LifeMD(US:LFMD)2026-03-10 20:56Financial Performance - Telehealth revenue for the year ended December 31, 2025, was approximately $194.1 million, a 25% increase from $154.8 million in 2024, driven by a rise in telehealth subscription revenue [207]. - Cost of telehealth revenue increased by approximately 29% to $27.7 million in 2025, compared to $21.4 million in 2024, maintaining a consistent cost ratio of 14% of telehealth revenues [208]. - Gross profit rose by approximately 25% to $166.3 million in 2025, with gross profit margin remaining stable at 86% [209]. - Total operating expenses for 2025 were approximately $174.0 million, a 13% increase from $153.8 million in 2024, primarily due to a $16.0 million rise in selling and marketing expenses [210]. - The company recorded a net loss from continuing operations of approximately $10.2 million in 2025, an improvement from a loss of $23.2 million in 2024 [207]. - Net income from discontinued operations was $25.9 million in 2025, compared to $2.3 million in 2024, contributing to a net income of $15.6 million for the year [207]. Cash Flow and Working Capital - Working capital increased by approximately $25.3 million during 2025, with current liabilities decreasing by approximately $25.8 million [214]. - Net cash provided by operating activities for the year ended December 31, 2025, was approximately $8.3 million, a decrease from $17.5 million in 2024 [215]. - Net cash provided by investing activities for the year ended December 31, 2025, was approximately $6.9 million, compared to net cash used of $11.5 million in 2024, primarily due to net proceeds from the WorkSimpli sale of $19.4 million [217]. - Net cash used in financing activities for the year ended December 31, 2025, was approximately $13.4 million, an increase from $4.1 million in 2024, driven by total debt repayments of $18.7 million [218]. - The Company expects existing cash of $36.8 million as of December 31, 2025, to be sufficient to fund planned operating expenses and capital expenditures for at least the next 12 months [222]. Strategic Initiatives - The company launched acceptance of private health insurance for virtual primary care services in June 2024, expanding to Medicare beneficiaries in April 2025 [203]. - The acquisition of Optimal Human Health MD in April 2025 marked the company's entry into the women's health market, focusing on hormone health and wellness [205]. - The Company sold 762,990 shares of common stock under the ATM Sales Agreement during the year ended December 31, 2025, generating net proceeds of $8.7 million [221]. Debt and Financing - The Avenue Credit Agreement provided a convertible senior secured credit facility of up to $40 million, with $15 million funded at closing and an additional $5 million received in September 2023 [220]. - The Company recorded a loss on debt extinguishment of $1.2 million for the year ended December 31, 2025, related to the repayment of the Avenue Facility [220]. - As of December 31, 2025, there is no outstanding balance on the Avenue Facility, following the repayment of $14.0 million in principal [220]. Operating Expenses - Other operating expenses increased by approximately $2.4 million, or 28%, primarily due to higher software subscription costs [216]. - Development costs rose by approximately $489 thousand, or 7%, mainly due to technology platform improvements and amortization expenses [216]. Discontinued Operations - The company recorded a gain of $21.3 million from the sale of its majority ownership interest in WorkSimpli, classified as discontinued operations [204].