LifeMD shares fall 9.4% after revenue outlook cut and annual losses widen

Key Facts

LifeMD shares fell 9.4% in after-hours trading on November 12 to $1.50, after the company reported third-quarter results and cut its fiscal 2026 outlook. Investing.com said the stock reached that level after the results and new guidance were released. EL7 data showed the shares closed the regular session at $1.66 that same day. The company lowered its annual revenue forecast and widened its expected adjusted loss range, while quarterly revenue came in below the average analyst estimate. The figures put quarterly performance and the annual outlook at the center of the move following the announcement.

Third-quarter revenue was $44.6 million, down about 7% year over year, according to Investing.com. The average analyst estimate cited by the site was about $48.9 million, leaving actual revenue below that level. LifeMD said fiscal 2026 revenue would range from $188 million to $191 million, compared with previous guidance of $205.5 million to $212.5 million. The new range represents a clear reduction in the company's estimate of the revenue it expects to generate during the year. It also revised its adjusted earnings before interest, taxes, depreciation and amortization outlook to a loss of $10.6 million to $12.6 million, from previous guidance ranging from a loss of $6 million to break-even.

Management said quarterly revenue was affected by reduced marketing spend, prioritizing longer patient commitments, and partnerships taking longer than expected to ramp up. The chief executive described it this way: "We deliberately reduced marketing spend and prioritized longer patient commitments, and our partnerships took longer than we expected to ramp up." In the third quarter, sales and marketing expenses fell 34% from the previous quarter to $18.5 million. They were down 18% year over year, according to the company's results. The quarterly figures show that marketing cuts coincided with revenue below expectations, while management also attributed weaker revenue to the timing of partnership ramp-up.

The adjusted earnings before interest, taxes, depreciation and amortization loss was about $0.4 million in the third quarter, compared with a profit of about $2.8 million in the same period of 2025. But it improved by about $3.1 million from the second quarter of 2026, when the loss was $3.5 million. The net loss attributable to common shareholders was $5.2 million, compared with a loss of $5.4 million a year earlier. The results put the quarter between a year-over-year decline in the adjusted metric and sequential improvement from the previous quarter, alongside a slight reduction in the annual net loss. Gross margin was about 82%, compared with 89% in the second quarter and 85% a year earlier. The chief financial officer attributed part of the margin decline to how revenue from dispensing branded drugs is presented.

The company ended the quarter with $21.9 million in cash and no debt, then entered into a $12.5 million secured term loan after the period ended. Its active subscriber base reached about 350,000, up 13% from the same period a year earlier and broadly unchanged from the second quarter. LifeMD pharmacy shipments also grew 58.3% year over year. The company said its pharmacy had begun dispensing branded GLP-1 drugs from Eli Lilly and Novo Nordisk. In a separate announcement included with its results, LifeMD said an exclusive agreement with AT&T gives the company's U.S. customers and employees access to its health and pharmacy services.

The results follow an earlier company disclosure to the U.S. Securities and Exchange Commission that it needed more time to correct historical financial filings. The adjustments covered quarterly and annual periods between 2024 and June 30, 2026, after the filings overstated revenue and understated cost of revenue and administrative expenses. For the coming period, LifeMD expects fourth-quarter 2026 revenue of $46 million to $49 million. It also expects an adjusted loss before interest, taxes, depreciation and amortization of $2 million to $4 million for the quarter. Management was scheduled to hold a call to discuss the results and outlook on November 12 at 4:30 p.m. Eastern Time.