LifeMD(US:LFMD)2025-11-17 21:52Financial Performance - Total revenue for the three months ended September 30, 2025, was approximately $60.2 million, a 13% increase from $53.3 million in the same period of 2024, driven by a $6.4 million increase in telehealth subscription revenue[171]. - For the nine months ended September 30, 2025, total revenue was approximately $187.0 million, a 25% increase from $149.3 million in the same period of 2024, with telehealth revenue increasing by 34%[177]. - Telehealth revenue accounted for 78.57% of total revenue in Q3 2025, while WorkSimpli revenue accounted for 21.43%, with the latter decreasing by approximately $225 thousand, or 2%[171]. - Gross profit for Q3 2025 was approximately $52.8 million, a 9% increase from $48.3 million in Q3 2024, with gross profit as a percentage of revenues decreasing to approximately 88% from 91%[173]. - Gross profit increased by approximately 21% to approximately $163.5 million for the nine months ended September 30, 2025, compared to approximately $134.7 million for the same period in 2024[179]. - Operating expenses for Q3 2025 were approximately $54.7 million, a 5% increase from $52.3 million in Q3 2024, mainly due to higher selling and marketing expenses[174]. - Operating expenses for the nine months ended September 30, 2025, were approximately $164.9 million, an increase of 11% or approximately $15.8 million compared to $149.1 million for the same period in 2024[180]. - The company recorded a net loss of approximately $3.6 million for Q3 2025, compared to a net loss of $4.8 million in Q3 2024, representing an improvement in net loss margin from (8.99)% to (5.91)%[170]. Telehealth Services - Telehealth revenue increased by 34% for the nine months ended September 30, 2025, compared to the same period in 2024, with total revenue from recurring subscriptions approximately 95%[156]. - LifeMD currently treats approximately 311,000 active patient subscribers and has served around 1,293,000 customers since inception[153]. - The GLP-1 Weight Management Program has grown to approximately 82,000 patient subscribers as of September 30, 2025, following its launch in April 2023[161]. - LifeMD's telehealth platform includes a 50-state medical group and a nationwide pharmacy network, supporting a broad range of healthcare needs[153]. - LifeMD's core telehealth brands, including LifeMD and Rex MD, have served over 1.26 million customers collectively, addressing various healthcare needs[161][165]. - The company aims to introduce new telehealth product and service offerings to complement its existing treatment areas as part of its long-term growth strategy[154]. Cost and Expenses - Total cost of revenue increased by approximately 48% to $7.4 million in Q3 2025, up from $5.0 million in Q3 2024, primarily due to increased sales volume[172]. - Total cost of revenue for the nine months ended September 30, 2025, increased by approximately 60% to $23.5 million, up from $14.6 million in the same period of 2024[178]. - Selling and marketing expenses increased by approximately $10.6 million, or 14%, primarily due to additional initiatives for LifeMD virtual primary care[182]. Cash Flow and Financing - Net cash provided by operating activities was approximately $11.6 million for the nine months ended September 30, 2025, compared to approximately $16.4 million for the same period in 2024[184]. - Net cash used in investing activities was approximately $10.2 million for the nine months ended September 30, 2025, compared to approximately $8.8 million for the same period in 2024[185]. - Net cash used in financing activities was approximately $12.6 million for the nine months ended September 30, 2025, compared to approximately $3.2 million for the same period in 2024[186]. - Working capital decreased by approximately $0.5 million during the nine months ended September 30, 2025, resulting in a working capital of $(15.6) million[183]. - As of September 30, 2025, the Company had $23.8 million in cash, expected to be sufficient to fund planned operating expenses and capital expenditures for at least the next 12 months[190]. - The Company sold 762,990 shares of common stock under the ATM Sales Agreement during the three months ended September 30, 2025, resulting in net proceeds of $8.7 million[189]. Debt and Interest - The company experienced a loss on debt extinguishment of $1.2 million related to the repayment of the Avenue Facility during Q3 2025[176]. - Interest expense decreased by approximately $296 thousand in Q3 2025 compared to Q3 2024, primarily due to the repayment of the Avenue Facility[175]. - The Company recorded a $1.2 million loss on debt extinguishment related to the repayment of the Avenue Facility during the nine months ended September 30, 2025[181]. Accounting Standards - FASB issued ASU 2025-06 to simplify accounting for internal-use software costs, effective for annual periods beginning after December 15, 2027[197]. - The amendments clarify that capitalization of eligible software development costs begins when management commits to funding the project[197]. - Early adoption of the new guidance is permitted, with options for prospective, retrospective, or modified approaches for in-process projects[197]. - Other accounting standards updates from FASB are not expected to materially impact consolidated financial statements upon adoption[198]. - As a smaller reporting company, the company is not required to provide detailed market risk disclosures[199].