After a prolonged period of weakness, shares of the telehealth company Hims & Hers are showing tentative signs of a turnaround. A flurry of strategic activity, coupled with renewed interest from institutional analysts, suggests the company is aggressively pursuing its next growth phase. This shift in momentum has prompted Barclays to initiate coverage with a bullish rating, citing a more attractive valuation following the stock’s retreat from its yearly peak.
Barclays Sees Opportunity in the Pullback
On December 8, analysts at Barclays began their coverage of Hims & Hers with an “Overweight” recommendation. Their rationale centers on the stock’s more realistic valuation after its significant decline from the 52-week high of $72.98. The broader analyst consensus currently rates the stock a “Hold,” with an average price target hovering in the $44 to $45 range.
A Two-Pronged Acquisition Strategy
The company has been particularly active in early December, announcing two targeted acquisitions aimed at expanding its geographic footprint and service capabilities.
First, on December 3, Hims & Hers revealed the acquisition of YourBio Health, a specialist in painless blood collection technology. This move is designed to bolster the company’s in-house diagnostics division, known as “Labs,” which provides customers with comprehensive at-home health testing.
The very next day, on December 4, the company executed a major geographic expansion by acquiring Livewell, a established digital health platform for weight management. This transaction marks Hims & Hers’ entry into the Canadian market, representing its first North American expansion outside the United States. The Canadian market presents substantial potential due to high demand for digital health services and a clear regulatory framework for telehealth. This follows the company’s planned European expansion in July 2025, which will establish a presence in the UK, Germany, Ireland, and France.
Should investors sell immediately? Or is it worth buying Hims & Hers?
Solid Q3 2025 Fundamentals Underpin Growth
The company’s recent quarterly results demonstrate strong operational performance, providing a foundation for these strategic investments. Key figures for the third quarter of 2025 include:
* Revenue of nearly $600 million, representing a 49% year-over-year increase.
* Net income of approximately $16 million.
* Adjusted EBITDA exceeding $78 million.
* A subscriber base approaching 2.5 million, up 21% from the prior year.
For the full 2025 fiscal year, management has provided guidance for revenue between $2.335 billion and $2.355 billion. Adjusted EBITDA is projected to be in the range of $307 million to $317 million. Fourth-quarter revenue is anticipated to land between $605 million and $625 million.
GLP-1 Partnership Talks and a Vote of Confidence
A key narrative for the company remains its potential entry into the lucrative GLP-1 weight-loss medication market. Management continues negotiations with Novo Nordisk regarding a possible partnership, though an agreement has not yet been finalized. Previous stock pressure was linked to regulatory changes concerning compounded preparations in this category.
In a clear signal of management’s confidence, the board authorized a $250 million share repurchase program on November 17. This action suggests leadership views the company’s shares as undervalued. Furthermore, a short interest of approximately 33% of the free float could amplify upward price movements on positive news.
Despite recent volatility, the stock remains up roughly 62% year-to-date, significantly outperforming the S&P 500’s 16% gain. The coming weeks will reveal whether these strategic initiatives are sufficient to sustainably restore investor confidence and drive a lasting recovery.
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