LifeMD Q2 Earnings Call Highlights

LifeMD Q2 Earnings Call Highlights

LifeMD reported $47.3 million in revenue and an adjusted EBITDA loss of about $3.5 million, pressured by higher customer acquisition costs and the $39 introductory price for branded GLP-1 care. Revenue declined sequentially, although recurring revenue mix, gross margin and operating expenses improved. Nearly 95% of new weight-management patients entered branded GLP-1 programs, while multi-month plan selection rose to roughly 85% after the pricing change. Customer acquisition costs have since fallen about 50% from their June peak. LifeMD lowered its 2026 forecast to $205.5 million–$212.5 million in revenue and adjusted EBITDA ranging from a $6 million loss to breakeven. The company expects to return to adjusted EBITDA profitability in Q3 and projects $60 million–$64 million of Q4 revenue.

LifeMD NASDAQ: LFMD reported second-quarter revenue of $47.3 million, within its prior guidance range, while posting an adjusted EBITDA loss of approximately $3.5 million as elevated customer acquisition costs and a lower introductory price for branded GLP-1 care pressured profitability. Chairman and Chief Executive Officer Justin Schreiber said the company missed its own profitability target during the quarter and attributed the shortfall to higher media costs early in the period and a new $39 introductory offer for its branded GLP-1 program. The company had previously charged $79 for the initial month of care.

“The bottom line missed, but the drivers that determine future profitability, recurring revenue mix, gross margin, and operating costs, each moved in the right direction,” Schreiber said.

Revenue declined about 6% sequentially and approximately 4% from telehealth revenue in the prior-year quarter, according to Chief Financial Officer Atul Kavthekar. The company said the results reflected a planned reduction in marketing investment, increased customer acquisition costs for much of the quarter, and the lower introductory weight-management price implemented in June.

Active subscribers totaled 356,000 at quarter-end. Kavthekar said the modest sequential decline reflected a deliberate shift in the weight-management customer base from month-to-month subscribers toward multi-month plans, which the company believes carry higher retention and lifetime value. Recurring bill revenue represented about 84% of total revenue. Gross margin expanded to approximately 89%, up about 60 basis points sequentially. Advertising and marketing expense declined $1.8 million sequentially to $28 million. General and administrative expenses fell about $1.5 million sequentially. GAAP net loss from continuing operations attributable to common stockholders was $7.9 million, or $0.16 per share. Cash totaled $25.1 million at quarter-end.

The company said gross-margin expansion was driven by lower shipping and fulfillment costs, improved provider efficiency, and increased use of its in-house pharmacy. Kavthekar said second-quarter cash flow was affected by marketing investment and the timing of the $39 introductory offer, though LifeMD expects cash to improve through year-end as marketing spending declines and longer-duration subscriptions generate more upfront collections. That improvement will be partly offset by pharmacy working-capital needs.