Q4 2025 LifeMD Inc Earnings Call

March 9, 2026

Speaker #2: Please stand by. Your meeting is about to begin. Good afternoon, and thank you for joining us today to discuss LifeMD's results for the fourth quarter and full year ended December 31, 2025.

Speaker #2: Joining us on the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Marc Benathen, Chief Financial Officer. Following management's prepared remarks, we will open the call for a question-and-answer session.

Speaker #2: Before we begin, I would like to remind everyone that during this call, the company will make a number of forward-looking statements, which are subject to numerous risks and uncertainties that may cause actual results to differ materially from those projected.

Speaker #2: These risks and uncertainties are described in the company’s 10-K and 10-Q filings, and within other filings that LifeMD may make with the SEC from time to time.

Operator: Please stand by. Your meeting is about to begin. Good afternoon. Thank you for joining us today to discuss LifeMD's results for Q4 and full year ended 31 December 2025. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, Marc Benathen, Chief Financial Officer. Following management's prepared remarks, we will open the call for a question-and-answer session. Before we begin, I would like to remind everyone that during this call, the company will make a number of forward-looking statements, which are subject to numerous risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties are described in the company's 10-K and 10-Q filings and within other filings that LifeMD may take with the SEC from time to time.

Operator: Forward-looking statements made during this call are based on current information available to the company as of today, 9 March 2026. The company assumes no obligation to update or revise any forward-looking statements after today's call, except as required by law. Also, please note that management will be discussing certain non-GAAP financial measures that the company believes are important in evaluating LifeMD's performance. Details on the relationship between these non-GAAP measures and the most comparable GAAP measures and reconciliation thereof can be found on the press release issued earlier today. Finally, I would like to remind everyone that today's call is being recorded and will be available for replay in the investor relations section of the company's website. Now I'd like to turn the call over to LifeMD's CEO, Justin Schreiber. Please go ahead.

Speaker #2: Forward-looking statements made during this call are based on current information available to the company as of today, March 9th, 2026. The company assumes no obligation to update or revise any forward-looking statements after today's call, except as required by law.

Speaker #2: Also, please note that management will be discussing certain non-GAAP financial measures that the company believes are important in evaluating LifeMD's performance. Details on the relationship between these non-GAAP measures and the most comparable GAAP measures in reconciliation, thereof, can be found on the press release issued earlier today.

Speaker #2: Finally, I would like to remind everyone that today's call is being recorded and will be available for replay in the investor relations section of the company's website.

Speaker #2: Now I'd like to turn the call over to LifeMD's CEO, Justin Schreiber. Please go ahead. Thank you, and good afternoon, everyone. After the market closed, we issued a news release announcing our fourth quarter and full year financial results, and posted an updated corporate presentation on our website at ir.lifemd.com.

Justin Schreiber: Thank you. Good afternoon, everyone. After the market closed, we issued a news release announcing our Q4 and full year financial results and posted an updated corporate presentation on our website at ir.lifemd.com. LifeMD delivered a very strong Q4 and full year with solid performance across all of our business lines. We entered 2026 with over 322,000 active subscribers, nearly $37 million in cash, and no debt, giving us the strongest balance sheet and liquidity position in the company's history. Across our platform, we now onboard approximately 1,200 new patients per day, and we receive more than 120,000 unique daily visitors to our websites, a clear reflection of the strength of our brands and the growing demand for our services.

Speaker #2: LifeMD delivered a very strong fourth quarter and full year, with solid performance across all of our business lines. We entered 2026 with over 322,000 active subscribers, nearly 37 million in cash, and no debt, giving us the strongest balance sheet and liquidity position in the company's history.

Speaker #2: Across our platform, we now onboard approximately 1,200 new patients per day, and we receive more than 120,000 unique daily visitors to our websites—a clear reflection of the strength of our brands and the growing demand for our services.

Justin Schreiber: Our weight management business alone is seeing record patient acquisition volumes in Q1, with new sign-ups approaching 700 per day while Customer Acquisition Costs have declined sequentially, a combination we are very excited about. Weight management remains a significant long-term growth opportunity for us. More than 100 million Americans are clinically eligible for GLP-1 therapy, yet only a fraction have been prescribed treatment. Subsequent to year-end, we successfully launched Oral Wegovy through our collaboration with Novo Nordisk, significantly expanding access for patients who prefer an oral option. We are one of the few virtual care providers fully integrated with both Novo Nordisk and Eli Lilly's affiliated pharmacies, and we are optimistic these collaborations will continue to evolve and deepen.

Speaker #2: Our weight management business alone is seeing record patient acquisition volumes in the first quarter, with new sign-ups approaching 700 per day, while customer acquisition costs have declined sequentially, a combination we are very excited about.

Speaker #2: Weight management remains a significant long-term growth opportunity for us. More than 100 million Americans are clinically eligible for GLP-1 therapy, yet only a fraction have been prescribed treatment.

Speaker #2: Subsequent to year-end, we successfully launched oral Wegovy through our collaboration with Novo Nordisk, significantly expanding access for patients who prefer an oral option. We are one of the few virtual care providers fully integrated with both Novo Nordisk and Eli Lilly-affiliated pharmacies.

Speaker #2: And we are optimistic these collaborations will continue to evolve and deepen. Beyond our current partnerships, we see significant pipeline opportunities with other large pharmaceutical companies and strategic partners, and we believe LifeMD's infrastructure and patient base make us a highly attractive partner in this space.

Justin Schreiber: Beyond our current partnerships, we see significant pipeline opportunities with other large pharmaceutical companies and strategic partners. We believe LifeMD's infrastructure and patient base make us a highly attractive partner in this space. Our second biggest area of focus after weight management is women's health. We have invested more resources into the launch of this offering than anything we've launched in the history of our company. We started by acquiring Optimal Human Health MD, a virtual concierge women's health company founded by Dr. Doug Lucas. Dr. Lucas is a former orthopedic surgeon and bone health specialist who has built a significant social media presence with over 160,000 followers and more than 10 million views across platforms, establishing himself as a recognized authority in women's hormonal and bone health. We also partnered with Dr. Tara Scott, known as The Hormone Guru. Dr.

Speaker #2: Our second biggest area of focus after weight management is women's health. We have invested more resources into the launch of this offering than anything we've launched in the history of our company.

Speaker #2: We started by acquiring Optimal Human Health, a virtual concierge women's health company founded by Dr. Doug Lucas. Dr. Lucas is a former orthopedic surgeon and bone health specialist who has built a significant social media presence with over 160,000 followers and more than 10 million views across platforms.

Speaker #2: Establishing himself as a recognized authority in women's hormonal and bone health. We also partner with Dr. Tara Scott, known as the Hormone Guru. Dr. Scott is an internationally recognized physician who is board-certified in OB-GYN, functional medicine, and integrative medicine, with 26 years of private practice experience and two decades of work in the menopause space.

Justin Schreiber: Scott is an internationally recognized physician who is board certified in OBGYN, functional medicine, and integrative medicine with 26 years of private practice experience and 2 decades of work in the menopause space. We have more advisors of this caliber joining our women's health advisory board in the weeks and months to come. As we've shared on prior calls, we are committed to building the highest quality virtual women's healthcare offering in the country focused on menopause, perimenopause, hormonal health, and bone health. The market need is clear. Nearly 50% of US counties lack an OBGYN, and 1.3 million women enter menopause each year, creating massive unmet demand for expert hormonal healthcare. While still early, we are seeing unit economics move in the right direction and expect women's health to be a meaningful contributor to growth in 2026 and a major driver in the long term.

