Press Release: LifeMD Reports Second Quarter 2026 Results

Dow Jones
Aug 06
   -- 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$(R)$, 
      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(R) 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(R) 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(R) 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(R) 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:

 
 
Toll-free dial-in number:                                       (800) 715-9871 
International dial-in number:                                +1 (646) 307-1963 
Conference ID:                  3616168 ("LifeMD, Inc. Second Quarter 2026 
                                Results") 
 

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(R) 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 Contact

ir@lifemd.com

Media Contact

press@lifemd.com

 
                               LIFEMD, INC. 
                       CONSOLIDATED BALANCE SHEETS 
                               (Unaudited) 
 
                                       June 30, 2026    December 31, 2025 
                                       --------------  ------------------- 
ASSETS 
 
Current Assets 
  Cash                                 $   25,141,615   $       36,786,318 
   Accounts receivable                     11,256,158            9,305,277 
   Product deposit                            243,759              320,217 
   Inventory, net                           2,956,144            2,773,576 
   Other current assets                     2,486,803            2,646,077 
      Total Current Assets                 42,084,479           51,831,465 
 
Non-current Assets 
   Equipment, net                           2,035,475            2,444,717 
   Right of use assets, net                 4,839,958            5,267,857 
   Capitalized software, net               10,734,486           10,604,946 
   Intangible assets, net                     198,500              262,334 
      Total Non-current Assets             17,808,419           18,579,854 
 
Total Assets                           $   59,892,898   $       70,411,319 
                                        =============      =============== 
 
LIABILITIES AND STOCKHOLDERS' EQUITY 
 
Current Liabilities 
   Accounts payable                    $   18,156,912   $       14,149,154 
   Accrued expenses                        16,961,186           15,974,016 
   Current operating lease 
    liabilities                               699,511              642,422 
   Deferred revenue                        10,791,221           10,807,773 
                                        -------------      --------------- 
      Total Current Liabilities            46,608,830           41,573,365 
 
Long-term Liabilities 
   Noncurrent operating lease 
    liabilities                             5,317,613            5,681,374 
      Total Liabilities                    51,926,443           47,254,739 
 
Commitments and Contingencies 
Stockholders' Equity 
   Series A Preferred Stock, $0.0001 
    par value; 1,610,000 shares 
    authorized, 1,400,000 shares 
    issued and outstanding as of June 
    30, 2026 and December 31, 2025                140                  140 
   Common Stock, $0.01 par value; 
    100,000,000 shares authorized, 
    47,923,532 and 46,760,016 shares 
    issued, 47,820,492 and 46,656,976 
    outstanding as of June 30, 2026 
    and December 31, 2025, 
    respectively                              479,235              467,600 
   Additional paid-in capital             253,763,518          251,455,616 
   Accumulated deficit                  (246,112,737)        (228,603,075) 
   Treasury stock, 103,040 shares, at 
    cost, as of June 30, 2026 and 
    December 31, 2025                       (163,701)            (163,701) 
                                        -------------      --------------- 
      Total Stockholders' Equity            7,966,455           23,156,580 
      Total Liabilities and 
       Stockholders' Equity            $   59,892,898   $       70,411,319 
                                        =============      =============== 
 
 
 
 
                                               LIFEMD, INC. 
                                   CONSOLIDATED STATEMENTS OF OPERATIONS 
                                                (Unaudited) 
 
                            Three Months Ended June 30,                   Six Months Ended June 30, 
                   ---------------------------------------------  ----------------------------------------- 
                           2026                    2025                   2026                 2025 
                   ---------------------  ----------------------  --------------------  ------------------- 
Telehealth 
 revenue, net      $          47,281,085  $           49,018,882  $         97,444,041  $        99,906,781 
Cost of 
 telehealth 
 revenue                       5,284,323               6,838,703            11,209,822           14,975,164 
Gross profit                  41,996,762              42,180,179            86,234,219           84,931,617 
                    --------------------   ---------------------   -------------------   ------------------ 
 
Expenses 
Selling and 
 marketing 
 expenses                     28,035,947              22,151,114            57,910,807           44,424,036 
General and 
 administrative 
 expenses                     13,645,809              14,439,140            28,822,164           28,779,294 
Other operating 
 expenses                      3,040,187               2,883,015             6,220,133            5,272,551 
Customer service 
 expenses                      2,612,986               3,230,735             5,752,291            6,302,229 
Development costs              1,791,434               1,823,061             3,587,497            3,682,110 
 
