LFMD

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Chairman and Chief Executive Officer - Justin Schreiber Chief Financial Officer - Atul Kavthekar Chief Technology Officer - Umesh Sripad Chief Marketing Officer - Chris Pisano GM and SVP of Growth - Tim Ragland Operator: Good afternoon, and thank you for joining us today to discuss LifeMD's results for the second quarter ending June 30, 2026. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Atul Kavthekar, Chief Financial Officer. Following management's prepared remarks, we will open the call for a question and answer session. Before we begin, I would like to remind everyone that during this call, the company will make a number of forward-looking statements which are subject to numerous risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties are described in the company's 10-K and 10-Q filings and in other filings LifeMD may make with the SEC from time to time. Forward-looking statements made during this call are based on information available to the company as of today, August 5, 2026. The company assumes no obligation to update or revise any forward-looking statements after today's call, except as required by law. Management will also discuss certain non-GAAP financial measures that the company believes are useful in evaluating its performance. Reconciliation to the most comparable GAAP measures can be found in the press release issued earlier today. Today's call is being recorded and will be available for replay in the Investor Relations section of the company's website. Now I would like to turn the call over to LifeMD's Chairman and Chief Executive Officer, Justin Schreiber. Justin? Justin Schreiber: Thank you, Operator, and good afternoon, everyone. After the market closed today, we issued our second quarter earnings release and filed our Form 10-Q. We've also posted an updated investor presentation on our Investor Relations website. I encourage everyone to review those materials. I want to begin by addressing the quarter directly. Revenue was $47.3 million within the guidance range we provided. Adjusted EBITDA was a loss of approximately $3.5 million, reflecting elevated customer acquisition costs earlier in the quarter and a new $39 introductory offer. While elevated media costs were transient and adjusted EBITDA improved throughout the quarter, we missed our own target, and I want to be direct about why. This quarter, we restructured our customer acquisition model. We transformed our leadership team. We advanced our transition toward branded GLP-1 therapies and longer duration members. We launched an important pharmaceutical collaboration with Halozyme. We continue to scale our pharmacy, women's health, insurance, Medicare, enterprise, and technology capabilities, and we took tangible steps to reduce our reliance on paid media as the principal engine of growth. We knew these changes would carry near-term cost. What we underestimated was the near-term pressure of those changes on profitability. And that's a miss we own. I have said before that our model is simple, quality care, quality products, and quality revenue. Our objective is not merely to grow, it is to build a healthcare and pharmacy business that generates increasing profits from a base of long-term patient relationships, one that benefits both our patients and our shareholders. That standard drove our decisions in the second quarter, and it is the lens through which I will discuss this today. Before I do that, I want to explain the strategic choice underneath these numbers because it accounts for both the near-term pressure and how we expect the business to evolve and grow from here. There's a well-worn playbook for growing a direct-to-consumer healthcare company quickly. Chase the lowest price medication, maximize promotional volume, concentrate spend on a single advertising channel, and optimize for immediate cash collection. That approach can produce attractive results for a period of time. It also produces shallow patient relationships, volatile acquisition economics, regulatory exposure, and revenue that must constantly be replaced. We are deliberately not running that playbook. We are building for the patients who use LifeMD for more of their healthcare over time, not as a website they visit for a single prescription. In practice, this means employing and training high-quality affiliated providers, supporting patients between visits, integrating labs and pharmacy, expanding insurance access, and building programs that address multiple related conditions across a patient's life. When we do that well, it shows up in the numbers. Patients stay longer, engage with more of the platform, and refer friends and family. Pharmacy attachment increases and retention improves. This generates revenue that recurs instead of needing to be reacquired. That is what we mean by quality revenue. This quarter gives specific evidence that the model is working as designed. Recurring rebill revenue represented approximately 84% of total revenue. That installed base is increasingly the economic engine of LifeMD. It generates high contribution margin revenue funds continued patient acquisition and product investment, and gives us a foundation on which to build new care and pharmacy offerings. Our gross margin also expanded to approximately 89% and gross profit was essentially flat despite lower year-over-year revenue. This is important because it demonstrates that the composition and economics of the business are improving beneath the headline numbers. We also followed through on the expense actions discussed last quarter. Advertising and marketing declined by approximately $1.8 million sequentially, and G&A declined by approximately $1.5 million. Those reductions began to show progressively during the quarter, and we expect the benefits to become more visible in the second half. So the way to read the quarter is this. The bottom line missed, but the drivers that determined future profitability, recurring revenue mix, gross margin, and operating costs each moved in the right direction. With that context, I want to walk through the most important decisions we made this quarter and what they mean for the business from here. First, the most important strategic transition we made this quarter is how we acquire and retain patients. Paid search and digital media built this company, and they will remain valuable channels. We have deep expertise in performance marketing, and we continue to see attractive returns when we deploy capital selectively, but auction pricing in those channels is outside our control. We saw this early in the quarter, and no durable healthcare platform should have to purchase substantially all of its growth at whatever price the media market sets. So we are shifting the mix. Over time, we expect a larger share of demand to come from channels we don't have to bid for, including pharmaceutical manufacturers, employers, insurers, Medicare, national strategic partners, patient referrals, and cross-care offerings to our existing population. This shift is already underway. The XYOSTED collaboration reflects how pharmaceutical manufacturers are beginning to use LifeMD as infrastructure. We combine national patient acquisition, affiliated clinical care, benefits navigation, pharmacy fulfillment, and ongoing patient support in a single platform. Employers are looking to us to provide high-quality specialty care with transparent economics. Insurance allows patients to use benefits they already value, and each additional service we make available to an existing patient gives us an opportunity to grow without paying to reacquire that relationship from scratch. I want to be realistic about pace. Paid media will remain our largest acquisition channel in the near term, and these alternative channels build gradually. But the acquisition pressure we experienced early in the quarter reinforced the importance of moving faster in this direction. Early results support that decision. Since mid-June, acquisition costs have moderated across the business, and the unit economics in RexMD are among the strongest we have seen in a long time. In our weight management business, recent customer acquisition costs are approximately 50% lower than their peak in June of this year. We will continue to use paid media, but selectively and only where the returns justify it. Our goal is not to eliminate performance marketing. It is to surround it with multiple additional demand channels so that growth becomes more diversified, less volatile, and more valuable. Now, I'll turn to our weight management business. Weight management remains one of the largest opportunities in healthcare and one of the most important businesses inside LifeMD. The second quarter was highly competitive, particularly in the market for branded GLP-1 care. Early in the quarter, acquisition costs were elevated. We also saw major competitors reduce introductory pricing, which affected conversion and made our offering less competitive at the top of the funnel. We responded by lowering the introductory price of our branded GLP-1 program to $39. That decision reduced upfront cash collection and contributed to the EBITDA shortfall in the quarter. But it also materially improved the attraction of the program and changed the composition of the patients entering the program. Before the pricing change, approximately 25% of new weight management patients year-to-date were selecting multi-month packages. Following the change, approximately 85% selected multi-month packages. That matters because longer duration patients generally provide more time to deliver meaningful clinical outcomes, demonstrate stronger retention, and create higher lifetime value. Our internal models currently indicate that the return on advertising investment from these cohorts can exceed that of the prior higher upfront price offering despite the lower first month cash collection. We are also deliberately building around branded FDA-approved therapies and the clinical care surrounding them. I have been candid that the regulatory environment for compounded GLP-1 medications evolved differently than I initially expected, but I remain completely convinced that building around branded medicines, serious longitudinal care, insurance access and manufacturer relationships is the right long-term strategy. The branded market is difficult today because patients can still find lower-price, mass-compounded alternatives from hundreds of direct marketing companies. But we believe that market structure will continue to evolve and that the platforms that endure will be those that offer trusted FDA-approved medications, appropriate medical treatment, appropriate clinical oversight, affordable access, benefit support, and ongoing cardiometabolic care, not simply the lowest promotional price. That is the future LifeMD is built for. We ended the quarter with approximately 108,000 weight management patients. We have deep integrations with LillyDirect and NovoCare, a growing insurance and Medicare footprint, a national affiliated medical group, pharmacy capabilities, and the infrastructure to support patients as the therapeutic market expands into oral formulations and next generation medicine, such as CagriSema and retatrutide. We believe the GLP-1 category remains in its early stages. The opportunity is large, and it will continue to evolve, and we are building LifeMD to participate across that broader market rather than around any single product. The philosophy behind our weight management business, longitudinal care rather than a single transaction applies across our platform. Nowhere is that more evident than in women's health, which remains one of the programs I am most proud of and most excited about. The program encountered some pressure during the quarter, but the most recent operating trends have improved meaningfully. Over the last 30 days, new patient acquisitions have increased substantially, while customer acquisition costs have declined. Our overall women's health patient base grew 134% quarter over quarter and is expected to grow by another 300% to 400% by the end of the year. More important than the volume is the quality of the care and the patient relationships we are building. We designed the program around longitudinal, evidence-based care rather than a one-time prescription. Patients receive a comprehensive intake, appropriate laboratory testing, thoughtful diagnosis, structured clinical protocols, and ongoing management from providers trained specifically for this population. That model is producing strong engagement and retention. Last quarter, we reported that subscriber count had grown more than sevenfold from the fourth quarter base and that on-therapy retention was above 80%. Recent trends continue to reinforce our belief that this can become one of the largest and highest quality businesses within LifeMD. Women's health is highly complementary to weight management and to the broader cardiometabolic needs of our patient population. We believe it has the potential to become as meaningful as weight management and to prove one of our core beliefs, quality care is the growth strategy. Now turning to Men's Health, which is also entering an important new phase. RexMD remains a large, recognized, and profitable brand with an engaged patient population. We continue to expand beyond sexual health into sleep, dermatology, weight management, hormone health, and personalized pharmacy products. The recent improvement in RexMD unit economics is encouraging, and the brand remains an important entry point into the broader LifeMD platform. In June, we announced an exclusive telehealth co-marketing collaboration with Halozyme's wholly-owned subsidiary, Antares Pharma, for XYOSTED, the only FDA-approved, once-weekly, subcutaneous testosterone auto-injector. This collaboration is significant. It gives LifeMD the opportunity to build a national, high-quality men's hormone health program around a differentiated FDA-approved therapy supported by our affiliated medical group, pharmacy, patient support and benefits capabilities. The initial self-pay program launched in July across 37 states at an all-in price of $249 per month with our affiliated pharmacies serving as the primary dispensing pharmacy. We also expect insurance access to become an important part of the opportunity over time. The collaboration requires startup investment during 2026 and early 2027 before the initial cohorts mature, and that investment is already contemplated in our outlook. While the precise pace of the ramp will depend on market response and the rollout of our joint commercial efforts, we believe XYOSTED can become a meaningful contributor to both our top and bottom line in 2027. Just as important, the collaboration is a blueprint. We are in discussions with other pharmaceutical manufacturers that need the same combination of care delivery, pharmacy fulfillment, benefit support, and national reach. Each successful partnership strengthens the platform and makes the next one easier to win. Before I turn to pharmacy, I want to spend a moment on the affiliated medical group because it is one of the most important and least understood parts of what we have built. Our affiliated providers continue to deliver what we believe is the best clinical care in the industry. And the group gets stronger every quarter. It is one of our clearest differentiators. Our providers are licensed across the country, which allows us to deliver care at a national scale. And they are increasingly cross-trained across our entire portfolio of men's and women's health offerings. That means a single high-quality provider relationship can support a patient across weight management, hormone health, sexual health, and more, rather than confining that patient to a single condition. We are also investing ahead of the growth we expect. We have hired 47 new providers to support the demand we anticipate across our programs in the second half of this year. A deep, multi-licensed, cross-trained medical group is not something that can be assembled quickly. It is a durable competitive advantage and it is the foundation on which our pharmacy and every one of our clinical programs is built. Our 50-state pharmacy is becoming one of the most strategically important assets in the company. It gives us greater control over the patient experience, faster product development, improved medication continuity, and the ability to capture economics that would otherwise leave the platform. Pharmacy operations carry gross margins of approximately 90%, and continued in-house fulfillment was an important contributor to the gross margin expansion we delivered this quarter. We are