Speaker #2: We have more advisors of this caliber joining our Women's Health Advisory Board in the weeks and months to come. As we've shared on prior calls, we are committed to building the highest quality virtual women's healthcare offering in the country, focused on menopause, perimenopause, hormonal health, and bone health.

Speaker #2: The market need is clear. Nearly 50% of U.S. counties lack an OB-GYN, and 1.3 million women enter menopause each year, creating massive unmet demand for expert hormonal healthcare.

Speaker #2: While still early, we are seeing unit economics move in the right direction and expect women's health to be a meaningful contributor to growth in 2026 and a major driver in the long term.

Justin Schreiber: Upcoming catalysts include the launch of insurance and Medicare support for our women's health offerings, pharmacy bundles that combine GLP-1, hormone, and other therapies, and strategic media and influencer programs in the pipeline for later this year. Turning to men's health, our RexMD brand, now with approximately 215,000 active patients, returned to growth in the second half of 2025 and continues to perform strongly on a profitable basis. We are focused on expanding RexMD's clinical offering beyond its core sexual health programs into other personalized generic and compounded medication categories. In the last week, we launched the RexMD integration with NovoCare and now offer injectable and oral Wegovy directly to RexMD patients. We are launching five new men's healthcare offerings and treatments from our pharmacy in the first half of 2026 in areas including insomnia, erectile dysfunction, dermatology, and topical pain relief.

Speaker #2: Upcoming catalysts include the launch of insurance and Medicare support for our women's health offerings, pharmacy bundles that combine GLP-1, hormone, and other therapies, and strategic media and influencer programs in the pipeline for later this year.

Speaker #2: Turning to men's health, our RexMD brand, now with approximately 215,000 active patients, returned to growth in the second half of 2025 and continues to perform strongly on a profitable basis.

Speaker #2: We are focused on expanding RexMD's clinical offering beyond its core sexual health programs into other personalized, generic, and compounded medication categories. In the last week, we launched the RexMD integration with NovoCare, and now offer injectable and oral Wegovy directly to RexMD patients.

Speaker #2: We are launching five new men's healthcare offerings and treatments from our pharmacy in the first half of 2026 in areas including insomnia, erectile dysfunction, dermatology, and topical pain relief.

Justin Schreiber: We are closely following FDA guidance on peptide therapies and are prepared to launch those that are permitted to be compounded and are supported by strong clinical data. A key enabler across all these verticals is our affiliated pharmacy, which is now licensed in all 50 states and processing approximately 20,000 prescriptions per month. With our recently licensed 503A compounding operation, we have the ability to produce personalized compounded medications at scale, supporting our efforts across men's health, women's health, and other specialty verticals. We view our pharmacy infrastructure as another growth driver for the company with the potential to meaningfully expand margins and deepen patient engagement across the platform. In March, we beta launched a 30-state virtual cardiology offering.

Speaker #2: Further, we are closely following FDA guidance on peptide therapies and are prepared to launch those that are permitted to be compounded and are supported by strong clinical data.

Speaker #2: A key enabler across all of these verticals is our affiliate pharmacy, which is now licensed in all 50 states and processing approximately 20,000 prescriptions per month.

Speaker #2: With our recently licensed 503(a) compounding operation, we have the ability to produce personalized compounded medications at scale, supporting our efforts across men's health, women's health, and other specialty verticals.

Speaker #2: We view our pharmacy infrastructure as another growth driver for the company, with the potential to meaningfully expand margins and deepen patient engagement across the platform.

Speaker #2: In March, we beta-launched a 30-state virtual cardiology offering. This program allows new and existing LifeMD patients to book a cash-pay or insurance-covered visit with board-certified cardiologists from the comfort of their home.

Justin Schreiber: This program allows new and existing LifeMD patients to book a cash pay or insurance-covered visit with board-certified cardiologists from the comfort of their home. Our affiliated cardiologists can treat a range of conditions in a virtual environment, prescribe and manage medications, and provide diet and lifestyle care plans. Importantly, the diagnostics and care delivery to this program are driven by an AI-supported intake process that pulls in the patient's medical history from a Health Information Exchange and synchronizes it with biomarker data from labs and information provided during patient intake. The result is a significantly more efficient experience for the cardiologist, an enhanced experience for the patient, and most importantly, improved clinical outcomes. I am excited to see this program scale, and I believe it will serve as a blueprint for how we triage, diagnose, and treat patients across our entire platform in the years to come.

Speaker #2: Our affiliated cardiologists can treat a range of conditions in a virtual environment, prescribe and manage medications, and provide diet and lifestyle care plans. Importantly, the diagnostics and care delivered through this program are driven by an AI-supported intake process that pulls in the patient's medical history from a health information exchange and synchronizes it with biomarker data from labs and information provided during patient intake.

Speaker #2: The result is a significantly more efficient experience for the cardiologist and an enhanced experience for the patient, and, most importantly, improved clinical outcomes. I am excited to see this program scale, and I believe it will serve as a blueprint for how we triage, diagnose, and treat patients across our entire platform in the years to come.

Justin Schreiber: Let me now review our infrastructure priorities for 2026. We are focused on 3 areas that we believe will meaningfully accelerate growth and operating leverage across the business. First and most importantly is artificial intelligence. We have built a dedicated world-class AI and engineering team inside LifeMD that is focused exclusively on deploying advanced Agentic AI capabilities across care delivery, diagnostics, and patient operations, supported by strong governance controls. This is not something that we are outsourcing or experimenting with on the side. It's central to our strategy and is embedded throughout our platform today. In the first half of this year, we plan to launch our AI clinical decision support tool.

Speaker #2: Let me now review our infrastructure priorities for 2026. We are focused on three areas that we believe will meaningfully accelerate growth and operating leverage across the business.

Speaker #2: First, and most importantly, is artificial intelligence. We have built a dedicated, world-class AI and engineering team inside LifeMD that is focused exclusively on deploying advanced agentic AI capabilities across care delivery, diagnostics, and patient operations, supported by strong governance controls.

Speaker #2: This is not something that we are outsourcing or experimenting with on the side. It's central to our strategy and is embedded throughout our platform today.

Speaker #2: In the first half of this year, we plan to launch our AI clinical decision support tool. As I mentioned with our cardiology offering, this tool connects directly to a patient's medical record, pulls in data from health information exchanges, and integrates biomarker data from labs to support diagnosis and personalized treatment recommendations of our affiliated providers.

Justin Schreiber: As I mentioned with our cardiology offering, this tool connects directly to a patient's medical record, pulls in data from Health Information Exchanges, and integrates biomarker data from labs to support diagnosis and personalized treatment recommendations of our affiliated providers. We expect our AI clinical decision support tool to drive new patient acquisition, improve the efficiency of message-based and synchronous consults, and enable even more patients to access the industry-leading care provided by our affiliated clinicians. One area where we see particularly high demand is personalized prescribing, especially with compounded medications. Our AI tools will be able to analyze a patient's clinical profile, lab results, and treatment history to help providers design highly individualized compound formulations tailored to each patient's specific needs. When you combine that capability with our 503A compounding pharmacy, you get something that is very difficult to replicate.

Speaker #2: We expect our AI clinical decision support tool to drive new patient acquisition, improve the efficiency of message-based and synchronous consults, and enable even more patients to access the industry-leading care provided by our affiliated clinicians.

Speaker #2: One area where we see particularly high demand is personalized prescribing. Especially with compounded medications, our AI tools will be able to analyze a patient's clinical profile, lab results, and treatment history to help providers design highly individualized compound formulations tailored to each patient's specific needs.

Speaker #2: When you combine that capability with our 503A compounding pharmacy, you get something that is very difficult to replicate: AI-driven, personalized medicine manufactured and fulfilled in-house at scale.