   Total expenses             49,126,363              44,527,065           102,292,892           88,460,220 
                    --------------------   ---------------------   -------------------   ------------------ 
 
Operating loss 
 from continuing 
 operations                  (7,129,601)             (2,346,886)          (16,058,673)          (3,528,603) 
 
Interest income 
 (expense), net                   45,660               (660,787)               102,136          (1,124,425) 
Loss from 
 continuing 
 operations 
 before income 
 taxes                       (7,083,941)             (3,007,673)          (15,956,537)          (4,653,028) 
 
Income tax 
provision                              -                       -                     -                    - 
                    --------------------   ---------------------   -------------------   ------------------ 
Net loss from 
 continuing 
 operations                  (7,083,941)             (3,007,673)          (15,956,537)          (4,653,028) 
 
Net income from 
 discontinued 
 operations                            -               1,893,084                     -            3,886,506 
Net loss                     (7,083,941)             (1,114,589)          (15,956,537)            (766,522) 
 
Net income 
 attributable to 
 noncontrolling 
 interests of 
 discontinued 
 operations                            -                 505,075                     -            1,036,920 
                    --------------------   ---------------------   -------------------   ------------------ 
 
Net loss 
 attributable to 
 LifeMD, Inc.                (7,083,941)             (1,619,664)          (15,956,537)          (1,803,442) 
 
Preferred stock 
 dividends                     (776,562)               (776,562)           (1,553,125)          (1,553,125) 
 
Net loss 
 attributable to 
 LifeMD, Inc. 
 common 
 stockholders      $         (7,860,503)  $          (2,396,226)  $       (17,509,662)  $       (3,356,567) 
                    ====================   =====================   ===================   ================== 
 
Basic (loss) 
earnings per 
share 
attributable to 
LifeMD, Inc. 
common 
stockholders 
   Continuing 
    operations     $              (0.16)  $               (0.09)  $             (0.37)  $            (0.14) 
   Discontinued 
    operations                         -                    0.03                     -                 0.07 
   Basic loss per 
    share          $              (0.16)  $               (0.05)  $             (0.37)  $            (0.08) 
                    ====================   =====================   ===================   ================== 
 
Diluted (loss) 
earnings per 
share 
attributable to 
LifeMD, Inc. 
common 
stockholders 
   Continuing 
    operations     $              (0.16)  $               (0.09)  $             (0.37)  $            (0.14) 
   Discontinued 
    operations                         -                    0.03                     -                 0.07 
   Diluted loss 
    per share      $              (0.16)  $               (0.05)  $             (0.37)  $            (0.08) 
                    ====================   =====================   ===================   ================== 
 
Weighted average 
number of common 
shares 
outstanding: 
   Basic                      47,788,194              44,401,531            47,563,376           43,772,151 
                    ====================   =====================   ===================   ================== 
   Diluted                    47,788,194              44,401,531            47,563,376           43,772,151 
                    ====================   =====================   ===================   ================== 
 
 
 
 
                                                            LIFEMD, INC. 
                                                CONSOLIDATED STATEMENTS OF CASH FLOWS 
                                                             (Unaudited) 
 
                                   Three Months Ended June 30,                              Six Months Ended June 30, 
                     -------------------------------------------------------  ------------------------------------------------------ 
                                2026                         2025                        2026                        2025 
                     ---------------------------  --------------------------  --------------------------  -------------------------- 
 
CASH FLOWS FROM 
OPERATING 
ACTIVITIES 
Net loss               $             (7,083,941)   $             (1,114,589)   $            (15,956,537)   $               (766,522) 
Less: Net income from 
 discontinued 
 operations                                    -                   1,893,084                           -                   3,886,506 
                          ----------------------      ----------------------      ----------------------      ---------------------- 
Net loss from continuing 
 operations                          (7,083,941)                 (3,007,673)                (15,956,537)                 (4,653,028) 
Adjustments to 
reconcile net loss 
from continuing 
operations to net 
cash (used in) 
provided by 
operating 
activities: 
   Amortization of debt 
    discount                                   -                     100,444                           -                     200,888 
   Amortization of 
    capitalized 
    software                           1,713,679                   1,586,322                   3,388,532                   3,115,702 
   Amortization of 
    intangibles                           31,917                      23,500                      63,834                      30,167 
   Depreciation of fixed 
    assets                               292,787                     175,523                     582,245                     330,884 
   Noncash operating 
    lease expense                        215,132                     255,824                     427,899                     525,712 
   Stock compensation 
    expense                              790,112                   2,094,614                   2,239,017                   4,643,142 
 
