LifeMD shares rise as KeyBanc forecasts increased telehealth revenue

LifeMD's stock rose by ~3% on Wednesday after KeyBanc Capital Markets issued a bullish note. The bank cited proprietary cardholder data showing a "meaningful uptick" in telehealth revenue for LifeMD and its RexMD business. The uptick is attributed to increased demand for telehealth services.

Title: LifeMD Stock Rises on Positive Revenue Trends; KeyBanc Capital Markets Bullish on Telehealth Growth

LifeMD Inc. (LFMD) saw its stock price rise by approximately 3% on Wednesday, following a bullish note issued by KeyBanc Capital Markets. The note cited proprietary cardholder data indicating a "meaningful uptick" in telehealth revenue for LifeMD and its RexMD business. The increase in telehealth revenue is attributed to heightened demand for telehealth services [3].

The bullish outlook from KeyBanc Capital Markets comes amidst a backdrop of regulatory scrutiny and operational challenges faced by the telehealth sector. In Q2 2025, LifeMD reported a significant earnings shock, including a 44.8% stock plunge and a securities lawsuit over revised revenue guidance and alleged misleading disclosures [1]. Despite these setbacks, LifeMD's cash reserves and AI-driven operational improvements suggest potential for recovery.

The telehealth sector's reliance on speculative growth metrics and regulatory risks has intensified scrutiny. High customer acquisition costs and refund rates have eroded margins for companies like LifeMD. However, the sector's high-growth potential remains attractive to investors. KeyBanc's positive assessment of LifeMD's telehealth revenue suggests that the company's strategic initiatives, such as expanding into insurance-sponsored care, are bearing fruit.

LifeMD's Q2 2025 earnings report highlighted the volatility and risks inherent in the telehealth sector. The company's net loss of $0.06 per share and downward revenue guidance underscored the fragility of investor confidence in the sector. However, the recent uptick in telehealth revenue indicates that LifeMD is adapting to market conditions and improving its operational efficiency.

In conclusion, LifeMD's stock rise on Wednesday reflects a positive trend in telehealth revenue, as indicated by KeyBanc Capital Markets. While the sector faces regulatory and operational challenges, the company's strategic initiatives and operational improvements suggest a path to recovery. Investors should remain vigilant and conduct thorough due diligence before making investment decisions in the telehealth sector.

References

[1] https://www.ainvest.com/news/market-accountability-investor-risk-mitigation-telehealth-sector-lessons-lifemd-q2-2025-earnings-shock-2508/
[2] https://www.straitstimes.com/world/europe/novo-nordisk-offers-ozempic-at-640-per-month-to-eligible-us-cash-paying-customers
[3] https://seekingalpha.com/news/4487600-lifemd-rises-keybanc-says-telehealth-revenue-increasing