Justin Schreiber: AI-driven, personalized medicine manufactured and fulfilled in-house at scale. We believe this intersection of AI and pharmacy is a major differentiator and will drive both better patient outcomes and improved unit economics across the platform. We believe LifeMD will be a leader, if not the leader, in delivering urgent and specialty healthcare using AI. The combination of our proprietary technology, our 50-state affiliated medical group, our pharmacy infrastructure, and the structured clinical data we have accumulated from over 1.3 million patient consults gives us what we believe is one of the most compelling AI-enabled care platforms in virtual health.

Speaker #2: We believe this intersection of AI and pharmacy is a major differentiator and will drive both better patient outcomes and improved unit economics across the platform.

Speaker #2: We believe LifeMD will be a leader if not the leader in delivering urgent and specialty healthcare using AI. The combination of our proprietary technology, our 50-state affiliated medical group, our pharmacy infrastructure, and the structured clinical data we have accumulated from over 1.3 million patient consults gives us what we believe is one of the most compelling AI-enabled care platforms in virtual health.

Justin Schreiber: Beyond the clinical side, we are embedding AI and automation deeper into our operational workflows, enabling us to handle significantly more volume without proportional increases in overhead. We see a clear path to substantially improving our G&A efficiency throughout 2026. We expect these investments to be a meaningful contributor to margin expansion as the year progresses. Our second infrastructure priority is benefits. Today, our platform covers over 110 million lives through commercial and government payer contracts. By the end of Q2, we expect that number to grow to over 220 million lives through an expanded partnership with a leading third-party benefits partner. This is a critical competitive advantage. When patients are able to use their insurance on our platform, we've seen customer acquisition costs decline by as much as 30%. Plus, we expect meaningful improvements in retention in this population.

Speaker #2: Beyond the clinical side, we are embedding AI and automation deeper into our operational workflows enabling us to handle significantly more volume without proportional increases in overhead.

Speaker #2: We see a clear path to substantially improving our GNA efficiency throughout 2026, and we expect these margin expansion as the year progresses. Our second infrastructure priority is benefits.

Speaker #2: Today, our platform covers over 110 million lives through commercial and government payer contracts. By the end of the second quarter, we expect that number to grow to over 220 million lives through an expanded partnership with a leading third-party benefits partner.

Speaker #2: This is a critical competitive advantage. When patients are able to use their insurance on our platform, we've seen customer acquisition costs decline by as much as 30%.

Speaker #2: Plus, we expect meaningful improvements in retention in this population. As we layer insurance-enablement across weight management, women's health, and primary care, we believe this infrastructure will be a significant long-term differentiator for LifeMD.

Justin Schreiber: As we layer insurance enablement across weight management, women's health, and primary care, we believe this infrastructure will be a significant long-term differentiator for LifeMD. The third infrastructure priority is our technology platform. We are investing in building a true platform experience for our patients, one that is architected to incorporate emerging AI capabilities and insurance benefits infrastructure in a way that feels invisible to the patient. This means rethinking how our platform is built at a foundational level, modernizing our underlying systems, creating flexible integration layers, and designing patient-facing workflows that can seamlessly absorb these technologies without adding complexity. Today, AI tools and benefits verification exist largely as point solutions that sit outside of the core patient journey. Our goal is to enhance the platform so these capabilities are native to the experience, woven into how patients access care, communicate with their providers, and manage their treatment.

Speaker #2: The third infrastructure priority is our technology platform. We are investing in building a true platform experience for our patients, one that is architected to incorporate emerging AI capabilities and insurance benefits infrastructure in a way that feels invisible to the patient.

Speaker #2: This means rethinking how our platform is built at a foundational level, modernizing our underlying systems, creating flexible integration layers, and designing patient-facing workflows that can seamlessly absorb these technologies without adding complexity.

Speaker #2: Today, AI tools and benefits verification exist largely as point solutions that sit outside of the core patient journey. Our goal is to enhance the platform so that these capabilities are native to the experience, woven into how patients access care, communicate with their providers, and manage their treatment.

Justin Schreiber: Getting the architecture right is what makes a seamless patient experience possible at scale, and it is what will allow us to move quickly as both AI and the insurance landscape continue to evolve. We made meaningful progress on this in 2025, and it remains a top priority in 2026. In summary, LifeMD entered 2026 from a position of strength with record demand in weight management, a diversifying specialty care platform, a scalable pharmacy operation, deepening pharmaceutical collaborations, and the financial flexibility to invest aggressively in growth. We are confident in our growth trajectory and excited about the road ahead. With that, I'll now turn the call over to our CFO, Marc Benathen, to provide more detail on our Q4 and full-year financial results and outlook. Marc?

Speaker #2: Getting the architecture right is what makes a seamless patient experience possible at scale, and it is what will allow us to move quickly as both AI and the insurance landscape continue to evolve.

Speaker #2: We've made meaningful progress on this in 2025, and it remains a top priority in 2026. In summary, LifeMD entered 2026 from a position of strength, with record demand in weight management, a diversifying specialty care platform, a scalable pharmacy operation, deepening pharmaceutical collaborations, and the financial flexibility to invest aggressively in growth.

Speaker #2: We are confident in our growth trajectory and excited about the road ahead. With that, I'll now turn the call over to our CFO, Marc Benathen, to provide more detail on our fourth-quarter and full-year financial results and outlook.

Speaker #2: Marc? Thank you, Justin, and good afternoon, everyone. Our fourth-quarter results were very strong and ahead of our previous guidance, driven by outperformance in all areas of the company. During the quarter, we added over 13,000 net new subscribers to our patient subscriber count; this was the largest net gain of any quarter in 2025 and is reflective of strong business momentum as a result of LifeMD making significant inroads with the penetration of branded therapy within our weight management subscriber base and a consistent multi-quarter return to sequential growth in our men's health business.

Marc Benathen: Thank you, Justin. Good afternoon, everyone. Our Q4 results were very strong and ahead of our previous guidance, driven by outperformance in all areas of the company. During the quarter, we added over 13,000 net new subscribers to our patient subscriber count. This was the largest net gain of any quarter in 2025 and is reflective of the strong business momentum as a result of LifeMD making significant inroads with the penetration of branded therapy within our weight management subscriber base and a consistent multi-quarter return to sequential growth in our men's health business. To date in Q1, we have seen this momentum continue and even accelerate in Q1 of 2026, with GLP-1 patient new sign-ups at record levels and over 80% of new patient sign-ups going on branded therapy.

Speaker #2: To date, in the first quarter, we have seen this momentum continue and even accelerate in the first quarter of 2026, with GLP-1 patient new sign-ups at record levels and over 80% of new patient sign-ups going on branded therapy.

Marc Benathen: We are leveraging our pristine balance sheet to invest in accelerating the acquisition and onboarding of patients to best position us for long-term growth and significant momentum in the back half of 2026. Turning to the Q4 numbers. Revenue grew 4% versus the year-ago period to $46.9 million. Telehealth subscriber growth remained strong, with the number of active subscribers increasing 16% year-over-year to nearly 323,000 at quarter end. Gross margin for the Q4 was 87.1%, an expansion of 570 basis points versus the prior year due to revenue mix and increasing operational efficiency as we scale. Gross profit was $40.8 million, an increase of 11% from the year-ago period.

Speaker #2: We are leveraging our pristine balance sheet to invest in accelerating the acquisition and onboarding of patients that best position us for long-term growth and significant momentum in the back half of 2026.

Speaker #2: Now, turning to the fourth quarter numbers, revenue grew 4% versus the year-ago period to $46.9 million. Telehealth subscriber growth remained strong, with the number of active subscribers increasing 16% year-over-year to nearly 323,000 at quarter-end.

