LifeMD (LFMD) AI Stock Analysis

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LifeMD

(NASDAQ:LFMD)

Rating:61Neutral

Price Target:

$9.00

▼( -21.74% Downside)

LifeMD's stock score reflects strong revenue growth and a positive outlook from the recent earnings call, but is tempered by ongoing financial challenges like negative equity and net losses. The technical analysis shows upward momentum, but valuation concerns persist due to a negative P/E ratio and lack of dividends. The strategic acquisition in women's health offers potential upside.

Positive Factors

Revenue Guidance

Management has raised 2025 total revenue guidance to $268-275M, including Telehealth revenue of $208-213M.

Subscriber Growth

Telehealth active subscriber base grew 22% YoY to 290,660 at the end of 1Q25, indicating strong growth momentum.

Negative Factors

Regulatory Challenges

The FDA ruling that Novo Nordisk's injectable semaglutide is no longer in shortage led to a significant decline in LFMD shares.

Revenue Risks

Risks include lower than projected growth of telehealth revenue, inability to acquire and retain new patients, and higher than expected competition, which could affect the company's performance.

LifeMD (LFMD) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$483.56M

Dividend YieldN/A

Average Volume (3M)2.10M

Price to Earnings (P/E)―

Beta (1Y)1.82

Revenue Growth43.07%

EPS Growth55.40%

CountryUS

Employees304

SectorHealthcare

Sector Strength43

IndustryMedical - Pharmaceuticals

Share Statistics

EPS (TTM)0.01

Shares Outstanding45,447,605

10 Day Avg. Volume2,054,692

30 Day Avg. Volume2,100,064

Financial Highlights & Ratios

PEG Ratio-1.03

Price to Book (P/B)-63.55

Price to Sales (P/S)0.00

P/FCF Ratio62.81

Enterprise Value/Market Cap0.76

Enterprise Value/Revenue0.51

Enterprise Value/Gross Profit1.99

Enterprise Value/Ebitda-9.44

Forecast

1Y Price Target

$11.57

Price Target Upside0.61% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering8

LifeMD Business Overview & Revenue Model

Company DescriptionLifeMD, Inc. (LFMD) is a leading telehealth company operating primarily in the United States. The company specializes in providing direct-to-patient healthcare services through its comprehensive telemedicine platform. LifeMD offers a range of services including virtual doctor consultations, personalized treatment plans, and prescription fulfillment. The company focuses on sectors such as primary care, dermatology, and men's health, aiming to make healthcare more accessible and convenient through digital means.

How the Company Makes MoneyLifeMD generates revenue primarily through its telehealth platform by offering subscription-based healthcare services. Patients pay for virtual consultations, which can include follow-up appointments and ongoing treatment plans, thereby creating a recurring revenue stream. Additionally, LifeMD earns money through the sale of prescription medications and personalized treatment products that are prescribed during consultations. The company may also have partnerships with healthcare providers or pharmaceutical companies, enhancing its service offerings and contributing to its revenue. Furthermore, LifeMD's business model may include ancillary services like lab testing and wellness products, broadening its revenue base.

LifeMD Financial Statement Overview

Summary

LifeMD exhibits strong revenue growth but faces persistent net losses and negative equity, indicating financial instability. The high gross profit margin is a positive, yet operational inefficiencies and financial restructuring are necessary for profitability and balance sheet stability. Cash flow improvements are promising, but consistency in positive cash generation is crucial.

Income Statement

Positive

The company's revenue has shown strong growth, increasing from $12.47M in 2019 to $184.97M in TTM 2024, indicating a robust upward trajectory. However, profitability remains a challenge with consistent net losses, reflected in a negative net profit margin. EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Gross profit margin is high, suggesting strong pricing power or cost management at the gross level.

Balance Sheet

Neutral

The balance sheet displays a significant negative stockholders' equity of $-5.49M in TTM 2024, raising concerns about financial stability. The debt-to-equity ratio is not meaningful due to negative equity, indicating potential leverage issues. Total assets have grown, but high liabilities overshadow the company's equity position, posing a risk. The equity ratio is negative, reflecting financial distress.

Cash Flow

Positive

The company has improved its operating cash flow to $17.51M in TTM 2024 from previous years, showing better cash management. Free cash flow has also improved significantly, although still modest relative to revenue. The operating cash flow to net income ratio is strong, indicating effective cash conversion despite net losses. However, historical volatility in cash flows suggests potential risks.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
212.45M	152.55M	119.03M	92.88M	37.29M
	Gross Profit
242.40M	133.65M	100.37M	74.88M	28.39M
	EBIT
-16.14M	-14.49M	-39.69M	-54.30M	-57.82M
	EBITDA
-6.65M	-8.21M	-39.61M	-53.95M	-57.48M
	Net Income Common Stockholders
-18.88M	-20.60M	-45.02M	-61.32M	-60.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.00M	33.15M	3.96M	41.33M	9.18M
	Total Assets
72.46M	58.48M	25.67M	49.92M	13.05M
	Total Debt
25.10M	18.93M	4.13M	1.85M	1.06M
	Net Debt
-9.90M	-14.21M	168.52K	-39.48M	-8.11M
	Total Liabilities
76.51M	52.91M	32.97M	24.10M	13.88M
	Stockholders Equity
-5.49T	3.51M	-6.83M	26.85M	1.35M
Cash Flow		Free Cash Flow
5.98M	86.95K	-35.83M	-36.49M	-12.53M
	Operating Cash Flow
17.51M	8.82M	-22.94M	-33.09M	-12.13M
	Investing Cash Flow
-11.54M	-8.73M	-13.91M	-3.40M	-798.14K
	Financing Cash Flow
-4.12M	29.10M	-528.20K	68.64M	21.00M

LifeMD Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.50

Price Trends

50DMA

6.87

Positive

100DMA

6.25

Positive

200DMA

5.74

Positive

Market Momentum

MACD

1.34

Negative

RSI

83.59

Negative

STOCH

91.37

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFMD, the sentiment is Positive. The current price of 11.5 is above the 20-day moving average (MA) of 8.93, above the 50-day MA of 6.87, and above the 200-day MA of 5.74, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 83.59 is Negative, neither overbought nor oversold. The STOCH value of 91.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LFMD.