Changes in Assets 
and Liabilities 
   Accounts receivable               (1,401,041)                   1,973,894                 (1,950,881)                   1,513,946 
   Product deposit                        87,766                    (59,160)                      76,458                   (210,237) 
   Inventory                             220,992                   (283,658)                   (182,568)                   (453,997) 
   Other current assets                1,368,328                     522,068                     159,274                     824,289 
   Operating lease 
    liabilities                        (155,773)                    (68,507)                   (306,672)                   (148,306) 
   Deferred revenue                  (1,225,619)                 (2,783,497)                    (16,552)                 (2,586,163) 
   Accounts payable                  (3,496,210)                   8,573,302                   4,007,758                   8,487,929 
   Accrued expenses                    1,716,223                 (3,001,387)                     987,170                 (5,260,493) 
      Net cash (used in) 
       provided by 
       operating 
       activities of 
       continuing 
       operations                    (6,925,648)                   6,101,609                 (6,481,023)                   6,360,435 
      Net cash provided 
       by operating 
       activities of 
       discontinued 
       operations                              -                   2,537,838                           -                   5,347,399 
      Net cash (used in) 
       provided by 
       operating 
       activities                    (6,925,648)                   8,639,447                 (6,481,023)                  11,707,834 
                          ======================      ======================      ======================      ====================== 
 
CASH FLOWS FROM 
INVESTING 
ACTIVITIES 
Cash paid for 
 capitalized software 
 costs                               (1,566,487)                 (2,060,313)                 (3,518,072)                 (3,947,128) 
Purchase of equipment                   (67,825)                   (776,670)                   (173,003)                   (894,215) 
      Net cash used in 
       investing 
       activities of 
       continuing 
       operations                    (1,634,312)                 (2,836,983)                 (3,691,075)                 (4,841,343) 
      Net cash used in 
       investing 
       activities of 
       discontinued 
       operations                              -                   (862,600)                           -                 (1,725,578) 
      Net cash used in 
       investing 
       activities                    (1,634,312)                 (3,699,583)                 (3,691,075)                 (6,566,921) 
                          ======================      ======================      ======================      ====================== 
 
CASH FLOWS FROM 
FINANCING 
ACTIVITIES 
Repayment of debt 
 instruments                                   -                 (2,052,288)                           -                 (2,052,288) 
Preferred stock 
 dividends                             (776,562)                   (776,562)                 (1,553,125)                 (1,553,125) 
Cash proceeds from 
exercise of 
options                                        -                           -                      80,520                           - 
      Net cash used in 
       financing 
       activities of 
       continuing 
       operations                      (776,562)                 (2,828,850)                 (1,472,605)                 (3,605,413) 
      Net cash used in 
       financing 
       activities of 
       discontinued 
       operations                              -                   (276,119)                           -                   (312,119) 
      Net cash used in 
       financing 
       activities                      (776,562)                 (3,104,969)                 (1,472,605)                 (3,917,532) 
                          ======================      ======================      ======================      ====================== 
 
Net (decrease) increase 
 in cash                             (9,336,522)                   1,834,895                (11,644,703)                   1,223,381 
Cash at beginning of 
 period                               34,478,137                  34,393,410                  36,786,318                  35,004,924 
Cash at end of year                   25,141,615                  36,228,305                  25,141,615                  36,228,305 
Less: Cash of 
 discontinued operations 
 at end of year                                -                   3,216,945                           -                   3,216,945 
Cash of continuing 
 operations at end 
 of year               $              25,141,615   $              33,011,360   $              25,141,615   $              33,011,360 
                     ===  ======================      ======================      ======================      ====================== 
 
Cash paid for 
interest and taxes 
------------------- 
Cash paid during 
 the period for 
 interest              $                       -   $                 625,818   $                       -   $               1,219,568 
                     ===  ======================      ======================      ======================      ====================== 
Cash paid during 
 the period for 
 taxes                 $                 361,230   $                 445,158   $                 361,230   $                 467,854 
                     ===  ======================      ======================      ======================      ====================== 
 
Non-cash investing 
and financing 
activities 
------------------- 
Cashless exercise 
 of options            $                       -   $                     501   $                       -   $                   1,062 
                     ===  ======================      ======================      ======================      ====================== 
Cashless exercise 
 of warrants           $                       -   $                   3,901   $                       -   $                   3,901 
                     ===  ======================      ======================      ======================      ====================== 
Stock issued for 
 debt conversion       $                       -   $               1,000,000   $                       -   $               1,000,000 
                     ===  ======================      ======================      ======================      ====================== 
Stock issued for 
 asset acquisition     $                       -   $                 303,000   $                       -   $                 303,000 
                     ===  ======================      ======================      ======================      ====================== 
 
