The renowned health and wellness platform, Hims & Hers Health, Inc.’s HIMS business model is fundamentally anchored in recurring and ongoing customer engagement, with subscriptions forming the core of its revenue structure. The majority of online revenue is generated through customers who agree to automatic, recurring billing for products and services delivered at defined intervals, rather than one-time purchases. This structure allows HIMS to maintain continuous interaction with subscribers, supported by regular provider touchpoints, medication refills and digital engagement through its platform. Subscriber growth to 2.5 million in the third quarter of 2025 underscores the scale of this recurring model and its importance to overall performance.
Recent launches and platform expansions further reinforce this long-term engagement strategy. The introduction of new specialties such as menopause and perimenopause care, expanded hormone health offerings and comprehensive lab testing is designed to keep customers engaged across multiple life stages and conditions. These offerings rely on ongoing monitoring, follow-up care and treatment adjustments, encouraging sustained platform usage rather than episodic interactions. Weight loss programs and hormone therapies similarly emphasize continuous clinical guidance and progress tracking over extended periods.
International expansion and investments in diagnostics and personalized care also deepen engagement by broadening the range of needs addressed within a single platform. Collectively, these developments position Hims & Hers as a long-term health partner, increasing retention and lifetime value through recurring, relationship-driven care.
AMWL & MED’s Evolving Platforms Driving Long-Term Engagement
American Well Corporation AMWL, popularly known as Amwell, emphasizes recurring customer engagement through long-term enterprise relationships anchored in subscription-based platform usage. Amwell generates a significant portion of revenue from recurring subscription contracts, complemented by ongoing visit volume through Amwell Medical Group. AMWL’s continued extension of its Digital First contract with the U.S. Defense Health Agency highlights sustained, repeat utilization of its platform across millions of beneficiaries. Amwell further reinforces recurring engagement by integrating its technology deeply into client workflows, driving repeat virtual visits, longitudinal care delivery and continuous platform adoption rather than episodic use.
Medifast, Inc. MED centers its recurring engagement model on long-term, coach-guided client relationships supported by repeat product consumption and structured programs. Medifast relies on sustained interaction between clients and independent OPTAVIA coaches, encouraging ongoing participation rather than short-term weight loss. MED recently introduced Metabolic Synchronization, expanding its programs toward long-term metabolic health and reinforcing continuous engagement across the health journey. Medifast further strengthened retention through initiatives such as Premier+ pricing and auto-ship, positioning Medifast as an ongoing lifestyle partner rather than a one-time solution.
HIMS’ Price Performance, Valuation and Estimates
Shares of Hims & Hers have gained 24.5% over the past year, outperforming the industry’s decline of 0.5%.
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HIMS’ forward 12-month P/S of 2.9X is lower than the industry’s average of 4.7X, but is higher than its three-year median of 2.6X. It carries a Value Score of C.
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The Zacks Consensus Estimate for HIMS’ 2025 earnings per share suggests a 77.8% improvement from 2024.
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Hims & Hers currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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American Well Corporation (AMWL) : Free Stock Analysis Report
Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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