Speaker #2: Gross margin for the fourth quarter was 87.1%, an expansion of 570 basis points versus the prior year due to revenue mix and increasing operational efficiency as we scale.

Speaker #2: Gross profit was $40.8 million, an increase of 11% from the year-ago period. Our GAAP net income attributable to common stockholders for the fourth quarter of 2025 was $19.0 million, or $0.41 per share. This figure includes the one-time benefit from the sale of Work Simply last November. Excluding this one-time gain, our GAAP net loss from continuing operations was $1.9 million, or $0.04 per share.

Marc Benathen: Our GAAP net income attributable to common stockholders for Q4 2025 was $19 million or $0.41 per share. This figure includes the one-time benefit from the sale of WorkSimpli last November. Excluding this one-time gain, our GAAP net loss from continuing operations was $1.9 million or $0.04 per share. This compares with a GAAP net loss from continuing operations for Q4 2024 of $6.8 million, or a loss of $0.16 per share. Adjusted EBITDA is a non-GAAP measure we define as income or loss attributable to common shareholders before various items as outlined in today's news release. Adjusted EBITDA totaled $4.8 million for Q4 2025, up from $1.1 million in the year-ago period. Now turning to the full year numbers.

Speaker #2: This compares with a GAAP net loss from continuing operations for the fourth quarter of 2024 of $6.8 million, or a loss of $0.16 per share.

Speaker #2: Adjusted EBITDA is a non-GAAP measure we define as income or loss attributable to common shareholders before various items, as outlined in today's news release.

Speaker #2: Adjusted EBITDA totaled $4.8 million for the fourth quarter of 2025, up from $1.1 million in the year-ago period. Now turning to the full-year numbers, revenue grew 25% versus the year-ago period to $194.1 million. Gross margin for 2025 was 85.7%, a slight decrease of 50 basis points versus the prior year due to mix.

Marc Benathen: Revenue grew 25% versus the year ago period to $194.1 million. Gross margin for 2025 was 85.7%, a slight decrease of 50 basis points versus the prior year due to mix. Gross profit was $166.3 million, an increase of 25% versus 2024. Our GAAP net income attributable to common stockholders for 2025 was $11.2 million or $0.25 per share. This figure includes the one-time benefit from the sale of WorkSimpli. Excluding this one-time gain, our GAAP net loss from continuing operations was $13.3 million or $0.30 per share. This compares with a GAAP net loss from continuing operations for the full year 2024 of $26.3 million or a loss of $0.64 per share.

Speaker #2: Gross profit was $166.3 million, an increase of 25% versus 2024. Our GAAP net income attributable to common stockholders for 2025 was $11.2 million, or 25 cents per share. This figure includes the one-time benefit from the sale of Work Simply.

Speaker #2: Excluding this one-time gain, our GAAP net loss from continuing operations was $13.3 million, or $0.30 per share. This compares with a GAAP net loss from continuing operations for the full year 2024 of $26.3 million, or a loss of $0.64 per share.

Marc Benathen: Adjusted EBITDA totaled a $15.3 million for the full year 2025. $7 million in the year ago period. We exited Q4 and full year 2025 with $36.8 million in cash and no debt. Turning to financial guidance, we expect Q1 2026 revenue in the range of $48 to $49 million, with Adjusted EBITDA loss in the range of $4 to $5 million. This expected loss is purely being driven by record volumes of approximately 700 new patient sign-ups a day in our GLP-1 weight loss business, amidst significant demand for our branded and oral therapy business. We see this discretionary investment as a major driver for potential growth in the coming quarters. At the same time, we have achieved this record demand with a 4% sequential decline in CACs within this business line.

Speaker #2: Adjusted EBITDA totaled $15.3 million for the full year 2025, compared to $9.7 million in the year-ago period. We exited the fourth quarter and full year 2025 with $36.8 million in cash and no debt.

Speaker #2: Turning to financial guidance, we expect first quarter 2026 revenue in the range of $48 to $49 million, with adjusted EBITDA loss in the range of $4 to $5 million.

Speaker #2: This expected loss is purely being driven by record volumes of approximately 700 new patient sign-ups a day in our GLP-1 weight loss business, amidst significant demand for our branded and oral therapy business.

Speaker #2: We see this discretionary investment as a major driver for potential growth in the coming quarters. At the same time, we have achieved this record demand with a 4% sequential decline in CACs within this business line.

Marc Benathen: Our very strong balance sheet allows us to easily finance this investment. LifeMD plans to return to adjusted EBITDA profitability in Q2 following this investment. For the full year 2026, we expect revenue of between $220 and $230 million and adjusted EBITDA between $12 and $17 million. By Q4 2026, we expect our annualized run rate for revenue to exceed $250 million and for adjusted EBITDA, our annualized run rate to exceed $25 million. With that, let's now, Justin.

Speaker #2: Our very strong balance sheet allows us to easily finance this investment. LifeMD plans to return to adjusted EBITDA profitability in the second quarter, following this investment.

Speaker #2: For the full year 2026, we expect revenue of between $220 million and $230 million, and adjusted EBITDA between $12 million and $17 million. By the fourth quarter of 2026, we expect our annualized run rate for revenue to exceed $250 million, and for adjusted EBITDA, our annualized run rate to exceed $25 million.

Speaker #2: With that, let's now—Justin?

Justin Schreiber: Thanks, everybody. I think now we'll open up to questions.

Speaker #1: Thanks, questions.

Operator: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star one to ask a question. We'll pause for just a moment to allow everyone a chance to join the queue. We'll take our first question from David Larsen with BTIG. Please go ahead. Your line is open.

Speaker #3: Thank you. If you'd like to ask a question, press *1 on your keypad. To leave the queue at any time, press *2.

Speaker #3: Once again, that is star one to ask a question, and we'll pause for just a moment to allow everyone a chance to join the queue.

Speaker #3: And we'll take our first question from David Larson with BTIG. Please go ahead, your line is open.

David Larsen: Hi. Congratulations on the good quarter and the good year. Can you talk a little bit about the demand you're seeing for, I guess, the Wegovy pill and the brand products? How does that compare to like, say, Q3 and Q4 of 2025 heading into Q1 of 2026? Thanks.

Speaker #4: Hi. Congratulations on the good quarter and the good year. Can you talk a little bit about the demand you're seeing for, I guess, the Wegovy pill and the brand products?

Speaker #4: How does that compare to, say, Q3 and Q4 of '25 heading into Q1 of '26? Thanks.

Justin Schreiber: Hi, Dave. This is Justin Schreiber. I'll take that one. I mean, the demand, as we mentioned on the call, has been very strong since this product launched in early January. If you were to compare it, I mean, as we said, we nearly doubled new patient acquisition in the weight loss business. A lot of that was driven by Wegovy pill. You know, I think that's the best way to illustrate that. We also saw really encouraging unit economics, which is why we, you know, which is why we decided to kind of spend more money than we otherwise might have, on new patient acquisition in this area.

Speaker #1: Hi, Dave. This is Justin Schreiber. I'll take that one. I mean, the demand, as we mentioned on the call, has been very strong since this product launched in early January.

Speaker #1: If you were to compare it—I mean, as you can—as we said, we nearly doubled the new patient acquisition in the weight loss business, and a lot of that was driven by the Wegovy pill.

Speaker #1: So I think that's the best way to illustrate that. And we also saw really encouraging unit economics, which is why we—which is why we decided to kind of spend more money than we otherwise might have on new patient acquisition in this area.

David Larsen: Okay. When you say patient or unit economics, can you maybe expand a little bit on that? Like, what is the revenue model for the Wegovy pill? Is it being priced at, like, $150 a month, which I think is the cash pay price that Novo charges? Any, any additional color there, like gross margins on that product would be very helpful. Thank you.

