Hims & Hers Health (NYSE: HIMS) shares surged more than 10% on Tuesday after the telehealth platform delivered a blockbuster first-quarter earnings report and unveiled ambitious long-term growth targets that caught Wall Street off guard.
Q1 Earnings Crush Expectations
The digital health company reported first-quarter revenue of $586 million, up a staggering 111% year-over-year and well ahead of analysts’ average estimate of $539 million. Net income reached $49.5 million, while adjusted EBITDA nearly tripled to $91.1 million.
The subscriber base expanded 38% to 2.4 million, with 60% of users now opting for personalized solutions on the platform. Average monthly online revenue per subscriber also soared 53% to $84.
CEO Andrew Dudum attributed the momentum to Hims & Hers’ focus on personalized, affordable care and a rapidly expanding product portfolio. “Millions of people are turning to us for access to care that is personal, affordable, and has the potential to drive better outcomes,” Dudum said.
Bold 2030 Targets Stun the Street
In a move that surprised analysts, Hims & Hers set a new long-term goal of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030, targeting a 20% margin.
The company reaffirmed its 2025 revenue guidance of $2.3 billion to $2.4 billion and raised its full-year adjusted EBITDA outlook to $295 million–$335 million, up from a prior range of $245 million–$285 million.
Management outlined a five-pronged growth strategy: deepening personalization, expanding into new specialties such as testosterone and menopause support, elevating follow-up care, forging innovative partnerships, and entering new geographies.
Hims & Hers also highlighted its recent partnership with Novo Nordisk, which will expand access to branded weight-loss medication Wegovy on its platform.
Market Reaction and Analyst Response
The unexpectedly strong quarter and bold growth targets triggered a wave of optimism among investors, sending HIMS shares up $4.25 to $46.13 in heavy trading. The stock has now gained more than 70% year-to-date, reflecting growing confidence in the company’s disruptive approach to digital healthcare.
Still, some analysts remain cautious, pointing to execution risks and regulatory uncertainty in the fast-evolving telehealth and weight-loss treatment markets. Bank of America, while raising its price target, reiterated an “Underperform” rating, citing potential litigation risks if the company’s compounded GLP-1 business grows too quickly.