 
 
Reconciliation of Net Loss Attributable to LifeMD, 
 Inc. Common Stockholders to Adjusted EBITDA 
(in whole numbers, 
unaudited) 
                                            Three Months Ended June 30,                                    Six Months Ended June 30, 
                           -------------------------------------------------------------  ------------------------------------------------------------ 
                                        2026                            2025                           2026                           2025 
                           -------------------------------  ----------------------------  -------------------------------  --------------------------- 
Net loss attributable to 
 LifeMD, Inc. common 
 stockholders                $                 (7,860,503)    $              (2,396,226)    $                (17,509,662)   $              (3,356,567) 
 
Interest (income) expense 
 (excluding amortization 
 of debt discount)                                (45,660)                       560,343                        (102,136)                      923,537 
Depreciation and 
 amortization expense                            2,038,383                     1,785,345                        4,034,611                    3,476,753 
Amortization of debt 
 discount                                                -                       100,444                                -                      200,888 
Litigation costs (a)                               386,366                       486,462                        1,047,941                      739,659 
Severance and 
 restructuring costs                               385,109                        25,535                          748,994                      102,417 
Acquisitions expenses                                    -                     1,806,277                                -                    2,014,777 
Insurance acceptance 
 readiness                                               -                        34,780                                -                      175,140 
Preferred stock dividends                          776,562                       776,562                        1,553,125                    1,553,125 
Stock compensation 
 expense                                           790,112                     2,094,614                        2,239,017                    4,643,142 
Net income from 
 discontinued operations                                 -                   (1,893,084)                                -                  (3,886,506) 
Net income attributable 
 to noncontrolling 
 interests of 
 discontinued operations                                 -                       505,075                                -                    1,036,920 
 
Adjusted EBITDA              $                 (3,529,631)    $                3,886,127    $                 (7,988,110)   $                7,623,285 
                           ===  ==========================  ===  =======================  ===  ==========================      ======================= 
 
(a) For the three and six months ended June 30, 2026, 
 the Company included costs related to: (1) a class 
 action complaint captioned Johnston v. LifeMD, Inc., 
 et al., against the Company and certain executive 
 officers alleging: (i) violations of Section 10(b) 
 of the Securities Exchange Act of 1934, as amended, 
 and Rule 10b-5 promulgated thereunder by all defendants 
 for making false and misleading statements; and (ii) 
 violations of Section 20(a) of the Securities Exchange 
 Act of 1934, as amended, by the individual officer 
 defendants for violating their duty to disseminate 
 accurate and truthful information, and (2) a heavily 
 negotiated executive separation agreement. For the 
 three and six months ended June 30, 2025, the Company 
 included costs related to a class action complaint 
 alleging, inter alia, unauthorized disclosure of certain 
 information of class members to third parties (the 
 Marden v. LifeMD, Inc. case), and a heavily negotiated 
 executive separation agreement. 
 

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.

 
Reconciliation of Net Loss Attributable to LifeMD, 
 Inc. Common Stockholders to Adjusted EBITDA 
(in whole numbers, 
unaudited) 
                                            Three Months Ended June 30,                                    Six Months Ended June 30, 
                           -------------------------------------------------------------  ------------------------------------------------------------ 
                                        2026                            2025                           2026                           2025 
                           -------------------------------  ----------------------------  -------------------------------  --------------------------- 
Net loss attributable to 
 LifeMD, Inc. common 
 stockholders                $                 (7,860,503)    $              (2,396,226)    $                (17,509,662)   $              (3,356,567) 
 
Interest (income) expense 
 (excluding amortization 
 of debt discount)                                (45,660)                       560,343                        (102,136)                      923,537 
Depreciation and 
 amortization expense                            2,038,383                     1,785,345                        4,034,611                    3,476,753 
Amortization of debt 
 discount                                                -                       100,444                                -                      200,888 
Litigation costs (a)                               386,366                       486,462                        1,047,941                      739,659 
Severance and 
 restructuring costs                               385,109                        25,535                          748,994                      102,417 
Acquisitions expenses                                    -                     1,806,277                                -                    2,014,777 
Insurance acceptance 
 readiness                                               -                        34,780                                -                      175,140 
Preferred stock dividends                          776,562                       776,562                        1,553,125                    1,553,125 
Stock compensation 
 expense                                           790,112                     2,094,614                        2,239,017                    4,643,142 
Net income from 
 discontinued operations                                 -                   (1,893,084)                                -                  (3,886,506) 
Net income attributable 
 to noncontrolling 
 interests of 
 discontinued operations                                 -                       505,075                                -                    1,036,920 
 
