Hims & Hers: Can a New Diagnostic Platform Reverse the Stock’s Fortunes?

Telemedicine provider Hims & Hers has launched a strategic initiative that could reshape the healthcare landscape, yet its equity continues to face significant market headwinds. The company's recent introduction of an affordable laboratory testing service demonstrates ambitious expansion, but investor sentiment remains divided as the stock struggles to regain momentum.

The third quarter of 2025 revealed substantial operational achievements for Hims & Hers. Revenue reached $600 million, representing a 49 percent year-over-year increase, while the subscriber base grew to nearly 2.5 million customers. Adjusted EBITDA surged beyond $78 million, prompting management to reaffirm their full-year guidance with confidence.

Despite these strong fundamentals, market reaction has been decidedly negative. Shares have plummeted more than 40 percent over the past month, currently trading around €31—a decline exceeding 50 percent from their annual peak. This divergence between operational success and stock performance highlights underlying market concerns.

Laboratory Platform Launch: A Disruptive Move

On November 13, 2025, the company unveiled "Labs," its groundbreaking blood testing platform offering annual access to 50 biomarker tests for just $199. The comprehensive service covers cardiovascular health, metabolic function, hormone levels, and inflammation markers—addressing growing consumer demand for proactive healthcare solutions.

Chief Executive Andrew Dudum emphasized the strategic importance, noting that "70 percent of all medical decisions rely on laboratory results." This positioning directly challenges conventional healthcare providers by delivering services at a fraction of traditional costs. Future roadmap developments include at-home testing devices and expanded diagnostic capabilities for bone and brain health.

Should investors sell immediately? Or is it worth buying Hims & Hers?

Analytical Community Divided on Prospects

Market experts display significant disagreement regarding the company's trajectory. Canaccord Genuity maintains a bullish stance with a $68 price target, while the consensus estimate sits considerably lower at $28.65. This wide valuation gap reflects uncertainty about whether the Labs initiative will drive meaningful growth or represent another costly endeavor in the competitive digital health space.

Truist Securities and Morgan Stanley have adopted cautious positions, issuing "Hold" and "Equal-Weight" ratings respectively. Their restrained outlook appears justified given intensifying competition across the telemedicine sector.

Strategic Pivot Toward Integrated Healthcare

Hims & Hers is executing a fundamental transformation from a telemedicine specialist to a comprehensive healthcare ecosystem. The integration of laboratory data with personalized treatment plans and virtual care could establish a formidable competitive advantage—or prove to be an expensive diversification misstep.

The company stands at a critical inflection point. Either its healthcare innovation strategy generates sustainable growth and reverses the current downturn, or the bearish trend continues unabated. For investors, the decision represents a calculated bet on the disruptive potential of integrated digital healthcare solutions.