LifeMD Q2 Earnings Call Highlights

Key Points

• Q2 profitability missed expectations: LifeMD reported $47.3 million in revenue and an adjusted EBITDA loss of about $3.5 million, pressured by higher customer acquisition costs and the $39 introductory price for branded GLP-1 care. Revenue declined sequentially, although recurring revenue mix, gross margin and operating expenses improved.
• Weight-management strategy shifted toward branded, longer-term care: Nearly 95% of new weight-management patients entered branded GLP-1 programs, while multi-month plan selection rose to roughly 85% after the pricing change. Customer acquisition costs have since fallen about 50% from their June peak.
• Outlook was reduced, but management still targets near-term profitability: LifeMD lowered its 2026 forecast to $205.5 million–$212.5 million in revenue and adjusted EBITDA ranging from a $6 million loss to breakeven. The company expects to return to adjusted EBITDA profitability in Q3 and projects $60 million–$64 million of Q4 revenue.

LifeMD NASDAQ: LFMD reported second-quarter revenue of $47.3 million, within its prior guidance range, while posting an adjusted EBITDA loss of approximately $3.5 million as elevated customer acquisition costs and a lower introductory price for branded GLP-1 care pressured profitability.

Chairman and Chief Executive Officer Justin Schreiber said the company missed its own profitability target during the quarter and attributed the shortfall to higher media costs early in the period and a new $39 introductory offer for its branded GLP-1 program. The company had previously charged $79 for the initial month of care.

“The bottom line missed, but the drivers that determine future profitability, recurring revenue mix, gross margin, and operating costs, each moved in the right direction,” Schreiber said.

Second-Quarter Results and Cost Actions

Revenue declined about 6% sequentially and approximately 4% from telehealth revenue in the prior-year quarter, according to Chief Financial Officer Atul Kavthekar. The company said the results reflected a planned reduction in marketing investment, increased customer acquisition costs for much of the quarter, and the lower introductory weight-management price implemented in June.

Active subscribers totaled 356,000 at quarter-end. Kavthekar said the modest sequential decline reflected a deliberate shift in the weight-management customer base from month-to-month subscribers toward multi-month plans, which the company believes carry higher retention and lifetime value.

• Recurring bill revenue represented about 84% of total revenue.
• Gross margin expanded to approximately 89%, up about 60 basis points sequentially.
• Advertising and marketing expense declined $1.8 million sequentially to $28 million.
• General and administrative expenses fell about $1.5 million sequentially.
• GAAP net loss from continuing operations attributable to common stockholders was $7.9 million, or $0.16 per share.
• Cash totaled $25.1 million at quarter-end.

The company said gross-margin expansion was driven by lower shipping and fulfillment costs, improved provider efficiency, and increased use of its in-house pharmacy. Kavthekar said second-quarter cash flow was affected by marketing investment and the timing of the $39 introductory offer, though LifeMD expects cash to improve through year-end as marketing spending declines and longer-duration subscriptions generate more upfront collections. That improvement will be partly offset by pharmacy working-capital needs.

Weight Management Pricing and Patient Mix

LifeMD ended the quarter with approximately 108,000 weight-management patients. Schreiber said customer acquisition costs have moderated since mid-June, with recent acquisition costs in weight management approximately 50% below their June peak.

The company said the $39 pricing change improved conversion and shifted the mix of new patients toward longer-term plans. Before the change, approximately 25% of new weight-management patients year-to-date had selected multi-month packages. After the change, roughly 85% selected those packages, according to Schreiber.

LifeMD is prioritizing branded, FDA-approved GLP-1 therapies and said nearly 95% of new weight-management patients are now entering branded therapy programs. Schreiber said the company’s personalized compounded GLP-1 business has become small and that even prior compound users moved to branded therapies faster than expected.

Management also said LifeMD currently receives no economics from its integrations with Eli Lilly’s LillyDirect or Novo Nordisk’s NovoCare. Schreiber said the company expects those relationships to evolve but did not provide additional details.

New Care Programs, Pharmacy and Insurance

LifeMD said its women’s health patient base grew 134% quarter over quarter and is expected to grow another 300% to 400% by year-end. The business offers longitudinal care that can include hormone therapy, sexual wellness, weight-management support, laboratory testing, cardiology and psychiatry services.

During the question-and-answer session, Schreiber said LifeMD expects its women’s health business to reach a quarterly revenue run rate of between $3 million and $5 million by the fourth quarter, though he said the higher end of that range “might be a little bit aggressive.”

The company also launched an initial self-pay program in July for XYOSTED, an FDA-approved weekly testosterone auto-injector, through an exclusive telehealth co-marketing collaboration with Halozyme subsidiary Antares Pharma. The program launched across 37 states at an all-in price of $249 per month, with LifeMD’s affiliated pharmacy serving as the primary dispensing pharmacy.

Management expects the XYOSTED launch to require $2 million to $3 million of investment during 2026, with direct costs split between the companies. Kavthekar said initial patient cohorts are expected to become accretive to LifeMD’s EBITDA in mid-2027 once the acquisition approach matures.

LifeMD said it hired 47 providers during the quarter to support anticipated second-half demand. The company also plans to launch more than 30 compounded products by year-end across hormone health, sleep, dermatology, sexual health, longevity and other categories.

Its benefits infrastructure now reaches about 175 million covered lives, while insurance penetration is approximately 10% of new patients on LifeMD’s primary care platform. Schreiber said insurance use has grown, although the company continues to see greater demand from patients seeking coverage for medications than for consultation costs.

Outlook Reduced, but Company Targets Fourth-Quarter Profitability

LifeMD reduced its full-year 2026 forecast to revenue of $205.5 million to $212.5 million and adjusted EBITDA of a $6 million loss to breakeven. The revised outlook reflects the first-half EBITDA shortfall, lower upfront revenue from pricing and patient-mix decisions, and investment in strategic partnerships including XYOSTED.

For the third quarter, the company forecast revenue of $48 million to $51 million and adjusted EBITDA ranging from a $1 million loss to a $2 million profit. For the fourth quarter, it projected revenue of $60 million to $64 million and adjusted EBITDA of $3 million to $6 million.

At the midpoint of its fourth-quarter outlook and excluding XYOSTED launch costs, LifeMD said it expects an annualized revenue run rate of approximately $250 million and an annualized adjusted EBITDA run rate of approximately $22 million. Schreiber said the company expects to return to adjusted EBITDA profitability in the third quarter and deliver further sequential improvement in the fourth quarter.

About LifeMD (NASDAQ:LFMD)

LifeMD NASDAQ: LFMD is a U.S.-based telehealth company that delivers on-demand, membership-based virtual healthcare services. Through its digital platform and mobile applications, LifeMD connects patients with board-certified healthcare providers for diagnosis, treatment and ongoing management of a range of acute and chronic conditions. The company’s core offering centers on personalized care plans supported by prescription fulfillment, lab testing and prescription delivery services.

LifeMD’s service portfolio spans several specialty areas, including men’s health, hormonal therapy, weight management and primary care.

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