LifeMD Inc. reported an adjusted loss of 7 ¢ per share for the third quarter of 2025, falling short of the consensus estimate of a 5 ¢ loss. The company’s GAAP net loss was $0.10 per share, and total revenue reached $60.17 million, $1.89 million below the $62.06 million consensus. The miss reflects continued headwinds in the weight‑management segment, where competitive pricing from low‑price GLP‑1 providers has eroded margins and revenue growth. Gross margin contracted 290 basis points year‑over‑year to 88 %, largely due to a shift toward lower‑margin weight‑management services and away from higher‑margin telehealth offerings.
Telehealth revenue, the company’s strongest segment, grew 18 % year‑over‑year to $47.3 million, driven by robust demand for virtual care and an expanding subscriber base. In contrast, weight‑management revenue declined, contributing to the overall revenue miss and margin compression. The mix shift—more revenue from the lower‑margin weight‑management line and less from the higher‑margin telehealth line—explain the 290‑basis‑point drop in gross margin and the overall revenue shortfall relative to expectations.
The adjusted loss includes a one‑time debt extinguishment charge of 3 ¢ per share. This charge, while material to the adjusted earnings figure, is not a recurring expense and does not affect the company’s ongoing operating performance. Excluding the charge, the core operating loss would have been 4 ¢ per share, still below the consensus estimate but closer to the company’s historical loss levels.
Management revised its outlook for the remainder of the year. Fourth‑quarter revenue guidance was lowered to $45 million to $46 million, a sharp decline from the $63.07 million estimate. Full‑year 2025 revenue guidance was cut to $192 million to $193 million, down from the prior $268 million to $275 million range. The downgrade signals management’s concern about sustained pricing pressure in the weight‑management market and a slower growth trajectory for that segment, while the company remains optimistic about its telehealth and pharmacy platform after the divestiture of WorkSimpli.
CEO Justin Schreiber emphasized that the company remains well‑positioned to capitalize on the evolving GLP‑1 market, citing strategic partnerships with Novo Nordisk and Eli Lilly. CFO Marc Benathen highlighted the company’s strengthened balance sheet, noting that all debt was paid off and cash reserves stood at $23.8 million. Both executives underscored a focus on cost discipline, high‑margin verticals, and strategic investments to drive long‑term growth.
Investors reacted negatively to the earnings release, citing the earnings miss, revenue shortfall, and significant downward revision of the full‑year guidance. Analysts noted that the guidance cut reflects management’s cautious view of near‑term demand in the weight‑management segment and the competitive pressures from low‑price GLP‑1 providers, while still maintaining a long‑term view of the company’s telehealth and pharmacy platform.
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