Adjusted EBITDA              $                 (3,529,631)    $                3,886,127    $                 (7,988,110)   $                7,623,285 
                           ===  ==========================  ===  =======================  ===  ==========================      ======================= 
 
(a) For the three and six months ended June 30, 2026, 
 the Company included costs related to: (1) a class 
 action complaint captioned Johnston v. LifeMD, Inc., 
 et al., against the Company and certain executive 
 officers alleging: (i) violations of Section 10(b) 
 of the Securities Exchange Act of 1934, as amended, 
 and Rule 10b-5 promulgated thereunder by all defendants 
 for making false and misleading statements; and (ii) 
 violations of Section 20(a) of the Securities Exchange 
 Act of 1934, as amended, by the individual officer 
 defendants for violating their duty to disseminate 
 accurate and truthful information, and (2) a heavily 
 negotiated executive separation agreement. For the 
 three and six months ended June 30, 2025, the Company 
 included costs related to a class action complaint 
 alleging, inter alia, unauthorized disclosure of certain 
 information of class members to third parties (the 
 Marden v. LifeMD, Inc. case), and a heavily negotiated 
 executive separation agreement. 
 

(END) Dow Jones Newswires

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(R), 
      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(R) 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(R) 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(R) 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(R) 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:

 
 
Toll-free dial-in number:                                       (800) 715-9871 
International dial-in number:                                +1 (646) 307-1963 
Conference ID:                  3616168 ("LifeMD, Inc. Second Quarter 2026 
                                Results") 
 

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(R) 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 Contact

ir@lifemd.com

Media Contact

press@lifemd.com

 
                               LIFEMD, INC. 
                       CONSOLIDATED BALANCE SHEETS 
                               (Unaudited) 
 
                                       June 30, 2026    December 31, 2025 
                                       --------------  ------------------- 
ASSETS 
 
Current Assets 
  Cash                                 $   25,141,615   $       36,786,318 
   Accounts receivable                     11,256,158            9,305,277 
   Product deposit                            243,759              320,217 
   Inventory, net                           2,956,144            2,773,576 
   Other current assets                     2,486,803            2,646,077 
      Total Current Assets                 42,084,479           51,831,465 
 
Non-current Assets 
   Equipment, net                           2,035,475            2,444,717 
   Right of use assets, net                 4,839,958            5,267,857 
   Capitalized software, net               10,734,486           10,604,946 
   Intangible assets, net                     198,500              262,334 
      Total Non-current Assets             17,808,419           18,579,854 
 
Total Assets                           $   59,892,898   $       70,411,319 
                                        =============      =============== 
 
LIABILITIES AND STOCKHOLDERS' EQUITY 
 
Current Liabilities 
   Accounts payable                    $   18,156,912   $       14,149,154 
   Accrued expenses                        16,961,186           15,974,016 
   Current operating lease 
    liabilities                               699,511              642,422 
   Deferred revenue                        10,791,221           10,807,773 
                                        -------------      --------------- 
      Total Current Liabilities            46,608,830           41,573,365 
 
Long-term Liabilities 
   Noncurrent operating lease 
    liabilities                             5,317,613            5,681,374 
      Total Liabilities                    51,926,443           47,254,739 
 
Commitments and Contingencies 
Stockholders' Equity 
   Series A Preferred Stock, $0.0001 
    par value; 1,610,000 shares 
    authorized, 1,400,000 shares 
    issued and outstanding as of June 
    30, 2026 and December 31, 2025                140                  140 
   Common Stock, $0.01 par value; 
    100,000,000 shares authorized, 
    47,923,532 and 46,760,016 shares 
    issued, 47,820,492 and 46,656,976 
    outstanding as of June 30, 2026 
    and December 31, 2025, 
    respectively                              479,235              467,600 
   Additional paid-in capital             253,763,518          251,455,616 
   Accumulated deficit                  (246,112,737)        (228,603,075) 
   Treasury stock, 103,040 shares, at 
    cost, as of June 30, 2026 and 
    December 31, 2025                       (163,701)            (163,701) 
                                        -------------      --------------- 
      Total Stockholders' Equity            7,966,455           23,156,580 
      Total Liabilities and 
       Stockholders' Equity            $   59,892,898   $       70,411,319 
                                        =============      =============== 
 
