A lot has happened at Hims again in a short time. Expansion continues into the Testosterone and Menopause segments. It’s peculiar that the market isn’t pricing in Hers’ $1B 2026 guidance at all, but we’re still moving at the same levels. October has quite often been a good time to add, e.g., in 2023, you could get it for under $6, which I couldn’t take much advantage of as I was already all-in.
@Atte_Jortikka’s wise words are what I look forward to regarding HIMS:
So, I believe Hims is undervalued, and it will resolve simply as fears dissipate (e.g., fear of legal cases or other GLP-1 issues), meaning as risk levels decrease. Expansion alleviates fears because the share of a single category in the total business decreases.
Additionally, I spotted @Seeras’s message mentioning Hims’ investment in Grail. I hadn’t noticed that news anywhere else. I’m not entirely sure of the reason, but possibly cancer testing. In the short term, it’s unlikely to have any significant impact on the business numbers themselves, but I believe the move was made thoughtfully and analyzed by medical professionals.
The Q3 release is already in a week and a half, and at the same time, the guidance for the rest of the year will likely be clarified. We will also get clarification on ongoing geographical expansions, so really interesting information is coming.
Already in my own calculations, 2026 revenue growth appears to continue at least at a 50% level, meaning we would be somewhere around $3.5B - $3.6B. From there, one can consider different multiples to see what prices we are at. Then, a different trick is to maintain over 50% growth from there onwards. But the market is big, it’s really big. If you read this, for example: https://www.mckinsey.com/mhi/our-insights/closing-the-womens-health-gap-a-1-trillion-dollar-opportunity-to-improve-lives-and-economies
In the long term, no major changes: The direction is growth, growth, and growth. At the same time, the EBITDA margin should move towards 20%. The value of AI agents has started to become clear to me, and fortunately, Hims has repeatedly stated that they are actively developing these tools further for their and their customers’ suitable use.