LifeMD Reports First Quarter 2025 Results and Raises Full-Year 2025 Guidance

Total revenues increased 49% year-over-year to $65.7 million with telehealth revenue up 70%Adjusted EBITDA increased to $8.7 million from $0.1 million in the year-ago periodTelehealth adjusted EBITDA increased to $5.3 million from a loss of $1.3 million in the year-ago periodGAAP net income of $0.6 million or $0.01 per diluted share, delivering first-ever quarter of positive GAAP EPSRaising full-year 2025 guidance for both total revenues and adjusted EBITDA, reflecting strong year-to-date performance in telehealth Conference call begins at 4:30 p.m. Eastern time today NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care services, today reported financial results for the three months ended March 31, 2025. Management Commentary Justin Schreiber, Chairman and CEO of LifeMD, said, “LifeMD had an outstanding first quarter that demonstrated the power of our platform, the need for our services and the accelerated growth trajectory of the business as we achieved our first-ever quarter of GAAP profitability well ahead of expectations. During the quarter we expanded across all service areas, and the performance of our weight management program underscored our success as it is now expected to exceed top- and bottom-line expectations for the full year. The launch of our men’s hormone therapy offering, and recent acceptance of Medicare are also off to strong starts and continue to diversify our already leading telehealth platform. “Our recently announced strategic collaborations with both LillyDirect and NovoCare continue to generate momentum by allowing us to offer more convenient and affordable access to branded GLP-1 medications. These collaborations make LifeMD the only telehealth provider in the U.S. that offers synchronous care and cash-pay access to both Wegovy® and Zepbound®. In addition to the continued success of our existing telehealth platforms, we recently announced key hires in the mental and hormonal health verticals and the acquisition of important assets in behavioral health and women’s health. These are two strategic areas with significant unmet clinical need in the marketplace and within our existing patient population,” concluded Schreiber. “LifeMD had an exceptionally strong first quarter with top- and bottom-line growth both ahead of our expectations. Telehealth revenue achieved 70% year-over-year growth on a standalone basis, while our telehealth adjusted EBITDA increased to $5.3 million from a loss of $1.3 million in the year-ago period. We also achieved positive GAAP net income for the first time,” commented Marc Benathen, Chief Financial Officer of LifeMD. “We are raising our full-year 2025 guidance to reflect our strong performance to date for both revenue and adjusted EBITDA. We now expect total revenues in the range of $268 to $275 million, up from $265 to $275 million, and adjusted EBITDA in the range of $31 to $33 million, up from $30 to $32 million.” First Quarter Financial HighlightsAll comparisons are with the first quarter of 2024. Non-GAAP financial measures referenced in the following results are defined and reconciled to GAAP at the end of this press release. Total revenues increased 49% to $65.7 million with telehealth revenue up 70%.Telehealth active subscribers increased 22% to approximately 290,000 active subscribers.Gross margin was 87% compared with 90%, down slightly due to revenue mix and LifeMD’s recently launched pharmacy.GAAP net income was $0.6 million or $0.01 per diluted share, compared with a net loss of $7.5 million or ($0.19) per share.Adjusted EBITDA was $8.7 million compared with $0.1 million.The telehealth business achieved adjusted EBITDA of $5.3 million compared with a loss of $1.3 million.Cash was $34.4 million as of March 31, 2025. First Quarter Key Performance Metrics ($ in 000s)Three Months Ended March 31,Y-o-YKey Performance Metrics20252024% GrowthRevenue Telehealth$52,456$30,84170%WorkSimpli$13,241$13,3030%Total Revenue$65,698$44,14449% Active Subscribers Telehealth Active Subscribers290,660237,79022%WorkSimpli Active Subscribers158,265166,351-5%Total Active Subscribers448,925404,14111% Financial Guidance For the second quarter of 2025, the Company expects: Total revenues in the range of $65 million to $67 million, with telehealth revenue in the range of $52 million to $53 