HIMS Stock Forecast & Price Target

Hims & Hers Health is benefiting from robust weight-loss demand, improving retention, and lower cancellations as AI-powered tools deepen engagement and reduce support burden by about 50%. Its subscriber base reached 2.891 million, monthly revenue per average subscriber rose 21% to $92, and 2Q revenue increased 38.2% year over year to $753.2 million with adjusted EBITDA of $60.3 million, showing strong operating momentum. Longer term, the expanding specialty mix, faster-scaling testosterone business, and international growth supported by Eucalyptus create a credible path toward higher lifetime value, while near-term margin pressure is viewed as a manageable investment phase for future leverage.

Hims & Hers Health is viewed negatively because its strong revenue growth is being bought with weakening profitability, as international expansion, AI investment, and branded weight-loss products are pressuring gross margin, which fell to 63.8% in 2Q26 and 64% overall, down 12.6 points year over year. The company’s shift toward lower-margin branded GLP-1 offerings, plus one-time supply-chain charges and higher operating expenses, has already reduced EBITDA guidance and left operating cash flow at negative $35.9 million and free cash flow at negative $68.2 million in 2Q26. The outlook is further clouded by heavy competition, possible compounding regulation changes, and a debt load of $1,365.3 million versus $841.0 million in cash and short-term investments, which could keep margins and valuation under pressure.