Overview
KeyBanc has reaffirmed a Sector Weight rating on Hims & Hers Health Inc. (NYSE:HIMS) following review of the company's fourth-quarter performance and its guidance for 2026. The analyst firm characterized the reported fourth-quarter revenue and the 2026 revenue outlook as largely consistent with prior expectations, and highlighted management's plan to step up spending in 2026 to support new initiatives and international expansion.
Financial and operational context
Despite facing pronounced market pressure - the stock has fallen roughly 70% over the past year and has been trading near a 52-week low of $15.15 - KeyBanc emphasized that Hims & Hers retains strong underlying margin and growth characteristics. The company reported a 75% gross profit margin and revenue growth of 78% over the trailing twelve months.
KeyBanc noted that the additional investment budget for 2026 is intended to scale emerging programs and global expansion efforts. The analyst firm believes these investments could set the stage for a potential re-acceleration in revenue in the second half of 2026 if execution unfolds as planned. Management also expects the Eucalyptus acquisition to close, which KeyBanc sees as an incremental accelerant to growth.
New treatment categories under watch
While KeyBanc acknowledged an upward bias to the revenue outlook, the firm said it is waiting for clearer evidence of traction from a set of newer treatment offerings before it would consider a more positive stance. The specific areas cited for additional monitoring are the company’s Labs product, Menopause-focused offerings, and Testosterone treatments. The analyst wants to observe more progress across these categories prior to revising the rating.
Market and equity commentary
Separately, InvestingPro analysis noted that HIMS appears on its Most Undervalued list at current price levels and that a more detailed Pro Research Report is available for investors seeking deeper analysis of the company's growth prospects.
Quarterly results and analyst reactions
Hims & Hers reported fourth-quarter revenue of $617.8 million, a 28% increase from the prior year, though this figure came in below BTIG’s estimate of $640.1 million and slightly under the consensus estimate of $619.0 million. Adjusted EBITDA for the quarter was $66.3 million, up 23% year-over-year; this result fell short of BTIG’s $75.8 million estimate but topped the consensus figure of $62.0 million. The company projected first-quarter revenue below Wall Street estimates and attributed this to regulatory scrutiny related to its weight-loss business, along with incremental spending to support international expansion.
In response to the quarter, BTIG downgraded Hims & Hers from Buy to Neutral, pointing to the disappointing fourth-quarter results and regulatory concerns. Other sell-side reactions included reductions in price targets from Leerink Partners and Evercore ISI - Leerink cited concerns around the weight-loss business while Evercore pointed to lower target multiples following the earnings report. BofA Securities also trimmed its price target, describing the quarter as mixed because revenue and subscriber metrics fell short of expectations even as adjusted EBITDA exceeded estimates.
Conclusion
KeyBanc’s decision to maintain a Sector Weight reflects a measured view: the firm recognizes upside potential from planned investments and an imminent acquisition close, but is withholding stronger conviction until the company demonstrates clearer commercial progress in its new treatment lines. Investors and analysts remain focused on the regulatory environment around weight-loss products, execution of international expansion, and subscriber and revenue trends as Hims & Hers navigates these growth and regulatory challenges.
Key points
- KeyBanc kept a Sector Weight rating on Hims & Hers after its Q4 results and 2026 guidance; revenue results and outlook were largely in line with expectations.
- The company plans increased 2026 investment to scale new initiatives and international expansion; KeyBanc views these investments as having potential to re-accelerate revenue in H2 2026, with the Eucalyptus acquisition expected to further support growth.
- Recent quarter: Q4 revenue was $617.8 million (+28% y/y) and adjusted EBITDA was $66.3 million (+23% y/y); several sell-side firms lowered ratings or price targets and the company forecasted Q1 revenue below Street estimates.
Risks and uncertainties
- Regulatory scrutiny of the company’s weight-loss business - this has been cited by management as a factor in lower near-term revenue guidance and has influenced analyst reactions.
- Execution risk tied to scaling new treatment categories (Labs, Menopause, Testosterone) and international expansion - KeyBanc wants to see more concrete progress before becoming more constructive.
- Market sentiment and valuation pressure - the stock has declined about 70% year-over-year and trades near its 52-week low, reflecting investor concern over the company’s outlook.