scaling the pharmacy across three complementary areas, branded direct-to-patient fulfillment, generic medications, and personalized compounding therapies where clinically appropriate. We are now fulfilling XYOSTED's self-pay prescriptions and anticipate other imminent branded pharmacy fulfillment relationships, which provide proven infrastructure and credibility. At the same time, we are expanding our personalized compounding capabilities. We are planning to launch more than 30 compounded products between now and year-end across hormone health, sleep, dermatology, sexual health, longevity, and other categories. Our objective is not to build a commodity mail-order pharmacy. It is to build an integrated pharmacy surrounded by a national affiliated medical group that can deliver clinically appropriate, highly personalized treatment at scale. What today is an early stage operation, filling a handful of product lines, we expect to become by year end a full-scale pharmacy fulfilling branded, generic, and dozens of compounded therapies nationwide. We believe the pharmacy can ultimately become one of the largest growth and margin expansion engines in LifeMD. Insurance and Medicare are also becoming increasingly important to the quality of our revenue and to our long-term vision for LifeMD. Patients want to use their benefits. When they can, care becomes more affordable, customer acquisition costs can decline, and retention can improve because the relationship is less dependent on out-of-pocket costs. As we previously guided, our benefits infrastructure now reaches approximately 175 million covered lives. Insurance penetration is now approximately 10% of new patients on our primary care platform, and we are still in the early stages of bringing the full range of LifeMD specialty programs onto that infrastructure. Our Medicare initiative is also in its first stages, including the new Medicare Bridge program that helps Medicare beneficiaries access branded GLP-1 medications. We are encouraged by the early demand, but it is too soon to draw broad conclusions. The strategic significance is clear. Medicare gives us access to a large population with substantial unmet need across weight management, cardiovascular health, hormonal health, and chronic disease. We are also advancing national strategic and employer partnerships. These relationships can increase brand awareness and patient volume at attractive economics with far less dependence on media-based acquisition. They are not yet major contributors to reported results, but we believe they can become an important part of our growth mix over the coming years. Technology is the connective tissue across all of these initiatives. We are continuing to invest in the people, integrations, and infrastructure required to deliver longitudinal care across medical services, pharmacy, labs, benefits, and patient support. AI is increasingly embedded throughout that platform. We are using AI to improve intake, documentation, clinical decision support, scheduling, revenue cycle management, patient messaging, compliance, and back office workflows. The objective is not to replace clinicians. It is to give them better information, reduce administrative burden, improve protocol consistency and increase the number of patients they can serve without compromising quality. We are also using AI to increase engineering velocity and automate operating processes across the company. These efforts are beginning to produce measurable improvements in cost per patient and cost per consult. Over time, the combination of our structured patient data, clinical infrastructure, medical group, pharmacy, and regulatory footprint should allow us to personalize care at a level that is very difficult for a point solution competitor to replicate. We continue to expect the financial benefits of these investments to become more visible as the business scales. Ultimately, none of this happens without the right people. One of the accomplishments I am most proud of this quarter is the continued strengthening of our leadership team. Atul Kavthekar, our CFO, has brought greater financial rigor, forecasting discipline, and focus to capital allocation. Umesh Sripad, our new Chief Technology Officer, is strengthening our technology organization and optimizing the architecture required for our next phase of growth. Chris Pisano, our Chief Marketing Officer, and Tim Ragland, our GM and SVP of Growth, are sharpening our marketing efforts, evolving the commercial model, and improving execution across our business. Collectively, they are raising the standard for talent and performance at every level of the organization. Let me now connect our strategic progress to the financial framework. We are revising our full-year 2026 outlook to revenue of $205.5 million to $212.5 million and adjusted EBITDA of negative $6 million to break even. Atul will discuss the assumptions and quarterly cadence in more detail. The revised full-year outlook reflects the first half EBITDA shortfall, the lower upfront revenue associated with our pricing and mix decisions, and the investments required to launch new strategic partnerships, including XYOSTED. Providing guidance is not an outcome we accept lightly, and we recognize that credibility is earned through execution. However, the full-year revision should not obscure an important point. Based on the current trajectory of the core business, we believe we remain largely on track to exit the fourth quarter with strong run rate revenue and profitability. Our fourth quarter guidance of $60 million to $64 million of revenue and $3 million to $6 million of adjusted EBITDA and excluding the Q4 launch cost related to the XYOSTED launch implies an annualized revenue run rate of approximately $250 million and annualized adjusted EBITDA of approximately $22 million at the midpoint framework. That is modestly below the $25 million annualized adjusted EBITDA objective we discussed previously, but it still represents a business exiting the year at roughly a high single digit to approximately 10% adjusted EBITDA margin while continuing to invest in several major growth programs. We therefore view ourselves as mostly on track toward the operating model we set out to build, a strengthening core business with a high margin recurring revenue base, multiple new growth channels that are not yet fully reflected in the current results, declining marketing spend, tightly managed operating expenses, and the growing mix of pharmacy, insurance, strategic partnerships, and longer-duration memberships that should further improve the earnings power of the business over time. The path will not be perfectly linear. The XYOSTED collaboration, pharmacy expansion, enterprise initiatives, and new care programs require investment before they generate mature contribution margins. The work we have done to build a more durable LifeMD now needs to show up in the financial results. With that, I will turn the call over to Atul to review the quarter and our outlook in greater detail. Atul? Atul Kavthekar: Thank you, Justin, and good afternoon, everyone. As a reminder, all year-over-year comparisons are on a continuing operations basis, excluding WorkSimpli, which was divested on November 4, 2025. Revenue for the second quarter was $47.3 million, within our guidance range of $47 million to $50 million, and down approximately 6% sequentially, reflecting the planned step-down in marketing investments that we described in our last call, combined with increased CPA levels through much of the quarter, and the impact of our weight management price change implemented in June, lowering the initial month care pricing from $79 to $39 to stay in line with competitors. Versus the prior year quarter, revenue declined approximately 4% from telehealth revenue of $49 million, reflecting the continued and deliberate mix shift from compounded to branded GLP-1 therapies. Active subscribers were 356,000 at quarter end. While this number is nominally lower than the prior quarter, it reflects a deliberate shift in our weight management customer base away from the primarily month-to-month subscriber base to a higher retention and higher LTV multi-month subscriber. Similarly, for our Rex business, our new growth patients are being acquired at much improved unit economics. Gross margin expanded to 89%, an improvement of approximately 60 basis points sequentially, driven by lower shipping and fulfillment costs, improved provider efficiency, and the continued scaling of our in-house pharmacy. Advertising and marketing expense of $28 million, while slightly above the range indicated on our prior call, declined $1.8 million from the first quarter, and other general and administrative expenses declined approximately $1.5 million, led by lower employee expenses and other professional services expenses. All other operating expenses declined approximately $700,000 sequentially. GAAP net loss from continuing operations attributable to common stockholders was $7.9 million, or $0.16 per share. Adjusted EBITDA, a non-GAAP measure we define as income or loss attributable to common stockholders before various items as outlined in today's news release, was a loss of approximately $3.5 million. Two factors drove this, elevated customer acquisition costs on comparable spend levels and the conscious pricing decision, our $39 introductory offer that we made to improve our price competitiveness. Importantly, the monthly trajectory improved consistently through the quarter, giving us further confidence in the second half inflection. Turning to the balance sheet, we exited the quarter with $25.1 million in cash. Second quarter cash flow was pressured by ongoing marketing investment and the timing effects of the transition to the $39 introductory offer. As more patients choose longer duration subscription plans, we expect stronger upfront cash collections from the rebill and combined with lower marketing spend in the second half, We expect cash to improve through year end. This will be partially offset by the working capital required to support increased production within our pharmacy. At quarter end, we also amended our credit agreement on favorable terms, further strengthening our financial flexibility. Turning to guidance for context, our prior guidance was set with an expectation that new patient acquisition costs would be more predictable. And that a number of partnership agreements and other developments would launch earlier than what will likely be the case. And while our expectations remain that all of these developments and possibly more will come to bear, we recognize the timing is not in our sole control. As such, we are presenting our H2 guidance based on more concrete current trends and on arrangements with high visibility. Furthermore, we are providing our H2 guidance after adjusting for LifeMD's portion of the likely launch costs associated with the XYOSTED launch. With that, we are expecting Q3 revenues to be in the range of $48 million to $51 million and EBITDA in a range of negative $1 million to positive $2 million. For Q4, reflecting our expected growth, the release of numerous improvements in our technology and supply chain infrastructure, and aggressive cost management, we are expecting revenues in the range of $60 million to $64 million and EBITDA of between $3 million and $6 million. Assuming the midpoint of this Q4 range and after excluding the launch impact from XYOSTED, we are expecting a revenue run rate in Q4 of $250 million and EBITDA run rate of $22 million. Although the XYOSTED launch is in its early days, we are optimistic that it will grow to become a significant part of LifeMD's overall men's health offering. We are now testing our XYOSTED go-to-market plan, which will require an initial investment we anticipate in the $2 million to $3 million range in 2026. This is a true partnership with direct costs split between the two companies throughout the life of the program. While the ramp-up dynamics will become clearer in the coming weeks and months, we anticipate that once the patient acquisition playbook comes together, those initial patient cohorts will become accretive to LifeMD's EBITDA in mid-2027. In closing, we remain very positive in our outlook for the business, with our team solidifying, the enterprise sales pipeline growing, unit economics improving, our new product offerings continue to build, and continuous improvements being made to our infrastructure and overall efficiency. As we continue to get clear, on our pipeline, we will factor that into our overall outlook on subsequent calls. Thanks, and with that, I'll turn the call back to Justin. Justin Schreiber: Thanks, Atul. Let me close by coming back to the central point. Quarterly performance matters. The second quarter adjusted EBITDA result was below our expectations. We understand what drove it. We've made changes and we expect better performance in the second half. The quarter also made clear that the work required to build a more durable LifeMD was greater than we initially anticipated. We are broadening the acquisition model beyond paid media. We are building longer patient relationships. We are investing in branded therapies, pharmacy, insurance, pharmaceutical partnerships, and deeper clinical programs. And we are putting in place the team and operating structure required to support those capabilities at scale. We believe that work was necessary. It gives LifeMD more ways to acquire patients, more ways to serve them, and more ways to grow without depending on a single product, advertising channel, or regulatory outcome. But the value of those investments will be determined by the results they produce. We expect to return to adjusted EBITDA profitability in the third quarter and deliver substantial sequential improvement in the fourth quarter. Our focus is on executing against that outlook while continuing to improve the quality and durability of the business. LifeMD today has a stronger recurring revenue base, higher gross margins, broader clinical capabilities, a growing pharmacy operation, and more diversified sources of demand than it did entering the year. Those are the building blocks of a much better company. We now need to prove that through consistent execution and financial performance. I want to thank our affiliated providers and employees for their continued hard work, our patients for trusting us with their care, and our shareholders for their continued support. Operator, we are ready for questions. Operator: Your first question comes from David Larsen with BTIG. Please go ahead. David Larsen: Can you please talk a bit about peptides and the discussions that are going on in Washington, assuming a bunch of these move to Category 1, what kind of appetite do you think your current membership base would have for these peptides? Would you be able to sort of deliver on that demand? Any thoughts around the potential, I guess, revenue opportunity would be very helpful. Justin Schreiber: Hi, Dave. This is Justin. I'll comment on that. It's -- look, I don't think we have a revenue number. We don't have a revenue number that we can share with you, but if you think about our current patient population, from weight loss to hormones to sexual health. Like it's -- we think there would be a considerable amount of demand from current patients for some kind of these peptides if FDA follows through as they're expected to and permits some of them to be made in compounding pharmacies. We also think there's obviously a lot of demand outside of our platform as well. So there's no doubt that if some of these are essentially permitted to be compounded by FDA that it would be a pretty significant market opportunity for LifeMD. We do feel really good about having sterile compounding capabilities. We're working on a solution to essentially either acquire or convert our non-sterile pharmacy into a sterile pharmacy. So there's a number of things there that we're working on. And we have some vendors as well that are going to be manufacturing these products once FDA gives the green light to do so in other 503B pharmacies that we could fulfill through our 503A. I think it's important, like, we plan to take a conservative approach to the whole peptide space and make sure that, obviously, first and foremost, whatever we launch, is safe and is prescribed properly and the pre-clinical data around this product or around these products or lack thereof is really well described for patients. David Larsen: That's very helpful, thanks. And then can you maybe talk a little bit more about the number of weight management subscribers? I think you had 108,000. Any color around like what portion are on a compounded