million.Adjusted EBITDA in the range of $7 million to $9 million, with telehealth adjusted EBITDA in the range of $4 million to $6 million. For the full year 2025, due to the outperformance of its telehealth business in the first quarter the Company is raising its previous guidance to: Total revenues in the range of $268 million to $275 million, up from previous guidance of $265 million to $275 million.Telehealth revenue in the range of $208 million to $213 million, up from $205 million to $213 million.Adjusted EBITDA in the range of $31 million to $33 million, up from $30 million to $32 million.Telehealth adjusted EBITDA is now forecast to exceed $21 million, up from approximately $20 million previously. Conference Call LifeMD’s management will host a conference call today at 4:30 p.m. Eastern time to discuss the Company’s financial results and outlook, and answer questions. Details for the call are as follows: Toll-free dial-in number:800-225-9448International dial-in number:203-518-9708Conference ID:LIFEMDLive & Archived Webcast:Link A live and archived webcast will be available in the Investors section of the Company’s website at ir.lifemd.com. About LifeMD LifeMD® is a leading provider of virtual primary care. LifeMD offers telemedicine, access to laboratory and pharmacy services, and specialized treatment across more than 200 conditions, including primary care, men’s and women's health, weight management, and hormone therapy. The Company leverages a vertically integrated, proprietary digital care platform, a 50-state affiliated medical group, a 22,500-square-foot affiliated pharmacy, and a U.S.-based patient care center to increase access to high-quality and affordable care. For more information, please visit LifeMD.com. Cautionary Note Regarding Forward Looking Statements This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition. Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods. Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation. Investor ContactMarc Benathen, Chief Financial Officermarc@lifemd.com Media ContactJessica Friedeman, Chief Marketing Officerpress@lifemd.com Tables to Follow LIFEMD, INC.CONSOLIDATED BALANCE SHEETS March 31, 2025 December 31, 2024 (Unaudited) ASSETS Current Assets Cash$34,393,410 $35,004,924 Accounts receivable, net 10,192,774 8,217,813 Product deposit 191,840 40,763 Inventory, net 2,967,697 2,797,358 Other current assets 2,227,200 2,672,231 Total Current Assets 49,972,921 48,733,089 Non-current Assets Equipment, net 1,438,829 1,479,184 Right of use assets 6,104,863 6,400,596 Capitalized software, net 14,311,592 13,816,501 Intangible assets, net 1,786,128 2,030,656 Total Non-current Assets 23,641,412 23,726,937 Total Assets$73,614,333 $72,460,026 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities Accounts payable$15,679,028 $16,009,484 Accrued expenses 18,503,380 20,811,764 Current operating lease liabilities 482,139 508,537 Current portion of long-term debt 11,611,111 8,444,444 Deferred revenue 14,625,902 14,480,917 Total Current Liabilities 60,901,560 60,255,146 Long-term Liabilities Long-term debt, net 6,818,835 9,885,057 Noncurrent operating lease liabilities 6,186,692 6,265,192 Contingent consideration 100,000 100,000 Total Liabilities 74,007,087 76,505,395 Commitments and Contingencies Mezzanine Equity Preferred Stock, $0.0001 par value; 5,000,000 shares authorized Series B Convertible Preferred Stock, $0.0001 par value; 5,000 shares authorized, zero shares issued and outstanding, liquidation value, $0 per share as of March 31, 2025 and December 31, 2024 - - Stockholders’ Equity (Deficit) Series A Preferred Stock, $0.0001 par value; 1,610,000 shares authorized, 1,400,000 shares issued and outstanding, liquidation value approximately $25.55 per share as of March 31, 2025 and December 31, 2024 140 140 Common Stock, $0.01 par value; 100,000,000 shares authorized, 43,632,700 and 42,293,907 shares issued, 43,529,660 and 42,190,867 outstanding as of March 31, 2025 and December 31, 2024, respectively 436,327 422,939 Additional paid-in capital 233,043,479 230,508,339 Accumulated deficit (235,644,977) (236,253,218)Treasury stock, 103,040 shares, at cost, as of March 31, 2025 and December 31, 2024 (163,701) (163,701)Total LifeMD, Inc. Stockholders’ Deficit (2,328,732) (5,485,501)Non-controlling interest 1,935,978 1,440,132 Total Stockholders’ Equity (Deficit) (392,754) (4,045,369)Total Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit)$73,614,333 $72,460,026 LIFEMD, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) Three Months Ended March 31, 2025 2024 Revenues Telehealth revenue, net$52,456,481 $30,841,402 WorkSimpli revenue, net 13,241,275 13,302,862 Total revenues, net 65,697,756 44,144,264 Cost of revenues Cost of telehealth revenue 8,136,462 4,194,595 Cost of WorkSimpli revenue 507,254 405,582 Total cost of revenues 8,643,716 4,600,177 Gross profit 57,054,040 39,544,087 Expenses Selling and marketing expenses 29,194,061 24,173,880 General and administrative expenses 17,055,669 15,305,732 Customer service expenses 3,071,494 1,848,041 Development costs 2,675,134 2,087,232 Other operating expenses 2,514,758 2,300,447 Total expenses 54,511,116 45,715,332 Operating income (loss) 2,542,924 (6,171,245) Other expenses Interest expense, net (626,275) (477,678) Net income (loss) before income taxes 1,916,649 (6,648,923) Income tax expense - - Net income (loss) 1,916,649 (6,648,923) Net income attributable to noncontrolling interests 531,845 119,432 Net income (loss) attributable to LifeMD, Inc. 1,384,804 (6,768,355) Preferred stock dividends (776,563) (776,563) Net income (loss) attributable to LifeMD, Inc. common stockholders$608,241 $(7,544,918) Basic earnings (loss) per share attributable to LifeMD, Inc. common stockholders$0.01 $(0.19)Diluted earnings (loss) per share attributable to LifeMD, Inc. common stockholders$0.01 $(0.19) Weighted average number of common shares outstanding: Basic 43,135,778 39,242,237 Diluted 45,580,311 39,242,237 LIFEMD, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss)$1,916,649 $(6,648,923)Adjustments to reconcile net income (loss) to net cash provided by operating activities: Amortization of debt discount 100,444 100,444 Amortization of capitalized software 2,250,036 1,787,404 Amortization of intangibles 244,528 245,966 Accretion of consideration payable - 13,644 Depreciation of fixed assets 162,566 65,915 Noncash operating lease expense 295,733 206,809 Stock compensation expense 2,548,528 2,544,430 Changes in Assets and Liabilities Accounts receivable (1,974,961) (59,241)Product deposit (151,077) 196,912 Inventory (170,339) 386,292 Other current assets 445,031 (364,227)Operating lease liabilities (104,897) (203,944)Deferred revenue 144,985 4,374,159 Accounts payable (330,456) 1,310,177 Accrued expenses (2,308,383) 1,246,342 Net cash provided by operating activities 3,068,387 5,202,159 (53,393) CASH FLOWS FROM INVESTING ACTIVITIES Cash paid for capitalized software costs (2,745,127) (2,014,673)Purchase of equipment (122,211) (175,592)Net cash used in investing activities (2,867,338) (2,190,265) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of notes payable, net of prepayment penalty - (211,690)Cash proceeds from exercise of options - 7,813 Preferred stock dividends (776,563) (776,563)Contingent consideration payment for ResumeBuild - (31,250)Distributions to non-controlling interest (36,000) (36,000)Net cah used in financing activities (812,563) (1,047,690) Net (decrease) increase in cash (611,514) 1,964,204 Cash at beginning of period 35,004,924 33,146,725 Cash at end of period$34,393,410 $35,110,929 Cash paid for interest Cash paid during the period for interest$593,750 $644,919 Non-cash investing and financing activities: Cashless exercise of options$561 $641 Cashless exercise of warrants$- $12,685 Stock issued for noncontingent consideration payments$- $642,000 Right of use asset$- $1,285,926 Right of use lease liability$- $1,285,926 About the Use of Non-GAAP Financial Measures:To supplement our financial information presented in accordance with GAAP, we use adjusted EBITDA as a non-GAAP financial measure to clarify and enhance an understanding of past performance. Additionally, we report telehealth adjusted EBITDA as a non-GAAP financial measure to clarify the financial performance of our core telehealth business excluding WorkSimpli. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance. We further believe that these financial measures are useful financial metrics to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors. Adjusted EBITDA is defined as income (loss) attributable to common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, extraordinary litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness expenses, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EBITDA to net loss attributable to common shareholders, its most directly comparable GAAP financial measure. Telehealth and WorkSimpli adjusted EBITDA is defined as segment operating income or loss before depreciation, amortization, accretion, financing transaction expense, extraordinary litigation costs, insurance acceptance and Sarbanes-Oxley readiness expenses, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of segment operating income or loss to segment Adjusted EBITDA. We believe the above financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms adjusted EBITDA may vary from that of others in our industry. Telehealth adjusted EBITDA is specifically relevant to LifeMD to provide shareholders a comparable measure of profitability for our core telehealth business without the impact of our majority owned, but separately managed non-core subsidiary, WorkSimpli. Adjusted EBITDA, telehealth adjusted EBITDA and WorkSimpli adjusted EBITDA should not be considered as an alternative to net loss before taxes, net loss per share, operating loss or any other performance measures derived in accordance with GAAP as measures of performance. Reconciliation of Consolidated GAAP Net Income (Loss) to Consolidated Adjusted EBITDA (in whole numbers, unaudited) Three Months Ended March 31, 2025 2024 Net income (loss) attributable to common shareholders$608,241 $(7,544,918) Interest expense (excluding amortization of debt discount) 525,831 377,234 Depreciation, amortization and accretion expense 2,657,130 2,112,929 Amortization of debt discount 100,444 100,444 Financing transactions expense - 172,229 Litigation costs (a) 253,197 182,547 Severance costs 76,882 160,495 Acquisitions expenses 208,500 - Insurance acceptance readiness 140,360 706,341 Sarbanes Oxley readiness - 159,908 Foreign exchange loss (gain) 231,647 (26,248)Taxes - - Dividends 776,563 1,043,380 Stock-based compensation expense 2,548,528 2,544,430 Net income attributable to noncontrolling interests 531,845 119,432 Consolidated Adjusted EBITDA$8,659,168 $108,203 (a) For the three months ended March 31, 2025, the Company included litigation costs related to a heavily negotiated executive separation agreement. For the three months ended March 31, 2024, the Company included costs related to a class action complaint alleging, inter alia, unauthorized disclosure of certain information of class members to third parties (the Marden v. LifeMD, Inc. case), as disclosed in the Company’s Form 10-Q for the three months ended March 31, 2025, filed on May 6, 2025, and a heavily negotiated executive separation agreement. Reconciliation of Telehealth GAAP Operating Income (Loss) to Telehealth Adjusted EBITDA(in whole numbers, unaudited) Three Months Ended March 31, 2025 2024 Telehealth operating income (loss)$386,865 $(6,619,763) Depreciation, amortization and accretion expense 1,691,409 1,363,074 Financing transactions expense - 172,229 Litigation costs (a) 253,197 182,547 Severance costs 76,882 160,495 Acquisitions expenses 208,500 - Insurance acceptance readiness 140,360 706,341 Sarbanes Oxley readiness - 159,908 Stock-based compensation expense 2,548,528 2,544,430 Telehealth Adjusted EBITDA$5,305,741 $(1,330,739) (a) For the three months ended March 31, 2025, the Company included litigation costs related to a heavily negotiated executive separation agreement. For the three months ended March 31, 2024, the Company included costs related to a class action complaint alleging, inter alia, unauthorized disclosure of certain information of class members to third parties (the Marden v. LifeMD, Inc. case), as disclosed in the Company’s Form 10-Q for the three months ended March 31, 2025, filed on May 6, 2025, and a heavily negotiated executive separation agreement. Reconciliation of WorkSimpli GAAP Operating Income to WorkSimpli Adjusted EBITDA (in whole numbers, unaudited) Three Months Ended March 31, 2025 2024 WorkSimpli operating income$2,156,059 $448,518 Depreciation, amortization and accretion expense 965,721 749,855 Foreign exchange loss (gain) 231,647 (26,248)Distributions - 266,817 WorkSimpli Adjusted EBITDA$3,353,427 $1,438,942

LifeMD Reports First Quarter 2025 Results and Raises Full-Year 2025 Guidance

FAQ

Why Very Bullish?

How important is it?

Why Short Term?

Related Companies

Related News