LifeMD (LFMD) Stock Forecast & Price Target

LifeMD Inc. experienced significant growth in its Telehealth segment, with active subscribers increasing by 27% year-over-year to 275,267 and revenue rising by 60% to $49.9 million for the full year of 2024. The company achieved a solid rise in average revenue per subscriber during the same period, bolstered by strategic partnerships and an expanding network that is projected to contribute 30-50% of revenue over the next 3-4 years. Additionally, the WorkSimpli segment's revenue grew modestly by 6% to $14.4 million, and overall performance exceeded expectations for the fourth quarter, positioning LifeMD for continued growth in 2025 supported by its robust and comprehensive healthcare offerings.

LifeMD faces significant challenges that contribute to a negative outlook on its stock, primarily stemming from risks related to slower telehealth revenue growth and heightened competition from larger, established players in the healthcare space. The company reported a net loss of $22.0 million, indicating ongoing profitability concerns despite a year-over-year revenue increase in the Telehealth segment by 61% to $158.4 million, further complicated by the anticipated write-off of nearly half of its compounded medication revenue in future guidance. Additionally, the expectation to halve compounded customers through conservative guidance underscores the difficulty LifeMD may encounter in sustaining patient acquisition and retention amidst evolving consumer demands.