Hims Stock: What the Price Action & Recent Filings Actually Say

TITLE: Hims & Hers: Profitable Growth or Just Clever Accounting?

Hims & Hers (HIMS) presents a compelling growth narrative, but a closer look at the numbers raises some questions. The company's Q3 2025 results show impressive revenue growth and profitability, but are these figures as robust as they appear at first glance? Let's dig into the data and see what the story really is.

Revenue Growth: The Headline Numbers

The headline figures are certainly eye-catching. Revenue jumped nearly 50% year-over-year in Q3 2025, reaching almost $600 million. Subscribers also increased, hitting almost 2.5 million, up 21% from the previous year. CEO Andrew Dudum touted this as proof that their vision of personalized care is "more real than ever." But here's where the first red flag appears: while subscribers increased 21%, online revenue per average subscriber only increased 19% to $80. Shouldn't revenue scale with subscriber growth? The discrepancy suggests that either newer subscribers are less valuable (i.e., spending less), or the reported subscriber number is inflated.

The company's financial outlook narrows full-year 2025 revenue guidance to $2.335 billion to $2.355 billion and Adjusted EBITDA guidance to $307 million to $317 million. This narrowing of guidance is a common practice, but it also limits upside surprise. What happens if GLP-1 sales don't materialize as expected? I wonder if they are pricing in the Novo Nordisk deal too eagerly.

Profitability: A Closer Examination

Hims & Hers reported net income of nearly $16 million in Q3 2025, a seemingly significant achievement for a relatively young company. However, comparing this to the $75.6 million reported in Q3 2024 reveals a stark contrast. The company attributed the previous year's figure to a $60.8 million tax benefit. Okay, fair enough. But even without that one-time benefit, this year's net income appears weak compared to the previous year's baseline.

Furthermore, the gross margin decreased from 79% in Q3 2024 to 74% in Q3 2025. This decline, while seemingly small, is significant. It suggests that the company is facing increased costs or pricing pressures. One source mentions "pricing pressures from Novo Nordisk’s GLP-1 products," which could be a contributing factor.

And this is the part of the report that I find genuinely puzzling. The company’s accessible, direct-to-consumer telehealth model has positioned it at the intersection of multiple high-growth industries. According to market consultancy firm Grand View Research, the sexual health supplement market is projected to enjoy a compound annual growth rate (CAGR) of 10.4% from 2024 through 2030.The hair thinning market’s projected CAGR during the same period is 10.85%, while the telehealth market is expected to grow by a CAGR of 24.68%.

The Share Buyback Program: A Signal of Confidence or Desperation?

One of the more interesting developments is the announcement of a new share buyback program. While share buybacks are often interpreted as a sign of confidence in a company's future prospects, they can also be a way to artificially inflate the stock price, especially when growth is slowing. With HIMS facing increased competition and pricing pressures, it's worth asking whether this buyback is a strategic move or a tactic to appease investors.

Wall Street analysts seem to have mixed feelings about Hims & Hers. Ten of the 15 analysts covering the stock rate it a Hold, and the stock carries a consensus Reduce rating. However, the average 12-month price target is $45.27, which suggests potential upside performance of 24.51%. But, as any experienced investor knows, analyst ratings should be taken with a grain of salt. The current level of short interest, standing at a significant 37.54% of the company’s float, is a concern. HIMS Has Been a Roller Coaster Ride. Should Investors Hop On?

Discussions with Novo Nordisk: A Potential Game Changer?

Hims & Hers is in discussions with Novo Nordisk to distribute Wegovy injections and oral formulations of Wegovy on their platform. This could be a significant catalyst for growth, but it's important to remember that "discussions are ongoing, no definitive agreement has been executed," and there's a "possibility that no definitive agreement may ever be executed." In other words, don't count your chickens before they hatch. Hims & Hers Health, Inc. Reports Third Quarter 2025 Financial Results

Smoke and Mirrors?

Hims & Hers has demonstrated strong growth since its IPO, but the recent financial results and market dynamics suggest that the road ahead may be bumpy. While the company's accessible, direct-to-consumer model has positioned it well in high-growth industries, increased competition, pricing pressures, and the uncertain outcome of the Novo Nordisk discussions raise concerns. Investors should carefully consider these factors before hopping on this roller coaster ride.