Full Press Release Details
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 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
YORK, May 6, 2025 - LifeMD, Inc. (Nasdaq:
LFMD), a leading provider of virtual primary care services, today reported financial results for the three months ended March
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
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 Metrics | 2025 | 2024 | % Growth | |||||||||
| Revenue | ||||||||||||
| Telehealth | $ | 52,456 | $ | 30,841 | 70 | % | ||||||
| WorkSimpli | $ | 13,241 | $ | 13,303 | 0 | % | ||||||
| Total Revenue | $ | 65,698 | $ | 44,144 | 49 | % | ||||||
| Active Subscribers | ||||||||||||
| Telehealth Active Subscribers | 290,660 | 237,790 | 22 | % | ||||||||
| WorkSimpli Active Subscribers | 158,265 | 166,351 | -5 | % | ||||||||
| Total Active Subscribers | 448,925 | 404,141 | 11 | % |
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. |
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
| 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.
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.
Marc Benathen, Chief Financial Officer
Jessica Friedeman, Chief Marketing Officer
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 |
CONSOLIDATED STATEMENTS OF OPERATIONS
| 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 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| 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 Resume Build | - | (31,250 | ) | |||||
| Distributions to non-controlling interest | (36,000 | ) | (36,000 | ) | ||||
| Net cash 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