The telehealth platform Hims & Hers is making a substantial $200 million commitment to construct a major new facility in Ohio. This strategic move aims to double the company’s production and logistics footprint while creating up to 400 new jobs. The announcement arrives as the company’s shares experience a period of consolidation, juxtaposing ambitious physical growth against a backdrop of investor skepticism regarding its stock valuation.
Quarterly Performance and Analyst Scrutiny
Hims & Hers recently reported robust growth for the third quarter of 2025. Revenue surged 49% to $599 million, while its subscriber base increased 21% to nearly 2.5 million. Adjusted EBITDA showed a strong 53% gain, reaching $78.4 million. For the full 2025 fiscal year, management has provided revenue guidance in the range of $2.335 billion to $2.355 billion.
Despite these solid operational metrics, the company’s valuation remains a point of contention among market observers. Trading at a price-to-earnings ratio of approximately 59, the stock commands a significant premium over the sector average of 23.6. This disparity has prompted cautious analyst commentary. Argus recently reduced its price target to $35, advising investors to remain on the sidelines. Zacks Equity Research maintains a Hold rating, highlighting a projected earnings decline of 63.6% for the current quarter, even as it anticipates full-year 2025 earnings to grow 77.8% compared to 2024.
Details of the Ohio Investment
The new state-of-the-art complex will be located at 9885 Innovation Campus Way in New Albany. It is designed to integrate fulfillment operations, laboratory testing, and pharmacy services under one roof, effectively consolidating key parts of the customer journey. Construction is scheduled to commence in the first quarter of 2026, marking a deepening of the company’s presence in the Columbus region where it has operated since 2019.
Key details of the project include:
* A total investment exceeding $200 million.
* The creation of approximately 400 new positions.
* A doubling of the company’s physical presence in the area.
* A planned construction start date in Q1 2026.
Should investors sell immediately? Or is it worth buying Hims & Hers?
Ohio Governor Mike DeWine stated that the investment bolsters the regional economy and demonstrates that Ohio is a state where innovative companies can successfully scale.
Insider Activity and Stock Volatility
On December 22, Chief Financial Officer Oluyemi Okupe sold 23,090 shares at an average price of $35.72, generating proceeds of roughly $825,000. Transactions of this nature by corporate insiders are closely monitored by the investment community, though they do not necessarily signal a lack of confidence in the company’s prospects.
The share price has been volatile in recent months, trading within a wide band. After hitting a 52-week high of $72.98, the stock underwent a notable correction. Nevertheless, it has recorded a year-to-date gain of about 45%, significantly outperforming the Medical Information Systems industry, which has declined 0.5% over the same period.
Growth Narrative and Strategic Initiatives
The company’s subscription-based model provides a stable foundation, generating over 90% of its revenue from recurring sources. However, rising customer acquisition costs present an ongoing challenge to margin expansion. Strategically, Hims & Hers expanded its international reach in July 2025 with the acquisition of ZAVA, gaining entry into the German, Irish, and French markets. Furthermore, the company has engaged in discussions with Novo Nordisk regarding a potential partnership, though no concrete agreement has been reached.
The $200 million Ohio project underscores management’s commitment to scaling its platform for personalized healthcare. Whether this capital expenditure can alleviate doubts about the stock’s current valuation premium will become clearer in upcoming quarters. The start of construction in early 2026 will offer the first tangible indicators of the project’s operational execution.
Ad
Hims & Hers Stock: Buy or Sell?! New Hims & Hers Analysis from December 24 delivers the answer:
The latest Hims & Hers figures speak for themselves: Urgent action needed for Hims & Hers investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 24.
Hims & Hers: Buy or sell? Read more here...
