LifeMD, Inc.

What they do

LifeMD operates a telehealth platform combining proprietary technology, an affiliated 50-state provider network, a nationwide pharmacy network, and a wholly-owned commercial pharmacy. It offers subscription-based virtual primary care and specialty programs including men's and women's health, hormone health, weight management, insomnia, dermatology, and cardiology. As of December 31, 2025, the company served approximately 328,000 active patient subscribers and had served about 1,387,000 patients since inception.

Revenue drivers

• Telehealth subscriptions — About 95% of total revenue comes from recurring subscriptions, primarily virtual primary care and specialty care programs.
• Weight management program — Approximately 108,000 subscribers at Q2 2026, with roughly 95% of new patients starting branded GLP-1 therapies.
• Pharmacy fulfillment — In-house pharmacy scales fulfillment and lowers shipping and fulfillment costs; gross margin expanded to about 89% in Q2 2026.
• Insurance and Medicare — Since June 2024 the company accepts commercial insurance for virtual primary care; as of December 31, 2025 its network covered about 112 million lives, including about 30 million Medicare Fee-for-Service beneficiaries.

Recent performance

Second quarter 2026 revenue was $47.3 million, within guidance of $47 million to $50 million, with an adjusted EBITDA loss of approximately $3.5 million, improving about 21% sequentially. Gross margin expanded about 280 basis points year-over-year to roughly 89%, helped by lower shipping and fulfillment costs and scaling of the in-house pharmacy. Total active subscribers rose 20% year-over-year to approximately 356,000, including about 108,000 weight management subscribers. The company reported $25.1 million of cash and no debt at quarter end.

Strategy

LifeMD is transitioning away from compounded GLP-1 medications toward branded therapies, with roughly 95% of new weight management patients starting branded GLP-1s. It is prioritizing longer-duration subscribers, noting that multi-month package selection among new weight management patients rose from about 25% year to date before a pricing change to about 85% after it. The company is expanding into pharmaceutical manufacturer, employer, insurer, Medicare, and referral channels, and launched an exclusive telehealth co-marketing collaboration with Antares Pharma for XYOSTED, a testosterone auto-injector. It continues to invest in its in-house pharmacy, provider network, and platform technology.

Risks

• History of net losses — LifeMD incurred a net loss from continuing operations of $10.2 million in 2025 and expects costs to increase as it invests in growth, so profitability is not assured.
• Regulatory and reimbursement exposure — The business is subject to regulation of compounded medications, insurance claims, privacy, and digital healthcare, and its insurance and Medicare expansion depends on continued payor participation.
• Dependence on branded GLP-1 transition — The shift to branded GLP-1 therapies has weighed on near-term profitability and depends on continued patient adoption and drug availability and pricing.
• Competitive and market acceptance risk — The company faces competitive products and pricing pressures and risks that its products and platform may not achieve sufficient market acceptance.

Outlook

Management expects a return to positive adjusted EBITDA in the second half of 2026 and an exit revenue run rate of approximately $250 million with approximately $22 million of annualized adjusted EBITDA. Full year 2026 guidance was revised to revenue of $205.5 million to $212.5 million and adjusted EBITDA of negative $6.0 million to breakeven, including $2 million to $3 million of net launch costs for XYOSTED. The company expects additional strategic partnerships and enterprise relationships to advance toward execution in the second half of 2026.