GLP-1 versus a branded GLP-1? And then one of your competitors said that the economics around the branded GLP-1s is similar to the compounded GLP-1 economics from their perspective. Any thoughts around that? And then just like to the extent you're able to comment, like Lilly and Novo, are you receiving any sort of like a fulfillment fee every time you send a patient their way, just the economics around the branded products would be helpful. Justin Schreiber: Sure, Dave. This is Justin again. I'll answer a few of those questions and Atul can jump in if he wants to add anything. So as it relates to Lilly and Novo, as of today, we have very positive relationships with both of those companies. Today, our relationships are just -- our integration as we've described in the past. So we don't receive any economics period from either of those companies. We have We have said in the past that we expect those relationships to evolve and we still feel that way. We mentioned on the call that one of the big changes that we've seen in the business, not really a change, but we have seen a lot of our patients that were previously on a personalized compound switch over to branded therapies, that business is -- it's just much smaller, as we said on the call, for new patients, almost 95% of new patients are going on a branded therapy. Very few patients are getting a prescription for a personalized compound. A lot of that other 5% is probably patients getting other medications. So the compounding business for LifeMD has just become very small, and even patients that were previously on a personalized compound that we thought would stay on a personalized compound for longer that hadn't switched over to a branded therapy, that business just really shrunk a lot faster than we thought it would throughout the year. So we kind of look at the whole compounding thing as being pretty insignificant to earnings moving forward and it's something that we feel like we can really guide kind of very easily moving forward. On the economics, one of the things I'd love to emphasize, just as it relates to your question, On economics for branded therapies, we have spent an enormous amount of time looking at unit economics around the branded GLP-1 business. And I think one thing that we do really want to emphasize is that there's a good to great unit economics model there that -- where we see kind of returns on even our direct-to-consumer investment in this space, we see, like, very attractive returns over time for two or three years. We think there's still a lot of work that we can do on cross-care offerings, acquisition costs, we think there are significant partnerships out there. Many of them -- we're having active dialogue right now with several very, very large potential partners that we think could also drive a lot of new patients to LifeMD without us paying for them in the manner that we do on platforms like Google and Meta. So we're really very optimistic about the branded business, and we're also optimistic about some of our other big categories like women's health. I mean, we think that the company is going to continue to diversify over the next couple of years, and our pharmacy and the expanding portfolio of products in our pharmacy plays a big role in that. Atul Kavthekar: Hey, Dave, I'll add one point to that. And Justin made a comment to this in his prepared remarks, is this pretty dramatic shift from month-to-month subscribers in our weight management business into multi-month subscribers. And that is actually a very profound change. There's a profound difference in the unit economics between those two types of models. Not just in the accretion, dilution from an EBITDA standpoint, but also from a cash standpoint. So these multi-month subscribers wind up paying back in terms of cash in a very, very short period of time, depending on the subscription. So that is actually a really positive development from this pricing change. It's the rationalization of the different tenor of offerings has actually been really helpful. I think that's something that just I want to make sure that investors are aware of. Operator: Your next question comes from the line of Sarah James with Cantor Fitzgerald. Sarah James: So you framed up 2026 as a year when XYOSTED, Medicare, employer partnerships, pharmacy scaling are all being built but not really reflected in the results. And the operating model itself is intact even with the guidance cut. So if each of those channels reaches the scale that you're underwriting internally, you What does the potential for '27 EBITDA margin growth look like versus the roughly 10% you're exiting at in '26? And which one of those four is likely to show up first as a visible impact rather than a qualitative tailwind? Atul Kavthekar: Yes, thanks for the question, Sarah. I think that there's going to be a real visible showing from the core business that we're in. One of the things that's not even factored into our guidance in the year is the introduction of a number of new products that are in the pipeline. I think you're going to see those really shape our '27 guidance. The XYOSTED, we are very optimistic of it, but it is just getting started. We are just in the early stages of testing. We think that, that has potential to be a really big part of the business, as we mentioned earlier, but the reality is we're going to be building the base of those customers that are going to be ultimately rebilling. So it's going to take a little while before that portfolio winds up actually contributing to EBITDA. We're going to be mostly in growth and investment mode in that business, probably for at least for a few quarters. So without giving too much away in terms of '27, we're pretty optimistic about the forward-looking parts of the base business and also very optimistic about the growth potential certainly from a top-line perspective on some of these new initiatives around, for example, XYOSTED, and there may be more that are working -- that are in the works on that as well. Sarah James: Great, and then one more. Justin, you said you really see it in the numbers when you have more deep relationship with the patients across multiple health areas and possibly pharmacy. Can you talk to us a little bit about where you stand with that today versus where it could be in a couple of years? deep customer relationships with your current book as a percentage of the total versus where it could go and give us an idea. Justin Schreiber: Sure. I mean Sarah, this is Justin. I mean, when we say deeper relationships, right, we just mean patients being able to use our platform for many different aspects of their healthcare. And I think one of the areas where we are already seeing this is in our women's health business, and we're going to start to see it, I think, in the next 30, 60, 90 days, a lot more in our weight management business as well. But look, I think it's -- If you look at our women's health business today, you have a lot of women that are coming in. They're starting with a hormone therapy offering. Many of them, now that we launched testosterone, are talking to their provider about sexual wellness, and some of them, if it's appropriate, are getting a testosterone prescription. One of the other benefits of our women's health program is -- we offer weight loss and GLP-1 support as well. So many of these women are using that. We have really convenient in-home labs. Obviously, if you're on a testosterone product, labs are required. Sometimes those labs are going to Quest and Labcorp. We have a cardiology offering, which is still in its very early stages, but obviously that's very relevant for women's health. So, we have a psychiatry offering that's also kind of another cross-care program that is, again, mainly used by patients that are on another offering at LifeMD. So, I think that's a great example, right? We're also -- one of the areas I forgot, I mean, we're also working on standing up probably later this year a bone health program that incorporates a lot of diet and lifestyle support, connecting all of that data that you're collecting across all of those various programs with a patient's health -- basically a patient's medical data through an HIE, like Health Information Exchange connection, also bringing in all of the lab data, blood data from their lab work. I mean, when you think about what you can do with that, just not only through providing asynchronous and synchronous care through our platform, but also using AI to then provide longitudinal care to that patient, providing medication management. It's pretty powerful. And I think that's -- I mean, I hope that answers your question, but that's what I think about when I think over the next couple of years, like how we can like really deepen the relationship with our patients. Operator: Your next question comes from the line of Steven Dechert with KeyBanc Capital Markets. Steven Dechert: I guess I just wanted to ask around insurance. I think last quarter you guys talked about the demand you were seeing from patients that wanted to use insurance. Maybe you could talk about what the usage looks like among your patient base currently versus maybe where it was3, 6 months ago? And then what you expect that to get to over the next 6 months, 1 year, 2 years. Justin Schreiber: This is Justin Schreiber. I think currently we see around -- somewhere around, I think, 10% of new patients are coming in through one of our insurance flows. That number -- I don't have an exact number to share with you from a quarter or two ago, but it was much smaller than that. Look, we're still doing a lot of testing here and I think that we continue to see a lot more demand from patients to use their insurance to cover their medications than we do from patients to cover the cost of their consult. And a lot of times with what we see with the pharmacy offerings at LifeMD, like the actual asynchronous care or even synchronous care, it's not prohibitively expensive. And so I guess that's kind of a long-winded way of saying We've seen a lot of growth in the insurance business. We're seeing still more growth on the cash pay side of our business. And we do think that long-term insurance is going to continue to grow. I don't have an exact number for what we think that's going to become, but, We really think this is an important differentiator and something that we plan to continue to invest in. And we think it will continue to grow with the business. Operator: Your next question comes from the line of Yi Chen with H.C. Wainwright. Please go ahead. Katherine Degen: This is Katie on for Yi. Kind of building off your earlier comments, you've described the women's health segment as growing. Are you able to give us any more color on that? Like, can you give us any ending subscribers for the quarter, quarterly revenue? Just clarify how much of women's health contributes to the current quarter and what you're kind of expecting in that ramp towards the end of the year. Justin Schreiber: This is Justin. We're not in a position to share our actual patient numbers for that business, but I would just go back to our prior guidance where we said that this business should be approaching a $5 million quarterly revenue run rate by Q4. That might be a little bit aggressive, but I think that business should be somewhere between a $3 million and $5 million quarterly revenue run rate by Q4 of this year. We've seen the business grow a lot quarter to quarter. New patient acquisitions over the last week or 2, we've had several days where they've been in the 50 to 100 new patients per day range, which is a great number. I think we feel really, really good about growing this business with strong unit economics to a several hundred new patient per day growth rate, which is a great business. And look, everything looks really great, right? With this, the pharmacy products are continuing to scale for this business, providers are doing an exceptional job, quality of care is incredible. And we're really excited about the growth of this business. Operator: And that does conclude our question-and-answer session. I would now like to turn it back over to the team for closing comments. Justin Schreiber: Thanks, everybody, for joining our conference call today. We look forward to talking to you all another quarter from now. Thanks very much. Operator: The conference call has now ended. Thank you for attending today's presentation and you may now disconnect. Before you buy stock in LifeMD, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and LifeMD wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the Q2 EBITDA miss to elevated customer acquisition costs and a strategic shift to a $39 introductory offer for branded GLP-1 programs, which reduced upfront cash collection. The company is deliberately moving away from the 'direct-to-consumer playbook' of chasing low-price compounded medications in favor of building longitudinal patient relationships centered on FDA-approved branded therapies. Strategic positioning is shifting toward diversified demand channels—including pharmaceutical partnerships, insurance, and Medicare—to reduce reliance on volatile paid media auctions. Gross margin expansion to approximately 89% was driven by scaling the in-house pharmacy, improved provider efficiency, and lower fulfillment costs. The weight management business saw a significant shift in patient composition, with approximately 85% of new patients selecting multi-month packages following the pricing change, up from 25% previously. Management emphasized that the affiliated medical group is a durable competitive advantage, with 47 new providers hired to support anticipated demand for cross-trained clinical care. The regulatory environment for compounded GLP-1s evolved differently than expected, prompting a faster transition to branded medications which now represent almost 95% of new patient starts. Full-year 2026 guidance was revised downward to reflect the H1 EBITDA shortfall and the impact of lower upfront revenue from new pricing models and partnership investments. Management expects to return to adjusted EBITDA profitability in Q3, with a projected Q4 revenue run rate of approximately $250 million and adjusted EBITDA run rate of $22 million. The XYOSTED collaboration is expected to require $2 million to $3 million in startup investment in 2026, with patient cohorts expected to become accretive to EBITDA in mid-2027. before becoming accretive to EBITDA in mid-2027. The company plans to launch more than 30 new compounded products by year-end across hormone health, sleep, and longevity to further scale the high-margin pharmacy business. Women's health is projected to grow by another 300% to 400% by the end of the year, targeting a $3 million to $5 million quarterly revenue run rate by Q4. The transition to a $39 introductory offer created near-term pressure on cash flow and EBITDA, though management believes it improves long-term patient lifetime value. Paid media remains the largest acquisition channel in the near term, leaving the company exposed to auction pricing volatility until alternative channels mature. The XYOSTED partnership involves a cost-sharing structure that will weigh on margins during the initial patient acquisition and ramp-up phase through 2026, with initial patient cohorts expected to become accretive in mid-2027. Management noted that the market for branded GLP-1s remains difficult due to competition from hundreds of companies offering lower-priced mass-compounded alternatives. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management anticipates considerable demand for peptides if the FDA permits compounding, leveraging their existing sterile and non-sterile pharmacy infrastructure. The company plans a conservative approach, prioritizing safety and pre-clinical data transparency for patients. LifeMD currently receives no direct economics or fulfillment fees from Eli Lilly or Novo Nordisk, though they expect these relationships to evolve. The compounding business has shrunk significantly as 95% of new patients opt for branded therapies, making compounding 'insignificant' to future earnings guidance. The shift to multi-month plans provides a 'profound' difference in unit economics, offering faster cash payback periods despite lower initial entry pricing. This model is expected to improve retention and provide more time to deliver clinical outcomes. Insurance penetration currently stands at approximately 10% of new patients, with higher demand for medication coverage than for consultation coverage. Management views insurance as a key differentiator for long-term retention and affordability, though cash-pay remains the primary growth driver currently.

