LifeMD 2025 Q3 Earnings Misses Targets as Net Loss Narrows 23.1% to $0.10 per Share

LifeMD reported Q3 2025 results that fell short of analyst expectations, with a GAAP EPS loss of $0.10 (missing the $0.04 estimate) and revenue of $60.2 million (below the $62.13 million forecast). The company revised 2025 revenue guidance downward to $192–193 million following the WorkSimpli divestiture.

Revenue

LifeMD’s total revenue rose 13.0% year-over-year to $60.17 million in Q3 2025, driven by a 13.0% increase in Telehealth revenue to $47.28 million. WorkSimpli, the company’s non-core segment, contributed $12.89 million. Telehealth revenue growth was bolstered by RexMD’s 10,000 net new subscribers and stabilization in weight management programs.

Earnings/Net Income

The company narrowed its net loss to $-3.56 million ($0.10 per share) in Q3 2025, a 23.1% improvement in EPS and 25.7% reduction in net loss compared to Q3 2024. This marked a record high for Q3 net income in nine years, despite ongoing challenges in the competitive GLP-1 market. The EPS improvement reflects disciplined cost management and strategic focus on high-quality care.

Price Action

LifeMD’s stock price declined 3.47% during the latest trading day, 7.80% over the past week, and 26.44% month-to-date. Post-earnings after-hours trading saw a 15% plunge, driven by the revenue and EPS misses and downward guidance.

Post-Earnings Price Action Review

The stock’s sharp post-earnings decline underscores investor skepticism despite year-over-year improvements in profitability. While the company highlighted progress in high-retention revenue streams and margin expansion, the revenue shortfall and revised guidance overshadowed these positives. Analysts noted that the telehealth sector faces pricing pressures and competitive challenges, particularly in weight management. The market’s reaction reflects concerns about LifeMD’s ability to sustain growth amid a crowded GLP-1 landscape.

CEO Commentary

CEO Justin Schreiber emphasized progress in RexMD’s subscriber growth and stabilization in weight management, while acknowledging near-term competition. He highlighted strategic investments in women’s and behavioral health as "9-figure" opportunities and expressed optimism about 2026, citing anticipated price reductions and insurance expansion.

Guidance

LifeMD reaffirmed 2025 full-year revenue guidance of $192–193 million and adjusted EBITDA of $13.5–14.5 million. Q4 revenue is projected at $45–46 million with adjusted EBITDA of $3–4 million. The company anticipates 2026 growth from insurance expansion, oral GLP-1 therapies, and platform enhancements.

Additional News

1. WorkSimpli Divestiture: LifeMD completed the sale of its majority stake in WorkSimpli, refocusing on telehealth and pharmacy services. This move aligns with its strategy to strengthen core operations and liquidity.

2. 503-A Compounding Pharmacy Expansion: The company secured a 503-A pharmacy license in Pennsylvania, with plans to expand nationwide, enhancing margins and patient access.

3. Strategic Partnerships: Collaborations with Novo Nordisk and Eli Lilly for branded GLP-1 therapies underscore LifeMD’s commitment to high-quality care and market differentiation.

Financial Health and Outlook

LifeMD ended Q3 with $23.8 million in cash after paying off all outstanding debt. While telehealth gross margin declined to 86% from 89% due to revenue mix, adjusted EBITDA rose 30% to $5.1 million. The company’s focus on cost optimization and high-retention segments positions it to navigate competitive pressures, though near-term execution risks remain.

Sector Context

The telehealth industry faces evolving dynamics, including regulatory shifts and pricing pressures. LifeMD’s pivot to virtual care and pharmacy services aligns with long-term trends, but short-term volatility is expected as the market digests its strategic moves and operational challenges.

Conclusion

LifeMD’s Q3 results highlight resilience in a challenging GLP-1 market but underscore the need for sustained execution. The company’s strategic clarity, including the WorkSimpli divestiture and 503-A pharmacy expansion, provides a foundation for 2026 growth. Investors will closely monitor progress in high-margin segments and its ability to maintain profitability amid intensified competition.