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LifeMD, Inc. (LFMD)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 consolidated revenue was $60.2M (+13% YoY) with gross margin 88%; GAAP diluted EPS was ($0.10), and adjusted EBITDA was $5.1M (+20% YoY) .
  • Telehealth remained the growth engine: revenue $47.3M (+18% YoY), telehealth adjusted EBITDA $2.9M (+30% YoY), and active telehealth subscribers rose to ~310.8K (+14% YoY) .
  • Versus S&P Global consensus, Q3 revenue missed (actual $60.17M vs $62.13M estimate*) and EPS missed (actual ($0.10) vs ($0.045) estimate*); prior quarter Q2 also missed, while Q1 beat both revenue and EPS* .
  • Guidance reset post-WorkSimpli divestiture to pure-play telehealth: Q4 revenue $45–$46M and adjusted EBITDA $3–$4M; FY25 revenue $192–$193M and adjusted EBITDA $13.5–$14.5M, reflecting standalone telehealth and a $1.1M accounting adjustment in 2025 .
  • Catalysts: branded GLP‑1 price reductions via Novo/Lilly collaborations, anticipated oral Wegovy launch, insurance enablement reducing CAC by ~33%, and rapid 503A pharmacy licensing expansion .

What Went Well and What Went Wrong

What Went Well

  • Telehealth growth and profitability: telehealth revenue +18% YoY to $47.3M and telehealth adjusted EBITDA +30% YoY to $2.9M; active telehealth subscribers +14% YoY to ~310.8K .
  • Strategic focus and balance sheet: paid off all outstanding debt in Q3 and divested majority stake in WorkSimpli post-quarter, positioning LifeMD as a pure‑play telehealth and pharmacy platform .
  • Management quote: “We expect the GLP‑1 market to evolve rapidly… and we believe LifeMD is uniquely positioned to capitalize on these trends and accelerate growth in 2026.” — Justin Schreiber, CEO .

What Went Wrong

  • Estimate misses: Q3 revenue below consensus ($60.17M vs $62.13M*) and EPS loss deeper than expected (GAAP ($0.10) vs consensus ($0.045)); Q2 similarly missed both revenue and EPS, reflecting pressure from compounded GLP‑1 competition .
  • Margin mix headwinds: consolidated gross margin down vs prior year; telehealth gross margin at 86% (vs 89% YoY), driven by mix shift to branded GLP‑1 and category mix (weight management >50% of revenue) .
  • Accounting revisions delayed the Q3 release (Form 12b‑25); cumulative ~$4.6M revenue correction (no cash impact), with ~$1.1M impact to 2025 and no Q3 quarterly impact .

Financial Results

Consolidated Results vs Prior Periods and Consensus

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD)$65,697,756 $62,218,185 $60,172,470
Revenue Consensus ($USD)$62,470,000*$66,313,250*$62,132,250*
GAAP Diluted EPS ($)$0.01 ($0.06) ($0.10)
EPS Consensus ($)($0.06167)*($0.00833)*($0.045)*
Gross Margin (%)87% 88% 88%
Adjusted EBITDA ($USD)$8,659,168 $7,119,915 $5,131,012

Notes: Asterisks denote values retrieved from S&P Global. Values retrieved from S&P Global.

Segment Revenue Breakdown

SegmentQ1 2025Q2 2025Q3 2025
Telehealth Revenue, net ($USD)$52,456,481 $48,563,672 $47,279,933
WorkSimpli Revenue, net ($USD)$13,241,275 $13,654,513 $12,892,537
Total Revenues, net ($USD)$65,697,756 $62,218,185 $60,172,470

KPIs and Telehealth Profitability

KPI / MetricQ1 2025Q2 2025Q3 2025
Telehealth Active Subscribers290,660 296,946 310,818
Telehealth Adjusted EBITDA ($USD)$5,305,741 $3,430,914 $2,870,760
Telehealth Gross Margin (%)n/an/a86%

Additional P&L Highlights

MetricQ1 2025Q2 2025Q3 2025
GAAP Net Income (Loss) to Common ($USD)$608,241 ($2,851,436) ($4,582,680)
Selling & Marketing ($USD)$29,194,061 $29,125,097 $29,474,490
Cash ($USD)$34.4M $36.2M $23.8M (post debt payoff)

Non‑GAAP adjustments: adjusted EBITDA excludes interest, taxes, D&A, debt discount amortization, loss on debt extinguishment, financing expenses, litigation, severance, acquisition costs, insurance acceptance/SOX readiness, FX, dividends, stock‑based comp, and NCI, per reconciliation .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD)Q3 2025$61M–$63M Actual: $60.17M Lower than guided
Adjusted EBITDA ($USD)Q3 2025$6M–$7M Actual: $5.13M Lower than guided
Telehealth Revenue ($USD)Q3 2025$48M–$50M Actual: $47.28M Lower than guided
Telehealth Adjusted EBITDA ($USD)Q3 2025$3M–$4M Actual: $2.87M Lower than guided
Revenue ($USD)Q4 2025n/a$45M–$46M (standalone telehealth) New
Adjusted EBITDA ($USD)Q4 2025n/a$3M–$4M (standalone telehealth) New
Total Revenue ($USD)FY 2025$250M–$255M $192M–$193M (standalone telehealth; includes $1.1M adj.) Lowered; scope change
Adjusted EBITDA ($USD)FY 2025$27M–$29M $13.5M–$14.5M (standalone telehealth) Lowered; scope change

