Hims & Hers Health (HIMS) has capped FY 2025 with fourth quarter revenue of US$617.8 million and basic EPS of US$0.09, rounding out a year in which its trailing twelve month revenue reached about US$2.3 billion and basic EPS came in at roughly US$0.57. Over recent periods the company has seen revenue move from US$481.1 million in Q4 2024 to US$617.8 million in Q4 2025, while quarterly basic EPS shifted from US$0.12 a year ago to US$0.09 most recently. This has set up a results season where investors are closely watching how these headline figures feed into profit margins.

With the numbers on the table, the next step is to see how this mix of revenue, EPS and margin outcomes lines up with the most common stories you hear about Hims & Hers Health, and where those narratives might need an update.

Margins Softening as Net Profit Slips to 5.5%

• Over the last twelve months, net income of US$128.4 million on about US$2.3b of revenue implies a 5.5% net margin, compared with 8.5% a year earlier. Year over year earnings growth of 1.8% sits well below the trailing five year earnings growth rate of 65.6% per year.
• Consensus narrative talks about efficiency gains from AI, diagnostics integration and international expansion supporting earnings stability. However, the margin shift from 8.5% to 5.5% and the slowdown to 1.8% earnings growth highlight that, so far, profit is not matching the stronger multi year growth profile, even as trailing twelve month revenue rose from US$1.5b to about US$2.3b.

Valuation Gap: 27.4x P/E vs DCF Fair Value

• At a trailing P/E of 27.4x and a share price of US$15.46, the stock is described as cheaper than peers at 78.3x but above the wider US Healthcare group on 23.6x. A DCF fair value of about US$64.89 points to a large gap versus the current price.
• Supportive investors point to forecast earnings growth of about 21% per year and revenue growth of 13.6% per year as reasons the current P/E and wide gap to the DCF fair value could be attractive. Yet the drop in trailing net margin from 8.5% to 5.5% and the most recent 1.8% earnings growth show why others may question how easily those growth and margin assumptions can play out.

Have bulls got this story right, or is the 5.5% margin telling you something different about long term earnings power? 🐂 Hims & Hers Health Bull Case

High Debt and Slower Growth Feed Bearish Concerns

• Analysis flags a high level of debt alongside trailing twelve month earnings growth of 1.8% and net income of US$128.4 million on US$2.3b of revenue, which together leave less headroom than the 65.6% per year five year earnings growth figure might suggest on its own.
• Bears argue that rising compliance and customer acquisition costs plus pricing pressure in key categories could weigh on future profitability. The combination of a 5.5% net margin, slower recent earnings growth and a current US$15.46 share price already sitting below a 20.19 analyst target gives them specific figures to point to when they question how resilient the business is if margins or revenue growth come under further strain.

Skeptics think the high debt and 5.5% margin matter more than past growth when judging what comes next. 🐻 Hims & Hers Health Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hims & Hers Health on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of softer margins, debt concerns and valuation gaps leaves you unsure, do not wait to check the details yourself.

See What Else Is Out There

Hims & Hers Health is operating with a relatively thin 5.5% net margin, slower recent earnings growth and a highlighted high debt load that could limit flexibility.

If that combination of softer margins and higher leverage feels uncomfortable, you may want to focus on companies with stronger cushions by checking out our solid balance sheet and fundamentals stocks screener (40 results) today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.