LFMD

LifeMD has genuinely turned a corner as a business but not yet as a GAAP profit-maker, and the two facts sit in tension. FY2025 revenue grew 25.3% to $194M on an 85.7% gross margin, capping a clean multi-year ramp ($92.9M → $194M since 2021), and the company generated positive operating cash flow of $8.28M. The November 2025 sale of WorkSimpli reframes the story into a 'pure-play healthcare company' with ~328,000 active subscribers, riding real tailwinds: weight-management/GLP-1 demand, Medicare Part B now built out across 49 states, and the OBBBA's permanent pre-deductible telehealth safe harbor for HSA plans. Equity swung positive (+354.9% to $23.2M) and cash sits at $36.8M.

The catch is earnings quality. Reported net income of $14.4M and the resulting 19.5x P/E are flattered almost entirely by the $21.3M after-tax gain on the WorkSimpli sale — a one-time item. Strip it out and the picture is the operating line: a -$7.67M operating loss (-4.0% margin). So the core telehealth business, even after all this growth, still does not earn a GAAP operating profit, and the eye-catching 62% ROE is an artifact of that one-time gain over a thin equity base. Operating cash flow, while positive, fell 52.7% year-over-year, and accumulated deficit remains a deep -$229M with liabilities at 2.04x equity.