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LifeMD (LFMD)
NASDAQ:LFMD
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LifeMD
(NASDAQ:LFMD)
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Rating:45Neutral
Price Target:
$5.50
▼(-15.90% Downside)
LifeMD's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue growth and high leverage. Technical analysis indicates bearish momentum, further weighing down the score. While the earnings call provided some positive insights, such as telehealth growth and strategic initiatives, these are offset by operational challenges and revised guidance. The valuation remains unattractive due to ongoing losses.
Positive Factors
Telehealth Revenue Growth
The significant growth in telehealth revenue and EBITDA indicates strong demand and operational efficiency, supporting long-term business expansion.
AI Integration
AI integration enhances operational efficiency and patient care, positioning LifeMD for sustainable growth in the evolving telehealth market.
Debt-Free Status
Being debt-free improves financial stability and flexibility, allowing LifeMD to reinvest in growth opportunities without the burden of interest expenses.
Negative Factors
Declining Revenue Growth
The sharp decline in revenue growth poses a risk to LifeMD's market position and ability to sustain long-term operations without strategic adjustments.
High Leverage
High leverage limits financial flexibility and increases risk, potentially impacting LifeMD's ability to invest in growth and weather economic downturns.
Revised Financial Guidance
The downward revision in financial guidance reflects operational challenges and market uncertainties, impacting investor confidence and future growth prospects.
LifeMD (LFMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$314.38M
Dividend YieldN/A
Average Volume (3M)1.15M
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth37.74%
EPS Growth69.79%
CountryUS
Employees304
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)-0.06
Shares Outstanding47,417,393
10 Day Avg. Volume1,187,316
30 Day Avg. Volume1,149,017
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)-37.17
Price to Sales (P/S)0.96
P/FCF Ratio34.12
Enterprise Value/Market Cap1.89
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit2.76
Enterprise Value/Ebitda69.31
Forecast
1Y Price Target
$11.88Price Target Upside81.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
LifeMD Business Overview & Revenue Model
Company DescriptionLifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for care across various indications, including concierge care, men's sexual health, dermatology, and others in the United States. The company provides ShapiroMD, a telehealth platform brand that offers access to virtual medical treatment, prescription medications, patented-doctor formulated OTC products, and an FDA approved medical device for male and female hair loss, and female specific topical compounded medications for hair loss; RexMD, a men's telehealth brand that offers virtual medical treatment from licensed providers for a variety of men's health needs; LifeMD Primary Care, a personalized subscription-based virtual primary care platform that provides patients with primary care, urgent care, and chronic care needs, as well as .offers a mobile first platform that incorporates virtual consultations and treatment, prescription medications, diagnostics, and imaging; Cleared, a telehealth brand that provides personalized treatments for allergy, asthma, and immunology; and Nava MD, a female-oriented tele-dermatology and skincare brand that offers virtual medical treatment from dermatologists and other providers. It also offers PDFSimpli, an online software-as-a-service platform that allows users to create, edit, convert, sign, and share PDF documents. LifeMD sells its products directly to consumers and through e-commerce platforms, as well as through third party partner channels. The company was formerly known as Conversion Labs, Inc. and changed its name to LifeMD, Inc. in February 2021. LifeMD, Inc. was founded in 1994 and is headquartered in New York, New York.
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: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
While LifeMD showcased strong growth in telehealth revenue and a strategic expansion into new healthcare segments, challenges in the weight management segment and RexMD's elevated customer acquisition costs led to a downward revision of financial guidance. The integration of AI and debt-free status are positive indicators, but the challenges faced balance out the highlights.Q2-2025 Updates
Positive Updates
Strong Telehealth Revenue Growth
Telehealth revenue increased by 30% year-over-year, with adjusted EBITDA growth of 560%.
WorkSimpli Performance
WorkSimpli generated nearly $3.7 million in adjusted EBITDA on a stand-alone basis, indicating strong performance.
