Hims & Hers stock holds Buy rating at BTIG despite GLP-1 slowdown

Published 05/08/2025, 17:30
Hims & Hers stock holds Buy rating at BTIG despite GLP-1 slowdown

Investing.com - BTIG maintained its Buy rating and $85.00 price target on Hims & Hers (NYSE:HIMS) following the company’s second-quarter 2025 results released Monday.

The telehealth provider reported revenue of $544.8 million, representing 73% year-over-year growth, though falling short of BTIG and consensus estimates of $560.9 million and $552 million respectively. Adjusted EBITDA reached $82.2 million, exceeding analyst expectations of $80.4 million from BTIG and $73 million consensus. According to InvestingPro, the company maintains a strong financial health score of 3.67 (GREAT), despite trading above its Fair Value.

BTIG noted that excluding costs related to new talent acquisition, EBITDA would have approached $90 million. The firm identified a more severe slowdown in commercial GLP-1 and 503B revenue than anticipated, estimating GLP-1 revenue at approximately $190 million in Q2 2025, down from $220-230 million in the first quarter.

The company reaffirmed its full-year 2025 guidance of $2.3-2.4 billion in revenue and $295-335 million in EBITDA. BTIG expects sequential improvement in GLP-1 revenue to approximately $200 million in personalized doses during the third quarter.

BTIG characterized the current revenue fluctuations as temporary, attributing them to the transition to 503A GLP-1 volumes and a strategic shift toward more recurring sexual health memberships. The firm maintains that the obesity health market remains robust despite these short-term adjustments. With a gross profit margin of 77% and strong revenue growth momentum, the company continues to demonstrate operational efficiency.

In other recent news, Hims and Hers Health Inc. reported its second-quarter 2025 earnings, revealing a notable earnings per share (EPS) beat. The company achieved an EPS of $0.17, exceeding the forecasted $0.15, representing a 13.33% surprise. However, revenue came in slightly below expectations at $544.8 million, compared to the anticipated $549.87 million. Despite this revenue miss, the company maintained strong margin performance. Leerink Partners responded to these developments by raising its price target for Hims and Hers to $43.00 from $42.00, while keeping a Market Perform rating. The firm acknowledged the company’s impressive margin strength despite revenue challenges. This adjustment follows Hims and Hers’ first revenue miss, primarily due to a sequential decline in GLP-1 revenue and an unexpected drop in core revenue outside of GLP-1 products. These are the latest developments surrounding Hims and Hers.

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