Shares of Hims & Hers Health Inc (NYSE:HIMS) edged lower in early trading on Tuesday, after the company reported mixed second-quarter results.
The San Francisco-based company’s strong quarterly results lay the foundation for a “multi-category, multi-region” growth story, according to Needham
The Hims & Hers Health Analyst: Analyst Ryan MacDonald maintained a Buy rating, while raising the price target from $35 to $42.
The Hims & Hers Health Thesis: The telehealth company’s total revenues grew 38.2% year-on-year to $753.2 million, while adjusted EBITDA came in at $60.3 million, with both topping consensus estimates of $699 million and $47 million, respectively, MacDonald said in the note.
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Hims & Hers provides personalized treatment plans and prescription medications for common conditions like hair loss, sexual health, skin care, mental health, and weight loss. Its revenue figures include:
- A contribution of $40 million from recently acquired Eucalyptus, which led to international segment growth of 1,641% year-on-year
- A re-acceleration of domestic revenue growth to 16% year-on-year, fueled by the weight loss category.
Following the strong results, management raised their full-year revenue guidance to $3.1-$3.3 billion, from their prior outlook of $2.8-$3 billion, the analyst stated.
Hims & Hers Health’s renewed partnership with Novo Nordisk (NYSE:NVO) “is driving a reacceleration of topline growth in the business, fueled by strong domestic demand for branded GLP-1 offerings,” MacDonald wrote.
This positions the company to continue this growth reacceleration through the back half of 2026, while management takes the opportunity to reinvest into international expansion efforts and AI functionality, which should translate to long-term incremental leverage in the business model, the analyst stated.
While investors may view the narrowed adjusted EBITDA guidance as a deterioration of unit economics, “we view the investments as a necessary NT pain for LT gain,” he further stated.
HIMS Price Action
Shares of Hims & Hers had declined by 2.11% to $31.10 at the time of publication on Tuesday.
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