Interested in LifeMD, Inc.? Here are five stocks we like better. Q2 profitability missed expectations: 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. Weight-management strategy shifted toward branded, longer-term care: 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. Outlook was reduced, but management still targets near-term profitability: 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. Can the New CEO Revive This Struggling Telehealth Stock? 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. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Hims & Hers Health Soars on Generic GLP-1 Rollout Plans “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. → 3 Drone Stocks That Should Soar After the Summer Slump LifeMD Can Surge on Its GLP-1 Offerings 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. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure LifeMD ended the quarter with approximately 108,000 weight-management patients. Schreiber said customer acquisition costs have moderated since mid-June, with recent acquisition costs in weight management approximately 50% below their June peak. The company said the $39 pricing change improved conversion and shifted the mix of new patients toward longer-term plans. Before the change, approximately 25% of new weight-management patients year-to-date had selected multi-month packages. After the change, roughly 85% selected those packages, according to Schreiber. LifeMD is prioritizing branded, FDA-approved GLP-1 therapies and said nearly 95% of new weight-management patients are now entering branded therapy programs. Schreiber said the company’s personalized compounded GLP-1 business has become small and that even prior compound users moved to branded therapies faster than expected. Management also said LifeMD currently receives no economics from its integrations with Eli Lilly’s LillyDirect or Novo Nordisk’s NovoCare. Schreiber said the company expects those relationships to evolve but did not provide additional details. LifeMD said its women’s health patient base grew 134% quarter over quarter and is expected to grow another 300% to 400% by year-end. The business offers longitudinal care that can include hormone therapy, sexual wellness, weight-management support, laboratory testing, cardiology and psychiatry services. During the question-and-answer session, Schreiber said LifeMD expects its women’s health business to reach a quarterly revenue run rate of between $3 million and $5 million by the fourth quarter, though he said the higher end of that range “might be a little bit aggressive.” The company also launched an initial self-pay program in July for XYOSTED, an FDA-approved weekly testosterone auto-injector, through an exclusive telehealth co-marketing collaboration with Halozyme subsidiary Antares Pharma. The program launched across 37 states at an all-in price of $249 per month, with LifeMD’s affiliated pharmacy serving as the primary dispensing pharmacy. Management expects the XYOSTED launch to require $2 million to $3 million of investment during 2026, with direct costs split between the companies. Kavthekar said initial patient cohorts are expected to become accretive to LifeMD’s EBITDA in mid-2027 once the acquisition approach matures. LifeMD said it hired 47 providers during the quarter to support anticipated second-half demand. The company also plans to launch more than 30 compounded products by year-end across hormone health, sleep, dermatology, sexual health, longevity and other categories. Its benefits infrastructure now reaches about 175 million covered lives, while insurance penetration is approximately 10% of new patients on LifeMD’s primary care platform. Schreiber said insurance use has grown, although the company continues to see greater demand from patients seeking coverage for medications than for consultation costs. LifeMD reduced its full-year 2026 forecast to revenue of $205.5 million to $212.5 million and adjusted EBITDA of a $6 million loss to breakeven. The revised outlook reflects the first-half EBITDA shortfall, lower upfront revenue from pricing and patient-mix decisions, and investment in strategic partnerships including XYOSTED. For the third quarter, the company forecast revenue of $48 million to $51 million and adjusted EBITDA ranging from a $1 million loss to a $2 million profit. For the fourth quarter, it projected revenue of $60 million to $64 million and adjusted EBITDA of $3 million to $6 million. At the midpoint of its fourth-quarter outlook and excluding XYOSTED launch costs, LifeMD said it expects an annualized revenue run rate of approximately $250 million and an annualized adjusted EBITDA run rate of approximately $22 million. Schreiber said the company expects to return to adjusted EBITDA profitability in the third quarter and deliver further sequential improvement in the fourth quarter. LifeMD (NASDAQ: LFMD) is a U.S.-based telehealth company that delivers on-demand, membership-based virtual healthcare services. Through its digital platform and mobile applications, LifeMD connects patients with board-certified healthcare providers for diagnosis, treatment and ongoing management of a range of acute and chronic conditions. The company’s core offering centers on personalized care plans supported by prescription fulfillment, lab testing and prescription delivery services. LifeMD’s service portfolio spans several specialty areas, including men’s health, hormonal therapy, weight management and primary care. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "LifeMD Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Second quarter 2026 revenue of $47.3 million, within the Company’s guidance range of $47 million to $50 million; adjusted EBITDA loss of approximately $3.5 million, improving approximately 21% sequentially. Approximately 95% of all new weight management patients now begin treatment with branded GLP-1 therapies; with the guidance provided today, the Company believes it is effectively at the end of its transition away from compounded GLP-1 medications. Gross margin expanded approximately 280 basis points versus the second quarter of 2025 to approximately 89%, reflecting lower shipping and fulfillment costs and the continued scaling of the Company’s in-house pharmacy. Weight Management Program subscribers grew to approximately 108,000 at quarter end; total active subscribers increased 20% year-over-year to approximately 356,000. Women’s Health operating trends continues to improve, with lower customer acquisition costs and a broad set of new pharmacy products launching in the second half. Launched an exclusive telehealth co-marketing collaboration with Halozyme’s wholly-owned subsidiary, Antares Pharma, Inc., for XYOSTED®, the only FDA-approved, once-weekly subcutaneous testosterone auto-injector — with additional strategic partnerships and enterprise relationships advancing toward execution in the second half of 2026. Exited the quarter with $25.1 million of cash, no debt, and $30 million of additional liquidity under its revolving credit facility. Expecting a return to positive adjusted EBITDA in the second half of 2026 and an expected fourth quarter exit revenue run rate of approximately $250 million and approximately $22 million of annualized adjusted EBITDA Revising full year 2026 guidance to revenue of $205.5 million to $212.5 million and adjusted EBITDA of negative $6.0 million to breakeven, including $2 million to $3 million of net launch costs for XYOSTED® in 2026. Conference call begins at 4:30 p.m. Eastern time today NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care and pharmacy services, today reported financial results for the second quarter ended June 30, 2026. Management Commentary “Revenue of $47.3 million came in within our guidance range, and while adjusted EBITDA finished below the range we guided to, it improved approximately 21% sequentially. Most importantly, we understand the drivers of the result and have already taken steps to improve performance in the second half. At the same time, the quarter included meaningful progress in reshaping the business around longer-duration members, branded therapies, pharmacy, insurance, and new partnerships. The near-term impact on profitability was greater than we anticipated, but the decisions we made during the quarter are already driving a substantial shift towards what we believe will be higher LTV subscribers,” said Justin Schreiber, Chairman and CEO of LifeMD. “Our model remains simple: Quality Care. Quality Products. Quality Revenue. We are building around longer patient relationships and a more diversified acquisition model, with increasing contributions over time from pharmaceutical manufacturers, employers, insurers, Medicare, referrals, and cross-care within our existing patient base. Following the pricing change in weight management, the share of new patients selecting multi-month packages increased from approximately 25% year to date before the change to approximately 85% after it. We believe these longer-duration relationships can support better outcomes, stronger retention, higher lifetime value, and more predictable revenue over time. “This transition to branded GLP-1 medications has weighed on near-term profitability, but it has produced a fundamentally stronger company that is more diversified. We are also encouraged by the progress we are seeing in Women’s Health, the launch of XYOSTED® with Halozyme, the continued expansion of our pharmacy, and the development of our pharmaceutical, enterprise, insurance, and Medicare channels. We expect to return to positive adjusted EBITDA in the second half and to exit 2026 at an annualized revenue run rate of approximately $250 million with approximately $22 million of annualized adjusted EBITDA. LifeMD has never been better positioned, and the second half of this year will begin to demonstrate what our expanding platform is capable of,” concluded Mr. Schreiber. “The second quarter reflected the planned step-down in marketing investment we described on our last call, with selling and marketing expense declining $1.8 million sequentially and other general and administrative expenses declining by approximately $2.2 million,” said Atul Kavthekar, Chief Financial Officer of LifeMD. “Revenue aligned with our expectations in the quarter, and gross margin expanded to approximately 89%, driven by lower shipping and fulfillment costs, improved provider efficiency, and the continued scaling of our in-house pharmacy. Our recurring rebill base now represents approximately 84% of revenue and is the profit engine that funds our growth. We exited the quarter with $25.1 million in cash and no debt, and we amended our revolving credit facility, further strengthening our financial flexibility. As more patients choose longer-duration subscription plans and marketing spend declines in the second half, we expect cash to build through year-end.” Second Quarter 2026 Financial Highlights All comparisons are with the second quarter of 2025 on a continuing operations basis (excluding WorkSimpli, which was divested on November 4, 2025, and is reported as discontinued operations for all periods presented). Non-GAAP financial measures referenced below are defined and reconciled to the most directly comparable GAAP measures at the end of this press release. Total revenue was $47.3 million compared with $49.0 million in the prior-year period, reflecting the continued shift from compounded to branded GLP-1 therapies and lower upfront revenue associated with the Company’s pricing and mix decisions. Approximately 84% of revenue was derived from recurring subscriptions. The number of active subscribers increased 20% to approximately 356,000 at quarter end. At quarter end, the number of Weight Management Program subscribers was approximately 108,000, up from just under 100,000 at the end of the first quarter of 2026. Gross profit was $42.0 million, essentially flat with the prior-year period despite lower revenue; gross margin expanded to approximately 89%, compared to 86% in the prior-year period, primarily due to lower shipping and fulfillment costs and the continued scaling of the Company’s affiliated pharmacy. Selling and marketing expenses increased 27% year-over-year to $28.0 million, but declined $1.8 million from the first quarter of 2026, consistent with the planned sequential step-down in patient acquisition spend. General and administrative expenses declined 5% to $13.6 million, led by lower employee expenses and legal and professional services fees. GAAP net loss from continuing operations attributable to common stockholders was $7.9 million, or $0.16 per share, compared with a GAAP net loss from continuing operations attributable to common stockholders of $3.8 million, or $0.09 per share, in the prior-year period. Adjusted EBITDA loss was approximately $3.5 million, compared with adjusted EBITDA of approximately $3.9 million in the prior-year period, reflecting elevated customer acquisition costs earlier in the quarter and lower upfront cash collection associated with the Company’s $39 introductory offer; monthly performance improved as the quarter progressed. Cash totaled $25.1 million as of June 30, 2026, and the Company had no debt at quarter end, with an undrawn $30 million revolving credit facility. Second Quarter Key Performance Metrics Positioned for a Strong Second Half LifeMD enters the second half with improving acquisition trends, a growing recurring patient base, and a broader set of growth channels taking shape. Priorities for the remainder of 2026 include scaling longer-duration weight management memberships, expanding Women’s Health and the XYOSTED® collaboration, increasing pharmacy attachment, and advancing pharmaceutical, insurance, Medicare, employer, and enterprise relationships. Together, these initiatives should reduce reliance on paid media, deepen patient relationships, and support improving operating leverage and financial performance through year-end. Financial Guidance For the third quarter of 2026, the Company expects: Revenue in the range of $48 million to $51 million. Adjusted EBITDA in the range of negative $1 million to positive $2 million, returning to positive adjusted EBITDA as cost savings take hold and the Company’s recurring rebill base continues to build. For the full year 2026, the Company expects (revised from previous guidance): Revenue in the range of $205.5 million to $212.5 million, compared with previous guidance of $220 million to $230 million. Adjusted EBITDA in the range of negative $6.0 million to breakeven, compared with previous guidance of $12 million to $17 million. The Company’s fourth quarter 2026 guidance of $60 million to $64 million of revenue and $3 million to $6 million of adjusted EBITDA implies an annualized exit run rate of approximately $250 million of revenue and before estimated XYOSTED® launch costs, approximately $22 million of continuing adjusted EBITDA. Conference Call LifeMD’s management will host a conference call today at 4:30 p.m. Eastern time to discuss the Company’s financial results and outlook, and answer questions. Details for the call are as follows: A live and archived webcast will be available in the Investors section of the Company’s website at ir.lifemd.com. About LifeMD, Inc. LifeMD® is a leading virtual care company making high-quality healthcare more accessible, convenient, and affordable. Through its vertically integrated platform, LifeMD connects patients with a 50-state affiliated medical group, laboratory services, a state-of-the-art in-house pharmacy, and a U.S.-based patient care center. Together, these capabilities support care across more than 200 conditions, including primary care, men’s and women’s health, weight management, and hormone therapy. For more information, please visit LifeMD.com. Cautionary Note Regarding Forward Looking Statements This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” “predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition. Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods. Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation. Investor [email protected] Media [email protected] About the Use of Non-GAAP Financial Measures To supplement our financial information presented in accordance with GAAP, we use adjusted EBITDA as a non-GAAP financial measure to clarify and enhance an understanding of past performance. We believe that the presentation of this financial measure enhances an investor’s understanding of our financial performance. We further believe that this financial measure is a useful financial metric to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors. Adjusted EBITDA is defined as net loss attributable to LifeMD, Inc. common stockholders before interest, taxes, depreciation, amortization, extraordinary litigation costs, severance and restructuring costs, acquisition expenses, insurance acceptance readiness expenses, preferred stock dividends, stock-based compensation expense, net income from discontinued operations and net income attributable to noncontrolling interests of discontinued operations. We have provided below a reconciliation of adjusted EBITDA to net loss attributable to LifeMD, Inc. common stockholders, its most directly comparable GAAP financial measure. We believe the above financial measure is commonly used by investors to evaluate our performance and that of our competitors. However, our use of the term adjusted EBITDA may vary from that of others in our industry. Adjusted EBITDA should not be considered as an alternative to net loss before taxes, net loss per share, operating loss or any other performance measures derived in accordance with GAAP as measures of performance.

