Investors in Hims & Hers Health are navigating a stark contradiction. The telehealth platform’s stock surged nearly 9% on Monday, closing at $21.15 on volume of roughly 10 million shares, even as the broader healthcare sector fell 5.4%. This rally, however, unfolds against a backdrop of sharply lowered expectations and a business model in the midst of a painful reset.
The company is set to report first-quarter 2026 results on May 11, and the guidance it has provided paints a sobering picture. Management forecasts revenue between $600 million and $625 million, representing year-over-year growth of just 2.4% to 6.7%. This is a dramatic deceleration from the 111% growth posted in Q1 2025. The adjusted EBITDA margin is projected to be 6% to 9%, a significant drop from 15.5% a year earlier.
A primary driver of this slowdown is regulatory action against the company’s business in compounded GLP-1 medications. This intervention has not only stalled growth but is expected to create a one-time $65 million revenue headwind in Q1 due to delayed shipments. In response, Hims & Hers has undertaken a fundamental strategic shift. In March, the company moved to settle litigation by agreeing to sell FDA-approved Wegovy, pivoting from being a high-margin manufacturer of its own compounded drugs to a lower-margin distributor of branded medications.
This business model transition is occurring alongside increased competitive pressure, notably from the entry of Amazon Pharmacy. The combined effect has crushed the stock’s valuation. Shares are down roughly 40% year-to-date, trading far from their 52-week high of $70.43, though above a low of $13.74. The price-to-sales multiple now sits at about 2x, well below its historical median of 3.3x and a world away from the 8x to 10x multiples seen in early 2025. A return to that median would imply a share price above $30.
Should investors sell immediately? Or is it worth buying Hims & Hers?
Internal sentiment appears cautious. Over the past three months, company insiders have sold shares worth $3.4 million without reporting any purchases. Analyst consensus is tepid, with 13 of 17 covering the stock rating it a Hold, three a Buy, and one a Sell. The average price target is $31.71, which sits below the company’s own first-quarter revenue guidance of $600-$625 million, a range that already falls short of the analyst consensus estimate of $653 million.
Despite the near-term turbulence, management maintains ambitious long-term goals. For the full year 2026, Hims & Hers is targeting revenue of $2.7 billion to $2.9 billion and adjusted EBITDA of $300 million to $375 million. The long-range plan aims for $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030.
A key component of future growth is international expansion. Following acquisitions like ZAVA and Livewell, international revenue soared approximately 400% in 2025 to $134 million. The company aims to hit $1 billion in international sales within three years. A major step in this plan is the pending acquisition of Australian digital health provider Eucalyptus for up to $1.15 billion, a deal expected to bolster its presence in Australia, Japan, the UK, Germany, and Canada upon its anticipated mid-2026 close.
The upcoming earnings report will serve as the first concrete test of whether the company’s strategic pivot is gaining traction. Investors looking for a valuation rebound will need clear evidence that the shift away from compounded drugs and toward branded medications and international growth can deliver sustainable results.
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