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

    Source: Nasdaq GlobeNewswire / 06 May 2025 16:05:00   America/New_York

    • 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 period
    • Telehealth adjusted EBITDA increased to $5.3 million from a loss of $1.3 million in the year-ago period
    • GAAP net income of $0.6 million or $0.01 per diluted share, delivering first-ever quarter of positive GAAP EPS
    • Raising 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 Highlights
    All 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-Y
    Key Performance Metrics20252024% Growth
    Revenue   
    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:800-225-9448
    International dial-in number:203-518-9708
    Conference ID:LIFEMD
    Live & 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 Contact
    Marc Benathen, Chief Financial Officer
    marc@lifemd.com

    Media Contact
    Jessica Friedeman, Chief Marketing Officer
    press@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 

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