LifeMD (LFMD): A Quick Look

LifeMD, Inc. (NASDAQ: LFMD) remains a founder‑led, vertically integrated virtual‑care provider that bundles primary care, specialist telehealth lines, weight‑management programs and its WorkSimpli résumé‑building SaaS into monthly subscriptions. Owning the physician network, pharmacy and patient‑support center lets the company keep almost the entire margin chain; about 90 per cent of sales are recurring visit or plan fees, with the rest coming from e‑commerce add‑ons and lab pass‑throughs. Co‑founder Justin Schreiber is still chief executive, backed by chief financial officer Marc Benathen and a chief medical information officer who oversees a 50‑state clinician panel; insider ownership sits in the mid‑teens, so governance is still closely aligned with founders.

For the year to 31 December 2024 LifeMD reported audited revenue of $212.5 million, up 39 per cent, and adjusted EBITDA of $14.4 million—a 6.8 per cent margin—while delivering its first positive free‑cash‑flow year of roughly $16 million. GAAP EPS was a loss of $0.53, but on an adjusted basis the company earned $0.35 a share. The 10‑K lists $35 million in cash and $18.3 million of term debt, leaving LifeMD in a modest net‑cash position.

After a steep pull‑back the shares closed on 18 April 2025 at $5.43; with 44.6 million basic shares outstanding, the market capitalization is ~$242 million and enterprise value about $225 million once debt and cash are netted. That translates to an EV/EBITDA multiple of roughly 15 ×, still less than half Teladoc’s and a fraction of Hims & Hers’ despite similar gross margins. Analysts continue to model a small GAAP loss in 2025, so a one‑year forward P/E is not meaningful, but 2026 consensus of $0.19 in EPS implies a two‑year forward P/E near 29 × and a forward PEG ratio well under 0.2 given triple‑digit earnings growth expected from operating leverage.

Management’s near‑term growth plan hinges on deeper penetration of GLP‑1 weight‑loss programs, new behavioral‑health and women’s‑health lines, broader commercial‑insurance coverage to cut churn and, longer term, licensing its tech stack to enterprise customers. A key change since the 10‑K, however, is that CMS formally rejected Medicare reimbursement for obesity‑only GLP‑1s in its 4 April 2025 rule‑making, removing what had been a potential tailwind for LifeMD’s spring launch and tempering upside expectations. Regulatory scrutiny of tele‑prescribing and competition from Teladoc, Amazon Clinic and retail‑pharmacy giants remain active risks, though the company’s asset‑light, net‑cash balance sheet limits financial strain if growth slips.

Valuation still turns on how quickly scale economies materialize. In a bear case—25 per cent probability—GLP‑1 uptake underwhelms, revenue stalls near $300 million and 2026 EPS reaches only $0.05; at a discounted 15 × earnings multiple the stock would trade near $6, essentially today’s level. The base case—50 per cent probability—assumes revenue climbs to $330 million, EBITDA margins reach the low‑teens and EPS hits $0.25; at an 18 × multiple fair value would be about $12. Under the bull case—now a lower‑confidence 25 per cent probability because Medicare coverage has been denied—women’s health and behavioral lines accelerate, cross‑selling lifts revenue toward $380 million and EPS to $0.40; a peer‑level 30 × multiple would support roughly $22. Weighting the three paths (0.25 × $6 + 0.50 × $12 + 0.25 × $22) yields an updated intrinsic value of ≈$13 per share, offering more than a two‑for‑one upside from the present quote but with execution and regulatory risk squarely in view.

Disclaimer: This material is for informational and educational purposes only and does not constitute investment advice, a solicitation or an offer to buy or sell securities. Investors should conduct their own research or consult a licensed professional before taking investment action.