Hims & Hers Health has gotten torched over the last six months - since September 2025, its stock price has dropped 55.2% to $23.21 per share. This may have investors wondering how to approach the situation.
Following the pullback, is now an opportune time to buy HIMS? Find out in our full research report, it’s free.
Why Is HIMS a Good Business?
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
1. Customer Base Skyrockets, Fueling Growth Opportunities
Revenue growth can be broken down into the number of customers and the average spend per customer. Both are important because an increasing customer base leads to more upselling opportunities while the revenue per customer shows how successful a company was in executing its upselling strategy.
Hims & Hers Health’s total customers punched in at 2.51 million in the latest quarter, and over the last two years, their count averaged 29.5% year-on-year growth. This performance was fantastic, reflecting its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales. 
2. Increasing Free Cash Flow Margin Juices Financials
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Hims & Hers Health’s margin expanded by 16.9 percentage points over the last five years. We have no doubt shareholders would like to continue seeing its cash conversion rise as it gives the company more optionality. Hims & Hers Health’s free cash flow margin for the trailing 12 months was 2.4%.
3. New Investments Bear Fruit as ROIC Jumps
A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity).
We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, Hims & Hers Health’s ROIC has increased. This is a good sign, but we recognize its lack of profitable growth during the COVID era was the primary reason for the change.
Final Judgment
These are just a few reasons Hims & Hers Health is a high-quality business worth owning. After the recent drawdown, the stock trades at 20× forward P/E (or $23.21 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
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