Despite a robust 88.2% gross margin in 2026Q1, the company's operating income has deteriorated to a $8.9 million loss, reflecting a failure to scale SG&A expenses against a declining revenue base.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 219.42M | 194.06M | 212.45M | 152.55M | 119.03M | 92.88M | 37.29M | 12.47M | 8.32M | 5.05M | 5.24M | 1.22M | 714.16K | 808.36K | 673.78K | 743.83K |
| Revenue Growth % | -6.18% | -8.66% | 39.27% | 28.15% | 28.16% | 149.04% | 199.1% | 49.79% | 64.68% | -3.51% | 329.79% | 70.67% | -11.65% | 19.97% | -9.42% | - |
| Cost of Goods Sold | 29.28M | 39.29M | 24.07M | 18.9M | 18.67M | 18M | 8.86M | 2.53M | 1.97M | 1.48M | 1.95M | 247.77K | 172.85K | 181.3K | 125.62K | 241.26K |
| COGS % of Revenue | - | 20.25% | 11.33% | 12.39% | 15.68% | 19.38% | 23.76% | 20.25% | 23.65% | 29.35% | 37.15% | 20.33% | 24.2% | 22.43% | 18.64% | 32.44% |
| Gross Profit | 190.14M | 154.76M | 188.39M | 133.65M | 100.37M | 74.88M | 28.43M | 9.94M | 6.36M | 3.57M | 3.29M | 971.09K | 541.31K | 627.06K | 548.16K | 502.56K |
| Gross Margin % | 86.65% | 79.75% | 88.67% | 87.61% | 84.32% | 80.62% | 76.24% | 79.75% | 76.35% | 70.65% | 62.85% | 79.67% | 75.8% | 77.57% | 81.36% | 67.56% |
| Gross Profit Growth % | - | -17.85% | 40.96% | 33.16% | 34.03% | 163.36% | 185.95% | 56.46% | 77.96% | 8.46% | 239.06% | 79.4% | -13.68% | 14.39% | 9.07% | - |
| Operating Expenses | 194.93M | 162.43M | 204.53M | 148.14M | 143.81M | 129.18M | 86.25M | 12.83M | 8.41M | 4.64M | 4.47M | 1.23M | 1.07M | 1.17M | 1.09M | 1.08M |
| OpEx % of Revenue | - | 83.7% | 96.27% | 97.11% | 120.82% | 139.09% | 231.28% | 102.92% | 101.05% | 91.77% | 85.28% | 101.19% | 150.13% | 145.17% | 161.5% | 145.05% |
| Selling, General & Admin | 172.43M | 144.01M | 175.68M | 128.15M | 125.33M | 122.08M | 84.01M | 11.31M | 8.41M | 4.64M | 4.47M | 1.21M | 1.07M | 1.17M | 1.09M | 1.08M |
| SG&A % of Revenue | - | 74.21% | 82.69% | 84% | 105.29% | 131.44% | 225.27% | 90.75% | 101.05% | 91.77% | 85.28% | 99.22% | 150.13% | 145.17% | 161.5% | 145.05% |
| Research & Development | 7.41M | 7.35M | 9.51M | 6.06M | 2.97M | 948.16K | 446.75K | 222.88K | 120.54K | 0 | 0 | 23.93K | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 3.79% | 4.48% | 3.97% | 2.5% | 1.02% | 1.2% | 1.79% | 1.45% | - | - | 1.96% | - | - | - | - |
| Other Operating Expenses | 3M | 11.07M | 19.34M | 13.93M | 15.51M | 6.16M | 1.79M | 1.3M | -516.98K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -12.9M | -7.67M | -16.14M | -14.49M | -43.45M | -54.3M | -57.82M | -2.89M | -2.06M | -1.07M | -1.17M | -262.22K | -530.88K | -546.41K | -540.02K | -576.37K |
| Operating Margin % | -5.88% | -3.95% | -7.6% | -9.5% | -36.5% | -58.47% | -155.04% | -23.18% | -24.7% | -21.12% | -22.42% | -21.51% | -74.34% | -67.59% | -80.15% | -77.49% |
| Operating Income Growth % | - | 52.49% | -11.43% | 66.65% | 19.99% | 6.09% | -1900.94% | -40.54% | -92.61% | 9.12% | -347.98% | 50.61% | 2.84% | -1.18% | 6.31% | - |
| EBITDA | -5.14M | -361.24K | -6.65M | -7.89M | -42.36M | -53.95M | -57.48M | -2.55M | -1.86M | 160.82K | -1.13M | -218.47K | -473.9K | -489.43K | -483.05K | -519.68K |
| EBITDA Margin % | -2.34% | -0.19% | -3.13% | -5.17% | -35.59% | -58.08% | -154.14% | -20.48% | -22.35% | 3.18% | -21.59% | -17.92% | -66.36% | -60.55% | -71.69% | -69.87% |
| EBITDA Growth % | -255.29% | 94.57% | 15.67% | 81.38% | 21.48% | 6.16% | -2150.74% | -37.28% | -1256.79% | 114.22% | -417.66% | 53.9% | 3.17% | -1.32% | 7.05% | - |
| D&A (Non-Cash Add-back) | 7.76M | 7.31M | 9.49M | 6.6M | 1.09M | 355.87K | 335.61K | 335.61K | 195.78K | 1.23M | 43.75K | 43.75K | 56.98K | 56.97K | 56.97K | 56.69K |
