LifeMD 2025 Q3 Earnings Narrows Losses by 25.7% Despite Revenue Growth

LifeMD (LFMD) reported mixed Q3 2025 results, with revenue rising 13% year-over-year to $60.17 million but falling short of consensus estimates of $62.13 million. The company revised its 2025 revenue guidance downward to $192–193 million from $250–255 million following the WorkSimpli divestiture. Earnings per share (EPS) of -$0.10 missed expectations of -$0.04, reflecting ongoing challenges in the weight management segment.

Revenue

Telehealth revenue, net, rose to $47.28 million, while WorkSimpli revenue, net, contributed $12.89 million, resulting in total revenues, net, of $60.17 million for the quarter. Telehealth revenue grew 18% YoY, driven by expanded services and strategic investments in women’s and behavioral health.

Earnings/Net Income

LifeMD narrowed its net loss to -$3.56 million in Q3 2025, a 25.7% reduction from -$4.79 million in Q3 2024. The EPS loss of -$0.10 (23.1% improvement YoY) underscores progress in cost management but remains below breakeven, highlighting the need for sustained operational efficiency.

Post-Earnings Price Action Review

Following the earnings report, LifeMD’s stock plummeted 16% in after-hours trading, driven by revenue and EPS misses and downward guidance revisions. While telehealth subscriber growth (14% YoY) and adjusted EBITDA (30% YoY) signaled operational resilience, competitive pressures in weight management and margin compression from low-cost GLP-1 providers weighed heavily. Analysts noted the compounding pharmacy launch and partnerships with Novo Nordisk and Eli Lilly as long-term positives, but near-term execution risks remain.

CEO Commentary

CEO Justin Schreiber emphasized progress in RexMD’s subscriber growth (10,000 net new) and a stabilized weight management segment poised for 2026 expansion. Strategic investments in high-potential verticals and the compounding pharmacy were highlighted as key differentiators, though challenges from low-cost competitors persist.

Guidance

LifeMD projected Q4 2025 revenue of $45–46 million and adjusted EBITDA of $3–4 million. Full-year revenue guidance of $192–193 million reflects the impact of the WorkSimpli divestiture, with 2026 positioned as a transformative year for growth.

Additional News

1. M&A Activity: LifeMD divested its majority stake in WorkSimpli, strengthening liquidity with $23.8 million in cash and positioning as a pure-play telehealth and pharmacy platform.

2. Analyst Ratings: Cantor Fitzgerald reiterated an Overweight rating with a $15 price target (217% upside), while BTIG lowered its target to $10 amid weight management competition.

3. Strategic Expansion: Regulatory approval for a nonsterile 503-A compounding pharmacy enhances personalized medication capabilities, aligning with margin-enhancing goals.

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