Hims & Hers has rolled out a suite of AI-driven tools to deepen patient engagement across telehealth services. In the past quarter, the company integrated machine-learning algorithms into its dermatology and sexual wellness offerings, generating personalized treatment plans based on over 15 million anonymized patient data points. It also launched in-house diagnostics capabilities, establishing three new labs and expanding its compounding network by 20% to support GLP-1 and peptide therapies. These moves aim to increase average revenue per user by leveraging proprietary data to drive adherence and upsell specialty services.

The platform reached 2.7 million paying customers by year-end, adding 480,000 net new subscribers in the most recent year after a 700,000 increase in the prior period. This subscriber growth propelled trailing twelve-month revenue to $2.21 billion, up 49% year-over-year. However, operating margins contracted from 6.5% at the start of the year to 2% in the third quarter, reflecting elevated customer acquisition spending—marketing outlays approached $1 billion annually—and sizable investments in a $39 million peptide manufacturing facility plus a $5 million specialty lab acquisition.

Since its public debut via merger in early 2021, a $1,000 investment has grown to $2,735, representing a 173.5% total return, or an annualized gain of 22.3%. Year-to-date returns stand at 41%, though shorter-term holders face steep drawdowns, with recent investors down about 50% from peak levels. The company’s high-beta profile (beta of 2.41) underscores the volatility tied to execution on its multi-specialty strategy. While management targets a 12% operating margin, current valuation metrics imply that the market is pricing in aggressive future expansion. Potential dilution from outstanding convertible notes and recent insider sales totaling over $11 million are key considerations for risk-averse investors.