LifeMD(LFMD) - 2025 Q1 - Quarterly Results

First Quarter 2025 Results LifeMD achieved its first-ever GAAP profitability in Q1 2025, driven by strong telehealth revenue growth and strategic initiatives, leading to raised full-year guidance Management Commentary Management reported first-ever GAAP profitability in Q1 2025, driven by strong weight management performance and strategic initiatives, leading to raised full-year guidance - Achieved its first-ever quarter of GAAP profitability, driven by strong performance in its weight management program and expansion across all service areas[3] - Strategic collaborations with LillyDirect and NovoCare make LifeMD the only U.S. telehealth provider offering synchronous care and cash-pay access to both Wegovy and Zepbound[4] - Telehealth revenue grew 70% year-over-year, and telehealth adjusted EBITDA increased to $5.3 million from a loss of $1.3 million in the prior-year period[5] - Announced key hires in mental and hormonal health and acquired assets in behavioral and women's health to address significant unmet clinical needs[4] First Quarter Financial & Operational Highlights Q1 2025 saw total revenues grow 49% to $65.7 million, driven by a 70% telehealth revenue surge, achieving the company's first GAAP net income of $0.6 million Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $65.7 million | $44.1 million | +49% | | Telehealth Revenue | $52.5 million | $30.8 million | +70% | | GAAP Net Income | $0.6 million | ($7.5 million) | N/A | | Diluted EPS | $0.01 | ($0.19) | N/A | | Adjusted EBITDA | $8.7 million | $0.1 million | +$8.6M | | Telehealth Adjusted EBITDA | $5.3 million | ($1.3 million) | +$6.6M | Q1 2025 Key Performance Metrics (Subscribers) | Subscriber Metric | Q1 2025 | Q1 2024 | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Telehealth Active Subscribers | 290,660 | 237,790 | 22% | | WorkSimpli Active Subscribers | 158,265 | 166,351 | -5% | | Total Active Subscribers | 448,925 | 404,141 | 11% | - Cash on hand was $34.4 million as of March 31, 2025[10] Financial Guidance LifeMD raised its full-year 2025 revenue and adjusted EBITDA guidance, reflecting confidence in continued strong performance for Q2 2025 Q2 2025 Guidance For the second quarter of 2025, the company projects total revenues between $65 million and $67 million and adjusted EBITDA in the range of $7 million to $9 million Q2 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Revenues | $65M - $67M | | Telehealth Revenue | $52M - $53M | | Adjusted EBITDA | $7M - $9M | | Telehealth Adjusted EBITDA | $4M - $6M | Full-Year 2025 Guidance The company has raised its full-year 2025 guidance, with total revenues now expected between $268 million and $275 million, and adjusted EBITDA projected in the range of $31 million to $33 million Updated Full-Year 2025 Guidance | Metric | New Guidance Range | Previous Guidance Range | | :--- | :--- | :--- | | Total Revenues | $268M - $275M | $265M - $275M | | Telehealth Revenue | $208M - $213M | $205M - $213M | | Adjusted EBITDA | $31M - $33M | $30M - $32M | | Telehealth Adjusted EBITDA | Forecast to exceed $21M | Approx. $20M | Consolidated Financial Statements The consolidated financial statements detail LifeMD's balance sheet, income statement, and cash flow performance, reflecting improved profitability and financial position in Q1 2025 Consolidated Balance Sheets As of March 31, 2025, LifeMD reported total assets of $73.6 million, decreased total liabilities to $74.0 million, and improved its stockholders' deficit to $0.4 million Balance Sheet Summary (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash | $34.4 | $35.0 | | Total Current Assets | $50.0 | $48.7 | | Total Assets | $73.6 | $72.5 | | Liabilities & Equity | | | | Total Current Liabilities | $60.9 | $60.3 | | Total Liabilities | $74.0 | $76.5 | | Total Stockholders' Equity (Deficit) | ($0.4) | ($4.0) | | Total Liabilities & Equity | $73.6 | $72.5 | Consolidated Statements of Operations Q1 2025 saw a significant turnaround with $0.6 million net income attributable to common stockholders, driven by a 49% revenue increase to $65.7 million and a shift to operating income Statement of Operations Summary (Q1 2025 vs Q1 2024, in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues, Net | $65.7 | $44.1 | | Gross Profit | $57.1 | $39.5 | | Operating Income (Loss) | $2.5 | ($6.2) | | Net Income (Loss) Attributable to Common Stockholders | $0.6 | ($7.5) | | Diluted EPS | $0.01 | ($0.19) | Consolidated Statements of Cash Flows In Q1 2025, the company generated $3.1 million in cash from operating activities, used $2.9 million in investing, and ended the quarter with $34.4 million in cash Cash Flow Summary (Q1 2025 vs Q1 2024, in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3.1 | $5.2 | | Net cash used in investing activities | ($2.9) | ($2.2) | | Net cash used in financing activities | ($0.8) | ($1.0) | | Net (decrease) increase in cash | ($0.6) | $2.0 | | Cash at end of period | $34.4 | $35.1 | Non-GAAP Financial Measures LifeMD presents non-GAAP financial measures, including Adjusted EBITDA for consolidated and segment results, to provide a clearer view of core business performance by excluding specific non-recurring or non-cash items Reconciliation of GAAP Net Income to Consolidated Adjusted EBITDA Consolidated Adjusted EBITDA significantly improved to $8.7 million in Q1 2025 from $0.1 million in Q1 2024, reconciled from GAAP net income with adjustments for non-cash items Consolidated Adjusted EBITDA Reconciliation (Q1 2025 vs Q1 2024, in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) attributable to common shareholders | $608 | ($7,545) | | Adjustments (Depreciation, Stock Comp, etc.) | $8,051 | $8,653 | | Consolidated Adjusted EBITDA | $8,659 | $108 | Reconciliation of Telehealth Operating Income to Telehealth Adjusted EBITDA Telehealth segment's Adjusted EBITDA swung to a positive $5.3 million in Q1 2025 from a $1.3 million loss in Q1 2024, reconciled from operating income with key adjustments Telehealth Adjusted EBITDA Reconciliation (Q1 2025 vs Q1 2024, in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Telehealth operating income (loss) | $387 | ($6,620) | | Adjustments (Depreciation, Stock Comp, etc.) | $4,919 | $5,289 | | Telehealth Adjusted EBITDA | $5,306 | ($1,331) | Reconciliation of WorkSimpli Operating Income to WorkSimpli Adjusted EBITDA WorkSimpli segment's Adjusted EBITDA more than doubled to $3.4 million in Q1 2025 from $1.4 million in Q1 2024, reconciled from operating income with adjustments WorkSimpli Adjusted EBITDA Reconciliation (Q1 2025 vs Q1 2024, in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | WorkSimpli operating income | $2,156 | $449 | | Adjustments | $1,197 | $990 | | WorkSimpli Adjusted EBITDA | $3,353 | $1,439 |