Hims & Hers Health : The Next 100x Stock?

Hims & Hers Health (HIMS) has consistently been a hot topic in the U.S. stock market.$HIMS 

Its stock price has seen remarkable gains, soaring 152% this year and 171% last year, per the finance card above.

 

Long-term HIMS investors likely understand that the company’s core strategy goes beyond simply selling medications with some online services. Instead, it focuses on its target demographic, continuously expanding product categories and strengthening service capabilities to build a comprehensive, full-stack online telehealth platform for “sub-health” conditions. This approach creates significant customer value while maximizing “lifetime customer value.”

 

While the explosive growth in weight-loss drugs since Q2 last year has been a key driver of HIMS’ surge (potentially accounting for 30% of total revenue, or $7.25 billion to $1.23 billion, by year-end), understanding HIMS’ broader strategy reveals that weight-loss drugs are just one piece of the puzzle, not the ultimate goal.

 

Let's dive deep into researching this company.

HIMS Overview

Hims & Hers Health, founded in 2017 by Andrew Dudum, Jack Abraham, and Hilary Coles, is a personalized telehealth platform.

 

Initially focused on men’s health—colloquially, selling erectile dysfunction drugs online—it has since expanded into women’s health, mental health, skincare, and weight-loss solutions.

 

Its core business model is direct-to-consumer (DTC) telehealth, with the following process:  

• Online Consultation: Users complete health questionnaires on HIMS’ website or app and communicate with licensed doctors, either asynchronously or in real-time.  
• Prescription and Delivery: If deemed appropriate, doctors issue electronic prescriptions, and HIMS ships medications (often generics to keep costs low) directly to users in discreet packaging via its pharmacy network.  
• Subscription Model: Many products and services are offered on a monthly subscription basis, boosting user retention and revenue predictability.  
• Non-Prescription Products: HIMS also sells vitamins, supplements, and skincare products.

Stellar Financial Performance

HIMS’ recent quarterly results have forced investors to reassess its growth potential.

（Data source: Go AI）

For the March quarter, revenue more than doubled to $586 million, net income skyrocketed to $49.5 million, and adjusted EBITDA reached $91 million—a significant leap from 2024’s already impressive growth.

 

The subscriber base grew 38% to 2.4 million, with average monthly spending per user rising 53% to $84, showcasing the platform’s ability to deepen user engagement and spending.

 

Management remains bullish, reaffirming 2025 revenue guidance of $2.3 billion to $2.4 billion and raising full-year EBITDA targets to up to $335 million.

 A $10 Trillion Market Opportunity

HIMS’ surge was partly fueled by weight-loss drugs and high-profile Super Bowl ads, a key driver of its 2024 growth.

 

However, HIMS is not just a weight-loss drug vendor. Think of weight-loss products as loss leaders for an e-commerce site—losing low-cost generics might reduce traffic but won’t cripple the platform. HIMS’ online telehealth ecosystem taps into a massive market.

How massive? The U.S. population is 340 million and growing steadily.

 

As of 2024, annual healthcare spending per American (including insurance and out-of-pocket costs) averaged $14,400, totaling $4.8 trillion, or 17.6% of U.S. GDP—the highest globally.

（Data source: Go AI）

Of this, 40% comes from federal and state Medicare/Medicaid, 30% from private insurance, 10% from out-of-pocket payments, 10% from employers, and 10% from other sources.

 

Over the next 5-10 years, U.S. healthcare spending is projected to exceed $6 trillion. While HIMS started in the U.S., its ambitions extend to Canada, Europe, Australia, and beyond, targeting a global market worth $10 trillion.

European Expansion via ZAVA Acquisition

On June 3, HIMS acquired ZAVA, a leading European digital health platform, instantly positioning itself as a pan-European player.

 

ZAVA brings 1.3 million active patients, nearly 2.3 million annual consultations, and licensed clinicians in the UK, Germany, France, and Ireland, tripling HIMS’ addressable population compared to its U.S.-centric base.

 

Fully funded with cash and expected to boost profits by 2026, this move underscores HIMS’ robust balance sheet, already boasting a 13% EBITDA margin.

Crucially, the merger combines ZAVA’s regulatory licenses and local pharmacy infrastructure with HIMS’ viral marketing and subscription-driven user experience.

 

In Europe’s single-payer systems, many chronic medications are reimbursable, making subscriptions stickier and reducing churn compared to U.S. consumers facing high deductibles.

 

Layering HIMS’ high-margin (over 80%) proprietary generics onto ZAVA’s prescription engine could increase merged profit margins by 1% per $1 billion in revenue, adding roughly $10 million in operating profit. This compounds quickly in a subscription model with rising per-user spending.

 

HIMS’ management stated, “We will accelerate our expansion in the UK, France, Germany, and Ireland. Acquiring ZAVA is just the first step.”

Potential for a $100 Billion Valuation

Hims’ price-to-sales ratio is around 90x right now, which sounds pretty hefty at first glance. But compare that to Teladoc, sitting at a P/S of 0.6x and losing money, or Amwell at 0.4x with negative EBITDA—it’s clear that profitable growth in telehealth is super hard to come by.

 

On an enterprise value/EBITDA basis, Hims is trading at about 152x, but once the Zava deal starts paying off, that could drop to the mid-40s by 2026, according to analyst estimates. That’s actually cheaper than some fast-growing consumer SaaS companies.

 

Consumer markets in the U.S. and Europe are pretty much all digital now, but healthcare? It’s one of the last big frontiers waiting to be cracked. That’s a massive opportunity.

 

If Hims grabs just 1% of that $10 trillion healthcare market in 5-10 years, we’re talking $100 billion in revenue. With today’s P/S and profit margins, a $300 stock price is totally in the cards.

 

Like I mentioned earlier, as Hims builds out its full-stack “sub-health” product lineup with personalized, low-key services, its platform is way stickier than most subscription-based businesses.

 

I’m not saying Hims’ average monthly subscriber spend will hit Costco’s $240 in five years, but getting to Amazon’s $120? That’s definitely doable.

 

Let’s do some quick math: By 2033, if Hims grows to 10 million subscribers, each spending $120 a month, here’s how it breaks down:

• Subscriber growth: From 1.4 million in Q1 2025 to 10 million by 2033, a CAGR of 24.24%.
• Per-subscriber spend: From $84 in Q1 2025 to $120 by 2033, a CAGR of 4.04%.

If they hit $14.4 billion in revenue with a 20% profit margin and a mature 25x P/E, Hims’ market cap could reach $72 billion.

 

Hims’ moat—that data-driven flywheel—is only gonna get wider, which makes it a pretty exciting long-term investment.

 

However, Hims is still an early-stage company. The 10x or 100x potential is just a possibility, and the road’s gonna be a wild, bumpy ride.