Expansion into Behavioral and Women's Health
LifeMD launched a nationwide behavioral health offering and upcoming women's health program, addressing large underserved markets.
Patient Satisfaction
Patient satisfaction scores averaged 4.91 out of 5, demonstrating the quality and effectiveness of LifeMD's care model.
AI Integration
LifeMD is integrating AI into operations to streamline administrative tasks, improving patient outcomes and provider productivity.
LifeMD+ Membership Traction
The LifeMD+ membership program shows promise with nearly 50 new patient sign-ups per day.
Debt-Free Status
LifeMD fully repaid its senior venture debt, making the business debt-free and saving approximately $1.1 million in future interest payments.
Negative Updates
Weight Management Challenges
Higher-than-anticipated refund rates in the weight management segment due to lack of insurance coverage or high out-of-pocket costs.
RexMD Customer Acquisition Costs
RexMD faced challenges with elevated customer acquisition costs, impacting performance and resulting in lower sales volumes.
Revised Financial Guidance
LifeMD revised its consolidated 2025 revenue guidance downwards from $268-275 million to $250-255 million, and adjusted EBITDA guidance to $27-29 million from $31-33 million.
Gross Margin Decline
Gross margin for the second quarter was 88%, a decline of 210 basis points due to higher allocation rate of physician costs.
Company Guidance
During the LifeMD second-quarter earnings call for fiscal year 2025, the company highlighted several key financial metrics and strategic priorities. The telehealth business reported a 30% year-over-year increase in revenue, with adjusted EBITDA growing by 560%. In contrast, challenges in the RexMD business led to temporary elevated customer acquisition costs, impacting overall performance. Weight management remained robust, attracting over 400 new patient sign-ups per day despite a higher-than-expected refund rate due to insurance coverage issues. WorkSimpli generated nearly $3.7 million in adjusted EBITDA on a stand-alone basis. LifeMD revised its 2025 revenue guidance to $250-$255 million, down from $268-$275 million previously, reflecting these temporary challenges. The company emphasized the strategic integration of AI and expansion into high-value clinical areas such as behavioral and women's health, alongside the continued growth of its LifeMD+ membership program. Despite short-term setbacks, LifeMD remains confident in its long-term growth trajectory and strategic initiatives.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
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.45
Neutral
Balance Sheet
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.30
Negative
Cash Flow
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 232.45M | 212.45M | 152.55M | 119.03M | 92.88M | 37.29M |
| Gross Profit | 215.05M | 242.40M | 133.65M | 100.37M | 74.88M | 28.39M |
| EBITDA | 8.55M | -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 Assets | 73.56M | 72.46M | 58.48M | 25.67M | 49.92M | 13.05M |
| Cash, Cash Equivalents and Short-Term Investments | 36.23M | 35.00M | 33.15M | 3.96M | 41.33M | 9.18M |
| Total Debt | 22.05M | 25.10M | 18.93M | 4.13M | 1.85M | 1.06M |
| Total Liabilities | 73.18M | 76.51M | 52.91M | 32.97M | 24.10M | 13.88M |
| Stockholders Equity | -1.78M | -5.49M | 3.51M | -6.83M | 26.85M | 1.35M |
Cash Flow | ||||||
| Free Cash Flow | 13.27M | 5.98M | 86.95K | -35.83M | -36.49M | -12.53M |
| Operating Cash Flow | 19.48M | 17.51M | 8.82M | -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 | -4.12M | 29.10M | -528.20K | 68.64M | 21.00M |
LifeMD Technical Analysis
Negative
6.54
Price Trends
6.78
Negative
9.42
Negative
7.69
Negative
Market Momentum
-0.01
Negative
47.27
Neutral
35.16
Neutral
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 6.54 is above the 20-day moving average (MA) of 6.45, below the 50-day MA of 6.78, and below the 200-day MA of 7.69, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 35.16 is Neutral, 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
UnderperformOutperform
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6.54
2.33
55.34%
PETS
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YI
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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.