LifeMD 2025 Q1 Earnings Beats Expectations with 128.8% Net Income Surge

LifeMD (LFMD) reported its fiscal 2025 Q1 earnings on May 06th, 2025. The company surprised analysts by achieving $0.01 earnings per share, outperforming the expected loss of $0.04 per share. This marks a significant turnaround from the $0.19 loss per share in the same quarter last year. LifeMD raised its full-year 2025 guidance, now anticipating total revenue between $268 million and $275 million, slightly higher than the previous range. The adjusted EBITDA guidance has also been increased to $31 million to $33 million, reflecting the company's strong performance and positive outlook.

Revenue

LifeMD witnessed a substantial growth in revenue during the first quarter of 2025, showing an impressive increase of 48.8% compared to the previous year. The telehealth segment was the major contributor, generating $52.46 million, while the WorkSimpli segment added $13.24 million to the overall revenue, which totaled $65.70 million.

Earnings/Net Income

LifeMD returned to profitability this quarter with $0.01 EPS, reversing a loss of $0.19 per share from last year. The company achieved net income of $1.92 million, marking a significant and positive turnaround from the previous year's net loss of $-6.65 million. The EPS reversal indicates a strong and favorable performance for LifeMD.

Post-Earnings Price Action Review

LifeMD's share price strategy, involving purchasing shares post-revenue increases and holding for 30 days, has yielded impressive results over the past five years, achieving a 316% increase, with a 33% annual growth rate. This growth significantly outperformed the market, driven by LifeMD's robust 38% annual revenue growth, emphasizing the company's growth prospects as a key factor for share price gains. However, past performance doesn't guarantee future results, and recent stock price volatility and lack of earnings growth suggest potential overvaluation. Thus, while historically successful, investors should exercise caution, considering risks before making investment decisions.

CEO Commentary

Justin Schreiber, Chairman and CEO, expressed excitement about LifeMD's progress, highlighting a 70% year-over-year revenue growth in the Telehealth business, fueled by the weight management program. Schreiber noted the successful launch of the men’s hormone therapy offering and positive contributions from the Medicare initiative. He emphasized strategic priorities like expanding RexMD's offerings into high-demand verticals, expressing confidence in the company's trajectory for the year ahead.

Guidance

LifeMD raised its 2025 financial guidance, targeting total revenues between $268 million to $275 million, with Telehealth revenue projected between $208 million to $213 million. The company expects consolidated adjusted EBITDA in the range of $31 million to $33 million, with Telehealth adjusted EBITDA anticipated to reach at least $21 million. These projections reflect strong initial traction across key initiatives and collaborations aimed at growth and market positioning.

Additional News

LifeMD has been actively expanding its strategic collaborations recently. Notably, it has partnered with LillyDirect and NovoCare to offer convenient access to branded GLP-1 medications, positioning itself as the sole telehealth provider in the U.S. with synchronous care and cash-pay options for Wegovy® and Zepbound®. Additionally, LifeMD announced key hires in the mental and hormonal health sectors and acquired assets in behavioral and women's health. These moves align with its strategy to address unmet clinical needs within its patient population, strengthening its market presence and service offerings.