Tue, May 6, 8:53 PM (9 days ago)
**LifeMD, Inc. (LFMD) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $65.7 million, up 49% YoY, driven by a 70% increase in telehealth revenue. - **Profit Margins:** Gross profit margin at 87%, down slightly from 90% YoY. - **Cash Flow:** Positive operating cash flow of $3.1 million, down from $5.2 million YoY. - **Earnings:** Net income of $1.9 million, a significant improvement from a loss of $6.6 million YoY. **Segment Performance:** - **Telehealth:** Revenue up 70% YoY, contributing 80% of total revenue. - **WorkSimpli:** Revenue stable YoY, contributing 20% of total revenue. **Expenses and Costs:** - **Operating Expenses:** Increased by 19% YoY, primarily due to higher selling, marketing, and administrative costs. - **Interest Expense:** Increased by $149,000 YoY due to higher interest on the Avenue Facility. **Liquidity and Capital Resources:** - **Cash Balance:** $34.4 million as of March 31, 2025. - **Funding:** $53.3 million available under the ATM Sales Agreement, part of $150 million under the 2024 Shelf. - **Debt:** $19 million outstanding under the Avenue Facility, in compliance with covenants. **Future Operations Impact:** - **Growth Strategy:** Focus on increasing telehealth revenue, improving operational efficiencies, and expanding insurance coverage. - **Uncertainties:** Dependence on increasing sales volumes, securing additional funding, and managing operational costs. **Trends and Outlook:** - **Positive Indicators:** Strengthening revenues, improving cash burn rate, and positive operating cash flows. - **Market Value:** Telehealth industry growth expected to drive interest in LifeMD. **Controls and Procedures:** - **Material Weaknesses:** Identified in internal control over financial reporting, remediation efforts underway. - **Compliance:** Efforts to address and remediate material weaknesses in internal controls.