UPDATE this press release has been updated to remove a duplicate table. Second quarter 2026 revenue of $47.3 million, within the Company’s guidance range of $47 million to $50 million; adjusted EBITDA loss of approximately $3.5 million, improving approximately 21% sequentially. Approximately 95% of all new weight management patients now begin treatment with branded GLP-1 therapies; with the guidance provided today, the Company believes it is effectively at the end of its transition away from compounded GLP-1 medications. Gross margin expanded approximately 280 basis points versus the second quarter of 2025 to approximately 89%, reflecting lower shipping and fulfillment costs and the continued scaling of the Company’s in-house pharmacy. Weight Management Program subscribers grew to approximately 108,000 at quarter end; total active subscribers increased 20% year-over-year to approximately 356,000. Women’s Health operating trends continues to improve, with lower customer acquisition costs and a broad set of new pharmacy products launching in the second half. Launched an exclusive telehealth co-marketing collaboration with Halozyme’s wholly-owned subsidiary, Antares Pharma, Inc., for XYOSTED®, the only FDA-approved, once-weekly subcutaneous testosterone auto-injector — with additional strategic partnerships and enterprise relationships advancing toward execution in the second half of 2026. Exited the quarter with $25.1 million of cash, no debt, and $30 million of additional liquidity under its revolving credit facility. Expecting a return to positive adjusted EBITDA in the second half of 2026 and an expected fourth quarter exit revenue run rate of approximately $250 million and approximately $22 million of annualized adjusted EBITDA Revising full year 2026 guidance to revenue of $205.5 million to $212.5 million and adjusted EBITDA of negative $6.0 million to breakeven, including $2 million to $3 million of net launch costs for XYOSTED® in 2026. Conference call begins at 4:30 p.m. Eastern time today NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care and pharmacy services, today reported financial results for the second quarter ended June 30, 2026. Management Commentary “Revenue of $47.3 million came in within our guidance range, and while adjusted EBITDA finished below the range we guided to, it improved approximately 21% sequentially. Most importantly, we understand the drivers of the result and have already taken steps to improve performance in the second half. At the same time, the quarter included meaningful progress in reshaping the business around longer-duration members, branded therapies, pharmacy, insurance, and new partnerships. The near-term impact on profitability was greater than we anticipated, but the decisions we made during the quarter are already driving a substantial shift towards what we believe will be higher LTV subscribers,” said Justin Schreiber, Chairman and CEO of LifeMD. “Our model remains simple: Quality Care. Quality Products. Quality Revenue. We are building around longer patient relationships and a more diversified acquisition model, with increasing contributions over time from pharmaceutical manufacturers, employers, insurers, Medicare, referrals, and cross-care within our existing patient base. Following the pricing change in weight management, the share of new patients selecting multi-month packages increased from approximately 25% year to date before the change to approximately 85% after it. We believe these longer-duration relationships can support better outcomes, stronger retention, higher lifetime value, and more predictable revenue over time. “This transition to branded GLP-1 medications has weighed on near-term profitability, but it has produced a fundamentally stronger company that is more diversified. We are also encouraged by the progress we are seeing in Women’s Health, the launch of XYOSTED® with Halozyme, the continued expansion of our pharmacy, and the development of our pharmaceutical, enterprise, insurance, and Medicare channels. We expect to return to positive adjusted EBITDA in the second half and to exit 2026 at an annualized revenue run rate of approximately $250 million with approximately $22 million of annualized adjusted EBITDA. LifeMD has never been better positioned, and the second half of this year will begin to demonstrate what our expanding platform is capable of,” concluded Mr. Schreiber. “The second quarter reflected the planned step-down in marketing investment we described on our last call, with selling and marketing expense declining $1.8 million sequentially and other general and administrative expenses declining by approximately $2.2 million,” said Atul Kavthekar, Chief Financial Officer of LifeMD. “Revenue aligned with our expectations in the quarter, and gross margin expanded to approximately 89%, driven by lower shipping and fulfillment costs, improved provider efficiency, and the continued scaling of our in-house pharmacy. Our recurring rebill base now represents approximately 84% of revenue and is the profit engine that funds our growth. We exited the quarter with $25.1 million in cash and no debt, and we amended our revolving credit facility, further strengthening our financial flexibility. As more patients choose longer-duration subscription plans and marketing spend declines in the second half, we expect cash to build through year-end.” Second Quarter 2026 Financial Highlights All comparisons are with the second quarter of 2025 on a continuing operations basis (excluding WorkSimpli, which was divested on November 4, 2025, and is reported as discontinued operations for all periods presented). Non-GAAP financial measures referenced below are defined and reconciled to the most directly comparable GAAP measures at the end of this press release. Total revenue was $47.3 million compared with $49.0 million in the prior-year period, reflecting the continued shift from compounded to branded GLP-1 therapies and lower upfront revenue associated with the Company’s pricing and mix decisions. Approximately 84% of revenue was derived from recurring subscriptions. The number of active subscribers increased 20% to approximately 356,000 at quarter end. At quarter end, the number of Weight Management Program subscribers was approximately 108,000, up from just under 100,000 at the end of the first quarter of 2026. Gross profit was $42.0 million, essentially flat with the prior-year period despite lower revenue; gross margin expanded to approximately 89%, compared to 86% in the prior-year period, primarily due to lower shipping and fulfillment costs and the continued scaling of the Company’s affiliated pharmacy. Selling and marketing expenses increased 27% year-over-year to $28.0 million, but declined $1.8 million from the first quarter of 2026, consistent with the planned sequential step-down in patient acquisition spend. General and administrative expenses declined 5% to $13.6 million, led by lower employee expenses and legal and professional services fees. GAAP net loss from continuing operations attributable to common stockholders was $7.9 million, or $0.16 per share, compared with a GAAP net loss from continuing operations attributable to common stockholders of $3.8 million, or $0.09 per share, in the prior-year period. Adjusted EBITDA loss was approximately $3.5 million, compared with adjusted EBITDA of approximately $3.9 million in the prior-year period, reflecting elevated customer acquisition costs earlier in the quarter and lower upfront cash collection associated with the Company’s $39 introductory offer; monthly performance improved as the quarter progressed. Cash totaled $25.1 million as of June 30, 2026, and the Company had no debt at quarter end, with an undrawn $30 million revolving credit facility. Second Quarter Key Performance Metrics Positioned for a Strong Second Half LifeMD enters the second half with improving acquisition trends, a growing recurring patient base, and a broader set of growth channels taking shape. Priorities for the remainder of 2026 include scaling longer-duration weight management memberships, expanding Women’s Health and the XYOSTED® collaboration, increasing pharmacy attachment, and advancing pharmaceutical, insurance, Medicare, employer, and enterprise relationships. Together, these initiatives should reduce reliance on paid media, deepen patient relationships, and support improving operating leverage and financial performance through year-end. Financial Guidance For the third quarter of 2026, the Company expects: Revenue in the range of $48 million to $51 million. Adjusted EBITDA in the range of negative $1 million to positive $2 million, returning to positive adjusted EBITDA as cost savings take hold and the Company’s recurring rebill base continues to build. For the full year 2026, the Company expects (revised from previous guidance): Revenue in the range of $205.5 million to $212.5 million, compared with previous guidance of $220 million to $230 million. Adjusted EBITDA in the range of negative $6.0 million to breakeven, compared with previous guidance of $12 million to $17 million. The Company’s fourth quarter 2026 guidance of $60 million to $64 million of revenue and $3 million to $6 million of adjusted EBITDA implies an annualized exit run rate of approximately $250 million of revenue and before estimated XYOSTED® launch costs, approximately $22 million of continuing adjusted EBITDA. Conference Call LifeMD’s management will host a conference call today at 4:30 p.m. Eastern time to discuss the Company’s financial results and outlook, and answer questions. Details for the call are as follows: A live and archived webcast will be available in the Investors section of the Company’s website at ir.lifemd.com. About LifeMD, Inc. LifeMD® is a leading virtual care company making high-quality healthcare more accessible, convenient, and affordable. Through its vertically integrated platform, LifeMD connects patients with a 50-state affiliated medical group, laboratory services, a state-of-the-art in-house pharmacy, and a U.S.-based patient care center. Together, these capabilities support care across more than 200 conditions, including primary care, men’s and women’s health, weight management, and hormone therapy. For more information, please visit LifeMD.com. Cautionary Note Regarding Forward Looking Statements This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” “predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition. Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods. Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation. Investor [email protected] Media [email protected] About the Use of Non-GAAP Financial Measures To supplement our financial information presented in accordance with GAAP, we use adjusted EBITDA as a non-GAAP financial measure to clarify and enhance an understanding of past performance. We believe that the presentation of this financial measure enhances an investor’s understanding of our financial performance. We further believe that this financial measure is a useful financial metric to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors. Adjusted EBITDA is defined as net loss attributable to LifeMD, Inc. common stockholders before interest, taxes, depreciation, amortization, extraordinary litigation costs, severance and restructuring costs, acquisition expenses, insurance acceptance readiness expenses, preferred stock dividends, stock-based compensation expense, net income from discontinued operations and net income attributable to noncontrolling interests of discontinued operations. We have provided below a reconciliation of adjusted EBITDA to net loss attributable to LifeMD, Inc. common stockholders, its most directly comparable GAAP financial measure. We believe the above financial measure is commonly used by investors to evaluate our performance and that of our competitors. However, our use of the term adjusted EBITDA may vary from that of others in our industry. Adjusted EBITDA should not be considered as an alternative to net loss before taxes, net loss per share, operating loss or any other performance measures derived in accordance with GAAP as measures of performance.

