Hims & Hers: Another even larger investment year

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Hims & Hers: Another even larger investment year

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Hims & Hers

Another even larger investment year

Reiterate Rating: NEUTRAL | PO: 30.00 USD | Price: 29.14 USD

2026: A hockey stick ramp for EBITDA 12 May 2026 Corrected

HIMS reported a mixed quarter with revenue and EBITDA falling below the Street and Equity

subscribers exceeding the Street's expectation (see our first take note). The 2026 revenue

growth guidance assumes an incremental $350-$550MM of revenue growth ex-

Key ChangesEucalyptus. We think bulls are overly optimistic about net retention of branded GLP-1s,

the sustainability of the $149 subscription fee, or both. Importantly, HIMS’ April Wegovy (US$) Previous Current

adds are at least partially driven by a hand off of compounded scripts and a $39 initial Price Obj. 32.00 30.00

fee, both of which will abate by the end of 2Q. On margins, we think it makes sense for 2026E EPS 0.86 0.96

HIMS to invest and run the International business at breakeven for a multi-year period, 2027E EPS 0.72 0.69

but it will put pressure on consolidated margins relative to current Street expectations. 2028E EPS 0.84 0.81

The Street currently expects >$400MM of EBITDA in 2027 and we think those 2026E EBITDA (m) 255.4 257.3

expectations will need to be reset given the significant investments HIMS is making both 2027E EBITDA (m) 303.1 306.5

domestically and internationally. Importantly, we like the investments HIMS is making in 2028E EBITDA (m) 352.2 353.8

verticalizing its supply chain and in scaling internationally. HIMS’ investments in these

areas position the company to exploit the peptide opportunity (to the extent they are able Allen Lutz, CFA

to) and become a global platform of choice for large pharma. We view these as long term Research Analyst BofAS