LifeMD, Inc. Q4 FY2025 earnings call

• 2026 started with over 322,000 active subscribers, nearly $37 million in cash and no debt. Weight management business had record patient acquisition volumes in Q1 2026 with new signups approaching 700 per day and declining customer acquisition costs. - Collaborated with Novo Nordisk to launch Oral Vagovi, and is integrated with affiliated pharmacies of Novo Nordisk and Eli Lilly. - Invested in women's health by acquiring Optimal Human Health and partnering with experts, aiming to build high - quality virtual women's healthcare offering focused on menopause, etc. - RexMD brand had ~215,000 active patients, returned to growth in H2 2025, and planned to expand clinical offering. - Affiliated pharmacy licensed in all 50 states, processing ~20,000 prescriptions per month, and has a 503A compounding operation. - Beta launched 30 - state virtual cardiology offering using AI - supported intake process. - 2026 infrastructure priorities: AI with dedicated team deploying advanced AI capabilities, aiming to launch AI clinical decision support tool in H1; benefits expected to cover over 220 million lives by end of Q2; technology platform investment to build seamless patient experience.

Fourth quarter revenue was $46.9 million, up 4% year - over - year; full - year revenue was $194.1 million, up 25% year - over - year. Active subscribers nearly reached 323,000 at quarter end, up 16% year - over - year. Gross margin in the fourth quarter was 87.1%, an expansion of 570 basis points. Gross profit in the fourth quarter was $40.8 million, up 11% from the year - ago period. Full - year gross margin was 85.7%, and full - year gross profit was $166.3 million, up 25% versus 2024. Fourth quarter net income attributable to common stockholders was $19 million, and full - year net income attributable to common stockholders was $11.2 million. Adjusted EBITDA was $4.8 million in the fourth quarter of 2025 and $15.3 million for the full year of 2025.

• First quarter 2026 revenue expected in range of $48 - $49 million, adjusted EBITDA loss in range of $4 - $5 million. - Full year 2026 revenue expected between $220 - $230 million, adjusted EBITDA between $12 - $17 million. - By Q4 2026, expected annualized run rate for revenue to exceed $250 million and adjusted EBITDA to exceed $25 million.

• Forward - looking statements are subject to numerous risks and uncertainties that may cause actual results to differ materially from projected. These risks and uncertainties are described in the company's 10 - K and 10 - Q filings and other SEC filings.

• Q: Can you talk a little bit about the demand you're seeing for the Wagovi pill and the brand products? How does that compare to 3Q and 4Q of 2025 heading into 1Q of 2026?

A: Justin Schreiber said demand has been very strong since the product launched in early January, nearly doubled new patient acquisition in the weight loss business, driven by the pill, and saw encouraging unit economics. - Q: When you say patient or unit economics, can you maybe expand a little bit on that? Like what is the revenue model for the Wolgovy pill? Is it being priced at like $150 a month, which I think is the cash pay price? the Novo charges, just any additional color there, like gross margins on that product would be very helpful.

A: Mark said it will depend upon dosage, typically at $2.49 a month priced all in as a bundle, gross margins are healthy, treating it similarly to other bundled relationships in financial statements, recognizing net amount into P&Ls, margin on additional services provided to patients. - Q: Just any more color on the investments you're going to be making in 1Q of 2026, that's going to create that sort of EBITDA margin phenomenon.

A: Mark said the big increase is going to be in the sales and marketing line, expecting sales and marketing in telehealth business to be $30 to low $30s in Q1, with CAC reducing sequentially about 4 - 5% and volumes doubling, dollars will pay back in coming quarters. - Q: The ramp in revenue, I think you're sort of talking about maybe $63 million in revenue in the fourth quarter. It's a pretty good ramp from one queue. Just what will be the drivers of that increase as we progress through the year, please?

A: Predominantly subscriber count growth, growth in the weight management business, growth in the women's health business which is in infancy, and RECS business back to sequential growth. - Q: Is there any way that you can help us frame up when you're getting to that $25 million annualized EBITDA by exiting the 2026. How much of that growth is coming from women's health versus weight management versus cross - care pharmacy? What are the main drivers there in 2026?

A: Mark said when launching women's health, unit economics break even around 6 - 7 months, EBITDA accretion this year comes from more mature men's health and weight management businesses continuing to scale subscriber count across highly leverageable fixed costs, with discretionary marketing investment in weight management business. - Q: When you think about the early performance of your entrance into weight management or RECs, how is women's health comparing on things like CAC, conversion to care plans, early retention? What does the ramp there look like versus other markets you've entered?

A: Justin Schreiber said seen higher intent in women's health offerings than ever launched, cut CPA at least in half over last 30 days, initial on therapy and retention rates north of 80%, has big portfolio of pharmacy products, including compounded hormone therapies. - Q: The level of stickiness you're seeing with people on the Wagobe pill versus the injectable, and then if that is a higher stickiness level, given it is early, only a couple months here. But, you know, how much is that factored into your 2026 guidance?

A: Justin Schreiber said too early to understand much on retention side, seen strong on therapy rates, on therapy and initial retention rates better than injectable, but long - term retention TBD, conservative stance on it for 2026 guidance. - Q: Just on your weight management platform compared to competitors. I mean, we've had Lily announced a weight management offering. I think that was last week and then Amazon coming out with a, kind of a direct consumer offering as well. I think that was this morning. Just how does your platform compare to some of these competitors on the market?

A: Justin Schreiber said differences include operating own 50 - state provider group staffed with full - time providers specialized in areas, offering portfolio of specialty care, offering synchronous care with highly trained providers working for affiliated medical group not 1099 providers of third - party staffing businesses. - Q: The patient acquisition channels that you guys are investing in here at Q1. Are you going after any different marketing channels? Is the marketing strategy any different here, or is it similar to what you guys have done in the past?

A: Justin Schreiber said mostly similar to past, have new media partnerships delivering thousands of new patients, piloting employer programs with great feedback, working on significant partnerships with large companies possible in next 60 - 90 days. - Q: Thinking about the benefits infrastructure being on track to cover the, you know, over 220 million Americans by the end of Q2, you know, when you think about the potential lifetime value of a covered patient versus a cash pay patient, you know, is there a big difference there?

A: Justin Schreiber said retention expected stronger for insured patients, but still need to prove out, excited about insurance opportunity on platform, demand for insurance was surprising, expect business to move more towards insured patients in coming quarters. - Q: Could you just reiterate the total number of subscribers and detail again the number of them that came out specifically for the pill and for the Wigobi pill? I'm curious if you're seeing any migration from previously patients who were on the injectables that are going to the pill or is it primarily new customers who are signing up as subscribers for the orally available drugs?

A: Mark said have 322,000 overall subscribers, ~80,000 plus weight management subscribers, not releasing exact count for oral govi pill yet, seeing strong demand for the product, driving a lot of new patient demand, some folks coming onto it but mostly new customers. - Q: Going to the pharmacy, I'm curious which, now that you're 50 cent licensed, what percentage of Rex MD and Shapiro MD fulfillment is currently handled in - house? And what's the incremental margin left with the in - house fulfillment?

A: Said approaching 70% mark with in - house fulfillment, seeing margin improvement in range of 150 - 200 basis points from internal, also getting flexibility with personalized and 503A compounded products. - Q: I don't know if you'd be willing to detail any additional drugs you guys are considering compounding and bringing into your offering that you think would be key growth drivers for the pharmacy compounding?

A: Said not at liberty to detail specific additional drugs at this moment, but have strong internal roadmap.