Telehealth Performance - 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]. - Telehealth revenue accounted for 79% of total revenue, increasing by approximately $6.4 million due to higher online sales demand[171]. - Telehealth revenue for the nine months increased by 34%, contributing approximately $41.2 million to the overall revenue growth[177]. Patient Engagement - 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 core telehealth brands, including LifeMD and Rex MD, have served over 1.26 million customers collectively, addressing various healthcare needs[161][165]. Financial 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[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[177]. - Gross profit increased by 9% to approximately $52.8 million, with gross profit margin decreasing to 88% from 91% year-over-year[173]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, were approximately $54.7 million, a 5% increase from $52.3 million in the prior year[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]. - Selling and marketing expenses increased by approximately $10.6 million, or 14%, primarily due to additional initiatives for LifeMD virtual primary care[182]. Net Loss and Cash Flow - The company recorded a net loss of approximately $3.6 million for the three months ended September 30, 2025, compared to a net loss of $4.8 million in the same period of 2024[170]. - 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]. - Working capital decreased by approximately $0.5 million during the nine months ended September 30, 2025, with current assets at approximately $41.1 million and current liabilities at approximately $56.7 million[183]. Debt and Financing - The company recorded a loss on debt extinguishment of $1.2 million related to the repayment of the Avenue Facility during the three months ended September 30, 2025[176]. - 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]. - The Company sold 762,990 shares of common stock under the ATM Sales Agreement during the three months ended September 30, 2025, generating net proceeds of $8.7 million[189]. Future Plans and Developments - The company plans to expand insurance acceptance to over 60 million Medicare beneficiaries nationwide, with access to qualifying services across 49 states[155]. - 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]. - LifeMD's wholly-owned affiliated commercial pharmacy, opened in November 2024, is designed to fill up to 5,000 daily prescriptions, enhancing the integrated care journey[163]. Accounting Standards - FASB issued ASU 2025-06 to simplify accounting for internal-use software costs, effective for annual periods after December 15, 2027[197]. - Capitalization of eligible software development costs begins when management authorizes and commits to funding the project[197]. - The company is evaluating the impact of the new guidance on consolidated financial statements and related disclosures[197].
LIFEMD(LFMDP) - 2025 Q3 - Quarterly Report