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LifeMD's Q2 results reveal pressure from higher customer acquisition costs.
ByAinvest
Friday, Aug 29, 2025 10:06 am ET1min read
• LifeMD under investigation for securities fraud and unlawful practices. • Company reports higher customer acquisition costs in Q2 2025. • RexMD platform focused on men's health. • KeyBanc analyst criticizes LifeMD's management.
LifeMD Inc. (LFMD), a company focused on virtual obesity care, is currently under investigation for potential securities fraud and unlawful practices. The probe, initiated by prominent shareholder rights firm Hagens Berman, follows the company's disappointing Q2 2025 financial results and subsequent stock price crash [1].LifeMD's shares plummeted $5.31 (-44%) on August 6, 2025, after the company reported missing consensus GAAP EPS and revenue estimates. The earnings call revealed higher-than-expected refund rates and elevated customer acquisition costs, particularly in the RexMD segment, which focuses on men's health [1].
The investigation, led by Hagens Berman partner Reed Kathrein, centers on LifeMD's May 6, 2025, earnings call, where the company raised its full-year 2025 revenue and adjusted EBITDA guidance. The complaint alleges that LifeMD made false and misleading statements while failing to disclose crucial information, including rising customer acquisition costs and costs related to the sale of obesity drugs [1].
KeyBanc analyst, in a recent report, criticized LifeMD's management for its "overly optimistic" guidance and "lack of transparency" regarding operational challenges. The analyst advised investors to exercise caution and closely monitor the company's future earnings reports [2].
Investors who purchased LifeMD securities between May 7, 2025, and August 5, 2025, are encouraged to submit their losses and contact Hagens Berman or Johnson Fistel, PLLP for further information. The lead plaintiff deadline is October 27, 2025 [1, 2].
References:
[1] https://www.marketscreener.com/news/lifemd-inc-lfmd-hit-with-securities-class-action-after-shares-crash-44-on-q2-2025-earnings-surp-ce7c50dfd18df621
[2] https://www.globenewswire.com/news-release/2025/08/28/3141185/0/en/LifeMD-Inc-Shareholders-Who-Lost-Money-on-Their-Investment-are-Encouraged-to-Contact-Johnson-Fistel-about-the-Class-Action-Lawsuit.html
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