LifeMD Risk Analysis

LifeMD disclosed 45 risk factors in its most recent earnings report. LifeMD reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 2 New Risks

We may use AI in our business, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations. Q4, 2024

Our use of AI systems may be subject to emerging AI laws and regulations, and our failure to comply with those laws and regulations could result in significant liability or reputational harm and, in turn, a material adverse effect on our customers, providers, and revenue. Q4, 2024

LifeMD Peers Comparison

Overall Rating

UnderperformOutperform

Sector (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LFMD	61 Neutral	$483.56M	―	301.60%	―	43.07%	55.40%
WBA	57 Neutral	$9.72B	―	-56.13%	8.94%	5.08%	4.43%
PETS	53 Neutral	$78.49M	355.14	0.36%	―	-10.82%	―
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
OSUR	52 Neutral	$191.86M	25.27	-7.77%	―	-46.95%	-237.44%
FHTX	47 Neutral	$230.77M	―	322.49%	―	-30.66%	36.48%
AVIR	47 Neutral	$243.90M	―	-30.47%	―	―	-22.66%

* Healthcare Sector Average

Performance Comparison

LFMD

LifeMD

11.53

3.69

47.07%

OSUR

Orasure Technologies

2.56

-2.29

-47.22%

PETS

Petmed Express

3.62

-0.50

-12.14%

WBA

Walgreens Boots Alliance

11.24

-3.95

-26.00%

FHTX

Foghorn Therapeutics

4.14

-1.50

-26.60%

AVIR

Atea Pharmaceuticals

2.85

-0.81

-22.13%

LifeMD Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 48.20%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

The earnings call for LifeMD reflects a positive sentiment, characterized by strong revenue growth in the Telehealth segment, strategic collaborations, and expansion into new verticals. The company achieved positive GAAP net income for the first time and raised its financial guidance for the year. Despite minor challenges such as a decline in WorkSimpli subscribers and a decrease in gross margin, the company's highlights significantly outweigh the lowlights.

Q1-2025 Updates

Positive Updates

Core Telehealth Revenue Growth

Core Telehealth business experienced a 70% year-over-year revenue growth, driven by the weight management program, with adjusted EBITDA reaching $5.3 million, a significant improvement from a loss of $1.3 million in the previous year.

Strategic Expansion and Collaborations

LifeMD has established strategic collaborations with LillyDirect and NovoCare to improve access to GLP-1 medications for weight management patients, enhancing its competitive position in virtual obesity care.

Positive GAAP Net Income

LifeMD reported a GAAP net income of $608,000 for the first quarter, marking the first quarter with positive GAAP net income, compared to a loss of $7.5 million in the previous year.

Growth in Subscriber Base

Telehealth subscriber base increased by 22% year-over-year to over 290,000, indicating strong customer retention and acquisition.

RexMD Brand Performance

The RexMD brand continues to perform well with growth in revenue and active patient count, especially in new verticals like hormone replacement therapy.

Expansion into New Verticals

LifeMD is entering high-growth verticals such as women’s health and behavioral health, which are expected to contribute to revenue diversification and long-term profitability.

Increased Financial Guidance

Due to the strong performance of the Telehealth business, LifeMD raised its financial guidance for 2025 with expected total revenues between $268 million to $275 million.

Negative Updates

Decline in WorkSimpli Subscribers

The number of WorkSimpli active subscribers declined by 5% to 158,000, although the segment continued to perform well financially.

Gross Margin Decline

Gross margin for the first quarter was 86.8%, a decline of 270 basis points versus the previous year, due to changes in revenue mix and temporary changes in pharmacy mix.

Company Guidance

During the recent earnings call, LifeMD provided an optimistic update on its financial guidance for 2025, fueled by the strong performance of its Telehealth business. The company raised its total revenue projection to a range between $268 million and $275 million, with Telehealth revenue expected between $208 million and $213 million. Additionally, LifeMD adjusted its consolidated adjusted EBITDA guidance to fall between $31 million and $33 million, with Telehealth adjusted EBITDA anticipated to be at least $21 million. This upward revision reflects the significant 49% increase in total revenues to $65.7 million for the first quarter, bolstered by a 70% year-over-year growth in Telehealth revenue. The company also highlighted its successful strategic initiatives, including collaborations with GLP-1 manufacturers and the expansion into women's and behavioral health.

LifeMD Corporate Events

M&A TransactionsBusiness Operations and Strategy

LifeMD Acquires Optimal Human Health MD Assets

Positive

Apr 29, 2025

On April 25, 2025, LifeMD acquired key assets from Optimal Human Health MD, a nationwide women’s health virtual care provider, marking its entry into the women’s health market. This strategic acquisition aims to address the significant unmet need for accessible, personalized, and high-quality care in women’s health, particularly in areas like menopause and osteoporosis. The acquisition aligns with LifeMD’s strategy to scale high-demand specialty care verticals, leveraging its national provider network and partnerships to deliver comprehensive virtual-first women’s health services.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.