LifeMD Reports Fourth Quarter 2024 Results

• Consolidated revenues increased 43% year-over-year to $64.3 million with telehealth revenue up 60%

• Adjusted EBITDA increased 78% to $9.0 million

• Telehealth adjusted EBITDA increased 396% to $5.9 million

• Full-year cash flow from operations increased 99% to $17.5 million and generated positive full-year net cash flow

• Exited 2024 with over $35 million in cash

• Introduces 2025 guidance for consolidated revenue of $265 million to $275 million and consolidated adjusted EBITDA of $30 million to $32 million

Conference call begins at 4:30 p.m. Eastern time today

NEW YORK, March 10, 2025 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care services, today reported financial results for the three and 12 months ended December 31, 2024.

Management Commentary

“LifeMD had a great fourth quarter. We not only achieved record quarterly revenue and adjusted EBITDA but continued to accelerate growth across our core telehealth brands. We are especially pleased with the growth of our weight management program. While GLP-1 market dynamics continue to change with semaglutide coming off shortage, the quality of synchronous care we provide positions and differentiates LifeMD. We have a comprehensive care platform, which includes our pharmacy benefits infrastructure that helps patients access branded GLP-1 medications. In addition, our Medicare launch is slated for April 1 and could be a significant growth driver for our weight management program as we expect Medicare ultimately will cover GLP-1 medications for eligible beneficiaries. Further, we recently announced integration with LillyDirect to provide another more affordable route to Zepbound for patients who don’t have coverage through insurance,” said Justin Schreiber, Chairman and CEO of LifeMD. “We also are pleased with the uptake of Rex MD’s Hormone Replacement Therapy offering.  We have begun laying the groundwork for the launch of our virtual-first behavioral health offering followed by a women’s health specialty offering later this year. We remain laser focused on building the highest quality virtual care platform in the United States that is transparent, affordable and accessible to everyone.”

“LifeMD had an exceptionally strong quarter with top- and bottom-line growth led by our core telehealth business. Telehealth achieved 60% year-over-year growth on a standalone basis, while our telehealth adjusted EBITDA increased 396% to $5.9 million. Our consolidated adjusted EBITDA was a record $9.0 million. Also, I am pleased to report that the WorkSimpli business returned to growth on both a sequential and year-over-year basis and their adjusted EBITDA exceeded $1 million per month during the quarter, in line with our previously guided expectations,” commented Marc Benathen, Chief Financial Officer of LifeMD. “We entered 2025 well positioned for another year of record growth and profitability. As such, we are introducing 2025 guidance for consolidated revenue of $265 million to $275 million and consolidated adjusted EBITDA of $30 million to $32 million.”

Fourth Quarter Financial Highlights
All comparisons are with the fourth quarter of 2023.

• Consolidated revenue increased 43% to $64.3 million with telehealth revenue up 60%.

• Telehealth active subscribers increased 27% to approximately 275,000 at quarter-end.

• WorkSimpli active subscribers increased 3% to approximately 164,000 at quarter-end and increased sequentially by approximately 3,000 subscribers.

• Gross margin was 85% compared with 88% due to one-time start-up costs with a new pharmacy and revenue mix changes. We expect gross margin to return to a range of 88% to 90% in 2025.

• GAAP net loss was $0.9 million or $0.02 per share, compared with $4.5 million or $0.12 per share.

• Adjusted EBITDA was $9.0 million compared with $5.0 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP).

• The telehealth business achieved adjusted EBITDA profitability of $5.9 million compared with $1.2 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP).

• Adjusted diluted EPS was $0.21 compared with $0.14 (see definition below of this non-GAAP financial measure and reconciliation to GAAP).

• Cash was $35.0 million as of December 31, 2024.
  

Full Year Financial Highlights
All comparisons are with the full year of 2023.

• Consolidated revenue increased 39% to $212.5 million with telehealth revenue up 61%.

• Gross margin was 89% compared with 88%.

