LifeMD (LFMD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $47.3 million, down 4% year-over-year, with gross margin improving to 89% from 86% last year, reflecting a strategic shift to branded GLP-1 therapies and longer-duration memberships.

• Adjusted EBITDA loss was $3.5 million, a 21% sequential improvement, impacted by higher customer acquisition costs and a new $39 introductory offer in weight management.

• Active subscribers grew 20% year-over-year to 356,000, with Weight Management Program subscribers reaching 108,000.

• Leadership team was restructured, and a significant pharmaceutical collaboration with Halozyme and Antares Pharma was launched.

• The company completed the sale of its WorkSimpli subsidiary in late 2025, focusing exclusively on healthcare.

Financial highlights

• Gross margin expanded to 89%, up 60 basis points sequentially and 280 basis points year-over-year, driven by pharmacy scaling and lower fulfillment costs.

• Q2 2026 gross profit was $42.0 million, flat year-over-year; operating expenses rose 10% due to a 27% increase in selling and marketing costs.

• GAAP net loss from continuing operations was $7.9 million ($0.16 per share).

• Cash at quarter end was $25.1 million, with no debt and $30 million available under a revolving credit facility.

• Recurring bill revenue represented 84% of total revenue.

Outlook and guidance

• Full-year 2026 revenue guidance revised to $205.5–$212.5 million; adjusted EBITDA guidance to -$6 million to breakeven.

• Q3 2026 revenue expected at $48–$51 million, EBITDA between -$1 million and +$2 million.

• Q4 2026 revenue expected at $60–$64 million, EBITDA between $3 million and $6 million; annualized Q4 run rate implies $250 million revenue and $22 million EBITDA.

• XYOSTED launch costs expected to be $2–$3 million in 2026, with EBITDA accretion anticipated by mid-2027.

• Management expects existing cash and proceeds from ATM equity sales to fund operations and capital needs for at least the next 12 months.