How Hims Turned A $3 Stock Into A Telehealth Giant
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How Hims Turned A $3 Stock Into A Telehealth Giant
010 mins
HIMS stock has gained 314% over five years as the former SPAC evolved into a global healthcare platform.
Annual revenue surged from $272 million in 2021 to $2.3 billion in 2025, representing a compound annual growth rate of nearly 64%.
Hims’ AI-native care platform tripled customer messaging and reduced nonclinical support work by nearly 50%.
Hims & Hers Health (HIMS) marked its fifth anniversary as a publicly traded company on Monday, capping a volatile journey that delivered a 314% stock return and turned the former SPAC into a global healthcare business.
CEO Andrew Dudum and company employees rang the New York Stock Exchange opening bell to commemorate the milestone and signal what he called Hims’ “next phase of growth.” Dudum said on X that going public was an intentional decision to place the company in a “high-stakes arena” that demands both quarterly execution and commitment to a long-term vision. Like Amazon and Google during their early years, he said, Hims believed it had an opportunity to change an entire industry.
“For us, that’s truer today than it was in January 2021,” Dudum said, adding that the company remains in the “early innings.”
Inside Hims’ Post-SPAC Comeback
Founded in 2017, Hims initially focused on conditions such as erectile dysfunction and hair loss, combining online consultations with discreet medication delivery. It launched Hers for women the following year before expanding into skincare, mental health and retail distribution.
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The company went public through a merger with Oaktree Acquisition Corp. in 2021 at a valuation of $1.6 billion. However, HIMS ended 2021 down 55% and fell toward $3 during the 2022 growth-stock selloff. Revenue increased from $272 million in 2021 to $527 million in 2022 and $872 million in 2023. Fiscal.ai data shows that it subsequently hit $1.5 billion in 2024 and $2.3 billion in 2025, representing a compound annual growth rate of nearly 64% since 2021. The company also moved from operating losses during its early public years to positive operating profit in 2024 and 2025.
Weight Loss Ignites HIMS Rally
In 2024, Hims began offering compounded injectable Semaglutide during a shortage of branded weight-loss medicines such as Novo Nordisk’s Wegovy. Demand surged, prompting Hims to acquire compounding facility MedisourceRx to boost its supply chain. Full-year revenue climbed 69% to $1.48 billion, while HIMS shares soared 172% in the same year.
The excitement peaked in February 2025 after the company aired its provocative “Sick of the System” commercial during Super Bowl LIX. The advertisement criticized the cost of branded weight-loss drugs, while promoting more affordable alternatives, generating heavy consumer attention. HIMS stock hit its record high of $68.74 in the same month.
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From Novo Fallout To New GLP-1 Strategy
The GLP-1 opportunity also exposed Hims to one of its biggest investor risks. In June 2025, Novo Nordisk terminated a short-lived Wegovy partnership, accusing Hims of improperly promoting compounded semaglutide. The stock plunged 35% that day. The companies revived their partnership in March this year, agreeing to offer branded Wegovy and Ozempic through the Hims platform as the telehealth firm shifted away from marketing compounded GLP-1 drugs.
Dudum called the company’s current relationship with Novo as “extremely” strong during its latest earnings call. He also called the Wegovy pill’s launch “staggering,” saying it opened “the floodgates” for patients concerned about injections or prices.
Hims Builds Global Health Platform
Hims also accelerated its international expansion through acquisitions including European digital-health platform Zava, blood-sampling company YourBio Health and Australian telehealth provider Eucalyptus. Its $1.2 billion acquisition of Eucalyptus, completed in June, expanded the company’s reach across Australia, the U.K., Germany, Canada and Japan.
International revenue increased more than 17-fold year-over-year to $131 million in the second quarter. Eucalyptus contributed $40 million, while Hims’ existing international operations grew 13% sequentially on an organic basis. Hims added over 300,000 subscribers during the quarter, bringing its global base close to three million. Dudum said that population now rivals some of the largest healthcare systems in the U.S.
The company has five domestic specialties operating above a $100 million annual revenue run rate. Testosterone, its fastest-growing category outside weight loss, is expected to become the sixth.
Hims Makes AI ‘Load-Bearing’
Hims is betting that AI can deepen customer relationships while lowering care costs. Its new AI-native experience for Hers weight-loss customers tripled messaging, answered 80% of questions and reduced nonclinical support work by nearly 50%, according to CTO Mo Elshenawy.
“We are making AI load-bearing, not decorative,” Elshenawy said, stressing that licensed clinicians remain responsible for medical decisions. The company expects the investment to pay for itself within 12 to 18 months through stronger retention, fewer cancellations and lower service costs.
Despite gaining 314% over five years, HIMS trades around $28 to $29, which is about 58% below its February 2025 record. Fiscal.ai expects revenue to reach $3.2 billion this year, but projects an operating loss as investment remains elevated. HIms’ longer-term ambitions remain intact: at least $6.5 billion in annual revenue and $1.3 billion in adjusted EBITDA by 2030.
How Do Retail Traders Feel About HIMS?
On Stocktwits, retail sentiment for HIMS flipped to ‘bearish’ from ‘bullish’ levels a day ago amid a 1,020% surge in 24-hour message volumes. The ticker’s watcher base has also jumped 27% in a year.
HIMS sentiment and message volume as of August 17 | Source: Stocktwits
One user said the post-earnings decline reflected concerns about “margin risks” despite the revenue beat and raised outlook, adding that large call and put sweeps suggested traders were “hedging both ways” rather than positioning for a clear bullish reversal.
Another user said, “$HIMS higher low on daily would look nice here. not holding my breath. Real move starts thru 40 imo”
HIMS stock has declined 39% over the past year and 12% since January.
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Deepti Sri has no position in any of the stocks mentioned in this article. StockTwits’ news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.
