Hims & Hers is quietly rewriting the rules of U.S. healthcare. The telehealth company, which sells affordable medications directly to consumers, has surged this year with a stock up 118% in 2025 and a five-year climb of 446%. With a bold new partnership and European expansion on the horizon, it’s shaping up to be a standout in a tough market.
What’s behind this surge, and is Hims & Hers a good bet for investors looking for long-term growth? Let’s break down what’s fueling the hype and the challenges ahead.
How Hims & Hers Avoids the Insurance Hassle and Wins Customers
The magic of Hims & Hers lies in its simple yet effective business model. Instead of wrestling with the notoriously complex U.S. insurance system, it sells medications directly online. The company operates two platforms—Hims for men and Hers for women—offering everything from sexual health and hair loss treatments to mental health support and now weight loss drugs.
This direct-to-consumer approach hits a sweet spot for many Americans who hate dealing with insurance or face products that insurers won’t cover. The price tags are lower, and the process is way less stressful.
The numbers back this up. Hims & Hers is on track to hit nearly $2 billion in revenue in 2025. A big piece of that growth comes from weight loss meds, a booming sector in pharma. Drugs like Novo Nordisk’s Wegovy have been so popular they ran short, but Hims & Hers found a workaround by compounding and selling cheaper versions during the shortage. That strategy alone brought in $200 million of their $1.4 billion revenue in 2024.
Here’s where it gets interesting: The shortage ended, and so did the loophole that allowed compounding. That left a question mark hanging over Hims & Hers’ weight loss business. But in April, the company struck a deal with Novo Nordisk to sell Wegovy directly on its platform. While not exclusive, this partnership lets Hims & Hers combine its subscription model and marketing savvy to tap deep into the obesity treatment market.
Growth Beyond U.S. Borders: European Expansion and More
Hims & Hers isn’t stopping at U.S. borders. Just recently, it announced plans to buy Zava, a European telehealth service with 1.3 million active users in the U.K., Germany, France, and Ireland. This move boosts Hims & Hers’ international footprint and brings a ready customer base for its growing catalog of meds and subscription plans.
This acquisition is smart. It lets Hims & Hers replicate its winning formula abroad, where telehealth is gaining traction. And given its strong marketing chops, there’s a good shot at accelerating growth quickly.
But it’s not just about expanding locations. The company aims to personalize healthcare experiences more. This means custom drug combos, an in-house outsourcing facility, and even at-home testing. While the details remain a bit fuzzy, it’s clear Hims & Hers wants to be more than just a pharmacy — it wants to reshape how people engage with healthcare.
Will Investors Buy Into the Long-Term Vision?
Hims & Hers has set a revenue target of $6.5 billion by 2030. That looks doable given its current 2.4 million active customers in the U.S., plus the European acquisition, and the huge number of potential new users.
Here’s a quick snapshot of where the company stands now:
| Metric | Value |
|---|---|
| Market Cap | $13 Billion |
| Gross Profit Margin | 77% |
| 2024 Revenue | $1.4 Billion |
| Weight Loss Revenue | $200 Million |
| Active Customers | 2.4 Million |
Those gross margins are solid, signaling a path to strong profits as the business scales. Analysts predict a net profit margin could hit 20% or more by 2030 — meaning $1.5 billion in profit on that $6.5 billion revenue. Marketing costs are still high at 40% of revenue but should drop as Hims & Hers grows.
Still, some risks linger. The company has had legal run-ins before, especially around selling weight loss meds when rules were unclear. Though the recent Novo Nordisk deal settles some issues, future regulatory challenges could pop up.
So, what’s the takeaway for investors? At around 8 times projected 2030 earnings, Hims & Hers looks like a bargain for a company growing fast in a huge market. That said, investors will want to be patient and keep an eye on regulatory headlines.
Why the Stock’s Meteoric Rise Isn’t Just Luck
The stock’s climb has been eye-popping. Up 118% this year and more than 400% over five years, Hims & Hers has attracted attention from growth investors who believe in its model.
Why? Because healthcare is a giant industry that’s ripe for disruption. People want easier access, better prices, and more personalized options. Hims & Hers checks those boxes, and its subscription model keeps customers coming back.
Plus, the Zava deal means the company just doubled its addressable market overnight. Europe represents a massive growth opportunity as telehealth adoption accelerates.
But remember, growth stocks can be wild rides. The recent volatility around weight loss meds showed how sensitive this space can be to legal and supply issues.
Hims & Hers might not be perfect, but it’s certainly one of the more exciting bets on the future of healthcare today.