Speaker #4: Okay, and then when you say patient or unit economics, can you maybe expand a little bit on that? What is the revenue model for the Wegovy pill?

Speaker #4: Is it being priced at $150 a month, which I think is the cash-pay price that Novo charges? Just any additional color there, like gross margins on that product, would be very helpful.

Speaker #4: Thank you.

Marc Benathen: Yeah. David, this is Marc. It will depend upon dosage, but, yeah, typically it's a $249 a month price all in as a bundle and, you know, can move up from there. The gross margins are healthy. I mean, we're, you know, in approximately $100 an order or so, in margin, which is pretty healthy. We treat it from an accounting and financial statement standpoint, similar to how we've treated other bundled relationships in that we recognize the net amount into the P&Ls, which is purely driven by the margin. Since essentially the product today, you know, there may be other opportunities in the future, but today the product is essentially a pass-through, and the margin that we make is on the additional services that we provide to our patients.

Speaker #1: Yeah, so David, this is Mark. So it will depend upon dosage, but yeah, typically it's at $249 a month, priced all in as a bundle.

Speaker #1: And it can move up from there. The gross margins are healthy. I mean, we're at approximately $100 an order or so in margin, which is pretty healthy.

Speaker #1: We treat it from an accounting and financial statements standpoint, similar to how we've treated other bundled relationships, and we recognize the net amount into the P&Ls, which is purely driven by the margin.

Speaker #1: Since, essentially, the product today—there may be other opportunities in the future—but today the product is essentially a pass-through, and the margin that we make is on the additional services that we provide to our patients.

Marc Benathen: It's very similar economics to what we've seen on branded injectables, which are strong economics that have multifold returns on a three-year basis.

Speaker #1: So it's very similar, economics to what we've seen on branded injectables, which are strong. Economics that have multifold returns on a three-year basis.

David Larsen: Okay, that's great. Just any more color on the investments you're gonna be making in Q1 of 2026 that's gonna create that sort of EBITDA margin phenomenon. Thanks.

Speaker #4: Okay, that's great. And then, just any more color on the investments you're going to be making in Q1 of '26 that's going to create that sort of EBITDA margin phenomenon?

Marc Benathen: This is Marc. I would expect, I mean, look, the big increase is going to be in the sales and marketing line. If you look in 2025, we're typically around that $20 to $22 million mark in the sales and marketing line, within the telehealth business in there, but pure telehealth around that $20 to $22 million. We're gonna be 30 to low 30s in Q1, but that's also with CAC reducing sequentially about 4% to 5% and volumes doubling, which is pretty impressive that we're able to drive that much more volume with a reduced CAC. Obviously, because of the volume, it's going to drive incremental dollars. Those dollars will pay back to us in the coming quarters, particularly in the back half of 2026. Given the demand out there and where LifeMD, Inc.

Speaker #4: Thanks.

Speaker #1: Yeah, yeah. This is Mark. Yeah, I would expect—I mean, look, the big increase is going to be in the sales and marketing line. If you look in '25, we're typically around the $20 to $22 million mark in the sales and marketing line within the telehealth business.

Speaker #1: But pure telehealth is around $20 to $22 million. We're going to be $30 to low $30s in the first quarter. But that's also with CAC reducing sequentially about 4% to 5% and volumes doubling.

Speaker #1: Which is pretty impressive that we're able to drive that much more volume with a reduced CAC. Obviously, because of the volume, it's going to drive incremental dollars.

Speaker #1: Those dollars will pay back to us in the coming quarters, particularly in the back half of '26. And given the demand out there and where LifeMD is positioned in the market—our insurance capabilities—we collectively believe that it makes a lot of sense for us to go and capitalize upon that.

Marc Benathen: is positioned in the market, our insurance capabilities, we collectively believe it makes a lot of sense for us to go and capitalize upon that.

David Larsen: Okay, just one last quick one before I hop back in the queue. The ramp in revenue, I think you're sort of talking about maybe $63 million in revenue in Q4. It's a pretty good ramp from Q1. Just what will be the drivers of that increase as we progress through the year, please? Thank you.

Speaker #4: Okay, and just one last quick one before I hop back in the queue. The ramp in revenue—you’re sort of talking about maybe $63 million in revenue in the fourth quarter.

Speaker #4: It's a pretty good ramp from Q1. Just what will be the drivers of that increase as we progress through the year, please? Thank you.

Marc Benathen: Predominantly subscriber count growth. It's mostly going to take place in the GLP-1 weight business, the growth in the women's health business, which is obviously at its infancy. Look, the Rex business is back to sequential growth. It's gonna continue to be a consistent grower as we move through each of the quarters. Those will be the three areas, and you're gonna see it in subscriber count growth as we move throughout the year.

Speaker #1: Predominantly, subscriber count growth. It's mostly going to take place in the GLP-1 weight business. The growth in the women's health business, which is obviously at its infancy. And then, look, the Rex business is back to sequential growth.

Speaker #1: It's going to continue to be a consistent grower as we move through each of the quarters. But those will be the three areas, and you're going to see it in subscriber count growth as we move throughout the year.

David Larsen: It's great. Congrats on a good quarter. I'll hop back in the queue. Thank you.

Speaker #4: That's great. Congrats on a good quarter. I'll hop back in the queue. Thank you.

Operator: Thank you. We'll move now to Sarah James of Cantor Fitzgerald. Please go ahead. Your line is open.

Speaker #3: Thank you. We'll move now to Sarah James of Kantor Fitzgerald. Please go ahead. Your line is open.

Sarah James: Thank you. Congrats on a great quarter and exciting outlook. There's a lot of growth levers here to unpack. I wanna stick on the topic of the run rate revenue and earnings. Is there any way that you can help us frame up when you're getting to that $25 million annualized EBITDA by exiting 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?

Speaker #5: Thank you, and congrats on a great quarter and exciting outlook. There are a lot of growth levers here to unpack, so I want to stick on the topic of the run rate.

Speaker #5: Revenue and earnings. Is there any way that you can help us frame up when you're getting to that $25 million annualized EBITDA by exiting '26?

Speaker #5: 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 '26?

Marc Benathen: Yeah, Sarah, this is Marc. First, I think it's important to understand when we launch a new offering like women's health, while we do break even, obviously on the unit economics, typically in around the six to seven-month mark, sometimes a little sooner, sometimes a month or two later. As you scale into that business, it's not going to be EBITDA positive on a consolidated basis in the first year. It obviously will add a good amount to revenue, likely along the ranges of around, you know, $10 million on a full year basis and with run rate being higher by the Q4. You're not going to be EBITDA positive in that first year.

Speaker #1: Yeah. Sarah, this is Mark. So first, I think it's important to understand when we launch a new offering, like women's health, while we do break even, obviously, on the unit economics, typically in around the six to seven-month mark—sometimes a little sooner, sometimes a month or two later.

Speaker #1: As you scale into that business, it's not going to be EBITDA positive on a consolidated basis in the first year. It obviously will add a good amount to revenue, likely along the ranges of around $10 million on a full-year basis, with run rate being higher.

Speaker #1: By the fourth quarter, but you're not going to be EBITDA positive in that first year. So, where the EBITDA accretion comes this year—and by the way, it will be very accretive next year.

Marc Benathen: Where the EBITDA accretion comes this year, and by the way, it will be very accretive next year, in our financial plan in 2027 as we scale, and we would expect it on a run rate basis to be EBITDA positive, slightly by Q4. Where a lot of it comes from, we have obviously more mature men's health and weight management businesses continuing to scale subscriber counts in those businesses across highly leverageable fixed costs. Albeit, we are making a discretionary marketing investment now, particularly in the weight management business and to a lesser degree in scaling some complementary offerings and existing offerings in men's health. That's where a lot of the accretion will happen this year.

