Can Hims & Hers Stock Rally 50% After This Dip

For questions about this article or underlying research, email [email protected].

Hims & Hers Health (HIMS) stock fell 10.5% between its October 9 and October 30 closes. A drop like that tempts buyers to step in. The stock has rallied more than 50% before. From its October 30 close of $27.68, a 50% rally would take the shares to about $41.52. Following past sharp falls, its highest price within the following year was a median 99.4% above the price on the day of the fall. What did buyers of those falls hold a year later, and how far did the stock sink along the way?

How Did Hims & Hers Dip Buyers Fare?

Hims & Hers stock fell more than 20% over 30 trading days on 15 occasions through October 2026. Twelve of those falls have a 12-month result. Seven of the 12 left buyers higher a year later, and the median result across all 12 was a 9.5% gain. Buyers of all six falls from 2022 to 2024 were higher a year later, while the three falls of 2025 with a result all ended lower.

Holding through the year meant sitting through a deep slide. Within a year of each fall, the stock's lowest close was a median 49.4% below its close on the day of the fall. The best price of that year came a median 202 days after the fall, about six and a half months.

Hims & Hers Is Growing Sales While Posting Losses

In the second quarter of fiscal 2026, Hims & Hers grew revenue 38.2% from a year earlier to $753 million, yet it lost money. The company recorded an operating loss equal to 12.9% of revenue, against an operating profit of 4.9% of revenue a year earlier. Management said on the August 10 call that the $86 million net loss included nonrecurring costs tied to its Eucalyptus acquisition, a restructuring and litigation with the FTC. Management also expects gross margins to stay below past levels as branded weight loss products and international revenue become a larger part of the business.

Cash flow turned negative in that quarter too. The business brought in $263 million of cash from operations over the four quarters to June, but the second quarter alone used $35.9 million. Management tied this to working capital for its fast-growing branded weight loss offering. Free cash flow was negative $68.2 million in the second quarter. Management expects free cash flow to resume in the second half of 2026.

The market prices Hims & Hers at 2.5 times its past year's sales, below the S&P 500's 3.2 times. With a loss over that year, the company's price-to-earnings ratio is not meaningful. At the index's multiple, the company's past year of revenue would be worth about $8.2 billion, against its market value of $6.4 billion at the October 30 close. But the S&P 500 as a whole keeps 13.4% of its sales as profit, while Hims & Hers posted a net loss equal to 5.5% of its sales.

Does Hims & Hers Carry More Debt Than Cash?

Yes. At the end of June, Hims & Hers held $1.55 billion of debt, outweighing its $841 million of cash and short-term investments. That debt amounts to 24.1% of the company's market value, against 19.1% for the S&P 500.

A buyer at today's price is betting that this fall ends like those of 2022 to 2024 rather than those of 2025, and that Hims & Hers turns its fast sales growth back into cash. Since the August call, the FDA has warned telehealth companies over unapproved weight-loss drugs, and investors have filed a securities class action against the company. Free cash flow in the third-quarter report, expected in November 2026, is the figure to watch.

Does This Mean You Should Act On HIMS?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

Spot an error or want more like this? Tell us in 10 seconds.