Hims & Hers Health stock (NYSE: HIMS) experienced significant gains today, rising 12% to close at $55.89 on Wednesday, July 23, 2025. The telehealth stock has been navigating turbulent waters since the high-profile partnership breakdown with pharmaceutical giant Novo Nordisk in June.
Recent Stock Performance and Analyst Outlook
HIMS shares have demonstrated remarkable volatility over the past three months, with a dramatic 35% plunge in late June following Novo Nordisk’s abrupt termination of their partnership. The stock’s 52-week range spans from a low of $13.47 to a high of $72.98, highlighting the significant investor sentiment swings surrounding the company.
Despite today’s gains, analyst sentiment remains cautious with a consensus “Hold” rating. The average price target stands at $40.73, suggesting a potential 27% downside from current levels. Thirteen analysts covering the stock have established price targets ranging from $28 to $68, reflecting the wide disparity in professional opinions about the company’s future prospects.
The Novo Nordisk Partnership Collapse
The relationship between HIMS and Novo Nordisk deteriorated rapidly after their April 2025 collaboration announcement. The partnership was designed to provide direct access to Wegovy, Novo’s blockbuster weight-loss drug, through the Hims platform. However, Novo terminated the arrangement in June, citing concerns about “illegal mass compounding and deceptive marketing” practices by Hims.
According to CEO Andrew Dudum, tensions arose when Hims executives disclosed their intention to continue offering “personalized” compounded versions of semaglutide alongside Wegovy during an April meeting. Novo Nordisk accused the telehealth company of failing to comply with FDA regulations that prohibit mass sales of compounded drugs under the guise of personalization.
Strong Financial Fundamentals Drive Recovery
Despite the partnership setback, HIMS reported exceptional Q1 2025 financial results that demonstrate the underlying strength of its business model. Revenue surged 111% year-over-year to $586 million, significantly beating analyst expectations of $538.9 million. The company also achieved positive adjusted EBITDA of $91.1 million, nearly tripling from the previous year.
The telehealth platform now serves 2.4 million subscribers, representing 38% growth year-over-year. Monthly online revenue per average subscriber increased 53% to $84, indicating improved customer monetization and platform stickiness.
Forward-Looking Guidance and Market Position
HIMS management has provided robust guidance for the remainder of 2025, projecting full-year revenue between $2.3-2.4 billion and adjusted EBITDA of $295-335 million. For Q2 2025, the company expects revenue of $530-550 million, representing 68-74% year-over-year growth.
Looking further ahead, the company has established ambitious 2030 targets of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA. These projections reflect management’s confidence in the telehealth market’s long-term growth trajectory and HIMS’s competitive positioning.
Telehealth Market Growth Supports Long-Term Prospects
The broader telehealth industry continues to experience robust expansion, with the global market projected to grow at a 24.68% compound annual growth rate from 2025 to 2030. The market size is expected to reach $455.27 billion by 2030, driven by increasing digital health adoption and smartphone penetration.
This favorable industry backdrop supports HIMS’s growth strategy across multiple healthcare verticals, including weight management, sexual health, mental health, and dermatology services. The company’s platform approach allows for cross-selling opportunities and improved patient lifetime value.
For potential investors, HIMS represents a high-growth telehealth play with strong fundamentals but elevated volatility. While the Novo Nordisk partnership termination created near-term uncertainty, the company’s diversified service offerings and robust financial performance suggest resilience in the evolving digital health landscape.