Hims & Hers Health (HIMS) is a long-term investment focused on becoming a leader in preventative and personalized healthcare. The stock appears significantly undervalued based on its 2030 financial targets, making the recent price drop a potential entry point for investors. Key growth drivers to watch are the expansion of personalized GLP-1 weight loss treatments, the launch of a new lab testing business, and the introduction of menopause therapies. A major future catalyst is the planned launch of generic semaglutide in Canada in early 2026. One analyst noted they would consider buying more shares of HIMS under $50.

Hims & Hers Health, Inc. (HIMS)

• The speaker is a long-term investor in HIMS, having been in the stock since the $6 range. He views the recent post-earnings drop of 13% as insignificant for a stock known for its volatility.
• Company Vision: The core strategy is to shift from "sick care" to preventative "healthcare". The goal is for the Hims & Hers platforms to be a destination for preventative care and longevity, addressing minor health issues early to prevent major ones later.
  • While not explicitly discussed on the call, the speaker notes a presentation slide indicated a future longevity offering, potentially involving drugs like metformin.
• Personalized Medicine: A key focus is on personalized treatments, particularly for weight loss.
  • GLP-1s: HIMS is developing personalized GLP-1 treatments, which a company study suggests are 10% more effective than standard doses. This one-to-one customization is seen as the future of healthcare, helping to minimize side effects.
  • Non-GLP-1 Weight Loss: The oral, non-GLP-1 weight loss business (e.g., metformin-based pills) is still generating over $100 million in sales and is believed to be growing.
• Long-Term Financial Targets: The company reiterated its long-term targets for 2030:
  • $6.5 billion in revenue
  • $1.3 billion in EBITDA
  • The speaker notes that based on these targets, the stock appears "dirt cheap".
• New Business Verticals:
  • Lab Testing: This is expected to become a major business unit on its own. The initial rollout will be for testosterone monitoring. The long-term vision is to use AI to provide customized health ranges, moving beyond the outdated "normal" ranges used in traditional medicine.
  • Artificial Intelligence (AI): HIMS is investing heavily in AI. The first implementation will be AI coaches for things like diet and anxiety. The speaker believes HIMS is uniquely positioned to eventually lead in AI-driven prescriptions once regulations allow it, given its modern, integrated tech stack.
• Growth & Expansion:
  • Subscriber Growth: The platform has 2.4 million subscribers, with 1.5 million receiving customized treatments, which should lead to higher customer loyalty. Subscriber count grew 31%.
  • Revenue Growth: Full-year revenue growth is projected to be around 45%. The speaker notes this wasn't a major beat on guidance, attributing it to the expected end of branded semaglutide sales.
  • International Expansion: The Zava acquisition is key to expansion in the EU and Canada. The company also mentioned potential future expansion into Latin America and Asia.
• Specific Business Segments & Products:
  • Canada Generic Semaglutide: HIMS plans to launch generic semaglutide in Canada in early 2026 for $75-$100 per month. This is possible because Novo Nordisk failed to renew its patent in Canada.
  • Menopause: The company is excited about launching personalized menopause treatments. The speaker sees this as a major opportunity, given the large number of potential drug combinations that can be personalized into a single pill using HIMS's compounding capabilities.
  • Erectile Dysfunction (ED): This segment is facing "headwinds" and intense competition. HIMS is positioned as a premium offering in this space.
• Financial Health: The company has a strong cash balance of over $1.1 billion, making it "anti-fragile" and able to withstand market shocks and fund growth.

Takeaways

• Bullish Long-Term Thesis: The primary investment case for HIMS is its long-term vision to become a leader in preventative care, longevity, and personalized medicine powered by AI. The speaker believes the company is building the future of healthcare.
• Multiple Growth Levers: Investors should watch several key growth drivers:
  • The continued adoption of personalized GLP-1s and other weight loss solutions.
  • The launch and scaling of the lab testing business.
  • International growth, with a specific catalyst being the Canadian generic semaglutide launch in early 2026.
  • The upcoming launch of menopause treatments on the Hers platform.
• Valuation Opportunity: The speaker views the current stock price as an attractive entry point for long-term investors, especially when measured against the company's 2030 financial targets. He personally mentioned he would consider buying more under $50 a share.
• Identified Risks: While the overall tone is bullish, investors should be aware of headwinds.
  • The ED business is slowing due to heavy competition.
  • The end of branded semaglutide sales is a short-term drag on revenue growth, though this was anticipated.
• Financial Stability: With over $1.1 billion in cash, HIMS has a significant financial cushion to execute its long-term strategy without needing to raise additional capital in the near future.