Interested in Medifast Inc? Here are five stocks we like better. Q2 performance weakened: Revenue fell 27.6% year over year to $76.4 million, and Medifast posted a $3.1 million net loss as its active earning coach base declined nearly 49%. However, revenue per active coach increased 41% to $6,529, marking a third consecutive quarter of productivity improvement. Trilivy anchors the strategic reset: Medifast is shifting from traditional weight loss toward metabolic health through its new Trilivy brand, upcoming Reset Fuelings, the Metabolic Health Institute and an enhanced coach compensation plan. Management is targeting a Q4 return to profitability: The Catalyst cost program is expected to generate millions in savings through facility rationalization, AI efficiencies and other streamlining. Medifast ended June with $169.8 million in cash and investments, no debt, and reiterated its fourth-quarter 2026 profitability goal. LifeMD Can Surge on Its GLP-1 Offerings Medifast (NYSE:MED) reported second-quarter 2026 revenue of $76.4 million, down 27.6% from a year earlier, as its active earning coach base continued to decline amid the rapid adoption of GLP-1 medications across the traditional weight-loss category. The company posted a net loss of $3.1 million, or $0.28 per diluted share, compared with net income of $2.5 million, or $0.22 per share, in the prior-year quarter. Management said revenue met its guidance range and earnings per share exceeded guidance, supported by a third consecutive quarter of improvement in coach productivity. Medifast ended the quarter with about 11,700 active earning coaches, a 48.7% decrease from the second quarter of 2025. However, average revenue per active earning coach rose 41% year over year to $6,529 and increased 20% sequentially, reaching its highest level since the second quarter of 2022. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now LifeMD Shares Come Back to Life on GLP-1 Business Growth “We now have a clear trend of increasing coach productivity both year-over-year and sequentially,” Chief Financial Officer Jim Maloney said. The company views higher revenue per coach as an early indicator that could eventually lead to coach growth and revenue growth. Chief Executive Officer Nicholas Johnson, speaking on his first earnings call in the role, said the company is pursuing a broader transition from weight loss toward metabolic health. Medifast launched its Trilivy consumer brand as the successor to OPTAVIA and described it as the first step in its “3.0 strategy,” a 10-year roadmap focused on expanding its offerings, geographic reach and demographic footprint. → MarketBeat Week in Review – 07/27- 07/31 Are These Consumer Staples Too Cheap for Investors To Ignore? Johnson said Trilivy is designed around three phases—reset, refine and renew—and positions the company’s coach-led nutrition programs as a comprehensive metabolic health system. The company also launched the Medifast Metabolic Health Institute in July, which will organize research, product development, scientific communications and education. The company plans to introduce new Reset Fuelings later in August. The products include Medifast’s MetaVantage Technology Reset Formula, which the company said is intended to support normal fat metabolism, healthy insulin function and reduced waist circumference. Johnson said a spring pilot involving certain employees, coaches and clients generated “overwhelmingly positive” feedback. → GE HealthCare Stock Climbs on Vital Diagnostics Demand Medifast also launched an enhanced coach compensation plan on Aug. 1, emphasizing the development of executive directors. Johnson said executive directors are the company’s highest-producing coaches and represent “the single greatest driver of sustainable growth” for the business. The percentage of active earning coaches at the executive director rank or above remained above the company’s 10% benchmark for a healthy and scalable field organization, he said. Gross profit declined 30.3% year over year to $53.4 million, while gross margin fell to 69.9% from 72.6%. Maloney attributed the margin decline primarily to a loss of leverage on fixed costs as sales volumes decreased. Selling, general and administrative expense fell 25.7% to $57.7 million. The reduction included a $12.6 million decline in coach compensation, a $2.3 million reduction in employee salary and benefits expense, and a $2 million decrease in company-led marketing costs. Still, SG&A as a percentage of revenue increased by 200 basis points because of lower fixed-cost leverage and costs related to the Trilivy Reset product launch. Medifast recorded an operating loss of $4.3 million, compared with an operating loss of approximately $1 million in the second quarter of 2025. Other income declined to $1.3 million from the prior-year period, primarily because the earlier quarter included gains on LifeMD common stock that Medifast sold during the second quarter of 2025. Medifast launched its Catalyst program during the second quarter, with most execution expected in the third quarter. The initiative is intended to generate cost savings through facility rationalization, AI-related efficiencies and other streamlining measures. Maloney said the company expects “millions of dollars of savings” but has not yet quantified the program because management is still determining which costs to reduce. He said Medifast expects to provide more detail during its third-quarter earnings call and stressed that the company does not intend to make cuts that would impair revenue growth. Management reiterated its objective of returning to profitability in the fourth quarter of 2026, citing top-line stabilization, the new product rollout and cost reductions under Catalyst. Maloney said the company expects improved margins as revenue stabilizes and as the business gains operating leverage over time. Third-quarter revenue guidance: $60 million to $80 million. Third-quarter loss-per-share guidance: $0.15 to $0.65, excluding one-time Catalyst execution costs. Full-year 2026 revenue guidance: $270 million to $300 million. Full-year 2026 loss-per-share guidance: $0.25 to $1.75. Expected working capital at Dec. 31, 2026: More than $145 million. Medifast held $169.8 million in cash equivalents and investments and had no debt as of June 30. Johnson said the company’s balance sheet provides financial flexibility as it rolls out Trilivy and works toward its fourth-quarter profitability target. Medifast, Inc (NYSE: MED) is a health and wellness company specializing in clinically supported weight-loss, weight-management and healthy living products and services. Through its OPTAVIA brand, the company offers a range of meal replacement products, snacks, supplements and coaching programs designed to support metabolic health and sustainable lifestyle changes. Medifast markets its products directly to consumers via a network of independent distributors—known as OPTAVIA Coaches—who provide personalized guidance and support throughout the client's weight‐loss journey. Founded in 1980 by William Vitale and headquartered in Baltimore, Maryland, Medifast has grown into a nationally recognized provider of nutrition and weight‐management solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Medifast Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

NEW YORK, June 23, 2026 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading direct-to-patient telehealth company, today announced that its Board of Directors has authorized a cash dividend to holders of the Company’s 8.875% Series A Cumulative Perpetual Preferred Stock (Nasdaq: LFMDP) equal to $0.5546875 per share. The preferred dividend will be paid on July 15, 2026, to holders of record at the close of business on July 3, 2026. About LifeMD, Inc. LifeMD® is a leading provider of virtual primary care. LifeMD offers telemedicine, access to laboratory and pharmacy services, and specialized treatment across more than 200 conditions, including primary care, men’s and women's health, weight management, and hormone therapy. The Company leverages a vertically integrated, proprietary digital care platform, a 50-state affiliated medical group, a state-of-the-art affiliated pharmacy, and a U.S.-based patient care center to increase access to high-quality and affordable care. For more information, please visit LifeMD.com. Cautionary Note Regarding Forward Looking Statements This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition. Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods. Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation. Investor [email protected] Media Contact [email protected]

Image source: The Motley Fool. Wednesday, May 6, 2026 at 4:30 p.m. ET Chief Executive Officer — Justin Schreiber Chief Financial Officer — Atul Kavikar Need a quote from a Motley Fool analyst? Email [email protected] Justin Schreiber: Thank you, and good afternoon, everyone. After the market closed today, we issued a press release announcing our first quarter financial results. We have also posted an updated corporate presentation, our Form 10-Q, and our shareholder letter on our Investor Relations website at ir.lifemd.com. I encourage everyone to review those materials. Q1 was a strong start to 2026. We delivered revenue of $50.2 million, ahead of guidance, and added more than 42 thousand net telehealth subscribers, the largest quarterly net addition in our history. We ended the quarter with over 365 thousand subscribers. In weight management, sign-ups increased approximately 120% sequentially from Q4, and we exited the quarter with strong momentum across all of our key growth areas. We are seeing clear early validation of the strategy we laid out on our last call. But what matters most is not just the quarter; it is what this quarter says about the platform we are building. As I outlined in our shareholder letter, I think about LifeMD, Inc. in very simple terms: quality care, quality products, quality revenue. When we deliver high-quality care, patients trust us. When we offer products and services that genuinely improve their lives, they come back. And when patients engage across more of the platform and stay with us longer, the revenue becomes more durable, higher quality, and ultimately more profitable. Today, we have a 50-state affiliated medical group, a fully integrated pharmacy, in-home and national lab capabilities, expanding insurance coverage, deep pharmaceutical collaborations, and a growing set of specialty care programs. Increasingly, we are layering AI across that infrastructure to make it faster, more efficient, and more personalized. LifeMD, Inc. is no longer just a telehealth company focused on a handful of conditions. We are building what we believe can become one of the most important virtual healthcare platforms in the country, a trusted destination where patients can access care, medications, labs, insurance-supported services, and ongoing clinical support through one connected experience. Let me walk you through where we are seeing the most progress. First, weight management. This remains the largest opportunity in our business. More than 100 million Americans are clinically eligible for GLP-1 therapy, and it is estimated that fewer than 15% have tried one. These medications represent one of the most significant breakthroughs in consumer healthcare in decades. Importantly, the market is becoming more dynamic, not less. We are entering the next phase of GLP-1 adoption. The first phase was access to injectables. The second phase is broader access, including oral therapies, lower-cost self-pay options, insurance coverage, and a deep pipeline of next-generation drugs. We are built for this phase. We have already benefited from the introduction of oral GLP-1s. Customer acquisition costs improved 4% to 5% sequentially in Q1 even as volumes effectively doubled, from roughly 300 to 400 new patients per day to 600 to 1 thousand patients per day. We ended the quarter with just under 100 thousand weight management patients. And this opportunity is only getting bigger. There are roughly 40 GLP-1 therapies currently in development, including oral formulations, longer-acting injectables, and multi-pathway treatments. As these therapies come to market, we believe platforms like LifeMD, Inc. that combine affordable access, insurance integration, and real clinical care will be the long-term winners. Second, Women’s Health. This continues to be one of the programs I am most excited about. The need is enormous. Tens of millions of women are entering or living through menopause, and access to thoughtful, evidence-based, coordinated care remains limited. We built this program differently, around longitudinal care, not just prescriptions. That includes comprehensive intake, appropriate lab work, structured clinical protocols, and ongoing management by providers trained specifically in women’s health. The early results have exceeded our expectations. Subscriber count grew more than 7x from the Q4 base, customer acquisition costs remain attractive, and on-therapy retention is tracking north of 80%. We believe that performance is a direct reflection of the quality of the program. Over the coming months, we plan to introduce seven new compounded pharmacy products focused on hormone and bone health, highly complementary to patient needs and well aligned with our in-house pharmacy capabilities. Women’s Health has the potential to become one of the largest and most important programs in our company, not just a growth driver, but a category where we can build deep, trusted patient relationships. Third, RexMD and Men’s Health. RexMD remains one of the most recognized men’s health brands in the country and a critical part of our platform. We now have approximately 215 thousand active patients, with growth across ED, sleep, and hair loss, with sleep currently the fastest-growing category. ED remains the core, and our personalized ED medications combining sildenafil and tadalafil grew more than 40% versus Q4. As more fulfillment shifts in-house, we expect continued margin expansion. But RexMD is evolving beyond ED. We are expanding into personalized pharmacy products across sexual health, dermatology, pain management, and longevity. Just as importantly, RexMD provides a large, engaged patient base that can expand into the broader LifeMD, Inc. ecosystem over time, strengthening retention and lifetime value. Fourth, operating leverage and AI. This is one of the most important components of the LifeMD, Inc. story for 2026. We are deploying AI aggressively but thoughtfully, with quality as the nonnegotiable. AI is not just a cost initiative; it is becoming foundational to how we build software, how providers deliver care, and how we operate the business. Our clinical decision support tools will integrate health records, lab data, biomarker insights, and patient intake information to enable more personalized and efficient care. Over time, we expect AI to increase provider capacity without adding headcount, which is a key lever for scaling efficiently. We are also embedding AI across intake, documentation, patient support, revenue cycle, compliance, and back-office workflows. This is not about replacing providers. It is about enabling them to spend more time practicing medicine and less time on administrative work. We expect the margin impact to become more visible in 2026. And when AI is combined with our 503A compounding pharmacy, it unlocks something powerful: personalized prescribing at scale, enabled by data, clinical infrastructure, pharmacy capabilities, and national reach. Very few platforms have that combination, and LifeMD, Inc. is one of them. Fifth, pharmacy, insurance, and partnerships. Our affiliated pharmacy continues to scale. We now operate a 22.5 thousand square foot facility licensed in all 50 states with both commercial and 503A compounding capabilities. The pharmacy is currently processing approximately 20 thousand prescriptions per month, with significant capacity to expand throughout this year as our pharmacy offerings expand. We view pharmacy as one of our most important long-term margin expansion levers, improving economics, patient experience, and speed to market. On the payer side, our insurance and Medicare infrastructure continues to expand. We ended the quarter with approximately 112 million covered lives and expect to reach approximately 230 million by the end of this month. The Medicare GLP-1 Bridge launching July 1 is particularly important, as it expands access to GLP-1 therapies for Medicare patients at an affordable monthly cost. We also continue to see strong momentum with pharmaceutical partners as the industry