The global telehealth market reached about $123.26 billion in 2024 and is expected to grow significantly, hitting $455.27 billion by 2030. This reflects a steady annual growth rate of around 24.7% starting from 2025 as more healthcare providers and patients turn to remote care options. Meanwhile, the broader healthcare sector has remained stable, with the S&P 500 Health Care Index ($SRHC) trading in a narrow range just above 1,590 points recently.
Despite this overall stability, some companies are experiencing sharp ups and downs. On Sept. 15, the FDA increased oversight on telehealth drug advertising and sent a warning letter to Hims & Hers Health (HIMS) over its compounded weight-loss drug, causing shares to drop and reviving concerns over regulatory risks in the weight-loss space.
Even after this selloff, BTIG reaffirmed its “Buy” rating on HIMS with an $85 price target. This shows some confidence on Wall Street about the company’s long-term potential. With a market value of around $13 billion and annual sales close to $1.48 billion, the key question remains: can Hims & Hers overcome these FDA challenges and keep its rapid growth going? Let’s take a closer look.
Hims & Hers Health is a digital health platform that connects people with licensed healthcare providers and offers personalized treatments. The company focuses on making healthcare easy to access and affordable through an online platform.
Over the past year, HIMS stock has shown strong resilience, rising more than 230%. Its momentum continues with a year-to-date (YTD) gain of over 130%, reflecting growing investor confidence in its business despite some challenges.
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When it comes to valuation, Hims & Hers trades at a forward price-to-earnings (P/E) ratio near 96x earnings. This is much higher than the sector average of 18.36x, which indicates that investors expect significant growth from the company going forward.
In the second quarter of 2025, Hims & Hers reported revenue of $544.8 million, up 73% from the same quarter last year, clearly showing growing customer demand. Gross margins slipped a bit to 76% from 81% the year before, possibly due to higher costs or pressure from launching new products.
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Profitability improved substantially, with net income tripling to $42.5 million and adjusted EBITDA reaching $82.2 million, highlighting good cost control despite the challenges. On the cash flow side, operating cash was negative $19.1 million, and free cash flow was down to negative $69.4 million, reflecting ongoing investments in growth initiatives.
With a market cap above $13 billion, 226 million shares outstanding, and annual sales approaching $1.5 billion, Hims & Hers has built considerable scale but still faces work ahead to sustain its expansion.
Hims & Hers is making a bigger push into men’s health with a new focus on oral testosterone therapy. The company teamed up with Marius Pharmaceuticals to offer KYZATREX, the first FDA-approved oral testosterone treatment, through its platform. This adds to HIMS’ product lineup and strengthens its role in personalized healthcare by giving men with low or no testosterone an affordable and innovative treatment option.
At the same time, Hims & Hers is accelerating its growth outside the U.S. through a deal to acquire ZAVA, a well-known European digital health company. This deal will give HIMS a strong presence in key markets like the UK, Germany, France, and Ireland. By building its own brand on top of ZAVA’s existing platform, Hims & Hers is setting up for significant expansion across Europe. This move helps the company spread its reach, tap into new customers, and reduce its dependence on the U.S. market while it works through current regulatory challenges at home.
For the third quarter, Hims & Hers expects revenue to fall between $570 million and $590 million. Earnings per share estimates hover around $0.09, which would mark a strong 50% increase compared to the same quarter last year. Looking at the whole year, the company projects revenue to reach between $2.3 billion and $2.4 billion, with earnings per share averaging about $0.60. That’s a big jump of 122% from last year, showing solid profit growth.
Even with the recent FDA issues affecting its stock, BTIG analysts remain optimistic. On Sept. 11, they kept their “Buy” rating and an $85 price target for HIMS stock. This price target suggests about 50% upside from where HIMS is trading now. BTIG points to the company’s gains in subscribers outside the weight-loss drugs and its expanding telehealth services as key reasons for continued revenue growth.
On the other hand, most other analysts are more cautious. All 13 surveyed give Hims & Hers a consensus “Hold” rating. Their average price target is $48.67, which is well below BTIG’s target and even under the current distressed market price.
Despite the recent FDA warning shaking up HIMS stock, the company’s solid financial performance, strategic product launches, and international expansion paint an encouraging picture. While many analysts remain cautious with a consensus “Hold” rating, BTIG’s confident “Buy” rating and $85 price target suggest there’s still considerable upside potential ahead. Given the strong revenue growth and pipeline developments, it’s likely that the shares will continue to face volatility in the short term but trend upward over the medium term as HIMS executes on its growth strategies and navigates regulatory hurdles.
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On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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