LifeMD (LFMD) Q1 2025 earnings summary

Executive summary

• Achieved first-ever positive GAAP net income of $0.6 million ($0.01 per diluted share) in Q1 2025, reversing a $7.5 million loss last year, with total revenue up 49% to $65.7 million, driven by 70% telehealth growth and new service lines.

• Telehealth segment is the primary growth driver, now representing 80% of total revenue, with 290,000+ active subscribers and 1.2 million virtual consults as of year-end 2024.

• WorkSimpli, a profitable SaaS business with 158,000+ subscribers, contributed stable revenue and over $3 million in quarterly adjusted EBITDA.

• Expanded offerings in men's hormone therapy, women's health, behavioral health, and Medicare fee-for-service, plus strategic partnerships with LillyDirect, NovoCare, and Medifast.

• Raised 2025 guidance for revenue and adjusted EBITDA, reflecting strong telehealth performance and new growth drivers.

Financial highlights

• Q1 2025 revenue grew 49% year-over-year to $65.7 million; telehealth revenue rose 70% to $52.5 million.

• Gross margin was 87% (down from 90% year-over-year), with gross profit up 44% to $57.1 million.

• Adjusted EBITDA reached $8.7 million (up from $0.1 million); telehealth adjusted EBITDA was $5.3 million (up from a $1.3 million loss).

• Cash balance at quarter-end was $34.4 million.

• WorkSimpli revenue was $13.2 million, flat year-over-year.

Outlook and guidance

• Full-year 2025 guidance raised: total revenue expected at $268–$275 million, telehealth revenue at $208–$213 million, and adjusted EBITDA at $31–$33 million.

• Telehealth adjusted EBITDA projected to exceed $21 million.

• Guidance does not include upside from recent GLP-1 partnerships, which are expected to be long-term growth drivers.

• Management expects continued revenue growth, improved cash burn, and positive operating cash flows over the next 12 months.

• Sufficient liquidity anticipated, supported by $53.3 million available under the ATM Sales Agreement and $150 million shelf registration.