Hims & Hers Health has been getting absolutely hammered this year. The stock is down 70% over the past year and cut in half year to date. Pretty brutal after that monster 170% run in 2024. What happened? A lot of it comes down to their GLP-1 weight loss drug business. The company was selling compounded versions of Wegovy but stopped after facing patent lawsuits and regulatory pressure. That spooked investors pretty hard.

But here's the thing - when you actually look at their recent quarter, the numbers weren't terrible. Q4 revenue hit $617.8 million, up 28% year over year. Subscribers grew to 2.51 million, and they're seeing solid international expansion with revenue jumping from $6.9 million to $63.7 million. Their adjusted EBITDA climbed to $66.3 million. The company also guided for 2026 revenue between $2.7-2.9 billion. So the core business is still growing.

The stock dropped anyway because Q1 guidance came in softer than expected at $600-625 million versus the $647.9 million consensus. There's also margin pressure from international expansion and the whole GLP-1 uncertainty. But here's what caught my attention - the stock now trades at around 14x forward earnings based on 2026 estimates. That's actually pretty cheap for a company still growing revenue in the 20s-30s range.

They're also pushing into non-weight loss offerings that have higher margins and make up most of their cash flow. Plus they just acquired Eucalyptus to expand internationally. I'm not saying it's a slam dunk, but at these levels the downside seems priced in. If their international strategy works and the non-weight loss business keeps growing, there could be real upside from here.