Hims & Hers Health Advances with Menopause Care Expansion

Company Expands into Women's Health Segment

Hims & Hers Health, Inc. (NYSE: HIMS) saw its shares advance by 16.2% on Wednesday, marking the telehealth company's most substantial one-day gain in five months. The surge followed the announcement of its strategic expansion into perimenopause and menopause care for women, a move that broadens its "Hers" women's health platform offerings.

Strategic Entry into Underserved Market

The company's latest initiative aims to provide personalized treatment plans, including prescription medications like estradiol and progesterone, to women experiencing perimenopause and menopause symptoms. This expansion directly addresses a significant gap in healthcare, as an estimated 1.3 million women in the U.S. enter menopause annually, yet less than one-third of obstetrician-gynecologist residency programs offer formal menopause training. Hims & Hers highlighted that women, on average, spend $2,000 annually on treatments and related services for menopause, pointing to a substantial and often overlooked market.

Market Reaction and Financial Projections

The positive market reaction underscores investor optimism regarding Hims & Hers' ability to penetrate this lucrative segment. The company's stock has demonstrated considerable volatility, but its year-to-date performance remains robust, having powered up 160.2% in 2025, significantly outpacing the S&P 500 index's 13.6% gain over the same period. The "Hers" women's health business is projected to surpass $1 billion in annual revenue in 2026, representing approximately 36% of the average analyst estimate for the company's total revenue of $2.8 billion for that year. This anticipated growth builds on a foundation of strong financial health, with Hims & Hers reporting a gross profit margin of 76% and a three-year compound annual growth rate of 62.4%.

Broader Market Context and Implications

This strategic pivot places Hims & Hers alongside other companies, such as WeightWatchers (WW), that have recently entered the menopause treatment space, signaling a broader industry trend towards recognizing and addressing women's health needs. Industry estimates suggest the global menopause market, valued at $17.79 billion in 2024, could reach $24.35 billion by 2030. Some analyses propose the U.S. market alone could expand to nearly $40 billion by 2030 if all women with moderate to severe symptoms received adequate treatment, and potentially as large as $600 billion globally. The company's direct-to-consumer model is expected to facilitate rapid scaling and potentially higher margins in this burgeoning market.

Despite the positive outlook, the company's shares currently trade at a premium valuation, with a Price-to-Earnings (P/E) ratio of 70.07 and a Price-to-Book (P/B) ratio of 22.51. Some analysts maintain a cautious "Underperform" rating, suggesting potential execution risks or that the growth is already priced into the stock.

Expert Commentary

Dr. Jessica Shepherd, Chief Medical Officer of Hers, articulated the broader mission behind the expansion, stating:

"Our initiative is about building a trusted platform for women's care, addressing an outdated healthcare system not designed for them."

This sentiment highlights the company's commitment to transforming access to specialized care.

Looking Ahead

The entry of Hims & Hers into the perimenopause and menopause sector is poised to drive increased competition and innovation in women's healthcare. Key factors to monitor include the successful integration and adoption of the new treatment plans, the company's ability to meet its ambitious revenue targets for the Hers platform, and the evolving competitive landscape as more players recognize the significant opportunities in this underserved market. Investors will be closely watching for further data on subscriber growth and the financial performance of this new segment as it rolls out in the coming months and years.