HIMS
Hims & Hers Health, Inc.
Healthcare · Drug Manufacturers - Specialty & Generic · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The model awarded meaningful credit for the exceptional +59.0% revenue growth in FY2025, which anchored the growth factor score, but tempered it because net income grew only +1.8% and EPS declined -3.8%.
- Thin profitability margins (net margin 5.5%, operating margin 4.5%, ROA 6.0%) limited the profitability factor contribution, reflecting a business that is profitable but not yet highly efficient.
- The momentum factor was heavily penalized by the sharp swing to operating and net losses in 2026Q1, and the dividend and theme factors contributed zero points, collectively pulling the composite score to 29.5/100.
Why Not Higher
- The most recent quarter's operating loss of -$78,323,000 and net loss of -$92,115,000 represent a severe and accelerating deterioration that the model weighted heavily against the otherwise positive revenue trend.
- The absence of any dividend, no thematic tailwind credit, and thin annual margins left the model with limited positive offsets to the momentum and profitability weaknesses.
Data Confidence
7 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $1,476,514,000 to FY2025's $2,347,637,000, a gain of +59.0%. However, net income rose only +1.8% over the same period (FY2024: $126,038,000 to FY2025: $128,365,000), and diluted EPS actually declined -3.8% from FY2024's $0.53 to FY2025's $0.51.
The model rewarded the exceptional top-line expansion but tempered the score because bottom-line growth was nearly flat and per-share earnings contracted, suggesting revenue growth is not yet fully translating to shareholder earnings.
In FY2025, Hims & Hers posted a net margin of 5.5%, an operating margin of 4.5%, and a return on assets of 6.0%.
The model reflects that while the company is profitable, these margins are relatively thin, and a mid-single-digit return on assets indicates the business has not yet achieved the profitability efficiency that would warrant a higher score.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue showed modest sequential growth from 2025Q2's $544,833,000 through 2025Q4's $617,818,000, but then dipped to $608,104,000 in 2026Q1. More significantly, operating income deteriorated from 2025Q2's $26,723,000 to 2025Q4's $9,186,000 and then swung to a loss of -$78,323,000 in 2026Q1, while net income followed a similar path, turning to a loss of -$92,115,000 in 2026Q1.
The model penalized the sharp and accelerating deterioration in operating and net income over the most recent quarters, which overshadowed the relatively stable revenue trend and drove the low momentum score.
Hims & Hers Health does not currently pay a dividend and has no mapped dividend history, making it a genuine non-payer rather than a case of missing data.
The model assigns a score of zero for this factor because dividend income is entirely absent, which is consistent with many growth-oriented companies that reinvest capital rather than distribute it to shareholders.
Hims & Hers Health is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the security did not receive any thematic tailwind credit under the model's current methodology; this is a neutral classification rather than a negative signal about the company's business.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Hims & Hers Health delivered exceptional top-line growth of +59.0% year-over-year in FY2025, but bottom-line results told a more cautious story: net income rose only +1.8% and diluted EPS actually declined -3.8%, indicating that revenue expansion has not yet translated into proportional shareholder earnings. Profitability margins remain thin, with a net margin of 5.5%, an operating margin of 4.5%, and a return on assets of 6.0% in FY2025. Most concerning is the sharp recent deterioration in operating and net income, with operating income swinging to a loss of -$78,323,000 and net income to -$92,115,000 in 2026Q1, even as quarterly revenue remained relatively stable. The company pays no dividend and carries no thematic tailwind credit under the current model, resulting in a total model score of 29.5/100 and a Very High risk rating.
Plain English
Hims & Hers is growing its sales really fast, but it's barely making more profit than before, and in the most recent quarter it actually lost a significant amount of money on the operating and net income lines — so while the top line looks exciting, the bottom line is flashing warning signs.
Bull Case vs. Bear Case
Bull Case
- Revenue surged +59.0% year-over-year from FY2024 to FY2025, demonstrating strong and sustained top-line momentum that few companies achieve at this scale.
- The company is profitable on an annual basis, posting a positive net margin of 5.5% and a return on assets of 6.0% in FY2025, confirming it is not purely a cash-burning growth story.
- Quarterly revenue remained relatively resilient, holding near the $600 million range across recent quarters, suggesting underlying demand has not collapsed despite the profit deterioration.
Bear Case
- Despite explosive revenue growth, diluted EPS declined -3.8% in FY2025, meaning shareholders are not yet seeing proportional earnings benefit from the company's expansion.
- Operating income deteriorated sharply from $26,723,000 in 2025Q2 to a loss of -$78,323,000 in 2026Q1, and net income swung to a loss of -$92,115,000 in the same quarter, signaling a rapid and accelerating profitability breakdown.
- Profitability margins are thin — a 4.5% operating margin and 5.5% net margin in FY2025 — leaving little buffer if revenue growth slows or costs continue to rise.
What Could Change the Picture
Bullish Triggers
- A sustained reversal in operating income back toward the levels seen in 2025Q2 ($26,723,000) would suggest the 2026Q1 loss was a temporary disruption rather than a structural deterioration.
- If future quarters demonstrate that the strong revenue growth of +59.0% begins to flow through to meaningfully higher net income and EPS, the bull case for operating leverage would become more credible.
Bearish Triggers
- If quarterly revenue, which has been relatively stable near $600 million, begins to decline materially, it would remove the one bright spot in the recent momentum picture and compound the profitability concerns.
- Continued or widening operating losses beyond the -$78,323,000 recorded in 2026Q1 would suggest the cost structure is fundamentally misaligned with the revenue base.
Risk Profile
Very High RiskThe momentum picture is particularly concerning: operating income collapsed from $26,723,000 in 2025Q2 to a loss of -$78,323,000 in 2026Q1, and net income turned to a loss of -$92,115,000 in the same period, representing a rapid and sharp deterioration. Combined with the limited specifics available on financial health, these signals underpin the Very High risk rating assigned to this security.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.