LifeMD launches drug partnership as growth stalls
The telehealth provider swung to an adjusted EBITDA loss of $4.5 million in the quarter.
The virtual-care platform LifeMD (LFMD) struck a first-of-its-kind partnership with a pharmaceutical manufacturer even as its core revenue growth stalled. The company announced an exclusive collaboration to launch a direct-to-patient self-pay program for XYOSTED®, a testosterone enanthate injection, set to begin in July 2026 across 37 states. The deal marks the first such arrangement between a telehealth provider and a drugmaker, positioning LifeMD to expand its men’s health offerings amid decelerating topline performance.
Revenue fell 1% year-over-year to $50.2 million in the March quarter, a sharp slowdown from the 4% growth reported in the prior quarter and 13% in the year-ago period. The decline contrasted with a 26% increase in active telehealth subscribers, which reached 365,000, the largest quarterly net addition in company history. Gross margin continued to expand, rising 420 basis points to 88%, extending a trend of improving profitability on a per-patient basis.
The mixed results reflected divergent performance across segments. Weight-management new-patient revenues surged approximately 120% sequentially, driven by record GLP-1 patient sign-ups, while women’s health signups jumped 657% quarter-over-quarter. Customer acquisition costs in women’s health fell by about 70%, achieving scalable unit economics for the first time. However, selling and marketing expenses climbed 34% year-over-year to $29.9 million, reflecting front-loaded investments to fuel growth.
Adjusted EBITDA swung to a loss of $4.5 million from a $3.7 million profit in the year-ago quarter, breaking a streak of three consecutive quarters of positive adjusted EBITDA. The company attributed the shift to higher patient-acquisition spending and the timing of revenue recognition. Cash declined to $34.5 million from $36.8 million in the prior quarter, with no debt outstanding following the payoff of all obligations in the third quarter of 2025.
LifeMD affirmed its full-year revenue guidance of $220 million to $230 million, representing 13% to 19% year-over-year growth, and maintained its adjusted EBITDA outlook of $12 million to $17 million. However, the company lowered its second-quarter revenue guidance to $47 million to $50 million, down from an implied prior target of approximately $55 million, and expects adjusted EBITDA to range from a $2 million loss to a $1 million profit.
The company’s transition to a pure-play telehealth and pharmacy platform continued following the divestiture of its majority stake in WorkSimpli subsequent to the third quarter of 2025. Its 503-A compounding pharmacy, licensed in 14 states as of last September, is pursuing licensure in all 50 states, a capability not previously disclosed.