 
 
 
                                               LIFEMD, INC. 
                                   CONSOLIDATED STATEMENTS OF OPERATIONS 
                                                (Unaudited) 
 
                            Three Months Ended June 30,                   Six Months Ended June 30, 
                   ---------------------------------------------  ----------------------------------------- 
                           2026                    2025                   2026                 2025 
                   ---------------------  ----------------------  --------------------  ------------------- 
Telehealth 
 revenue, net      $          47,281,085  $           49,018,882  $         97,444,041  $        99,906,781 
Cost of 
 telehealth 
 revenue                       5,284,323               6,838,703            11,209,822           14,975,164 
Gross profit                  41,996,762              42,180,179            86,234,219           84,931,617 
                    --------------------   ---------------------   -------------------   ------------------ 
 
Expenses 
Selling and 
 marketing 
 expenses                     28,035,947              22,151,114            57,910,807           44,424,036 
General and 
 administrative 
 expenses                     13,645,809              14,439,140            28,822,164           28,779,294 
Other operating 
 expenses                      3,040,187               2,883,015             6,220,133            5,272,551 
Customer service 
 expenses                      2,612,986               3,230,735             5,752,291            6,302,229 
Development costs              1,791,434               1,823,061             3,587,497            3,682,110 
 
   Total expenses             49,126,363              44,527,065           102,292,892           88,460,220 
                    --------------------   ---------------------   -------------------   ------------------ 
 
Operating loss 
 from continuing 
 operations                  (7,129,601)             (2,346,886)          (16,058,673)          (3,528,603) 
 
Interest income 
 (expense), net                   45,660               (660,787)               102,136          (1,124,425) 
Loss from 
 continuing 
 operations 
 before income 
 taxes                       (7,083,941)             (3,007,673)          (15,956,537)          (4,653,028) 
 
Income tax 
provision                              -                       -                     -                    - 
                    --------------------   ---------------------   -------------------   ------------------ 
Net loss from 
 continuing 
 operations                  (7,083,941)             (3,007,673)          (15,956,537)          (4,653,028) 
 
Net income from 
 discontinued 
 operations                            -               1,893,084                     -            3,886,506 
Net loss                     (7,083,941)             (1,114,589)          (15,956,537)            (766,522) 
 
Net income 
 attributable to 
 noncontrolling 
 interests of 
 discontinued 
 operations                            -                 505,075                     -            1,036,920 
                    --------------------   ---------------------   -------------------   ------------------ 
 
Net loss 
 attributable to 
 LifeMD, Inc.                (7,083,941)             (1,619,664)          (15,956,537)          (1,803,442) 
 
Preferred stock 
 dividends                     (776,562)               (776,562)           (1,553,125)          (1,553,125) 
 
Net loss 
 attributable to 
 LifeMD, Inc. 
 common 
 stockholders      $         (7,860,503)  $          (2,396,226)  $       (17,509,662)  $       (3,356,567) 
                    ====================   =====================   ===================   ================== 
 
Basic (loss) 
earnings per 
share 
attributable to 
LifeMD, Inc. 
common 
stockholders 
   Continuing 
    operations     $              (0.16)  $               (0.09)  $             (0.37)  $            (0.14) 
   Discontinued 
    operations                         -                    0.03                     -                 0.07 
   Basic loss per 
    share          $              (0.16)  $               (0.05)  $             (0.37)  $            (0.08) 
                    ====================   =====================   ===================   ================== 
 
Diluted (loss) 
earnings per 
share 
attributable to 
LifeMD, Inc. 
common 
stockholders 
   Continuing 
    operations     $              (0.16)  $               (0.09)  $             (0.37)  $            (0.14) 
   Discontinued 
    operations                         -                    0.03                     -                 0.07 
   Diluted loss 
    per share      $              (0.16)  $               (0.05)  $             (0.37)  $            (0.08) 
                    ====================   =====================   ===================   ================== 
 
Weighted average 
number of common 
shares 
outstanding: 
   Basic                      47,788,194              44,401,531            47,563,376           43,772,151 
                    ====================   =====================   ===================   ================== 
   Diluted                    47,788,194              44,401,531            47,563,376           43,772,151 
                    ====================   =====================   ===================   ================== 
 
 
 
 
                                                            LIFEMD, INC. 
                                                CONSOLIDATED STATEMENTS OF CASH FLOWS 
                                                             (Unaudited) 
 
