LifeMD 2025 Q3 Earnings Narrows Losses by 25.7%, EPS Improves 23.1%

LifeMD (LFMD) reported mixed Q3 2025 results, with revenue growth outpacing expectations but earnings falling short of estimates. The company revised its 2025 revenue guidance downward following the divestiture of WorkSimpli, while narrowing its net loss by 25.7% year-over-year.

Revenue

LifeMD’s total revenue rose 13.0% to $60.17 million in Q3 2025, driven by robust performance in its core telehealth segment. Telehealth revenue, net, reached $47.28 million, reflecting an 18% year-over-year increase, while WorkSimpli revenue, net, contributed $12.89 million. The combined segment results underscore the company’s reliance on its telehealth platform for growth, with WorkSimpli’s performance stabilizing despite its eventual divestiture.

Earnings/Net Income

The company narrowed its net loss to $-3.56 million in Q3 2025, a 25.7% improvement from $-4.79 million in the prior-year period. Earnings per share (EPS) also showed progress, declining to a loss of $0.10 from $0.13, a 23.1% reduction. Despite the loss, the company’s earnings improvement signals progress in cost management and operational efficiency.

Post-Earnings Price Action Review

Following the earnings release, LifeMD’s stock price declined sharply, dropping 3.47% during the latest trading day and 7.80% for the week. Month-to-date losses reached 26.44%, reflecting investor skepticism amid revenue shortfalls and competitive pressures in the weight management market. Analysts attributed the underperformance to intensified competition from low-cost GLP-1 providers, which pressured margins and subscriber growth.

CEO Commentary

CEO Justin Schreiber highlighted strategic progress, including RexMD’s return to growth (10,000 net new subscribers) and stabilization in weight management. He emphasized investments in women’s and behavioral health, the 503-A compounding pharmacy, and the LifeMD+ platform to enhance patient engagement. Schreiber acknowledged challenges from low-cost GLP-1 competitors but expressed optimism about 2026 growth through partnerships with Novo Nordisk and Eli Lilly.

Guidance

LifeMD guided to Q4 2025 revenue of $45M–$46M and adjusted EBITDA of $3M–$4M, with full-year 2025 revenue of $192M–$193M and adjusted EBITDA of $13.5M–$14.5M. The company expects 2026 growth in weight management via branded partnerships and oral therapies, margin improvements from in-house pharmacy integration, and broader insurance adoption to reduce customer acquisition costs.

Additional News

LifeMD’s recent strategic moves included the divestiture of its majority stake in WorkSimpli, refocusing on its core telehealth and pharmacy operations. The company also secured regulatory approval for a nonsterile 503-A compounding pharmacy in Pennsylvania, expanding its personalized medication capabilities. Additionally, BTIG lowered its price target for LifeMD to $10 from $18, citing competitive pressures in the weight management segment, while maintaining a Buy rating.