LifeMD, Inc.

Please stand by, we're about to begin. Good afternoon. Thank you for joining us today to discuss LifeMD's results for the first quarter ended March 31st, 2025. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Mark Benethen, Chief Financial Officer. Following management's prepared remarks, we will open the call for a question and answer session. Before we begin, I would like to remind everyone that during this call, the company will make a number of forward-looking statements which are subject to numerous risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties are described in the company's 10-K and 10-Q filings and within other filings that LifeMD may make with the SEC from time to time. Forward-looking statements made during this call are based on current information available to the company as of today, May 6, 2025. The company assumes no obligation to update or revise any forward-looking statements after today's call except as required by law. Also, please note that management will be discussing certain non-GAAP financial measures that the company believes are important in evaluating LifeMD's performance. Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliations thereof can be found in the press release issued earlier today. Finally, I would like to remind everyone that today's call is being recorded and will be available for replay in the Investor Relations section of the company's website. Now, I'd like to turn the call over to LifeMD's CEO, Justin Schreiber. Please go ahead.

Thank you, and good afternoon, everyone. After the market closed, we issued a press release announcing our first quarter financial results and posted an updated corporate presentation on our website at ir.lifemd.com. I'm excited to share the significant progress LifeMD has made in the first quarter of 2025. On our last earnings call, we outlined key strategic priorities designed to accelerate our position as a leader in virtual primary care. I'm pleased to report that we're executing well across the board, building on last year's momentum and delivering strong performance throughout our platform. Our core telehealth business had an exceptional quarter with revenue growing 70% year over year. driven largely by continued strength in our weight management program. We also saw promising early contributions from our fee-for-service Medicare initiative and the recent launch of our men's hormone therapy offering. Notably, telehealth-adjusted EBITDA reached 5.3 million, a dramatic improvement from a loss of 1.3 million in the same period last year. These results are a powerful validation of the brand, technology, and operational excellence we've built into our virtual care model. Our RexMD brand continues to perform exceptionally well, with consistent growth in both revenue and active patient count, further reinforcing its position as a category leader in men's health. As we previously guided, we continue to expand Rex beyond its original focus on sexual health into larger, high-demand verticals, including weight management behavioral health, insomnia, and hormone replacement therapy. Our newly launched HRT program is off to a strong start, with early adoption exceeding expectations and offering valuable insights into this fast-growing category. Notably, more than 40% of new HRT patients are existing RexMD patients already engaged in another care subscription. Later this year, we plan to introduce LifeMD+, and other synchronous care offerings to RexMD's 180,000 active patients, unlocking a significant cross-care opportunity across our ecosystem. As a reminder, LifeMD Plus is our affordable monthly membership that includes 24-7 access to synchronous care, convenient prescription and refill services, and access to our curated marketplace of prescription medications, over-the-counter products, and lab services. Now I'll turn to our virtual primary care platform. As recently announced, we've established strategic collaborations with Lilly Direct and Novocare to improve access to GLP-1 medications for weight management patients without insurance coverage. These partnerships reflect the growing recognition of our patient-first model and underscore our ability to streamline access to transformative therapies. LifeMD is now the only virtual care provider offering synchronous consults integrated with both Novocare and LillyDirect, enabling seamless access to Wagobe and ZepBound. Combined with our direct-to-patient pharmacy, specialized nationwide provider network, and pharmacy benefits infrastructure, we believe we've created a category-defining competitive moat in virtual obesity care. It's worth noting that we expect to do exactly the same thing in many other verticals in the years to come. Another major milestone is our acceptance of fee-for-service Medicare, opening a significant and largely untapped market. We've already expanded coverage to over 21 million Medicare Part B beneficiaries across 26 states, and we're on track to reach 49 states and over 60 million beneficiaries by the end of Q2. Approximately 75% of the Medicare population suffers from obesity or chronic cardiometabolic conditions such as diabetes, hypertension, or high cholesterol, all areas where LifeMD delivers or intends to deliver high quality and effective care. Given the lack of convenient, timely access to primary care for many Medicare beneficiaries, we believe our virtual care model is uniquely positioned to serve this population while diversifying revenue and improving outcomes. We're also excited to be entering two high-growth verticals, women's health and behavioral health. Through our recent acquisition of Optimal Human Health MD, we've built a foundation for a differentiated women's health offering focused on areas long overlooked by traditional healthcare. Within the next 90 days, we will launch a cash-pay, subscription-based women's health program that includes comprehensive lab testing, synchronous virtual visits with specialized providers, and advanced nutrition counseling and coaching. A subsidized version supported by commercial and government payers will follow, broadening access to this innovative care model. We will also offer one-time consults available via self-pay or covered insurance plans. Meanwhile, our imminent entry into behavioral health, led by industry veteran Julian Cohen, will round out our care platform with a full suite of telepsychiatry services. This offering will eventually include both insurance covered and cash pay models designed to meet the growing need for accessible, high-quality mental health care. With behavioral health integrated into our existing chronic, primary, and specialty care capabilities, LifeMD is well positioned to deliver a more holistic and impactful patient experience. By leveraging our fully integrated platform, including a national provider network, advanced diagnostics through partnerships with Quest and LabCorp, and our newly launched national pharmacy, we're delivering a level of continuity in care that sets LifeMD apart. These strategic expansions are fueling meaningful revenue diversification, improved patient retention, and long-term profitability. Our mission remains unchanged to deliver the most comprehensive, convenient, and outcomes-driven care experience in healthcare today. With that, I'll turn the call over to our CFO, Mark Benison, to walk through our first quarter financial results. Mark?

