HIMS Stock Forecast & Price Target

Hims & Hers Health is attractive because its subscriber base has expanded to 2.891 million, monthly revenue per average subscriber rose 21% to $92, and revenue climbed 38% year over year to $753.2 million, showing that the direct-to-consumer model is scaling efficiently. Its growth outlook is further strengthened by accelerating demand in weight loss and testosterone replacement therapy, with AI tools improving engagement, reducing cancellations, and cutting non-clinical support work by about 50%, which should support retention and operating leverage. Even with near-term EBITDA margin pressure, management raised FY26 revenue guidance to $3.1 billion-$3.3 billion and sees international revenue of at least $600 million, while long-term targets of more than $6.5 billion in revenue and $1.3 billion in adjusted EBITDA suggest substantial runway.

Hims & Hers Health is facing a fundamentally pressured earnings profile because strong revenue growth is being bought with lower margins, higher operating expense, and weak cash conversion as it funds international expansion, AI, and branded weight-loss offerings. In 2Q26, revenue rose 38.2% to $753.2 million and adjusted EBITDA reached $60.3 million, yet gross margin fell to 63.8% from 69.0% expected, operating cash flow was negative $35.9 million, and free cash flow was negative $68.2 million, while debt of $1.37 billion remained heavy versus $841.0 million in cash. The outlook is further clouded by intensifying competition, tightening compounding regulation, and the risk that a shift toward lower-margin branded GLP-1 products and international mix will keep EBITDA revisions under pressure.