Down 70% Over the Past Year, Can Hims & Hers Health Stock Bounce Back?

It's been a tough start to the year for Hims & Hers Health (NYSE: HIMS). The stock has been cut in half year to date and is down around 70% over the past year, as of this writing. That follows a strong run in 2024 when the stock skyrocketed more than 170%, while it tacked on a strong 34% gain last year.

Much of the company's woes this year revolve around GLP-1 weight loss drugs. The company launched a compounded version of the Wegovy pill, which it promptly stopped offering after FDA Commissioner Marty Makary said he would go after companies making copycat drugs and drugmaker Novo Nordisk filed a patent lawsuit against the telehealth company. Hims & Hers had been legally selling compounded versions of semaglutide, the active ingredient in the injectable version of Wegovy, when the drug was in shortage.

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Meanwhile, the stock was unable to rebound after the company recently reported its fourth-quarter results. For the quarter, its sales climbed 28% year over year to $617.8 million. That was toward the high end of its $605 million to $625 million guidance. U.S revenue rose 17% to $554.1 million, while international revenue skyrocketed from $6.9 million a year ago to $63.7 million.

Monthly revenue per subscriber increased by 11% year over year to $83 per month, while the number of subscribers grew 13% to more than 2.51 million. Customers using at least one personalized subscription rose by 31% to 1.6 million, representing about 65% of its subscriber base.

The company continued to see some gross margin pressure, with it falling 500 basis points year over year to 72%. It attributed this to great contributions from international markets and the launch of new offerings. The company was able to see some marketing leverage, with marketing expenses as a percentage of revenue falling from 46% a year ago to 39%.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 23% from $54.1 million to $66.3 million. Earnings per share (EPS) came in at $0.08, down from $0.11 last year, but that topped the $0.05 consensus.

Looking ahead, Hims & Hers forecasts 2026 revenue to be between $2.7 billion and $2.9 billion with adjusted EBITDA of between $300 million to $375 million. That shows some expected margin pressure as it expands internationally.

For Q1, it expects revenue of between $600 million and $625 million, and adjusted EBITDA of $35 million to $55 million. While the full-year outlook was within expectations, its Q1 guidance fell short of the $647.9 million consensus.

Should investors buy the dip?

Despite the regulatory issues the company is dealing with regarding GLP-1 drugs, it still believes its overall weight loss business is durable, while noting that its higher-margin non-weight loss offerings make up the majority of its revenue and cash flow. Meanwhile, it expects international markets to be a big growth driver in 2026 and beyond, and it recently announced that it will acquire a company called Eucalyptus to further push into non-U.S. markets.

After its plunge, the stock trades at a forward price-to-earnings ratio of around 14 times based on the analyst consensus for 2026. There is a risk its weight loss business could take a hit, but the stock looks pretty washed out at this point. I'd consider taking a small speculative position at these levels, given the company's opportunity with future new offerings and international expansion.

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.