• GAAP net loss was $22.0 million or $0.53 per share, compared with $23.7 million or $0.70 per share.

• Adjusted EBITDA was $14.4 million compared with $11.2 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP).

• The telehealth business achieved adjusted EBITDA of $7.4 million compared with a loss of $5.2 million (see definition below of this non-GAAP financial measure and reconciliation to GAAP).

• Adjusted diluted EPS was $0.35 compared with $0.32 (see definition below of this non-GAAP financial measure and reconciliation to GAAP).

Fourth Quarter Key Performance Metrics

Financial Guidance

For the first quarter of 2025, the Company expects:

• Total revenue in the range of $61 million to $63 million, with telehealth revenue in the range of $48 million to $49 million.

• Adjusted EBITDA in the range of $5 million to $7 million, with telehealth adjusted EBITDA in the range of $3 million to $4 million.

For the full year 2025, the Company expects:

• Total revenue in the range of $265 million to $275 million, with telehealth revenue in the range of $205 million to $213 million.

• Adjusted EBITDA in the range of $30 million to $32 million, with telehealth adjusted EBITDA of approximately $20 million.

Conference Call

LifeMD’s management will host a conference call today at 4:30 p.m. Eastern time to discuss the Company’s financial results and outlook, and answer questions. Details for the call are as follows:

A live and archived webcast will be available in the Investors section of the Company’s website at ir.lifemd.com.

About LifeMD

LifeMD^® is a leading provider of virtual primary care. LifeMD offers telemedicine, access to laboratory and pharmacy services, and specialized treatment across more than 200 conditions, including primary care, men’s and women's health, weight management, and hormone therapy. The Company leverages a vertically integrated, proprietary digital care platform, a 50-state affiliated medical group, a 22,500-square-foot affiliated pharmacy, and a U.S.-based patient care center to increase access to high-quality and affordable care. For more information, please visit LifeMD.com.

Cautionary Note Regarding Forward Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition.

Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods.

Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation.

Investor Contact
LifeMD, Inc.
Marc Benathen, Chief Financial Officer
marc@lifemd.com

Media Contact
Jessica Friedeman, Chief Marketing Officer
press@lifemd.com

About the Use of Non-GAAP Financial Measures:
To supplement our financial information presented in accordance with GAAP, we use adjusted EBITDA and adjusted EPS as non-GAAP financial measures to clarify and enhance an understanding of past performance. Additionally, we report telehealth adjusted EBITDA as a non-GAAP financial measure to clarify the financial performance of our core telehealth business excluding WorkSimpli. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance. We further believe that these financial measures are useful financial metrics to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors.

Adjusted EBITDA is defined as income (loss) attributable to common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, extraordinary litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness expenses, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EBITDA to net loss attributable to common shareholders, its most directly comparable GAAP financial measure.

Adjusted EPS is defined as the diluted net loss attributable to LifeMD, Inc common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, non-controlling interests, foreign currency translation, extraordinary litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness expenses, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of adjusted EPS to Diluted loss per share attributable to LifeMD, Inc common shareholders, its most directly comparable GAAP financial measure.

Telehealth and WorkSimpli adjusted EBITDA is defined as segment operating income or loss before depreciation, amortization, accretion, financing transaction expense, extraordinary litigation costs, insurance acceptance and Sarbanes-Oxley readiness expenses, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of segment operating income or loss to segment Adjusted EBITDA.

We believe the above financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms adjusted EBITDA and adjusted EPS may vary from that of others in our industry. Telehealth adjusted EBITDA is specifically relevant to LifeMD to provide shareholders a comparable measure of profitability for our core telehealth business without the impact of our majority owned, but separately managed non-core subsidiary, WorkSimpli. Adjusted EBITDA, telehealth adjusted EBITDA and adjusted EPS should not be considered as an alternative to net loss before taxes, net loss per share, operating loss or any other performance measures derived in accordance with GAAP as measures of performance.