 98% of the Adjusted EBITDA target, so a year that read as 59% growth from outside read as a modest shortfall from inside the plan.

The same year paid the maximum on the long-term plan. Performance shares granted in March 2023 vested in February 2026 at 200% of target because 2025 GAAP revenue of $2.35B cleared a $1.3B bar set three years earlier, before weight loss existed as a line in anyone's model.

Book equity is already gone. Tangible book value is negative $5.18 per share against a $33.78 price, cash is $3.63 per share, and the current ratio is 0.93, meaning current liabilities exceed current assets while the build-out is still being paid for.

Fundamentals

TL;DR. QoQ here is the June 2026 quarter against March 2026; YoY is FY2025 against FY2024 as filed, because the year-ago quarter was not sourced in this run. The split is the story. Sequential revenue is accelerating at 23.9% while the profit line goes the other way, and cash generation fell 62.7% in the same year capital spending rose more than fivefold.

Valuation

Peers: Teladoc Health, LifeMD, GoodRx, Doximity, Oscar Health. Peer medians were not sourced in this run and are not estimated here.

Every peer cell is blank because this run was scoped to the company's own filings, and a made-up median is worse than an empty one. Read the company column against itself instead: 2.9x sales and 101x free cash flow describe the same twelve months, and the 41.5x rests on six to eight analysts.

Management

Compensation

The linchpins

Win big if

Win big if the 2026 losses were the build and not the business, because fixed cost absorbed ahead of volume produces exactly this signature: revenue accelerating, margin compressing, cash draining, all at once, right after capital spending rises more than fivefold to $226.0M. The first observable proof is the November 9 report, where consensus is positive $0.09 on $878M and any positive print on revenue above $850M ends the loss streak. The confirming signal is gross margin stabilising above 68% as the owned pharmacy fills, with free cash flow back above $200M as capital spending normalises.

Surprised down if

Surprised down if the newest and largest category simply does not carry the economics of the oldest ones, which is what the gross margin column already hints at: 82.0%, then 79.5%, then 73.8%, then 64.7% trailing, seventeen points in three years while mix shifted toward weight loss. The first observable proof is a third consecutive loss on November 9, putting the 2028 consensus of $0.81 out of reach and converting an operating question into a financing one at 4.77x debt to equity. The confirming signal is an equity or debt raise, or margin under 62%.

Last word

A 200% payout against a $1.3B revenue bar, in the same year the cash bonus plan came up 6% short.