LifeMD completed the sale of its 80% stake in WorkSimpli Software LLC, a SaaS productivity platform, for an enterprise value of approximately $65 million. The transaction closed on November 4, 2025, with LifeMD receiving $22 million in cash, representing 91.6% of the $24 million base purchase price attributable to the interest sold.
The divestiture reduces LifeMD’s ownership of WorkSimpli from 73.3% to zero, allowing the company to concentrate its resources on its core virtual care and pharmacy businesses. The deal also includes a potential additional $28 million contingent payment if WorkSimpli meets defined growth and operational targets over the next three years.
Prior to the sale, LifeMD reported strong growth in its telehealth segment, with Q3 2024 revenues up 38% year‑over‑year to $53.4 million and telehealth revenue up 65%. Q4 2024 consolidated revenues rose 43% year‑over‑year to $64.3 million. The company has faced headwinds such as increased customer acquisition costs in its RexMD business and higher refund rates in its weight‑management program, prompting a downward revision of 2025 revenue guidance.
LifeMD plans to use its net operating loss carryforwards to offset the majority of the capital gains from the sale, improving its balance sheet and freeing capital for expansion into weight management, women’s health, behavioral health, urgent care, primary care, and cardiometabolic care initiatives.
The transaction is part of LifeMD’s broader strategy to become a pure‑play healthcare company focused on virtual care and pharmacy, leveraging its vertically integrated platform that includes a proprietary digital care platform, a 50‑state affiliated medical group, and an affiliated compounding pharmacy.
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