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LifeMD (LFMD)
NASDAQ:LFMD
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LifeMD (LFMD) AI Stock Analysis

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LFMD

LifeMD

(NASDAQ:LFMD)

Rating:48Neutral
Price Target:
$6.50
▲(1.09% Upside)
LifeMD's overall stock score is primarily impacted by its financial performance, which is challenged by declining revenue growth and high leverage. While there are positive aspects such as strong free cash flow growth and strategic initiatives highlighted in the earnings call, the stock's valuation and technical indicators suggest caution. The company's efforts to expand its telehealth and behavioral health offerings are promising, but financial risks and profitability concerns weigh heavily on the score.
Positive Factors
Market Expansion
LifeMD's comprehensive care platform and new product offerings are anticipated to enhance its market position.
Subscriber Growth
The Telehealth active subscriber base grew by 27% year-over-year, highlighting the company's expanding customer reach.
Negative Factors
Financial Performance
Top- and bottom-line miss in 2Q25; 2025 guidance lowered.
Revenue Growth Risks
Risks include lower than projected growth of telehealth revenue, inability to acquire and retain new patients, and higher than expected competition, which could affect the company's performance.

LifeMD (LFMD) vs. SPDR S&P 500 ETF (SPY)

LifeMD Business Overview & Revenue Model

Company DescriptionLifeMD (LFMD) is a telehealth company that specializes in providing a range of virtual healthcare services, primarily focusing on chronic disease management, sexual health, and weight loss. The company leverages advanced technology to connect patients with licensed healthcare providers, offering personalized treatment plans and medications that are delivered directly to patients' homes. LifeMD's core products include telehealth consultations, prescription medications, and subscription-based health programs, catering to the growing demand for convenient and accessible healthcare solutions.
How the Company Makes MoneyLifeMD generates revenue through multiple streams, primarily by charging patients for telehealth consultations and the sale of prescription medications. The company operates on a direct-to-consumer model, allowing it to reach a broad audience seeking convenient healthcare services. Significant revenue comes from subscription programs where patients pay for ongoing access to healthcare services and personalized treatment plans. Additionally, LifeMD may benefit from strategic partnerships with pharmacies and healthcare providers, which can enhance its service offerings and expand its customer base, further contributing to its earnings.

LifeMD Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: -45.69%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The call highlighted strong performance in the telehealth and WorkSimpli segments, debt repayment, and new program launches in behavioral and women's health. However, it was tempered by higher refund rates, challenges in the RexMD segment, and a downward revision in financial guidance.
Q2-2025 Updates
Positive Updates
Strong Telehealth Performance
Telehealth revenue increased 30% year-over-year to $48.6 million, with adjusted EBITDA growing 560% to $3.4 million.
WorkSimpli Success
The WorkSimpli segment generated nearly $3.7 million in adjusted EBITDA, with a growth of 119%.
Debt Repayment and Balance Sheet Strengthening
LifeMD fully repaid its senior venture debt, making the business debt-free and saving $1.1 million in future interest payments.
New Behavioral Health Launch
Launched a nationwide behavioral health offering focused on adult anxiety and depression, expected to scale in Q4 and be accretive to 2026 results.
Women's Health Program Launch
Announced the upcoming launch of a holistic women's health program addressing menopause, hormone therapy, and bone health, expected to be accretive to 2026 results.
Patient Satisfaction
Patient satisfaction scores averaged 4.91 out of 5, indicating high quality and effective care.
Negative Updates
Higher Refund Rates in Weight Management
Experienced a higher-than-anticipated refund rate in the weight management segment due to patients lacking insurance coverage or being unable to afford branded therapies.
Challenges with RexMD
RexMD faced challenges due to temporarily elevated customer acquisition costs in the competitive ED market, impacting quarterly performance.
Revised Financial Guidance
Revised 2025 revenue guidance from $268-$275 million to $250-$255 million and adjusted EBITDA guidance from $31-$33 million to $27-$29 million.
Gross Margin Decline
Gross margin for the second quarter was 88%, a decline of 210 basis points versus the prior year due to a higher allocation rate of physician costs to COGS.
Company Guidance
In the recent conference call discussing LifeMD's Q2 2025 results, the company highlighted several key performance metrics and strategic priorities. LifeMD reported a 30% year-over-year increase in telehealth revenue with adjusted EBITDA growth of 560%. The WorkSimpli business generated nearly $3.7 million in adjusted EBITDA. However, challenges were noted in the RexMD brand due to elevated customer acquisition costs, impacting the overall financial guidance. The company revised its 2025 revenue guidance to $250-$255 million, down from $268-$275 million, and adjusted EBITDA to $27-$29 million, down from $31-$33 million. LifeMD plans to focus on expanding its weight management program, with over 400 new patient sign-ups per day, and growing its LifeMD+ membership service. The company aims to improve patient experience through AI integration and is optimistic about scaling its behavioral and women's health offerings, expecting these programs to be accretive to 2026 results.

