Shares of Hims & Hers Health (HIMS) surged 10% on Tuesday morning after the telehealth company posted first-quarter results that far surpassed Wall Street expectations and unveiled an ambitious roadmap targeting $6.5 billion in revenue by 2030.
Revenue in the quarter more than doubled to $586 million, up 111% from a year earlier and well ahead of analysts’ average estimate of $538.9 million.
The company also reported a 38% year-over-year increase in subscribers, reaching 2.4 million, with 60% now opting for personalized solutions on the platform.
Alongside the earnings beat, Hims raised its full-year adjusted EBITDA guidance to a range of $295 million to $335 million, up from a prior forecast of $245 million to $285 million. The long-term plan calls for $1.3 billion in adjusted EBITDA by 2030, representing a 20% margin.
The unexpectedly strong quarter and bold growth targets took analysts by surprise, with some raising concerns about the company’s strategy, particularly in the fast-growing weight-loss treatment space.
“Following this quarter's earnings, we see two high-level scenarios that HIMS may pursue for the rest of the year,” analysts at Bank of America wrote in a note. “In the first scenario, HIMS grows its personalized semaglutide business, and in the second, it reaccelerates the core. We see litigation risks re-emerging if the personalized semaglutide business grows too quickly. Reiterate Underperform.”
Hims maintained its full-year 2025 revenue guidance of $2.3 billion to $2.4 billion, suggesting some conservatism despite the Q1 beat.
Analysts said upcoming data on customer acquisition costs, capital allocation, and the company’s partnership with Novo Nordisk could provide further clarity in the second half of the year.
While Bank of America raised its price objective to $28 from $26, citing stronger operating leverage, it maintained a cautious stance, pointing to regulatory risk tied to compounded GLP-1 therapies like semaglutide.
The firm now expects Hims to generate $2.316 billion in revenue and $309 million in adjusted EBITDA for fiscal 2025, up from prior estimates.
Investors, however, appeared focused on the upside as the shares rose $3.38 to $45.26.