Hims & Hers: Bargain EBITDA Multiples As GLP-1 Drama Passes

Gary Alexander33.6K FollowersFollow5ShareSavePlay(11min)Comments(3)SummaryHims & Hers has sharply declined, losing nearly 40% YTD and two-thirds from last year's peak. Despite the selloff, I see compelling value in HIMS at its current, compressed valuation.Markets have penalized the stock for its expectation of slight adjusted EBITDA margin contraction in FY26, which is due to its expansion into new markets (Europe and Japan).The company's $1.15 billion acquisition of Eucalyptus (closing mid-2026) jumpstarts its international push, and lays the foundation for the company to scale to profitability overseas.Key growth drivers include international expansion (overseas revenue is only ~6% of the company total), Hers brand expansion (>100% growth in FY25), and new lab testing features launched in November. SneSivan/iStock via Getty Images In a surprisingly short amount of time, the S&P 500 has quickly shaken off the risk-off mentality and market jitters that have dominated since the conflict in Iran began. That said, many pockets of the stock market remain in deeply negative territory, particularly small- andThis article was written byGary Alexander33.6K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of HIMS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.