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LifeMD, Inc. (LFMD)·Q1 2025 Earnings Summary

Executive Summary

  • LFMD delivered its first-ever quarter of positive GAAP EPS ($0.01), with total revenue up 49% year over year to $65.7M; telehealth revenue grew 70% to $52.5M .
  • Results beat S&P Global consensus on revenue ($65.7M vs $62.5M*) and EPS ($0.028 vs -$0.062*), while company-reported adjusted EBITDA was $8.7M; note S&P’s EBITDA (GAAP) shows $3.0M* versus company’s adjusted metric .
  • Management raised FY25 guidance: revenue to $268–$275M (from $265–$275M), telehealth revenue to $208–$213M (from $205–$213M), adjusted EBITDA to $31–$33M (from $30–$32M), and telehealth adjusted EBITDA to exceed $21M (from ~$20M) .
  • Strategic catalysts: expanded Medicare acceptance (21M beneficiaries in 26 states, targeting 49 states by end of Q2) and integrations with LillyDirect and NovoCare for cash-pay access to Zepbound and Wegovy, positioning LFMD uniquely for synchronous care across both brands .

Note: Values marked with * are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • First-ever GAAP profitability: GAAP net income attributable to common stockholders of $0.6M, $0.01 diluted EPS, versus a loss of $7.5M and -$0.19 a year ago .
  • Telehealth strength and profitability: telehealth revenue +70% y/y to $52.5M; telehealth adjusted EBITDA $5.3M vs -$1.3M y/y; CFO: “Telehealth revenue achieved 70% year-over-year growth… We also achieved positive GAAP net income for the first time” .
  • Strategic access to branded GLP-1s: “only telehealth provider… offering synchronous care and cash-pay access to both Wegovy and Zepbound,” via LillyDirect/NovoCare; enhances patient access and supports weight management growth .

What Went Wrong

  • Gross margin compression y/y: Q1 GM 86.8%, down ~270 bps y/y due to revenue and pharmacy mix; though sequentially improved +150 bps vs Q4 .
  • WorkSimpli subscribers declined 5% y/y to 158k, despite strong EBITDA; strategy prioritizes cash flow over top-line growth .
  • Seasonality and conservative sequential outlook: Telehealth sequentially expected roughly flat in Q2 due to softer sexual health acquisitions and timing, constraining near-term sequential growth .

Financial Results

Headline P&L vs prior periods

MetricQ3 2024Q4 2024Q1 2025
Total Revenue ($USD)$53.4M $64.3M $65.7M
Gross Margin %90.6% 85.3% 86.8%
GAAP Net Income (Loss) attrib. to common($5.9M) ($0.88M) $0.61M
Diluted EPS ($)($0.14) ($0.02) $0.01
Adjusted EBITDA ($USD)$3.7M $9.0M $8.7M

Q1 2025 vs S&P Global consensus

MetricConsensusActualSurprise
Revenue ($USD)$62.47M*$65.70M +$3.23M; +5.2% (Beat)
Primary EPS ($)($0.0617)*$0.0282*+$0.0899 (Beat)
EBITDA ($USD, GAAP)$5.88M*$2.95M*-$2.93M (Miss)
Adjusted EBITDA ($USD, Company)N/A$8.7M N/A

Note: Values marked with * are retrieved from S&P Global.

Segment Revenue Breakdown

Segment ($USD)Q3 2024Q4 2024Q1 2025
Telehealth Revenue$40.3M $49.9M $52.5M
WorkSimpli Revenue$13.1M $14.4M $13.2M
Total$53.4M $64.3M $65.7M

Segment Profitability (Adjusted EBITDA)

Segment ($USD)Q3 2024Q4 2024Q1 2025
Telehealth Adjusted EBITDA$2.46M $5.87M $5.31M
WorkSimpli Adjusted EBITDA$3.11M $— (see FY)$3.35M

KPIs and Balance Sheet

KPIQ3 2024Q4 2024Q1 2025
Telehealth Active Subscribers~269,000 ~275,000 ~290,660
WorkSimpli Active Subscribers~160,864 ~163,743 ~158,265
Cash ($USD)$37.6M $35.0M $34.4M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD)Q2 2025—$65–$67M New
Telehealth Revenue ($USD)Q2 2025—$52–$53M New
Adjusted EBITDA ($USD)Q2 2025—$7–$9M New
Telehealth Adjusted EBITDA ($USD)Q2 2025—$4–$6M New
Total Revenue ($USD)FY 2025$265–$275M $268–$275M Raised lower end
Telehealth Revenue ($USD)FY 2025$205–$213M $208–$213M Raised lower end
Adjusted EBITDA ($USD)FY 2025$30–$32M $31–$33M Raised range
Telehealth Adjusted EBITDA ($USD)FY 2025~ $20M > $21M Raised target