                                   Three Months Ended June 30,                              Six Months Ended June 30, 
                     -------------------------------------------------------  ------------------------------------------------------ 
                                2026                         2025                        2026                        2025 
                     ---------------------------  --------------------------  --------------------------  -------------------------- 
 
CASH FLOWS FROM 
OPERATING 
ACTIVITIES 
Net loss               $             (7,083,941)   $             (1,114,589)   $            (15,956,537)   $               (766,522) 
Less: Net income from 
 discontinued 
 operations                                    -                   1,893,084                           -                   3,886,506 
                          ----------------------      ----------------------      ----------------------      ---------------------- 
Net loss from continuing 
 operations                          (7,083,941)                 (3,007,673)                (15,956,537)                 (4,653,028) 
Adjustments to 
reconcile net loss 
from continuing 
operations to net 
cash (used in) 
provided by 
operating 
activities: 
   Amortization of debt 
    discount                                   -                     100,444                           -                     200,888 
   Amortization of 
    capitalized 
    software                           1,713,679                   1,586,322                   3,388,532                   3,115,702 
   Amortization of 
    intangibles                           31,917                      23,500                      63,834                      30,167 
   Depreciation of fixed 
    assets                               292,787                     175,523                     582,245                     330,884 
   Noncash operating 
    lease expense                        215,132                     255,824                     427,899                     525,712 
   Stock compensation 
    expense                              790,112                   2,094,614                   2,239,017                   4,643,142 
 
Changes in Assets 
and Liabilities 
   Accounts receivable               (1,401,041)                   1,973,894                 (1,950,881)                   1,513,946 
   Product deposit                        87,766                    (59,160)                      76,458                   (210,237) 
   Inventory                             220,992                   (283,658)                   (182,568)                   (453,997) 
   Other current assets                1,368,328                     522,068                     159,274                     824,289 
   Operating lease 
    liabilities                        (155,773)                    (68,507)                   (306,672)                   (148,306) 
   Deferred revenue                  (1,225,619)                 (2,783,497)                    (16,552)                 (2,586,163) 
   Accounts payable                  (3,496,210)                   8,573,302                   4,007,758                   8,487,929 
   Accrued expenses                    1,716,223                 (3,001,387)                     987,170                 (5,260,493) 
      Net cash (used in) 
       provided by 
       operating 
       activities of 
       continuing 
       operations                    (6,925,648)                   6,101,609                 (6,481,023)                   6,360,435 
      Net cash provided 
       by operating 
       activities of 
       discontinued 
       operations                              -                   2,537,838                           -                   5,347,399 
      Net cash (used in) 
       provided by 
       operating 
       activities                    (6,925,648)                   8,639,447                 (6,481,023)                  11,707,834 
                          ======================      ======================      ======================      ====================== 
 
CASH FLOWS FROM 
INVESTING 
ACTIVITIES 
Cash paid for 
 capitalized software 
 costs                               (1,566,487)                 (2,060,313)                 (3,518,072)                 (3,947,128) 
Purchase of equipment                   (67,825)                   (776,670)                   (173,003)                   (894,215) 
      Net cash used in 
       investing 
       activities of 
       continuing 
       operations                    (1,634,312)                 (2,836,983)                 (3,691,075)                 (4,841,343) 
      Net cash used in 
       investing 
       activities of 
       discontinued 
       operations                              -                   (862,600)                           -                 (1,725,578) 
      Net cash used in 
       investing 
       activities                    (1,634,312)                 (3,699,583)                 (3,691,075)                 (6,566,921) 
                          ======================      ======================      ======================      ====================== 
 
CASH FLOWS FROM 
FINANCING 
ACTIVITIES 
Repayment of debt 
 instruments                                   -                 (2,052,288)                           -                 (2,052,288) 
Preferred stock 
 dividends                             (776,562)                   (776,562)                 (1,553,125)                 (1,553,125) 
Cash proceeds from 
exercise of 
options                                        -                           -                      80,520                           - 
      Net cash used in 
       financing 
       activities of 
       continuing 
       operations                      (776,562)                 (2,828,850)                 (1,472,605)                 (3,605,413) 
      Net cash used in 
       financing 
       activities of 
       discontinued 
       operations                              -                   (276,119)                           -                   (312,119) 
      Net cash used in 
       financing 
       activities                      (776,562)                 (3,104,969)                 (1,472,605)                 (3,917,532) 
                          ======================      ======================      ======================      ====================== 
 
