Even though there has been less talk recently about the much-hyped share $HIMS (-3.83%) I would like to explain again today why I believe it will be one of the best investments in the next 5 years.
In the second quarter of 2025, turnover rose to USD 544.8 million, a whopping 73% more than in the previous year. Profit amounted to USD 42.5 million after USD 13.3 million in the previous year and adjusted EBITDA also more than doubled to USD 82.2 million.
The platform now has around 2.44 million subscribers, 31% more than in the previous year. At the same time, monthly online revenue per customer has risen by 30 % to USD 74. This shows that the business model is scaling really well.
Margins are also strong. The gross margin was 76 %. For the full year 2025, Hims & Hers expects sales of between USD 2.3 and 2.4 billion and adjusted EBITDA of USD 295 to 335 million with a margin of 13 to 14%.
A look at the valuation makes things even more exciting. The P/E ratio is currently 49.41 with a share price of around US$ 43 and earnings per share of US$ 0.87. This means that the share is trading 43 % below the two-year average. The market capitalization is around US$ 9.72 billion and the forward P/S of 3.8 is lower than the industry average of 5.8.
Long-term potential through internationalization
The company is not only expanding its core business, but is now also going global. CFO Yemi Okupe has announced that the company is expanding its personalization infrastructure and strengthening its international presence in key markets.
With the acquisition of ZAVA, Hims & Hers has made its entry into Europe and is now active in the UK, Germany, France and Ireland. It also has access to over 1.3 million patients. Canada is to be added in 2026.
New offerings such as generics for weight loss are also a real growth driver.
Brief risk warning:
Hims & Hers is currently facing several US investor lawsuits - they are alleged to have engaged in false marketing for Wegovy copycats, which led to the broken partnership with Novo Nordisk and resulted in heavy share price losses. The company is also under investigation by the US FTC for potential problems with advertising and termination practices.
Personally, I see these lawsuits more as a short-term scare in the market. In my view, this does not change the long-term potential of Hims & Hers.
Conclusion
Hims & Hers is currently delivering impressive growth in sales and profits, is constantly expanding its customer base and still has a lot to do with internationalization and new healthcare areas. The valuation seems absolutely fair compared to the sector. I think a doubling in the next 2 years is likely. Mark my words 😎
I remain invested with a large proportion of my portfolio.
Disclaimer: This is not financial advice:)
