LifeMD's Q2 2025 Earnings Call: Navigating Contradictions in Insurance Strategy and Customer Acquisition Costs

Insurance coverage and strategy, customer acquisition costs and strategy adjustments, insurance coverage and patient volume, impact of Novo and Lilly partnerships on refund rates are the key contradictions discussed in LifeMD's latest 2025Q2 earnings call.



Telehealth Revenue and EBITDA Growth:
- LifeMD reported a 30% year-over-year increase in telehealth revenue and adjusted EBITDA growth of 560% in the second quarter.
- Growth was driven by a strong performance in the core telehealth business and continued momentum in the weight management program.

Weight Management Program Challenges:
- Despite a strong performance, the weight management segment was impacted by a higher-than-anticipated refund rate due to patients lacking insurance coverage or being unable to afford branded therapies.
- LifeMD is enhancing its new patient intake process to improve benefit verification and offering more affordable generic alternatives.

RexMD Business Adjustments:
- RexMD experienced a challenging second quarter due to temporarily elevated customer acquisition costs in the ED market.
- The company has since adjusted marketing strategies and early third quarter data suggests a return to healthier customer acquisition levels.

Behavioral and Women's Health Expansion:
- LifeMD launched a nationwide behavioral health offering and expects its upcoming women's health program to scale in Q4, contributing to 2026 results.
- Addressing large unmet clinical needs in the mental health and menopause care gaps positions LifeMD to capture significant market opportunities.