Note: FY25 guidance reflects divestiture of majority interest in WorkSimpli and a $1.1M 2025 adjustment tied to revenue recognition corrections disclosed Nov 5, 2025 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
GLP‑1 collaborations & pricingRaised FY25 outlook on telehealth strength; collaborations with LillyDirect/NovoCare to offer branded GLP‑1 access Announced significant branded GLP‑1 price reductions via Novo; Eli Lilly pricing expectations; oral Wegovy anticipated; competition from low‑price compounded GLP‑1 Pricing reductions a tailwind; compounded competition a headwind; potential FDA action could be positive
Insurance enablementMedicare acceptance off to strong start Broad “turn‑on” reduced CAC by ~33%; ~100–150M lives accessible; expect insurance to become meaningful in 2026 Positive acquisition efficiency; likely mix shift to insured care
RexMD performanceTemporary challenges; telehealth adj. EBITDA rebound; platform diversification Return to growth; ~10K net new subscribers; ED personalized compounds and HRT momentum Improving volume and new offerings support
Women’s & behavioral healthNationwide behavioral launch; women’s health acquisition; LifeMD+ membership scaling Strong early traction; focus on high‑retention, synchronous care; cross‑care via new app/marketplace Building toward 2026 scale; accretive mix despite lower gross margin
503A compounding pharmacyAffiliated pharmacy noted in platform Licensed in 14 states; aggressive 50‑state plan; margin benefits from in‑house compounding Rapid licensing; margin tailwind as scale increases
WorkSimpliContributed to revenue/EBITDA; good performance Divested majority ownership post‑quarter; pure‑play telehealth focus Strategic simplification; guidance restated to standalone
Accounting & legalLitigation costs in non‑GAAP adjustments; class action noted Nov 5 reschedule & ~$4.6M cumulative revenue correction; ~$1.1M impact in 2025; ongoing class actions referenced Controls/process remediation priority

Management Commentary

  • “Subsequent to quarter end, we completed the divestiture of our majority ownership in WorkSimpli, which transformed LifeMD into a pure‑play virtual care and pharmacy platform and significantly strengthened our balance sheet.” — Justin Schreiber, CEO .
  • “We have also continued to make significant strides in the company’s ongoing telehealth business profitability with year‑to‑date telehealth Adjusted EBITDA profitability up 294% versus year.” — Marc Benathen, CFO .
  • “We will be among the first virtual care providers to offer oral Wegovy through our collaboration with Novo Nordisk.” — Justin Schreiber .
  • “We exited the third quarter with $23.8 million in cash and no debt.” — Marc Benathen .

Q&A Highlights

  • Mix shift and margin mechanics: Brand GLP‑1 uptake now >50% of new patients; shift removes ~$50/order fulfillment fees from compounded products; telehealth gross margin decline ~150 bps from mix, remainder from business mix .
  • Insurance enablement: Broadly turned on with ~100–150M lives; CAC down ~33%; expected to increase insured mix and improve acquisition efficiency and retention .
  • RexMD drivers: ~8K of ~10K net adds from sexual health (ED), balance from HRT, hair loss, insomnia; CAC $5–$10 higher but unit economics solid .
  • 503A licensing path: 35 states targeted in 60–90 days; 50‑state coverage within months (some tougher states later); in‑house compounding expected to lower COGS and improve margins .
  • Oral GLP‑1 opportunity: Management expects significant market expansion upon oral launches; cites consumer needle aversion; potential 25%–50% market expansion per CEO’s qualitative view .

Estimates Context

  • Q3 2025: Revenue $60.17M vs consensus $62.13M* (miss); GAAP EPS ($0.10) vs consensus ($0.045)* (miss) .
  • Q2 2025: Revenue $62.22M vs consensus $66.31M* (miss); GAAP EPS ($0.06) vs consensus ($0.00833)* (miss) .
  • Q1 2025: Revenue $65.70M vs consensus $62.47M* (beat); GAAP EPS $0.01 vs consensus ($0.06167)* (beat) .
MetricQ1 2025Q2 2025Q3 2025
Revenue Actual ($USD)$65,697,756 $62,218,185 $60,172,470
Revenue Consensus ($USD)$62,470,000*$66,313,250*$62,132,250*
GAAP Diluted EPS Actual ($)$0.01 ($0.06) ($0.10)
EPS Consensus ($)($0.06167)*($0.00833)*($0.045)*

Notes: Asterisks denote values retrieved from S&P Global. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Near‑term headwinds from compounded GLP‑1 pricing drove Q3 estimate misses; however, branded price cuts and oral launches are clear 2026 demand catalysts .
  • Insurance enablement is already reducing CAC ~33% and should improve conversion, retention, and lifetime value as coverage expands (Medicare/commercial) .
  • Strategic simplification (WorkSimpli divestiture) clarifies the story but resets FY25 guidance to standalone telehealth; focus shifts to execution against Q4 targets .
  • 503A pharmacy scaling (licensing breadth, in‑house compounding) should lower COGS and support margin recovery over time despite mix shifts to behavioral/women’s health .
  • RexMD’s return to growth with personalized compounds and HRT adds diversification; watch CAC and subscriber adds to gauge sustained trajectory .
  • Monitor regulatory posture toward compounding; tighter FDA enforcement would be a material tailwind for branded GLP‑1 adoption via LifeMD partnerships .
  • Trading setup: stock likely sensitive to oral GLP‑1 approvals, pricing updates from Novo/Lilly, insurance coverage milestones, and margin mix commentary on upcoming calls .

Cross‑References and Notes

  • Q3 2025 press release and 8‑K exhibit provided detailed financials and guidance .
  • Earnings call underscores GLP‑1 pricing strategy, insurance enablement benefits, and platform roadmap (app/marketplace) .
  • Nov 5 reschedule press release details revenue recognition corrections; management clarified 2025 impact and no Q3 quarterly impact .