Crossroads
Is it time to worry about HIMS stock?
9/17/2025, 1:15:03 AM
Economic Summary
- HIMS (HIMS) stock has been volatile: up ~91.1% YTD and ~50% since April, but down ~16% over the last three months, reflecting a post-GLP-1 run adjustment and mixed sentiment.
- The FDA sent HIMS a September 9 letter criticizing GLP-1 marketing claims; the company and CEO Andrew Doodum responded quickly; similar letters were sent to many companies including Eli Lilly (LLY) and Novo Nordisk (NVO), so regulatory action appears broad rather than company-specific.
- The FTC is investigating HIMS over advertising and cancellation practices; the likely outcome is remediation rather than punitive fines, but this could modestly raise marketing or compliance costs.
- App and website engagement metrics dropped after the GLP-1 shortage eased, implying a slowdown in new-member acquisition and raising concerns about sustainable top-line growth absent new product adoption.
- HIMS is expanding its product lineup (scaling testosterone offerings, oral testosterone expected in 2026) which could materially offset GLP-1 revenue declines, though timing and competitive pressures make the magnitude uncertain.
Bullish
- CEO rapidly responded to FDA letter, showing good governance and transparency.
- Strong marketing and efficient customer acquisition, with effective cross-selling flywheel.
- New product pipeline (oral testosterone) could open a large addressable market by 2026.
- Insider/representative buying signals confidence from politically connected investors.
Bearish
- FTC is investigating HIMS over advertising and cancellation practices, which could lead to remediation costs or fines.
- FDA warning about GLP-1 marketing forces HIMS to change communications and potentially reduce GLP-1 promotion.
- Website/app usage and new-member inflows fell after GLP-1 shortage ended, signaling slower organic growth.
- Analysts have lowered price targets and guidance after recent slowdown in engagement and GLP-1 tailwind fading.
- New product launches (e.g., testosterone) may be too late to fully offset near-term GLP-1 revenue declines.
Bullish tickers
HIMS
Bearish tickers
HIMS
HIMS
Bullish
Management responded promptly to regulators, marketing efficiency and cross-sell strengths persist, and new product launches (testosterone) could drive future growth.
Bearish
User engagement and new-member inflows fell after the GLP-1 shortage ended; FTC/FDA scrutiny may raise compliance and marketing costs.
People mentioned
CrossroadsAndrew DoodumMcLean