Thank you, Justin, and good afternoon, everyone. LifeMD achieved very strong first quarter financial results with total revenues increasing 49% versus the year ago period to 65.7 million. Core telehealth revenue grew by 70% versus the prior year with standalone adjusted EBITDA of 5.3 million. This compares with a standalone telehealth adjusted EBITDA loss of 1.3 million in the first quarter of 2024. representing a $6.6 million increase year over year. Telehealth subscriber growth remained strong, with the number of active subscribers increasing 22% year over year to over 290,000 at quarter end. The number of Work Simply active subscribers declined by 5% to 158,000. Work Simply continued to perform well financially, with quarterly adjusted EBITDA again exceeding 3 million. Growth margin for the first quarter was 86.8%. This is a decline of 270 basis points versus the prior year due to changes in revenue mix and temporary changes in pharmacy mix. Yet on a sequential basis, growth margin increased by 150 basis points versus Q4 of 2024. Growth profit was $57.1 million, an increase of 44% from the year-ago period. Gap net income attributable to common stockholders for the first quarter was $608,000, or one cent per diluted share. This compares with a gap net loss attributable to common stockholders for the first quarter of 2024 of $7.5 million, or a loss of 19 cents per share. As Justin mentioned, Q1 was our first quarter with positive GAAP net income. Adjusted EBITDA is a non-GAAP measure we define as income or loss attributable to common stockholders before various items as outlined in today's earnings news release. Adjusted EBITDA totaled $8.7 million for the first quarter as compared with $0.1 million in the year-ago period. Telehealth adjusted EBITDA as a non-GAAP measure, defined as adjusted EBITDA for only our telehealth business, excluding work simply. This measure was $5.3 million for the first quarter of 2025, as compared to a loss of $1.3 million in the year-ago period. We exited the first quarter with $34.4 million in cash. Turning to guidance. Today we are raising our financial guidance for 2025 due to the outperformance of our telehealth business to date. Our revised guidance for total revenues is in the range of $268 to $275 million with telehealth revenue in the range of $208 to $213 million. Our revised guidance for consolidated adjusted EBITDA is in the range of $31 to $33 million with telehealth adjusted EBITDA to be at least 21 million. This wraps up our financial results. I'd now like to turn the call back over to Justin. Thanks, Mark.