LifeMD (NASDAQ:LFMD) lowered its full-year revenue and adjusted EBITDA outlook after third-quarter sales fell short of its forecast, as the virtual healthcare company cut marketing spending and took longer than expected to launch branded GLP-1 fulfillment arrangements.
Revenue for the quarter ended September 30, 2026, was $44.6 million, down approximately 7% from $47.7 million a year earlier and below the company’s guidance range of $48 million to $51 million. Adjusted EBITDA was a loss of $0.4 million, within guidance and an improvement from a $3.5 million loss in the second quarter.
Chairman and CEO Justin Schreiber said the company no longer expects to exit 2026 at a $250 million annualized revenue run rate. It now expects a rate of roughly $200 million.
Schreiber attributed the revenue shortfall to later-than-planned implementation of branded medication arrangements, a deliberate reduction in patient acquisition spending, and weaker-than-expected performance from some patient groups acquired earlier in the year. He said the company held back spending while it tested pricing and plan changes.
Outlook and Financial Results
LifeMD now expects 2026 revenue of $188 million to $191 million, down from its prior range of $205.5 million to $212.5 million. It forecast a full-year adjusted EBITDA loss of $12.6 million to $10.6 million, compared with its earlier outlook for a loss of $6 million to break-even.
For the fourth quarter, the company projected revenue of $46 million to $49 million and an adjusted EBITDA loss of $4 million to $2 million. CFO Atul Kavthekar said the forecast excludes contributions from the AT&T collaboration, the broader enterprise program and new proprietary pharmacy products because their near-term impact or timing remains unclear.
LifeMD reported a third-quarter GAAP net loss from continuing operations attributable to common stockholders of $5.2 million, or 11 cents a share, compared with a loss of $7.9 million, or 16 cents a share, in the second quarter.
Selling and marketing expense fell 34% sequentially to $18.5 million. The company ended the quarter with approximately 350,000 active subscribers, up 13% from a year earlier and nearly flat with the second quarter. Schreiber said customer acquisition cost had declined 40% from its June peak, while the share of new patients choosing multi-month plans rose from approximately 25% to approximately 85%.
Kavthekar said the company identified immaterial errors in its recording of net revenue under certain third-party pharmacy arrangements, primarily affecting 2024 and 2025. He said the errors had no effect on cash in any period presented.
Branded Drug Fulfillment and Margins
Schreiber said LifeMD recently completed arrangements with Eli Lilly and Novo Nordisk that allow its pharmacy to fulfill self-pay branded GLP-1 prescriptions. Pharmacy orders rose 17% from the second to the third quarter, and October orders increased another 27% from September, he said.
Under the new arrangements, LifeMD purchases inventory and recognizes the medication revenue on a gross basis. Kavthekar said this presentation will lower the company’s gross margin percentage as fulfillment grows, while increasing revenue and gross profit dollars. Third-quarter gross margin was approximately 82%, compared with 89% in the second quarter and 85% a year earlier.
During the question-and-answer session, Kavthekar said the company’s overall blended gross margin could settle in the mid-to-low 60% range, or potentially the high 50% range, by the end of 2027. He cautioned that the timing was unclear and said a lower percentage would not necessarily indicate diminishing economic returns.
LifeMD ended September with $21.9 million in cash and no debt. After the quarter, it closed a $12.5 million non-convertible senior secured term loan with Avenue Capital, replacing its prior revolving credit facility. Kavthekar said the financing would support working capital needs associated with direct sourcing.
Enterprise Expansion and 2027 Plans
LifeMD’s collaboration with AT&T launched in 11 states, reaching approximately 29 million customers, with a national expansion expected in January, Schreiber said. Eligible AT&T customers and U.S. employees can receive a complimentary LifeMD membership. On November 2, AT&T sent its first dedicated LifeMD email to approximately 6 million customers.
Schreiber said LifeMD plans to market its enterprise offering to approximately 6 million businesses. In response to an analyst’s question, he said the offering would focus on self-pay services rather than integration into employer health benefit plans.
The CEO said LifeMD expects to grow its patient base and revenue by approximately 30% in 2027 on roughly the same fixed overhead it has today. The company plans to issue formal 2027 guidance in early January. It also expects to begin rolling out an updated patient experience early next year.
Schreiber said LifeMD is working toward an operating expense reduction of at least 25%, excluding marketing spending, from the first quarter of 2026 to the first quarter of 2027. He said the company expects to reach approximately half of that reduction by the end of the fourth quarter.
About LifeMD (NASDAQ:LFMD)
LifeMD, Inc. is a direct-to-consumer telehealth company that provides virtual medical care, prescription treatments and related health services through its digital platform. The company connects patients with licensed health care providers for online consultations, ongoing care and, when clinically appropriate, prescription medications. Its services include virtual primary care and programs focused on areas such as weight management, men’s health, women’s health, dermatology and chronic-care support.
