LifeMD, Inc. Q2 FY26 Results

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. 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® 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.

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. 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.