What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) jumped 20.2% in the afternoon session after the company reported strong first quarter 2025 results which significantly beat analysts' expectations on revenue, EPS, and EBITDA. Revenue more than doubled from last year driven by higher monthly spending per subscriber and a broader product mix tailored to personalized health needs. While subscriber growth slowed to 38% year over year, average revenue per user climbed over 50%, indicating deeper wallet share from existing customers and more engagement with premium offerings. On the other hand, revenue guidance was softer than anticipated. Still, we think this was a decent quarter.
The shares closed the day at $49.47, up 17.9% from previous close.
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What The Market Is Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 94 moves greater than 5% over the last year. But moves this big are rare even for Hims & Hers Health and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 34.9% on the news that Novo Nordisk announced plans to offer its weight loss drug Wegovy through Hims & Hers Health's platform, expanding access to one of its fastest-growing products. By partnering with a popular telehealth company, Novo could speed up Wegovy's adoption, leading to more prescriptions. For investors, the deal signals a clear strategy to expand distribution and grab more market share, a move that could also boost sales growth for Hims & Hers (HIMS).
Hims & Hers Health is up 94.9% since the beginning of the year, but at $49.11 per share, it is still trading 28.6% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $4,916.
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