Speaker #1: In our financial plan in 2027, as we scale—and it will be—we would expect, on a run-rate basis, to be EBITDA positive slightly by the fourth quarter.

Speaker #1: But where a lot of it comes from, we have, obviously, more mature men's health and weight management businesses continuing to scale subscriber count. In those businesses, across highly leverageable fixed costs—albeit we are making a discretionary marketing investment now, particularly in the weight management business, and to a lesser degree in scaling some complementary offerings and existing offerings in men's health.

Speaker #1: That's where a lot of the accretion will happen this year. Women's Health will be in a great position at the end of the year, probably slightly accretive on a run-rate basis, and then significantly accretive in 2027.

Marc Benathen: Women's health will be in a great position, at the end of the year, probably slightly, accretive on a run rate basis and then significantly accretive in 2027.

Sarah James: Great. That's helpful. Just so we can get a better basis of understanding on the women's health, when you think about the early performance of your entrance into weight management or REX, 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?

Speaker #5: Great, that's helpful. And just so we can get a better basis of understanding on the women's health — when you think about the early performance of your entrance into weight management, or Rex, how is women's health comparing on things like CAC, conversion to care plans, early retention?

Speaker #5: What does the ramp there look like versus other markets you've entered?

Justin Schreiber: Hi, Sarah, it's Justin. I'll take that one. We've seen, I think, from a CPC basis, I mean, we've seen higher intent for these offerings than anything we've ever launched, which has been really, really encouraging on the marketing side. You know, we've struggled a little bit on the kind of just the conversion rate side of the business and where we've been putting an enormous amount of energy into, you know, into figuring that out. That was one of the comments I made on the call, is that we've, you know, we've invested in our brand and our assets and in incredible advisors and, you know, just, you know, we've really kind of invested more than we've ever invested in a launch in the company's history in the women's health program.

Speaker #1: Hi, Sarah. It's Justin. I'll take that one. So we've seen—I think from a CPC basis—I mean, we've seen higher intent for these offerings than anything we've ever launched, which has been really, really encouraging.

Speaker #1: On the marketing side, we've struggled a little bit on just the conversion rate side of the business, and we've been putting an enormous amount of energy into figuring that out.

Speaker #1: That was one of the comments I made on the call, is that we've invested in just in our brand, in our assets, and in incredible advisors, and just—we've really kind of just invested more than we've ever invested in a launch in the company's history in the women's health program.

Justin Schreiber: Starting to see, like, the benefits of that. I mean, we've cut the CPA at least in half over the last 30 days or approximately in half, I would say. There's still a lot of room for improvement. You know, we can tell there's an enormous amount of demand there. We know that we have, like, an incredible service offering in the pharmacy products that we're offering. We also have a very big kind of portfolio of pharmacy products that we're offering, including compounded hormone therapies, which are priced better than almost everybody else out there. I mean, especially considering how high quality our offering is. The other thing that we're expecting to see, and we're already seeing the early signs of this, is just like really, really good on therapy and retention rates.

Speaker #1: And we're starting to see the benefits of that. I mean, we've cut the CPA at least in half over the last 30 days, or approximately in half, I would say.

Speaker #1: And there's still a lot of room for improvement. So we can tell there's an enormous amount of demand there. We know that we have an incredible service offering.

Speaker #1: The pharmacy products that we're offering—we also have a very big kind of portfolio of pharmacy offerings, pharmacy products that we're offering, including compounded hormone therapies, which are priced better than almost everybody else out there.

Speaker #1: I mean, especially considering how high-quality our offering is. And the other thing that we're expecting to see, and we're already seeing the early signs of this, is just really, really good on-therapy and retention rates.

Justin Schreiber: Some of these, like the initial on therapy and retention rates are, you know, are north of 80%, which is really strong. Like our whole kind of our, you know, our plan from when we started designing this program was build something with an incredible value proposition. We know there's kind of a massive need there in the market, price it properly, and we're going to have amazing retention. Yeah, look, it's a little bit early to make, like, you know, too big of a statement here, but the initial numbers are really good, and everybody internally is super excited about it.

Speaker #1: And so, some of these, like the initial on-therapy and retention rates, are north of 80%, which is really strong. And so our whole kind of plan from when we started designing this program was to build something with an incredible value proposition.

Speaker #1: We know there's kind of a massive need there in the market. Price it properly and we're going to have amazing retention. And yeah, look, it's a little bit early to make too big of a statement here, but the initial numbers are really good and everybody internally is super excited about it.

Eduardo Garcia: That's great to hear. Thank you.

Sarah James: That's great to hear. Thank you.

Speaker #5: That's great to hear. Thank you.

Operator: Thank you. We'll take our next question from Scott Schoenhaus with KeyBanc. Please go ahead. Your line is open.

Speaker #3: Thank you. We'll take our next question from Steve Shurt with Keepthink. Please go ahead, your line is open.

Scott Schoenhaus: Hey, guys. Congrats on a solid quarter. Just wondering the level of stickiness you're seeing with people on the Wegovy pill versus the injectable, and then if that is at a higher stickiness level, given it is early, only a couple months here. You know, how much is that factored into your 2026 guidance? Thanks.

Speaker #6: Hey, guys. Congrats on a solid quarter. Just wondering the level of stickiness you're seeing with people on the Wegovy pill versus the injectable, and then if that is a higher stickiness level—given it is early, only a couple of months here—but how much is that factored into your '26 guidance? Thanks.

Justin Schreiber: I'll ta-

Eduardo Garcia: Yeah.

Marc Benathen: Yeah.

Justin Schreiber: I'll take that one, Steve. This is Justin.

Speaker #1: I'll take that with Steve and Justin. Oh. Yeah. I mean, Steve, we don't so it's a little bit too early, as you said, to understand too much on the retention side of things.

Eduardo Garcia: Oh, yeah.

Marc Benathen: Oh, yeah.

Justin Schreiber: Oh.

Eduardo Garcia: Go ahead.

Justin Schreiber: Oh.

Marc Benathen: Go ahead.

Justin Schreiber: Yeah, I mean, Scott, it's a little bit too early, as you said, to understand too much on the retention side of things. I mean, it's not something that's like a, I think a big contributor to the, you know, run rate we said we'd reach in Q4 of this year. We've taken kind of a very conservative stance on it. We've seen really strong on therapy rates, you know, which is probably just driven by the fact that people that are coming to LifeMD, Inc. and they know they want the Wegovy pill and they're getting on therapy, and they qualify for therapy, and they're also okay with paying cash. The, you know, the intro price for that drug is, you know, $149, so it's a very attractive price point.

Speaker #1: I mean, it's not something that's, like, I think, a big contributor to the run rate we said we'd reach in Q4 of this year.

Speaker #1: We've taken kind of a very conservative stance on it. We've seen really strong on-therapy rates, which is probably just driven by the fact that people that are coming to LifeMD, and they know they want the Wegovy pill, and they're getting on therapy and they qualify for therapy.

Speaker #1: And they're also okay with paying cash. The interim price for that drug is $149, so it's a very attractive price point. The on-therapy rates and the initial retention rates are certainly better than the injectable, but long-term kind of retention is still TBD.

Justin Schreiber: The on therapy rates and the initial retention rates are certainly better than the injectable. Like, you know, long-term kind of retention is still TBD.

Scott Schoenhaus: Okay, thanks. Just on your weight management platform compared to competitors, I mean, we've had Lilly announce a weight management offering, I think that was last week, and 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 out in the market? Thanks.