| EBIT | -5.13M | -7.67M | -16.14M | -14.49M | -39.69M | -54.3M | -57.82M | -2.89M | -2.06M | -1.28M | -1.17M | -134.96K | -473K | -282.08K | -459.48K | -498.87K |
| Net Interest Income | -791.17K | -1.36M | -2.18M | -2.6M | -1.28M | -3.02M | -1.67M | -761.15K | -354.39K | -100.52K | -48.61K | -37.48K | -4.68K | -3.38K | -3.37K | -21.26K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 791.17K | 1.36M | 2.18M | 2.6M | 1.28M | 3.02M | 1.67M | 761.15K | 354.39K | 100.52K | 48.61K | 37.48K | 4.68K | 3.38K | 3.37K | 21.26K |
| Other Income/Expense | -2M | -2.52M | -2.18M | -2.92M | -1.21M | -7.02M | -2.58M | -761.15K | -354.39K | -150.91K | -48.61K | 89.78K | 53.19K | 260.95K | 77.18K | 56.24K |
| Pretax Income | -14.9M | -10.19M | -18.33M | -17.41M | -44.66M | -61.32M | -60.4M | -3.65M | -1.48M | -1.22M | -1.22M | -172.43K | -477.69K | -285.46K | -462.85K | -520.13K |
| Pretax Margin % | -6.79% | -5.25% | -8.63% | -11.41% | -37.52% | -66.02% | -161.96% | -29.28% | -17.84% | -24.11% | -23.35% | -14.15% | -66.89% | -35.31% | -68.69% | -69.93% |
| Income Tax | 959.6K | 45.72K | 402K | 428K | 360.7K | 7.7K | 122.5K | -122.5K | -124.7K | -12.49K | 0 | -13.2K | -17.2K | -17.2K | -17.2K | -17.2K |
| Effective Tax Rate % | -6.44% | -0.45% | -2.19% | -2.46% | -0.81% | -0.01% | -0.2% | 3.36% | 8.4% | 1.02% | 0% | 7.66% | 3.6% | 6.03% | 3.72% | 3.31% |
| Net Income | -17.03M | -7.11M | -18.88M | -20.6M | -45.54M | -60.9M | -58.65M | -3.14M | -1.24M | -1.21M | -1.11M | -61.99K | -460.49K | -268.26K | -445.65K | -502.93K |
| Net Margin % | -7.76% | -3.66% | -8.89% | -13.5% | -38.25% | -65.57% | -157.26% | -25.16% | -14.91% | -23.86% | -21.14% | -5.09% | -64.48% | -33.19% | -66.14% | -67.61% |
| Net Income Growth % | -66.04% | 62.36% | 8.32% | 54.77% | 25.23% | -3.84% | -1769.4% | -152.83% | -2.89% | -8.89% | -1686.59% | 86.54% | -71.65% | 39.8% | 11.39% | - |
| Net Income (Continuing) | -15.86M | -10.23M | -18.73M | -17.84M | -45.02M | -61.32M | -60.52M | -3.53M | -2.29M | -1.38M | -1.22M | -159.23K | -460.49K | -268.26K | -445.65K | -502.93K |
| Discontinued Operations | -409.26K | 3.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 1.44M | 2.06M | -475.55K | -1.03M | -2.18M | -141.06K | -77.96K | -259.08K | -6.55K | 80.91K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.36 | -0.23 | -0.53 | -0.70 | -1.57 | -2.27 | -4.24 | -0.36 | -0.14 | -0.14 | -0.16 | -0.01 | -0.07 | -0.04 | -0.08 | -0.07 |
| EPS Growth % | -30.12% | 56.6% | 24.29% | 55.41% | 30.84% | 46.46% | -1077.78% | -157.14% | 0% | 12.5% | - | 87.05% | -67.94% | 42.15% | -15.25% | - |
| EPS (Basic) | - | -0.23 | -0.53 | -0.70 | -1.57 | -2.27 | -4.24 | -0.36 | -0.14 | -0.14 | -0.16 | -0.01 | -0.08 | -0.05 | -0.08 | -0.07 |
| Diluted Shares Outstanding | 47.34M | 45.13M | 41.2M | 33.91M | 30.98M | 27.01M | 14.28M | 9.9M | 9.05M | 8.8M | 7.05M | 6.4M | 6.15M | 6.02M | 5.78M | 7.52M |
| Basic Shares Outstanding | 47.34M | 45.13M | 41.2M | 33.91M | 30.98M | 27.01M | 14.28M | 9.9M | 8.84M | 8.8M | 7.05M | 6.16M | 6.07M | 5.88M | 5.5M | 7.52M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Customer Acquisition Costs
As reported in recent financial filings, LifeMD experienced a significant revenue contraction of 8.66% year-over-year, marking a sharp reversal from the growth trends observed in early 2025 where revenue peaked at $65.7 million before entering a period of consistent quarterly decline through the first quarter of 2026.
