Hims and Hers has strong long-term growth potential; guided to 50% revenue growth in H2 2026 following regulatory settlements and portfolio expansion.

Speaking of companies that have a lot of growth runway ahead, Himson and Hers had a tough start to 2026, but the second half of 2026, their guidance is that they're going to grow revenue at 50%.

So, if we look at their component annual growth rate over the past 3 years, 54%, stocks pretty cheap. Enterprise value to sales about 2.8. That could significantly increase forward price earnings multiple 81.

We're not focused on profitability yet for his and hers, but let's look at what's happened over the past year or so.

And again, like we see with Dolingo, let's do trailing 12-month numbers. Like we see with Dolingo, you're seeing deceleration of growth. What happened here in 2024 and 2025, this is when you could compound GLP1s.

So there's an exemption from the FDA for companies like Hims and Hers to be able to compound that product. That drove a ton of growth. And then in 2025 and early 2026 ran into some grow growth challenges as they couldn't compound as many products. when they did try to compound eventually ran into Nova Nordisk who sued the company earlier this year that's when you actually got to the point if we look at the quarterly numbers quarterly growth in the first quarter was just 3.8%. Not a good quarter, but things bounced back.

They settled with Nova Nordisk. You can now get Nova Nordisk's products on Hims and Hers. You can also get Eli Lilly's products in Hims and Hers. The product portfolio is expanding.

They're expanding their use of AI tools. Labs are here. Peptides are likely coming. Management has said in the second half of this year, especially after the acquisition of Eucalyptus and Zava in Europe last year, that the company is going to grow revenue 50% in the second half of this year.

So I think this is the kind of company that could compound revenue 30 plus% over the course of 10 maybe even 20 years if you look at him and hers has $2.6 billion worth of revenue over the past 12 months and the pharmaceutical business alone is about $400 billion just in the US.

Now remember they're going international as well. They're also adding the kind of value that typically falls into insurance companies and doctors. So this is potentially a trillion dollar business if you look out 10 to 20 years. That's a lot of growth runway ahead.