Speaker #6: Okay, thanks. And then just on your weight management platform compared to competitors—I mean, we've had Lilly announce a weight management offering, I think that was last week.

Speaker #6: And then Amazon coming out with a kind of direct-to-consumer offering as well—I think that was this morning. Just how does your platform compare to some of these competitors out in the market?

Speaker #6: Thanks.

Justin Schreiber: I mean, look, I think there are a couple of big things. We released a new investor presentation in the last hour that's up on our website. It details some of these differentiators as well that I would encourage everybody to take a look at. Like, look, you compare LifeMD to Amazon. One, we operate our own 50-state provider group that's staffed, you know, mostly with full-time providers, which are just really highly trained in the areas that they practice. They specialize in women's health. They specialize in weight management. I mean, that's a very big differentiator from, you know, the Amazons of the world. You know, we also, we're a platform for care, right? We offer, you know, different types of specialty care. We offer women's health.

Speaker #1: I mean, look, I think there are a couple of big things. And we put out a new—we released a new investor presentation in the last hour that's up on our website that details some of these differentiators as well, that I would encourage everybody to take a look at.

Speaker #1: But look, you compare LifeMD to Amazon. One, we operate our own 50-state provider group that's staffed mostly with full-time providers, which are just really highly trained in the areas that they practice.

Speaker #1: They specialize in women's health. They specialize in weight management. I mean, that's a very big differentiator from the Amazons of the world. We also—we're a platform for care, right?

Speaker #1: So, we offer different types of specialty care. We offer women's health. We offer weight management. We offer hormone therapy. Patients can access behavioral health and psychiatry.

Justin Schreiber: We offer weight management. We offer hormone therapy. You know, patients can access behavioral health and psychiatry. I think having that like, portfolio of specialty care available is something that's also very unique when you compare, you know, what LifeMD is doing versus Amazon and really versus like most others. We also offer, you know, the synchronous care that we offer. That's something that, you know, Amazon does offer through third-party providers in some verticals. Like, you can book a synchronous care or a video visit with a provider in urgent care. I don't know how their weight management business is structured, though.

Speaker #1: So, I think having that portfolio of specialty care available is something that's also very unique when you compare what LifeMD is doing versus Amazon, and really versus most others.

Speaker #1: And we also offer the synchronous care that we offer—that's something that Amazon does offer through third-party providers. In some verticals, you can book a synchronous care or a video visit with a provider, an urgent care.

Speaker #1: I don't know how their weight management business is structured, though. And compared to most people out there, that is a very unique thing about LifeMD: you can do a message-based consult, but if you want to have a real visit with a provider via video or audio, you can do that, and you're going to get a visit with, again, a highly trained provider in weight management that works for LifeMD's affiliated medical group and not a 1099 provider out there that's part of a massive third-party staffing business.

Justin Schreiber: You know, compared to most people out there, that is a very unique thing about LifeMD, is that you can do a message-based consult, but if you want to have a real visit with a provider via video or audio, you can do that, and you're gonna get a visit with a, again, a highly trained provider in weight management that works for LifeMD's affiliated medical group and, you know, not a 1099 provider out there that's part of a, you know, massive third party, you know, staffing business. Those are a couple of things. I mean, it's a big market, right? Some people are gonna use Amazon, some people have loyalty to other brands. You know, we're seeing incredible demand for LifeMD services and our pharmacy products.

Speaker #1: So those are a couple of the things. I mean, it's a big market, right? And some people are going to use Amazon. Some people have loyalty to other brands.

Speaker #1: But we're seeing incredible demand for LifeMD's services and our pharmacy products. And we've had this conversation before around Amazon launching, for instance, an erectile dysfunction product, and it doesn't materially—especially in markets this big. And as you know, the GLP-1 market's even bigger than the ED market.

Justin Schreiber: You know, we've had this conversation before around, you know, Amazon launching, for instance, an erectile dysfunction product. It doesn't materially, especially in markets this big, and as you know, the GLP-1 market's even bigger than the ED market. It doesn't have a material impact on our business.

Speaker #1: It doesn't have a material impact on our business.

Scott Schoenhaus: Got it. Thanks, guys.

Speaker #6: Got it. Thanks, guys.

Operator: Thank you. We'll take our next question from Ryan Meyers with Lake Street Capital Markets. Please go ahead. Your line is open.

Speaker #3: Thank you. We'll take our next question from Ryan Myers with Lake Street Capital Markets. Please go ahead, your line is open.

David Brown: Hey, guys. Thanks for taking my questions. First one for me, just thinking about the patient acquisition channels that, you know, you guys are investing in here at Q1. You know, 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?

Ryan Meyers: Hey, guys. Thanks for taking my questions. First one for me, just thinking about the patient acquisition channels that, you know, you guys are investing in here at Q1. You know, 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?

Speaker #7: Hey, guys. Thanks for taking my questions. First one for me—just thinking about the patient acquisition channels that you guys are investing in. Here at Q1, are you going after any different marketing channels?

Speaker #7: Is the marketing strategy any different here, or is it similar to what you guys have done in the past?

Justin Schreiber: It's mostly, Ryan. This is Justin Schreiber. It's very similar to what we've done in the past. We do have some new partnerships on the media side that have been spectacular, performance-wise. You know, they've delivered, you know, thousands and thousands of new patients. I don't have an exact number to share with you. You know, we had several smaller employers that we've onboarded in the last 30 days, which is a program that we're piloting. The reviews there and the feedback there from the employers who are using our platform has been incredible. We're working on some other significant partnerships as well, with some very large companies that could be transformational for LifeMD, Inc., if, you know, if we get them across the finish line.

Speaker #1: It's mostly, Ryan—this is Justin Schreiber. It's very similar to what we've done in the past. We do have some new partnerships on the media side that have been spectacular, performance-wise.

Speaker #1: They've delivered thousands and thousands of new patients. I don't have an exact number to share with you. We also had several smaller employers that we've onboarded in the last 30 days, which is a program that we're piloting.

Speaker #1: And the reviews there and the feedback there from the employers that are using our platform has been incredible. We're working on some other significant partnerships as well with some very large companies that could be transformational for LifeMD.

Speaker #1: If we get them across the finish line and those are things that those are things that we could see in the next 60 to 90 days.

Justin Schreiber: You know, those are things that we could see in the next 60 to 90 days. We've got a very active pipeline right now of opportunities that would drive, you know, patient acquisition.

Speaker #1: So, we've got a very active pipeline right now of opportunities that would drive patient acquisition.

David Brown: Okay, got it. That's helpful. Thinking about the benefit infrastructure being on track to cover the 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?

Ryan Meyers: Okay, got it. That's helpful. Thinking about the benefit infrastructure being on track to cover the 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?

Speaker #7: Okay, got it. That's helpful. And then, thinking about the benefits infrastructure being on track to cover over 220 million Americans by the end of Q2, when you think about the potential lifetime value of a covered patient versus a cash-pay patient, is there a big difference there?

Justin Schreiber: It's a great question, Ryan, I don't know the answer to that. I mean, I don't have a precise answer for that because the insurance business for us is so new. I believe that retention is going to be stronger for a patient that uses their insurance or their, you know, their commercial insurance or their Medicare on the LifeMD, Inc. platform and pays their copay and has a lower membership fee, right? Than a patient that comes in and pays cash and is not using their insurance. I think you're going to see better LTVs, and you're gonna see better retention. We still need to prove that out. I mean, that's Look, we're excited about the opportunity, you know, the opportunity around insurance on the platform.

Speaker #1: That's a great question, Ryan. And I don't know the answer to that. I mean, I don't have a precise answer for that because the insurance business for us is so new.

