Hims & Hers Health (HIMS 1.16%) demonstrated once again why it's one of the most interesting growth stocks outside of the tech sector when it reported strong Q3 results. While the stock has been volatile this year, it is trading up more than 80% in 2025, as of this writing.
Let's take a closer look at the most recent earnings results for this telehealth company to see if now is a good time to buy the stock.
Strong revenue growth continues
Hims & Hers delivered yet another strong quarter of revenue growth in Q3, with sales climbing 49% year over year to $599 million. That was above the high end of its $570 million to $590 million guidance, and above the $582 million analyst consensus, as compiled by Factset.
Image source: Getty Images.
Monthly online revenue per subscriber climbed 19% year over year to $80 per month, while the number of subscribers rose 21% to more than 2.47 million. It said that, excluding the impact of its sexual health transition, it grew subscribers by more than 40%. This transition is in reference to the company's shift from one-off generic treatments to personalized treatments. The impact is expected to be greatly reduced by the second half of next year.
The number of customers using personalized treatment plans, meanwhile, jumped 50%. Customers using at least one personalized subscription rose by 80% to 1.6 million, representing more than 65% of the Hims & Hers subscriber base.
The company saw some gross margin pressure in the quarter, with it falling 500 basis points year over year to 74%. The company saw some slight operating leverage with operating expenses falling to 72% of revenue from 73% a year ago. Most of the leverage came in marketing spending, which fell to 39% of revenue from 45% a year ago.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 53% from $51.1 million to $78.4 million. Earnings per share (EPS) came in at $0.06, missing the $0.09 analyst consensus, down from $0.32. Excluding a change in fair value of liabilities that was related to earn-outs from its prior Zava acquisition, its EPS would have met expectations.
| Metric | Q3 Results | Growth (YOY) |
|---|---|---|
| Revenue | $599 million | 49% |
| Monthly online revenue per subscriber | $80 | 19% |
| Subscribers | 2.47 million | 21% |
| Adjusted EBITDA | $76.4 million | 53% |
| EPS | $0.06 | (72%) |
| Marketing expense | $232 million | 27% |
| Marketing as % of revenue | 39% | (600 basis points) |
| Gross margin | 74% | (500 basis points) |
Data source: Hims & Hers Health. YOY = year over year.
Looking ahead, Hims & Hers narrowed its forecast for 2025 revenue to be between $2.335 billion and $2.355 billion from earlier guidance of between $2.3 billion and $2.4 billion. It also narrowed its adjusted EBITDA guidance from $295 million to $335 million to a new range of $307 million to $317 million.
For Q4, it expects revenue of between $605 million and $625 million, and adjusted EBITDA of $55 million to $65 million.
The company reiterated its 2020 targets of $6.5 billion in revenue and $1.3 billion in adjusted EBITDA.
Hims & Hers also announced that it was in active discussions with Novo Nordisk (NVO 1.89%) to offer Wegovy injections and, later, oral Wegovy, if approved by the FDA, on its platform. The two companies ended a short-lived collaboration earlier this year after Novo accused Hims and Hers of illegal drug compounding and deceptive marketing.
NYSE: HIMS
Key Data Points
Is it time to buy the stock?
Hims & Hers continues to see strong growth and is still looking to push into new areas. Its use of personalized treatments and drug compounding is proving to be a differentiator, and its growth outlook remains robust. Meanwhile, its recent acquisition of Zava has set it up to expand more aggressively internationally.
From a valuation standpoint, the stock trades at a forward price-to-earnings (P/E) ratio of around 32.5 based on the analyst consensus for 2026, with a price/earnings-to-growth ratio (PEG) of around 1 times. Stocks with positive PEG ratios below 1 are typically viewed as undervalued, and growth stocks often carry PEGs well above 1.
As a high-gross-margin subscription business, you can also value the stock based on a price-to-sales multiple. Based on that metric, it trades at 3.6 times 2026 analyst estimates. Overall, I'd say the stock looks attractively valued based on those valuation metrics, given its growth outlook.
For investors who can stomach the volatility in the stock, Hims & Hers Health looks like it could have solid long-term upside ahead.