increasingly shifts toward direct-to-patient models. Our GLP-1 collaborations are a strong proof point of that trend. On the employer side, we are making progress with enterprise relationships and direct GLP-1 coverage for self-insured groups, a meaningful upside opportunity not yet fully reflected in our outlook. Stepping back, we feel very good about where we are. We are serving more patients, expanding into larger and more durable categories, strengthening the platform, and building a business we believe can compound over the long term. We are reaffirming our full-year guidance of $220 million to $230 million in revenue and $12 million to $17 million in adjusted EBITDA. We continue to expect annualized run-rate revenue above $250 million and adjusted EBITDA above $25 million by the fourth quarter. With that, I will turn the call over to our new CFO, Atul Kavikar, to walk through the quarter in more detail. Atul? Atul Kavikar: Thank you, and good afternoon, everyone. I am delighted to be joining my first quarterly call as CFO of LifeMD, Inc., and pleased to be leading its financial operations. It has been a positive first few weeks, and I have been impressed by the team, their commitment to continuous improvement, their entrepreneurial mindset, and their general curiosity. I will be doing everything I can to continue that culture. As for results, the first quarter played out largely as we expected: strong subscriber momentum following a planned step-up in patient acquisition spend, and the early benefits of platform efficiency beginning to show in our gross margin. As a reminder, all year-over-year comparisons are on a continuing operations basis excluding WorkSimply, which was divested on 11/04/2025. Revenue for the first quarter was $50.2 million, exceeding our guidance of $48 million to $49 million, and essentially flat versus the prior-year period of $50.9 million, with nearly all revenue derived from recurring subscriptions. Active subscribers grew approximately 26% year over year to over 365 thousand at quarter end, with over 42 thousand net adds in Q1, the largest quarterly net addition in our history. Gross margin for the quarter expanded approximately 420 basis points to 88%, primarily reflecting improvements in lower shipping and fulfillment costs, including the continued scaling of our in-house pharmacy fulfillment that Justin described previously. Gross profit was $44.2 million, up 3% from the year-ago period despite the flat year-over-year revenue growth. Selling and marketing expenses were $29.8 million, an increase of 34% year over year, reflecting the strategic, front-loaded patient acquisition investment designed to drive subscriber growth in subsequent quarters. Q1 was the peak of our marketing investment for the year. Marketing spend has begun normalizing, and we expect sales and marketing to step down in Q2 and remain at more typical levels throughout the back half. GAAP net loss from continuing operations attributable to common stockholders was $9.6 million, or $0.20 per diluted share, compared to a net loss from continuing operations attributable to common stockholders of $2.4 million, or $0.06 per diluted share, in the prior-year period. Stock-based compensation was $1.4 million, down from $2.5 million in the prior-year period, reflecting our continued focus on aligning our management with long-term goals. Adjusted EBITDA, a non-GAAP measure we define as income or loss attributable to common stockholders before various items as outlined in today’s news release, was a loss of approximately $4.5 million for the first quarter, in line with our previously issued first-quarter guidance range of a loss of $4 million to $5 million. This compares with an adjusted EBITDA of approximately $3.7 million in the prior-year period. We will now turn to the balance sheet. We exited the quarter with $34.5 million in cash, no debt, and a $30 million undrawn revolving credit facility that we put into place at the start of the year. Our balance sheet remains a strategic asset, providing ample flexibility to fund our expanding growth initiatives. Looking forward, we are reaffirming our 2026 full-year guidance: revenue of $220 million to $230 million, representing 13% to 19% year-over-year growth, and adjusted EBITDA of $12 million to $17 million. We expect to return to adjusted EBITDA profitability in the second half of the year as customer acquisition costs decline sequentially and the patient volumes added in Q1 become accretive. This is in addition to multiple initiatives around our business that we expect to impact the second half. These include the expansion of our pharmacy offerings, which will allow us to capture revenue and margin we do not currently benefit from. As was established during our 2025 Q4 call, we continue to expect annualized run-rate revenue exceeding $250 million and annualized run-rate adjusted EBITDA exceeding $25 million by the end of 2026. For Q2, we are expecting the business to continue its transition to branded GLP-1s; as such, we expect to see Q2 revenue between $47 million and $50 million and adjusted EBITDA between negative $2 million and positive $1 million as we continue to realize efficiencies and cost savings in our business. With that, I will turn it back to Justin. Justin Schreiber: Thanks, Atul. As we close our prepared remarks, I want to come back to the larger point. Q1 was always going to be an investment quarter. We leaned into the launch of oral GLP-1s, accelerated patient acquisition, made big progress in Women’s Health, expanded our pharmacy and insurance infrastructure, and advanced the AI tools that we believe will make this platform more scalable over time. What gives me confidence is that the early signals are showing up exactly where we would want to see them: record subscriber additions, strong demand in weight management, rapid early growth in Women’s Health, improving pharmacy economics, and a clear path to operating leverage as the year progresses. As I laid out in our shareholder letter, the model is simple: quality care, quality products, quality revenue. If we deliver high-quality care and build products patients value, they stay longer, use more of the platform, and create more durable revenue. That is the foundation of LifeMD, Inc.’s strategy. The opportunity ahead is tremendous. GLP-1 therapy is entering a new phase with oral medications, broader access, and a deep pipeline of next-generation therapies. Women’s Health is scaling from a small base into what we believe can become one of the most important programs we have ever built. RexMD continues to give us a large, engaged patient base and a trusted men’s health brand. And across the company, AI, pharmacy, and insurance are becoming real levers for better care, stronger retention, and margin expansion. We are not building a point solution. We are building a platform patients can come back to for more of their healthcare needs over time. That is what makes this business more durable, and that is what makes me so excited about the rest of 2026. I want to thank the LifeMD, Inc. team for their continued execution and our shareholders for their support. With that, we will open the call for questions. Operator? Thank you. Operator: We will now open the call for questions. If you would like to withdraw your question, please follow the prompts. The first question comes from David Larsen with BTIG. David Larsen: Hi, congratulations on the good start to the year. Can you talk a little bit about your relationship with Novo and also Lilly? Obviously, you are leaders in the industry with regards to partnering with the brand manufacturers, as opposed to continuing with a sort of aggressive compounded GLP-1 effort. How are you making money with Novo and Lilly? How is the oral pill launch progressing? Any more color there would be helpful. Thank you. Justin Schreiber: Hi, Dave. Thanks for the question. We have commented extensively, both in press releases and on calls like this, about how important both of these relationships are to LifeMD, Inc., and I would emphasize we view them as very long-term collaborations. Relatively speaking, both are still pretty new, and we have been working through strategies that we think are going to drive long-term patient growth and really help patients access these therapies. I cannot go into a lot more detail on either relationship. What I will say is that we have had very productive conversations with both companies about compliant ways that we can help more patients access these therapies. Those discussions are ongoing, and we are extremely optimistic that in the near term—being the next quarter or two—at least one, if not both, of those relationships will continue to evolve in a way that helps our overall unit economics and enables more people to access these therapies. Both companies also have next-generation therapies in the pipeline. We are going to be a platform for products from those companies, and we have already spoken to a number of other large pharma companies that have next-generation GLP-1 therapies. We expect those therapies to be available on the LifeMD, Inc. platform. We also spend a lot of time looking at the unit economics for the branded therapy business. We have some areas where unit economics are softer than we like and some areas where unit economics are incredible. One area where unit economics are really strong is on the insurance side of the business. When people are using their health insurance to subsidize the care component, and even still paying cash for these medications, the unit economics look outstanding, and there is a lot of demand. I hope that answers your question. We are under NDA with both companies, so we are limited in what we can say on an earnings call. David Larsen: Okay, great. It sounds like your relationships with both Novo and Lilly are evolving, and you will reach some sort of understanding that benefits both them and you and, most importantly, the patients and members that are benefiting from the medications. And then can you maybe talk a little bit about the incremental marketing spend in 1Q? Obviously, that put a little bit of pressure on EBITDA in the quarter. What is the nature of that incremental spend? Is it just Google Ads and online ads, or something more than that? Atul Kavikar: Yeah, Dave. The elevated marketing spend in the first quarter was very productive. The various channels and media buys were many of the same that we have used, including Google Ads and other social media channels where people begin their research. The upshot of the elevated spend is that it was a tremendous opportunity to acquire customers at CPAs that, relative to the last several quarters, were very attractive. We were able to add to the active base by almost 13% in the quarter. Almost equally important, we really added to our database—our pool of potential targets that we have the ability to market to going forward. So in many respects, it was a broad-based set of campaigns that we believe will help the company in Q2, Q3, and through the rest of the year. David Larsen: Okay. Congrats on a good quarter. I think you probably have a bunch of people on the line, so I will hop back in the queue. Atul Kavikar: Thanks, Dave. Operator: The next question comes from Ryan Meyers with Lake Street Capital. Ryan Robert Meyers: Hey, thanks for taking my questions. Thinking about the approximately 230 million lives you expect to have covered this month, what are you seeing so far in terms of conversion rates, retention, and customer acquisition synergies from these insurance-supported programs? Justin Schreiber: Thanks, Ryan. High level, we are seeing a considerable improvement in retention rates for insurance patients, which is one of the reasons we are very optimistic. We are also seeing a significant reduction in customer acquisition cost—as much as 50%. We do expect that to go up a little bit as we scale these offerings. In short, we are seeing a significant reduction in CAC, and these patients are paying a much lower platform or membership fee to LifeMD, Inc. than patients who are not using their insurance. We are seeing at least a 10% improvement in retention. Some cohorts are newer, but over the first three to six months it is meaningful. So while we are getting fewer dollars per patient and spending less to acquire them, overall we think the unit economics profile of this patient is superior to a self-pay patient. Atul Kavikar: Let me add one thing. For patients coming through our order flow on the site, they have an opportunity to indicate if they are interested in insurance or not. I anticipated a lot of interest, but I did not expect it would be in the 75% to 80% range, which indicates very strong demand. It points to where the business and the makeup of the patient population is going to go over the next quarters and the next few years. We are really excited about this business. Ryan Robert Meyers: Got it. And then while you did come in ahead of expectations, there was a year-over-year decline in revenue. Can you remind us if there were any dynamics in the first quarter of last year, and how we should think about that and the potential impact during the second quarter of this year and how that relates to the guidance? Atul Kavikar: Yes, absolutely. In 2025 we had heavy use of compounded GLP-1s. We have continued to migrate this business to where we think the future is—around branded drugs—and that is really the delta you are seeing. Today, we have a different set of unit economics. We do not make as much; we have been upfront about that. But we also think those are exceptional patients with meaningfully better retention. We think that is the right direction for the business. It is simply the change in product mix. Operator: The next question comes from Sarah James with Cantor Fitzgerald. Analyst: Hey, everyone. This is Gabby on for Sarah. Could you help us get a little bit more comfortable with the second-quarter to third-quarter EBITDA ramp and expand on what initiatives are kicking in? Maybe the second-quarter EBITDA was just slightly softer than we had modeled, so any additional color would be great. Atul Kavikar: Nice to meet you, Gabby. Let me paint the picture for Q2, Q3, and the full year. We are getting a lot of momentum behind the insurance business. CPAs, as Justin said, were really attractive. We see insurance-supported programs being a more important part of the revenue growth story, and a way to strategically capture better-quality patients. We see that really ramping up in the second half. We have made a lot of technical improvements to the platform. We are significantly expanding coverage—next week we are planning to expand to roughly 147 additional plans—which will be a big part of the story in the second half. Another driver is enhanced economics from our collaborations; those are expected to improve both revenue and EBITDA, and under our accounting that is essentially incremental revenue that drops to both top line and EBITDA. There is also cross-care opportunity. Many patients on GLP-1 drugs may be interested in other products we sell—ED, sleep, etc. For technical reasons that have recently been solved or are about to be solved, we can now open up that cross-sell opportunity. On costs, you will start to see marketing step down. It is a front-loaded first half of marketing spend. For Q2, we are expecting marketing in the $26 million to $27 million range. In the back half, we are penciling in $42 million to $44 million across Q3 and Q4 combined, so from first half to second half it comes down quite a bit. You will also see efficiencies across SG&A and gross margin—shipping costs, provider efficiencies, fulfillment costs—showing up more in the second half. That mix of revenue drivers and expense efficiencies gives us confidence in the EBITDA ramp. Analyst: Great, that was very helpful. One more: the CMS Bridge program was extended through 2027. How does that impact you? Does that give you a more positive outlook on your contribution to that program, or what is the right read-through? Justin Schreiber: We are very excited about Medicare beneficiaries having access to GLP-1 medications. As most people listening know, we put an enormous amount of energy into building a 50-state Medicare program. It is working. It is already on in some states for weight management. We are turning it on for Women’s Health in the next couple of weeks. We are thinking through the right strategy for Medicare beneficiaries using Bridge. We have not built this into our model, but I am excited about it. We are working with outside counsel on the particulars. If it works the way we think it will, it could