Speaker #1: I believe that retention is going to be stronger for a patient that uses their insurance or their commercial insurance or their Medicare on the LifeMD platform and pays their copay.

Speaker #1: And has a lower membership fee than a patient that comes in and pays cash and is not using their insurance. And so I think you're going to—I think you're going to see, you're going to see better LTVs, and you're going to see better retention.

Speaker #1: But we need to—we still need to prove that out. I mean, look, we're excited about the opportunity for—the opportunity around insurance on the platform.

Justin Schreiber: We were surprised internally at the demand, for, you know, our, you know, for insurance when we turned it on in the last 2 months. We talked a little bit about this on the last call. I think we had turned it on with, you know, 1 or 2 weeks ahead of the call and saw, you know, 2 days of really good demand. We turned it back when we opened up even more states and contracts. You know, we were impressed with the impact that it had on CPA. Now it was a lower priced offering and, you know, we needed to work out some kinks in our billing processes. We don't have the clear, we don't have the...

Speaker #1: We were surprised internally at the demand for our insurance when we turned it on in the last couple of months. We talked a little bit about this in the last call.

Speaker #1: And I think we had turned it on a week or two ahead of the call and saw a couple of days of really good demand.

Speaker #1: We turned it back when we opened up even more states and contracts, and we were impressed with the impact that it had on CPA.

Speaker #1: Now, with a lower-priced offering, we needed to work out some kinks in our billing processes. So we don't have the clear—we don't have the, I mean, we don't have as clear a picture as we would like on what the long-term value looks like on these patients.

Justin Schreiber: I mean, we don't have as clear a picture as we would like on what the long-term value looks like on these patients. We have enough data at this point, I think, to know that there's like a great and viable long-term business model here. We just need to kind of continue to figure it out. I'm excited about it. I think you're gonna see the business move more and more towards commercial and government insurance patients over the coming quarters. I expect this to be a number that we actually can report on in much more detail to investors in the quarters to come.

Speaker #1: But we have enough data at this point. I think, to know that there's a great and viable long-term business model here, we just need to kind of continue to figure it out.

Speaker #1: So, I'm excited about it. I think that you're going to see the business move more and more towards commercial and government insurance patients over the coming quarters.

Speaker #1: And I expect this to be a number that we actually kind of report on in much more detail to investors in the quarters to come.

David Brown: Okay, fair enough. Thanks for taking my questions.

Ryan Meyers: Okay, fair enough. Thanks for taking my questions.

Speaker #7: Okay. Fair enough. Thanks for taking my questions.

Operator: Thank you. We'll move now to Yi Chen with H.C. Wainwright. Please go ahead. Your line is open.

Speaker #3: Thank you. We'll move now to our next question with AC Rainlight. Please go ahead. Your line is open.

Eduardo Garcia: Hi, this is Eduardo on for Yi. I guess I had a question. 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 Wegovy 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 drug?

Speaker #8: Hi, this is Eduardo on for you. I guess I had a question. Could you just reiterate the total number of subscribers and detail again the number of them that came on specifically for the pill?

Speaker #8: And for the Wegovy pill, I'm curious if you're seeing any migration from previous 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 drug?

Justin Schreiber: Yes, Marc. We have 322,000 overall subscribers. As we indicated in our presentation, an updated presentation was published to the investor relations website today. Approximately 80,000 plus are weight management subscribers. We haven't released like the exact count that are oral Wegovy pill, we're seeing very strong demand for that product this year. Obviously, it only started selling in January. We haven't reported our subscriber count in Q1, we're not at liberty to release that at this time. You know, obviously it will be included in future updates. You're seeing, you know, some folks coming onto it's honestly driving a lot of new patient demands for us.

Marc Benathen: Yes, Marc. We have 322,000 overall subscribers. As we indicated in our presentation, an updated presentation was published to the investor relations website today. Approximately 80,000 plus are weight management subscribers. We haven't released like the exact count that are oral Wegovy pill, we're seeing very strong demand for that product this year. Obviously, it only started selling in January. We haven't reported our subscriber count in Q1, we're not at liberty to release that at this time. You know, obviously it will be included in future updates. You're seeing, you know, some folks coming onto it's honestly driving a lot of new patient demands for us.

Speaker #9: Yeah, it's Mark. So, we have 322,000 overall subscribers. As we indicated in our presentation, there was an updated presentation that was published to the investor relations website today.

Speaker #9: Approximately 80,000-plus are weight management subscribers. We haven't released the exact count of our oral Wegovy pill, but we're seeing very strong demand for that product.

Speaker #9: This year, obviously, it only started selling in January. We haven't reported our subscriber count in Q1. So we're not obligated to release that at this time, but obviously, it will be included in future updates.

Speaker #9: You're seeing some folks coming onto it, but it's honestly driving a lot of new patient demand for us.

Eduardo Garcia: Got it. That's really helpful. Going to the pharmacy, I'm curious which out of your 50 state license, what percentage of Rex MD and Shapiro MD fulfillment is currently handled in-house? What's the incremental margin lift with the in-house fulfillment?

Speaker #8: Got it. That's really helpful. And then, going to the pharmacy, I'm curious: now that you're 50-state licensed, what percentage of Rex MD and Shapiro MD fulfillment is currently handled in-house?

Speaker #8: And what's the incremental margin left with the in-house fulfillment?

Justin Schreiber: Yeah, we are approaching the 70% mark with in-house fulfillment. The margin left, we've been seeing, and we haven't fully completed this exercise, but we're probably seeing along the range of 150 to 200 basis point margin improvement from internal. It also gives us obviously a lot more flexibility. That's the, that's the real long-term benefit, the flexibility that we have with personalized and 503A compounded products, which we can now do out of the pharmacy and those lifestyle conditions.

Marc Benathen: Yeah, we are approaching the 70% mark with in-house fulfillment. The margin left, we've been seeing, and we haven't fully completed this exercise, but we're probably seeing along the range of 150 to 200 basis point margin improvement from internal. It also gives us obviously a lot more flexibility. That's the, that's the real long-term benefit, the flexibility that we have with personalized and 503A compounded products, which we can now do out of the pharmacy and those lifestyle conditions.

Speaker #9: Yeah. We are approaching the 70% mark with in-house fulfillment. The margin lift we've been seeing—and we haven't fully completed this exercise—but we're probably seeing along the range of 150 to 200 basis points from internal.

Speaker #9: It also gives us, obviously, a lot more flexibility. And that's the real long-term benefit—the flexibility that we have with personalized and 503(a) compounded products, which we can now do out of the pharmacy and those lifestyle conditions.

Eduardo Garcia: Got it. 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?

Speaker #8: Got it. And 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 compound?

Justin Schreiber: Yeah, we're not at liberty to. We have a strong internal roadmap. We're just not at liberty to detail that out at this moment.

Marc Benathen: Yeah, we're not at liberty to. We have a strong internal roadmap. We're just not at liberty to detail that out at this moment.

Speaker #9: Yeah. We're not at liberty to— we have a strong internal roadmap; we're just not at liberty to detail that at this moment.

Eduardo Garcia: Got it. Thanks for taking the questions, and congrats on the quarter.

Speaker #8: Got it. Thanks for taking the questions, and congrats on the quarter.

Operator: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Justin Schreiber for closing remarks.

Speaker #3: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Justin Schreiber for closing remarks.

Justin Schreiber: Thank you, everyone, for your questions and for your interest in LifeMD, Inc.. We look forward to speaking with you once again when we report our Q1 results. Have a great evening.

Speaker #1: Thank you, everyone, for your questions and for your interest in LifeMD. We look forward to speaking with you once again when we report our first quarter results.

Speaker #1: Have a great evening.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

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