The transition from double-digit growth to contraction suggests that the company's primary customer acquisition channels may be reaching a saturation point or facing increased competitive pressure. Investors should monitor whether this decline reflects a strategic pivot away from lower-quality subscribers or a fundamental weakening of the core telehealth demand environment.
Based on the company's reported income statements, LifeMD maintains a robust gross margin profile, consistently hovering near 88% in recent quarters, which highlights the inherent scalability of its digital-first clinical and software-based service delivery model despite the broader volatility in top-line performance.
This high gross margin indicates significant pricing power and low marginal costs for digital consultations and software access. However, the inability to translate these high margins into operating profitability suggests that the cost of acquiring and retaining patients remains the primary bottleneck to achieving sustainable bottom-line results.
According to quarterly data, LifeMD's operating income has struggled to scale, swinging from a positive $2.5 million in 2025Q1 to a loss of $8.9 million in 2026Q1, indicating that SG&A expenses are not currently being effectively leveraged against the company's fluctuating revenue base.
The persistent reliance on heavy marketing spend to drive volume appears to prevent the realization of operating leverage. Unless the company can demonstrate a meaningful reduction in customer acquisition costs relative to lifetime value, the current cost structure may continue to weigh heavily on operating margins.
Financial statements reveal that LifeMD consistently utilizes stock-based compensation, with figures reaching as high as $4.2 million in 2024Q2, which effectively obscures the true cash-based operating performance and complicates the assessment of the company's progress toward achieving a genuine, non-dilutive path to profitability.
The recurring use of equity-based incentives warrants further investigation, as it may be artificially inflating the reported bottom line while diluting existing shareholders. Analysts should focus on cash-based operating metrics to determine if the underlying business is truly moving toward self-sufficiency or merely shifting costs to the balance sheet.
While the company's hybrid model offers a unique diversification strategy, the recent trend of negative operating margins suggests that the business model may be fundamentally reliant on aggressive, unsustainable marketing spend to maintain its current user base, as evidenced by the 2026Q1 operating loss of $8.9 million.
Short-sellers might argue that the revenue decline combined with persistent operating losses indicates a structural failure to achieve product-market fit at scale. The reliance on PDFSimpli to subsidize clinical losses may be a temporary fix that fails to address the core challenge of high churn in the telehealth segment.
Quick answers to the most common questions about buying LFMD stock.
For fiscal year 2025, LifeMD, Inc. (LFMD) reported total revenue of $194.1M. This represents a 25988.7% increase compared to $0.7M in 2011.
LifeMD, Inc. (LFMD) reported a net loss of $7.1M for the fiscal year ending 2025.
LifeMD, Inc. (LFMD) reported an operating income of $-7.7M, resulting in an operating profit margin of -4.0%. This margin reflects the operational efficiency of the business before interest and taxes.
LifeMD, Inc. (LFMD) generated $154.8M in gross profit for the year, representing a gross profit margin of 79.8%. This demonstrates the company's core pricing power and production efficiency.