LifeMD Financial Statement Overview

Summary
LifeMD faces significant challenges with declining revenue growth and negative profitability margins. The balance sheet is heavily leveraged, posing financial risks. However, the company has shown strong free cash flow growth, which is a positive indicator of cash generation capability. Overall, while there are strengths in cash flow, the financial health of the company is concerning due to high leverage and negative profitability.
Income Statement
45
Neutral
LifeMD has shown a significant decline in revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of -95%. The gross profit margin remains strong at 91.97%, indicating efficient cost management. However, the net profit margin is negative at -5.21%, reflecting ongoing profitability challenges. EBIT and EBITDA margins are also weak, suggesting operational inefficiencies.
Balance Sheet
30
Negative
The company's balance sheet reveals a high debt-to-equity ratio of -10.78, indicating significant leverage and potential financial risk. Return on equity is positive at 2.33%, but this is due to negative equity, which is a concerning sign. The equity ratio is not favorable, suggesting a reliance on debt financing.
Cash Flow
60
Neutral
LifeMD's cash flow statement shows a remarkable free cash flow growth of 318.98% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.25, and the free cash flow to net income ratio is 0.21, reflecting moderate cash flow efficiency despite negative net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue232.45M212.45M152.55M119.03M92.88M37.29M
Gross Profit215.05M242.40M133.65M100.37M74.88M28.39M
EBITDA8.55M-6.65M-8.21M-39.61M-53.95M-57.48M
Net Income-6.70M-18.88M-20.60M-45.02M-61.32M-60.52M
Balance Sheet
Total Assets73.56M72.46M58.48M25.67M49.92M13.05M
Cash, Cash Equivalents and Short-Term Investments36.23M35.00M33.15M3.96M41.33M9.18M
Total Debt22.05M25.10M18.93M4.13M1.85M1.06M
Total Liabilities73.18M76.51M52.91M32.97M24.10M13.88M
Stockholders Equity-1.78M-5.49M3.51M-6.83M26.85M1.35M
Cash Flow
Free Cash Flow13.27M5.98M86.95K-35.83M-36.49M-12.53M
Operating Cash Flow19.48M17.51M8.82M-22.94M-33.09M-12.13M
Investing Cash Flow-12.78M-11.54M-8.73M-13.91M-3.40M-798.14K
Financing Cash Flow-6.17M-4.12M29.10M-528.20K68.64M21.00M

LifeMD Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.43
Price Trends
50DMA
11.23
Negative
100DMA
9.49
Negative
200DMA
7.54
Negative
Market Momentum
MACD
-1.34
Positive
RSI
30.55
Neutral
STOCH
6.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFMD, the sentiment is Negative. The current price of 6.43 is below the 20-day moving average (MA) of 9.11, below the 50-day MA of 11.23, and below the 200-day MA of 7.54, indicating a bearish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 30.55 is Neutral, neither overbought nor oversold. The STOCH value of 6.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFMD.

LifeMD Risk Analysis

LifeMD disclosed 45 risk factors in its most recent earnings report. LifeMD reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

LifeMD Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$10.42B-60.49%8.36%6.22%-8.21%
54
Neutral
$202.59M25.27-12.65%-49.35%-285.61%
53
Neutral
$64.04M276.640.36%-10.82%
51
Neutral
$7.46B-0.16-46.00%2.25%22.82%-2.28%
48
Neutral
$312.95M301.60%37.74%69.79%
47
Neutral
$290.85M322.49%-31.30%36.26%
47
Neutral
$276.96M-32.38%23.24%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LFMD
LifeMD
6.43
1.11
20.86%
OSUR
Orasure Technologies
2.76
-1.51
-35.36%
PETS
Petmed Express
2.96
-0.28
-8.64%
WBA
Walgreens Boots Alliance
11.96
1.68
16.34%
FHTX
Foghorn Therapeutics
4.98
-2.59
-34.21%
AVIR
Atea Pharmaceuticals
3.50
-0.32
-8.38%

LifeMD Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
LifeMD Appoints Shayna Webb Dray as COO
Positive
Jul 31, 2025

On July 31, 2025, LifeMD announced the appointment of Shayna Webb Dray as Chief Operating Officer, effective March 27, 2025. With over 15 years of experience in operations and supply chain management, Webb Dray has been instrumental in LifeMD’s growth, previously serving as Senior Vice President of Operations. Her leadership is expected to support LifeMD’s expansion into new verticals and enhance patient care quality. Additionally, LifeMD expanded the roles of two other executives, promoting Jessica Friedeman to Chief Marketing and Product Officer and Jacob Ellison to Chief Analytics Officer, reflecting the company’s focus on internal talent to drive innovation and growth.

The most recent analyst rating on (LFMD) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on LifeMD stock, see the LFMD Stock Forecast page.

Executive/Board ChangesShareholder Meetings
LifeMD Stockholders Approve Directors and Accounting Firm
Neutral
Jun 16, 2025

On June 13, 2025, LifeMD, Inc. held its annual meeting of stockholders where a quorum was present. During this meeting, stockholders approved the election of seven directors to serve until the next annual meeting and ratified the selection of CBIZ CPAs, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (LFMD) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on LifeMD stock, see the LFMD Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025