For Q1 2025, earlier guide was $61–$63M revenue, telehealth $48–$49M, adjusted EBITDA $5–$7M; actuals exceeded on revenue and adjusted EBITDA .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3’24, Q4’24)Current Period (Q1’25)Trend
GLP-1 access via manufacturersLillyDirect integration; price cuts; optimism on branded approvals Integrated with LillyDirect/NovoCare; “only” provider with synchronous care and cash-pay access to both brands Strengthening
Medicare expansionLaunch slated for April; bipartisan support for telehealth Accepted FFS Medicare across 26 states; targeting 49 states by end of Q2 Scaling rapidly
Men’s HRT (RexMD)Launch and early traction; conservative FY25 contribution Strong early adoption; >40% HRT cross-sell from existing RexMD; building to scale Accelerating
Women’s HealthPlanned 2H’25 launch Acquired Optimal Human Health assets; concierge program ~$10k/year; broader launch planned Launching
Behavioral HealthEntry in Q2; async-first, talk therapy partnerships Back-half revenue baked in, modest FY impact Building
Pharmacy & marginsQ4 margin pressure from pharmacy onboarding; normalize to 88–90% Q1 GM 86.8% (mix impact), +150 bps sequential; ~1k scripts/day Improving sequentially
Insurance acceptanceGrowing private payer coverage, prior auth gains Insurance central to long-term retention/LTV; early Medicare reimbursements Expanding

Management Commentary

  • CEO: “LifeMD had an outstanding first quarter… first-ever quarter of GAAP profitability… collaborations with LillyDirect and NovoCare… only telehealth provider… offering synchronous care and cash-pay access to both Wegovy and Zepbound” .
  • CFO: “Telehealth revenue achieved 70% year-over-year growth… telehealth adjusted EBITDA increased to $5.3 million… we are raising our full-year 2025 guidance” .
  • CEO on Medicare: coverage expanded to 21M Part B beneficiaries in 26 states, targeting 49 states and >60M by end of Q2 .
  • CEO on pharmacy: compounding pharmacy licensing expected this summer; mail-order ~1,000 prescriptions/day, aiding margins and patient experience .

Q&A Highlights

  • GLP-1 manufacturer collaborations: LFMD receives no rebates; patient care pricing similar to current weight program; integrations expected to go live the week after the call .
  • Insurance strategy: accepting commercial and Medicare is core to accessibility, retention, and TAM expansion; early Medicare reimbursements received .
  • Sequential outlook: Telehealth sequentially roughly flat in Q2 due to seasonal softness in sexual health acquisitions and revenue timing; focus remains on y/y growth .
  • Compounding pharmacy outlook: licensing summer; LFMD does not compound GLP-1s; focus on branded access, compounded only where clinically appropriate and legally compliant .
  • Guidance excludes Novo/Lilly upside: FY25 raise driven by Q1 outperformance; collaborations considered long-term opportunities, not in near-term guide .

Estimates Context

  • Revenue and EPS beat consensus materially; EBITDA (GAAP) missed relative to S&P estimate, while company-reported adjusted EBITDA was strong. This distinction matters as LFMD emphasizes adjusted metrics in communications .
  • Consensus for Q2 and FY25 points to moderating sequential revenue and negative EPS near-term; management’s raised FY guide suggests Street may lift revenue and adjusted EBITDA estimates, with EPS likely revised higher post the Q1 positive GAAP EPS print .

Note: All consensus values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

  • Positive GAAP EPS and raised FY guide signal operating leverage and momentum in telehealth; revenue/EPS beats are likely to drive estimate revisions and sentiment .
  • Strategic GLP-1 access via LillyDirect/NovoCare plus Medicare acceptance create a differentiated moat in weight management; expect cross-sell tailwinds into H2 .
  • Watch gross margin trajectory: sequential improvement as pharmacy scales, though mix (HRT) can temper margin rates; bottom-line accretive despite lower gross % .
  • Near-term sequential caution (Q2 seasonality) is tactical; y/y growth and subscriber expansion in telehealth remain robust .
  • WorkSimpli provides cash flow support; management prioritizes profitability over subscriber count, limiting headline growth but aiding EBITDA .
  • Upcoming launches (LifeMD+, women’s health, behavioral health) diversify revenue and could catalyze FY25/26 upside as infrastructure scales .
  • Key stock narrative: differentiated access models, payer integration, and first-ever GAAP profitability; monitor policy developments around Medicare GLP-1 coverage and competitive pricing moves by manufacturers .

Sources:

  • Q1 2025 8-K press release and exhibits: revenue, EPS, adjusted EBITDA, segment detail, guidance .
  • Q1 2025 earnings call transcript: strategy, margin, Medicare, collaborations, Q&A detail .
  • Prior quarters: Q4 2024 press release and transcript (guide baseline, margins, pharmacy, insurance) . Q3 2024 press release (trend KPIs/margins) .
  • Other press releases: LillyDirect integration (Zepbound) , NovoCare integration (Wegovy) , Medicare expansion , women’s health acquisition .

S&P Global disclaimer: Consensus and EBITDA (GAAP) values marked with * are retrieved from S&P Global.