May 6, 2025 – [cm – dgold] Before the earnings drop, the stock had already rallied hard on buzz around a new partnership with Novo Nordisk, the maker of weight-loss blockbusters like Wegovy. That news alone sent bullish signals through the market. But as often happens in the world of growth equities, lofty expectations created a narrow landing strip – and anything short of spectacular plus triggered a knee-jerk cooldown.

It’s the classic growth-stock paradox: smash expectations, drop in price. On Monday after the U.S. market close, Hims & Hers – the direct-to-consumer health and wellness platform – posted a blowout Q1 earnings report. The numbers ticked all the right boxes. But after-hours traders? Not impressed – the stock dipped nearly 5%.

Let’s break down the numbers:

• Revenue surged 111% to $586 million, year-over-year.

• Adjusted EBITDA jumped 180% to $91.1 million.

• Subscriber count climbed 38% to 2.4 million.

• The gross margin slipped from 82% to 73%, a nine-point dip.

Guidance for full-year 2025 remains strong. Hims & Hers reaffirmed its revenue forecast of $2.3 to $2.4 billion, but the company raised its adjusted EBITDA outlook to $295–335 million (up from $270–320 million).

In short: revenue growth, user growth, profitability – all trending in the right direction. Even so, the stock slipped post-earnings, likely due to a second-quarter outlook that didn’t quite live up to the market’s momentum-fueled hopes. When it comes to growth names, it’s not just about beating expectations – it’s about crushing them and setting the next bar even higher.

The recent tie-up with Novo Nordisk is particularly noteworthy. By teaming up to expand access to in-demand weight-loss treatments like Wegovy, Hims & Hers isn’t just riding a trend – it’s positioning itself at the center of a major healthcare transformation.

Bottom line?
Hims & Hers is growing exactly how you’d want a healthtech disruptor to grow: fast, strategically, and increasingly profitably. The short-term price dip might sting, but the long-term outlook looks exceptionally strong.

 

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