be a really big opportunity for us in the back half of the year and, more importantly, help a lot of Medicare beneficiaries access these medications affordably. Operator: The next question comes from Steven Valiquette with Mizuho Securities. Steven Valiquette: Thanks, and good afternoon. First, it is early days for the new oral launches, but curious to get your thoughts on the uptake so far. At a national level, investors are comparing the week-by-week launch of one oral against the comparable weeks post the launch of the oral Wegovy earlier this year, and so far the uptake of the other oral, at least nationally, is trailing the initial oral Wegovy uptake. Are you seeing that same trend within your own platform? And if so, what do you think is driving that? Second, one of the manufacturers commented that roughly 55% of their new patient starts are cash-pay customers, which seems positive for you. I might have expected your Q2 revenue guidance to be a little stronger sequentially versus Q1 because of that backdrop. I know you mentioned the evolution of shifting patients off compounded drugs to brands is still taking shape in Q2, but is there something about the falloff on the compounded patients that is more rapid? Hopefully that makes sense. Justin Schreiber: I know this is not the exact answer you are looking for, but we want to be a good collaborator to both companies, and I do not think it is appropriate for us to comment on traction of one therapy versus another on our platform. What I will say is that we have [inaudible] live, and we have a lot of patients choosing both [inaudible] and the Wegovy pill. It does seem like the Wegovy pill has more awareness in the space, and that may be why it is still slightly more popular on our platform, but we do not want to get into specifics. On your second question: demand for oral therapies is very strong—stronger than I expected. The success of these self-pay programs has surprised everyone. I will not speak for Lilly or Novo, but it seems clear the programs are working, and I think payers are probably surprised as well. LifeMD, Inc. was built to help patients access branded medications and to create the types of collaborations we have done with Lilly and Novo. That has opened the door for the rest of the industry, and we have a number of other large pharma companies interested in collaborations, some of which could be very transformational. Interestingly, coverage appears to be slightly declining for some GLP-1 medications because of the success of the self-pay programs, which is a tailwind for a platform like LifeMD, Inc. that facilitates direct-to-patient programs while also supporting insurance on both the pharmacy and care sides. Regarding the modest softness in Q2 revenue, our revenue model has changed as part of the company’s transformation and our focus on quality revenue. We are charging less for some services, such as Women’s Health, which is more of an à la carte model. The insurance population is paying less because we are billing their insurance, and we are still optimizing some RCM processes. We are being patient and focused on building services and products with strong retention and value propositions. That is the reason for a little softness, but we are very confident in the back half. Operator: The next question comes from Steven Craig Dechert with KeyBanc. Steven Craig Dechert: Hey, thanks for the questions. I was hoping you could give some outlook on the cadence of weight management subscribers through the rest of the year. And could you talk more about the opportunity with self-insured employers and what you think the upside could be there? Atul Kavikar: The cadence going forward: the first quarter was very strong, and we will probably see a similar growth pattern through the year. There may be ebbs and flows quarter to quarter, but fundamentally the tailwinds are very strong. We have a very large group of patients we can market to who have engaged with us before, and we feel good about maintaining a pretty consistent level, with an eye toward accelerating it—particularly with the insurance offering. Notwithstanding challenges some managed care plans have around coverage, there still are many that will cover, and the Bridge program is a big opportunity to grow and maybe even accelerate penetration and patient counts in GLP-1s. Justin Schreiber: I dedicated time in the shareholder letter to the revenue streams that will be part of LifeMD, Inc.’s future over the next year. We focused on revenue from pharmaceutical collaborations; we think that will be meaningful, and we have a deep pipeline of significant partnerships—very similar to enterprise revenue—where large partners effectively offer our services to their customer bases or memberships. We are excited about those. We also think the employer channel is pretty big, and we are working on programs for self-insured employers. There is tremendous interest from the pharma and strategic partner channels, and because of that interest we have been deprioritizing employer programs in the near term, but they are certainly in the plans, and we understand the attractiveness of that revenue. Operator: The next question comes from Yi Chen with H.C. Wainwright. Analyst: Hey, this is Katie on for Yi. Looking at the FDA’s proposal to exclude semaglutide and that sort of drug from the bulk list, your shift to branded drugs puts you ahead of that a little bit. How should we think about where you stand and how this could play out whether it goes either way? And as a follow-up, what is your prescriber documentation framework for the individualized medical necessity standard? Have you talked to the FDA about that at all? Justin Schreiber: The changes to the bulk drug list have zero impact on the business—totally irrelevant to us. We do not compound these medications. We have some patients still on a personalized compound from third-party pharmacies. This is not something we spend much time on because of our overwhelming focus on helping patients access branded therapies. As for documentation, all of our provider documentation is best in class. Operator: Does that answer your question? Maybe we lost Katie. We will now conclude the Q&A session and turn the conference back over to Justin for any closing remarks. Justin Schreiber: I just want to say thank you, everybody, for your time and for tuning in for our earnings call. We look forward to talking to you next quarter, and I hope everybody has a good evening. Thanks. Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect. 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Q1 results: LifeMD reported revenue of $50.2 million, beating guidance, and added a record >42,000 net telehealth subscribers to finish with over 365,000, while front‑loaded marketing drove a GAAP net loss of $9.6 million and an adjusted EBITDA loss of about $4.5 million. Strategic shift and growth drivers: The company is pivoting weight‑management toward branded GLP‑1s (just under 100,000 weight‑management patients and ~120% sequential sign‑up growth), scaling an in‑house pharmacy and expanding insurance access (from ~112 million to ~230 million covered lives) with a Medicare GLP‑1 Bridge launching July 1. Guidance and balance sheet: Management reaffirmed full‑year 2026 guidance of $220–$230 million revenue and $12–$17 million adjusted EBITDA, expects annualized run‑rate above $250 million revenue and >$25 million adjusted EBITDA by Q4, and ended Q1 with $34.5 million cash, no debt, and a $30 million undrawn revolver. Interested in LifeMD, Inc.? Here are five stocks we like better. Can the New CEO Revive This Struggling Telehealth Stock? LifeMD (NASDAQ:LFMD) reported first-quarter 2026 results that management said marked a strong start to the year, highlighted by revenue that topped guidance and record subscriber growth as the company continued shifting its weight management business toward branded GLP-1 therapies and expanded insurance-supported offerings. Chairman and CEO Justin Schreiber said the company delivered “revenue of $50.2 million ahead of guidance” and added “more than 42,000 net telehealth subscribers, the largest quarterly net addition in our history.” LifeMD ended the quarter with “over 365,000 subscribers,” according to Schreiber and CFO Atul Kavthekar. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Hims & Hers Health Soars on Generic GLP-1 Rollout Plans Kavthekar said nearly all revenue was derived from recurring subscriptions and noted that year-over-year comparisons were presented on a continuing operations basis, excluding WorkSimpli, which was divested in November 2025. Revenue was essentially flat versus the prior-year period of $50.9 million, he said. Profitability was pressured by marketing investment. Kavthekar reported a GAAP net loss from continuing operations attributable to common stockholders of $9.6 million, or $0.20 per diluted share, compared with a $2.4 million loss, or $0.06 per diluted share, in the year-ago period. Adjusted EBITDA was a loss of approximately $4.5 million, in line with the company’s previously issued guidance range of a $4 million to $5 million loss. → Tyson Foods' Total Returns: Tasty Treats for Income Investors? LifeMD Can Surge on Its GLP-1 Offerings Gross margin expanded about 420 basis points to 88%, which Kavthekar attributed primarily to “improvements in lower shipping and fulfillment costs, including the continued scaling of our in-house pharmacy fulfillment.” Gross profit was $44.2 million, up 3% year over year despite flat revenue, he said. Selling and marketing expenses rose to $29.8 million, up 34% year over year, reflecting what Kavthekar described as “the strategic front-loaded patient acquisition investment.” He said the first quarter was “the peak of our marketing investment for the year,” and that marketing spend “has begun normalizing,” with expectations for sales and marketing to step down in the second quarter and remain at more typical levels in the back half. → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? On the balance sheet, Kavthekar said LifeMD ended the quarter with $34.5 million in cash, no debt, and a $30 million undrawn revolving credit facility established at the start of the year. Schreiber framed the company’s strategy as “quality care, quality products, quality revenue,” arguing that higher-quality care and products drive longer patient relationships and “more durable, higher quality, and ultimately more profitable” revenue over time. He emphasized that LifeMD is building a broader virtual care platform that includes a “50-state affiliated medical group,” an integrated pharmacy, lab capabilities, expanding insurance coverage, pharmaceutical collaborations, and specialty care programs, while “layering AI across that infrastructure.” Weight management. Schreiber called weight management the company’s largest opportunity, citing momentum following the introduction of oral GLP-1 therapies. He said customer acquisition costs improved 4% to 5% sequentially in Q1 even as volumes “effectively doubled” from roughly 300–400 new patients per day to 600–1,000 patients per day. LifeMD ended the quarter with “just under 100,000 weight management patients,” he said, and noted sequential sign-ups increased approximately 120% from the fourth quarter. Women’s health. Schreiber said the company’s women’s health program is designed around longitudinal care, including intake, labs, protocols, and ongoing management by trained providers. He said subscriber count grew “more than 7x from the Q4 base,” customer acquisition costs remained attractive, and on-therapy retention was “tracking north of 80%.” Schreiber added that LifeMD plans to introduce “seven new compounded pharmacy products focused on hormone and bone health” in coming months. Rex MD and men’s health. Schreiber said Rex MD has approximately 215,000 active patients, with growth across erectile dysfunction, sleep, and hair loss, with sleep “currently the fastest growing category.” He said personalized ED medications combining sildenafil and tadalafil grew more than 40% versus Q4, and that as more fulfillment shifts in-house, the company expects continued margin expansion. AI and operating leverage. Schreiber said LifeMD is deploying AI “aggressively but thoughtfully,” describing AI as foundational across software development, care delivery, and back-office workflows, including intake, documentation, patient support, revenue cycle, and compliance. He said the company expects the margin impact to become “more visible in the second half of 2026,” and emphasized AI is intended to increase provider capacity without adding headcount. Pharmacy scale and insurance expansion. Schreiber said LifeMD operates a 22,500-square-foot pharmacy facility licensed in all 50 states with commercial and 503A compounding capabilities, currently processing about 20,000 prescriptions per month. On insurance, he said LifeMD ended the quarter with approximately 112 million covered lives and expects to reach about 230 million by the end of the month. Schreiber highlighted a “Medicare GLP-1 Bridge launching July 1” as a key access initiative. Management reaffirmed full-year 2026 guidance of $220 million to $230 million in revenue and $12 million to $17 million in adjusted EBITDA. Both Schreiber and Kavthekar also reiterated expectations for annualized run-rate revenue above $250 million and annualized run-rate adjusted EBITDA above $25 million by the fourth quarter of 2026. For the second quarter, LifeMD guided revenue of $47 million to $50 million and adjusted EBITDA ranging from a loss of $2 million to a profit of $1 million. Kavthekar said the company expects to continue transitioning to branded GLP-1s, while efficiencies and cost savings progress. On the year-over-year revenue dynamics, Kavthekar said the first quarter of 2025 included heavy use of compounded GLP-1s, and that the company has continued migrating toward branded drugs. “We don’t make as much,” he said, but described branded-drug patients as having “meaningfully better retention,” calling it “the right direction for the business.” Asked about relationships with Novo and Lilly, Schreiber said LifeMD views them as “very long-term collaborations,” but said he could not provide additional detail due to NDAs. He said discussions have been “really, really productive” around compliant ways to help patients access therapies, and he expressed optimism that “in the near term… the next quarter or two,” at least one or both relationships could evolve to help “overall unit economics.” On the elevated Q1 marketing spend, Kavthekar said the company used many of the same channels as before, including Google Ads and social media. He described the quarter as an opportunity to acquire customers at “really attractive” CPAs and said LifeMD also expanded its “database” of prospective targets for future marketing. Regarding insurance-supported programs, Schreiber said the company is seeing “a considerable improvement in retention rates” among insurance patients, “a significant reduction in customer acquisition costs by as much as… 50%,” and “at least a 10-point improvement in retention” over the first three to six months, though he noted cohorts are newer. Kavthekar added he was surprised that 75% to 80% of patients coming through the site indicate interest in insurance. On the CMS Bridge program being extended through 2027, Schreiber said LifeMD is “very excited” and is working through details with outside counsel. He said the company has not built it into its model yet, but if it works as expected, it could be “a really, really big opportunity” in the second half of the year. In response to a question about the FDA’s proposal related to excluding semaglutide from a bulk list, Schreiber said the changes would have “zero impact on the business,” adding, “we don’t compound these medications,” though he acknowledged some patients remain on personalized compounds sourced from third-party pharmacies. LifeMD (NASDAQ: LFMD) is a U.S.-based telehealth company that delivers on-demand, membership-based virtual healthcare services. Through its digital platform and mobile applications, LifeMD connects patients with board-certified healthcare providers for diagnosis, treatment and ongoing management of a range of acute and chronic conditions. The company’s core offering centers on personalized care plans supported by prescription fulfillment, lab testing and prescription delivery services. LifeMD’s service portfolio spans several specialty areas, including men’s health, hormonal therapy, weight management and primary care. The article "LifeMD Q1 Earnings Call Highlights" was originally published by MarketBeat.