Net (decrease) increase 
 in cash                             (9,336,522)                   1,834,895                (11,644,703)                   1,223,381 
Cash at beginning of 
 period                               34,478,137                  34,393,410                  36,786,318                  35,004,924 
Cash at end of year                   25,141,615                  36,228,305                  25,141,615                  36,228,305 
Less: Cash of 
 discontinued operations 
 at end of year                                -                   3,216,945                           -                   3,216,945 
Cash of continuing 
 operations at end 
 of year               $              25,141,615   $              33,011,360   $              25,141,615   $              33,011,360 
                     ===  ======================      ======================      ======================      ====================== 
 
Cash paid for 
interest and taxes 
------------------- 
Cash paid during 
 the period for 
 interest              $                       -   $                 625,818   $                       -   $               1,219,568 
                     ===  ======================      ======================      ======================      ====================== 
Cash paid during 
 the period for 
 taxes                 $                 361,230   $                 445,158   $                 361,230   $                 467,854 
                     ===  ======================      ======================      ======================      ====================== 
 
Non-cash investing 
and financing 
activities 
------------------- 
Cashless exercise 
 of options            $                       -   $                     501   $                       -   $                   1,062 
                     ===  ======================      ======================      ======================      ====================== 
Cashless exercise 
 of warrants           $                       -   $                   3,901   $                       -   $                   3,901 
                     ===  ======================      ======================      ======================      ====================== 
Stock issued for 
 debt conversion       $                       -   $               1,000,000   $                       -   $               1,000,000 
                     ===  ======================      ======================      ======================      ====================== 
Stock issued for 
 asset acquisition     $                       -   $                 303,000   $                       -   $                 303,000 
                     ===  ======================      ======================      ======================      ====================== 
 
 

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.

 
Reconciliation of Net Loss Attributable to LifeMD, 
 Inc. Common Stockholders to Adjusted EBITDA 
(in whole numbers, 
unaudited) 
                                            Three Months Ended June 30,                                    Six Months Ended June 30, 
                           -------------------------------------------------------------  ------------------------------------------------------------ 
                                        2026                            2025                           2026                           2025 
                           -------------------------------  ----------------------------  -------------------------------  --------------------------- 
Net loss attributable to 
 LifeMD, Inc. common 
 stockholders                $                 (7,860,503)    $              (2,396,226)    $                (17,509,662)   $              (3,356,567) 
 
Interest (income) expense 
 (excluding amortization 
 of debt discount)                                (45,660)                       560,343                        (102,136)                      923,537 
Depreciation and 
 amortization expense                            2,038,383                     1,785,345                        4,034,611                    3,476,753 
Amortization of debt 
 discount                                                -                       100,444                                -                      200,888 
Litigation costs (a)                               386,366                       486,462                        1,047,941                      739,659 
Severance and 
 restructuring costs                               385,109                        25,535                          748,994                      102,417 
Acquisitions expenses                                    -                     1,806,277                                -                    2,014,777 
Insurance acceptance 
 readiness                                               -                        34,780                                -                      175,140 
Preferred stock dividends                          776,562                       776,562                        1,553,125                    1,553,125 
Stock compensation 
 expense                                           790,112                     2,094,614                        2,239,017                    4,643,142 
Net income from 
 discontinued operations                                 -                   (1,893,084)                                -                  (3,886,506) 
Net income attributable 
 to noncontrolling 
 interests of 
 discontinued operations                                 -                       505,075                                -                    1,036,920 
 
Adjusted EBITDA              $                 (3,529,631)    $                3,886,127    $                 (7,988,110)   $                7,623,285 
                           ===  ==========================  ===  =======================  ===  ==========================      ======================= 
 
(a) For the three and six months ended June 30, 2026, 
 the Company included costs related to: (1) a class 
 action complaint captioned Johnston v. LifeMD, Inc., 
 et al., against the Company and certain executive 
 officers alleging: (i) violations of Section 10(b) 
 of the Securities Exchange Act of 1934, as amended, 
 and Rule 10b-5 promulgated thereunder by all defendants 
 for making false and misleading statements; and (ii) 
 violations of Section 20(a) of the Securities Exchange 
 Act of 1934, as amended, by the individual officer 
 defendants for violating their duty to disseminate 
 accurate and truthful information, and (2) a heavily 
 negotiated executive separation agreement. For the 
 three and six months ended June 30, 2025, the Company 
 included costs related to a class action complaint 
 alleging, inter alia, unauthorized disclosure of certain 
 information of class members to third parties (the 
 Marden v. LifeMD, Inc. case), and a heavily negotiated 
 executive separation agreement. 
 

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