Hims & Hers Stock 2025: Crushed Hopes or Hidden Opportunity?

• Why Did Hims & Hers Stock Tank Despite Record Revenue?
• Executive Musical Chairs: What's Behind the Leadership Shakeup?
• Can Wegovy Save Hims & Hers' Bacon?
• Q4 Guidance: Sunny Skies or Storm Clouds Ahead?
• GLP-1 Gold Rush: Savior or Distraction?
• European Dreams: Will Zava Acquisition Pay Off?
• Bull vs Bear: Where Do the Smart Money Stand?
• Bottom Line: Buy, Hold, or Bail?
• Hims & Hers Stock: Your Burning Questions Answered

HIMS) just dropped a financial bombshell that has Wall Street scrambling. While Q3 2025 revenue soared 49% to $600M, the company missed earnings expectations by a mile. With a surprise leadership shuffle and make-or-break negotiations with Novo Nordisk about Wegovy distribution, investors are left wondering: Is this telehealth disruptor running out of steam or poised for a comeback? Let's dissect the numbers, the drama, and what it means for your portfolio.

Why Did Hims & Hers Stock Tank Despite Record Revenue?

The telehealth darling reported stellar top-line growth - $600M in Q3 revenue (up 49% YoY) and 2.47M subscribers (19% increase). But dig deeper and the cracks appear: EPS of $0.06 missed the $0.09-$0.10 consensus, while gross margins contracted from 79% to 74% due to new product launches. "They're spending like sailors on shore leave to fuel growth," notes BTCC analyst Mark Chen, "but investors want profitability, not just pretty subscriber numbers." Adjusted EBITDA of $78.4M, while positive, fell short of whisper numbers circulating on TradingView forums.

Executive Musical Chairs: What's Behind the Leadership Shakeup?

In a MOVE that raised eyebrows, COO Nader Kabbani stepped down on November 2 into an advisory role, replaced by former CCO Mike Chi. "Consolidating operations under Chi suggests they're prepping for battle," observes a former employee who requested anonymity. The real drama? Hims confirmed "active talks" with Novo Nordisk about selling Wegovy - the blockbuster weight-loss drug - through its platform. This comes after Novo abruptly ended another partnership, leaving analysts wondering if Hims can avoid becoming just another distribution channel for Big Pharma.

Can Wegovy Save Hims & Hers' Bacon?

The potential Novo deal is a double-edged sword. While Wegovy could turbocharge revenue (some analysts project $200M+ annually), it risks making Hims dependent on a single product. "Remember when everyone thought CBD was telehealth's golden ticket?" quips industry VET Sarah Kwon. The company's also eyeing European expansion through its Zava acquisition, but regulatory hurdles remain. Their 2030 targets - $6.5B revenue and $1.3B EBITDA - now seem more aspirational than achievable without major catalysts.

Q4 Guidance: Sunny Skies or Storm Clouds Ahead?

Management forecasts $605M-$625M in Q4 revenue with $55M-$65M adjusted EBITDA. For full-year 2025, they're guiding toward $2.35B revenue and up to $317M EBITDA. The numbers look decent until you realize growth is decelerating - Q3's 49% revenue jump is down from 69% in Q1. "They're becoming a victim of their own early success," notes a hedge fund manager shorting the stock. Gross margin pressure from new verticals like mental health continues to spook investors expecting Amazon-like scalability.

GLP-1 Gold Rush: Savior or Distraction?

The Wegovy talks highlight Hims' desperate play in the red-hot GLP-1 market. But with Novo controlling supply and giants like Amazon Pharmacy circling, margins could get squeezed. An oral version (currently in discussions) might help, but as one clinic owner told me, "Every telehealth company thinks they'll be the Uber of weight-loss drugs - most will end up being the taxis."

European Dreams: Will Zava Acquisition Pay Off?

Hims' $300M purchase of UK-based Zava gives them instant European reach, but integrating systems while battling entrenched local players won't be easy. Early data shows just 12% conversion from Zava's existing user base to Hims' higher-margin services. "It's like buying a grocery store when you're a steakhouse," jokes a London-based competitor.

Bull vs Bear: Where Do the Smart Money Stand?

The bulls see: 1) Reaccelerating subscription growth (50% jump in personalized plans) 2) Potential Wegovy upside 3) Attractive valuation at 3x sales. The bears counter: 1) Deteriorating unit economics 2) Overdependence on promotional spending 3) Mounting competition in Core men's health vertical. "This isn't 2021 anymore - investors want profits, not just growth at any cost," warns a Morgan Stanley report.

Bottom Line: Buy, Hold, or Bail?

At $12/share (down 40% from 2024 highs), Hims looks tempting for risk-tolerant investors. But with gross margins unlikely to rebound soon and the Wegovy deal still uncertain, it's probably not for the faint-hearted. As one fund manager put it: "You're either betting on Andrew Dudum (CEO) pulling another rabbit out of his hat, or you're waiting for a bigger dip." Personally? I'd watch from the sidelines until the Novo situation clarifies.

Hims & Hers Stock: Your Burning Questions Answered

How bad was the earnings miss?

EPS came in at $0.06 vs $0.09-$0.10 expectations - a 33% miss that triggered the 15% post-earnings drop.

What's the Wegovy deal timeline?

No firm date, but insiders suggest an announcement could come before Q4 earnings if negotiations succeed.

Is the European expansion working?

Early days - Zava contributed just $28M in Q3 revenue with breakeven margins. The real test comes in 2026.

Are insiders buying the dip?

Mixed signals - the CEO bought $2M worth in October, but three other execs sold portions of their holdings.

What's the short interest?

Currently 18% of float - high but down from 25% in August, per TradingView data.