Shares of telehealth company LifeMD in free fall after 2025 guidance downgraded

Shares of telehealth platform LifeMD have tanked more than a quarter in premarket trading today, August 6. This comes after the company, citing problems in its men's health division, reduced its 2025 revenue and adjusted EBITDA guidance. The weight management division is the key growth driver, Freedom Broker notes. On its platform, LifeMD sells, among other things, Novo Nordisk's best-selling Wegovy. 

LifeMD has lowered its 2025 revenue forecast by about 7% to $250-255 million, with growth approaching 20%. Adjusted EBITDA has been guided to be 12.5% off the previous guidance, at $27-29 million.

Investors reacted by selling off LifeMD shares. In post-market trading yesterday, LifeMD plummeted almost 22% to $9.51 per share. In trading this morning, the selloff continued, with the stock down another 27%.

LifeMD’s second-quarter results missed Wall Street expectations, Investing.com reports. The company posted a loss of $0.06 per share, compared with the $0.01 loss anticipated by analysts. Revenue rose 23% year over year to $62.2 million but still came in 6% below estimates.

According to Freedom Broker (Oninvest has seen a note published by Freedom Broker), the weak performance was due primarily to a decline in revenue in the RexMD segment, which specializes in men’s health. The company says these issues have now been largely resolved, but they will weigh on the full-year results, and this prompted the downward revision to the guidance.

Weight management remains the key growth driver, Freedom Broker noted. In April, LifeMD announced a partnership with Novo Nordisk, granting it the right to sell Wegovy to self-pay patients. The news triggered a rally in the stock, sending LifeMD shares up 40%.

In late June, Novo Nordisk confirmed it would continue the partnership, just days after the pharmaceutical giant ended its relationship with LifeMD rival Hims & Hers, a telehealth company, following a dispute over the sale of unauthorized copies of its best-selling products.

Investing.com cites the 16% increase in active telehealth subscribers and the three-fold increase in adjusted EBITDA as positive developments. 

Since the beginning of the year, LifeMD is up more than 139%. Yet six of the seven analysts tracking LifeMD continue to recommend the stock as a "buy" (the other recommendation is a "hold"), according to MarketWatch. The average target price of $13.75 per share implies upside of 16% versus the August 5 close.

The AI translation of this story was reviewed by a human editor.