LifeMD, Inc.

Please stand by. Your program is about to begin. If you need audio assistance during today's program, please press star zero. Good afternoon. Thank you for joining us today to discuss LifeMD's results for the second quarter ended June 30, 2025. Joining the call today are Justin Schreber, Chairman and Chief Executive Officer, and Mark Benison, Chief Financial Officer. Following management's prepared remarks, we will open the call for questioning 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, August 5, 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 the 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. And 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 news release announcing our second quarter financial results and posted an updated corporate presentation on our website at ir.lifemd.com. LifeMD made tremendous progress executing our strategic plan in the second quarter. Our core telehealth business continues to deliver a strong performance, demonstrated by a 30% year-over-year increase in telehealth revenue and adjusted EBITDA growth of 560%. Our weight management program continued its momentum despite a large transition to branded GLP-1 medications. And our Work Simply business also continued to perform strongly, generating nearly 3.7 million in adjusted EBITDA on a standalone basis. As we look to the second half of the year, we remain focused on several key strategic priorities. One, continuing to grow our leading care-based weight management program, emphasizing patient experience, and helping our patients access both branded and genericized GLP-1 therapies, as well as oral non-GLP-1 prescription weight loss therapies. Two, returning our RexMD brand to double-digit growth by scaling our HRT peptide, prescription weight management, and personalized ED and hair loss treatment programs. Three, scaling our recently launched behavioral health offering and upcoming women's health program, both of which we see as opportunities that address large underserved markets. Four, further expanding and investing in our LifeMD Plus membership service and marketplace to drive deeper patient engagement, enhanced retention, and improved health outcomes. And five, executing on additional enterprise partnerships and collaborations designed to introduce significant new patient volume into our LifeMD Plus and specialty care programs. Our weight management business remains robust, consistently attracting over 400 new patient signups per day. Notably, we've seen a significant increase in patients accessing branded therapy options through our platform. Given current trends and the improvements we expect to see in pricing and insurance coverage, we expect that by year end, the vast majority of new patients will be on an insurance-covered GLP-1 therapy, an affordable cash-based therapy, or one of our oral prescription therapies for weight loss. We continue to invest in improving the care platform that supports our weight management program. This decision is validated by the fact that we are seeing a growing number of weight management patients using our platform to access non-weight related healthcare services and products. While our weight management segment did outperform our second quarter guidance plan for this segment, weight management has been impacted by a higher than anticipated refund rate driven by patients either lacking insurance coverage for their medications or being unable to afford the out-of-pocket cost of branded therapies. Although this is a near-term headwind, we are actively enhancing our new patient intake process to include real-time benefit verification and other key improvements. These updates are designed to significantly improve the patient experience and drive higher conversion rates onto therapy. As part of these efforts, we are expanding access to a broader range of oral generic weight loss medications and adding liraglutide as a covered option. We remain highly confident in the long-term opportunity within prescription weight management This is a large and underserved market, and we believe the steps we're taking will further strengthen our leadership position despite the temporary challenges. Turning to RECs, we experienced a challenging second quarter, primarily due to temporarily elevated customer acquisition costs in the highly competitive ED market. However, we have since adjusted our marketing and product strategies, and early third quarter data suggests a return to healthier customer acquisition levels. We remain confident in RexMD's long-term growth trajectory, especially as we continue to broaden our offerings into hormone replacement therapy, personalized compounded treatments for ED and hair loss, as well as additional men's health categories. While these offerings are still small relative to the size of the overall brand, early learning from these new areas have been encouraging, and we believe that they have the potential to contribute meaningful growth in future quarters. In the same vein, we're especially excited about LifeMD's ongoing platform diversification into high-value clinical areas. Our recent launch of a nationwide behavioral health offering focused on adult anxiety and depression directly addresses significant unmet patient needs and is highly complementary to our existing offerings, including our recently launched LifeMD Plus primary care membership. The mental health market is a large opportunity, as about 23% of U.S. adults have a diagnosable mental health condition each year, and only half of these people receive professional treatment. That leaves an estimated 28 to 30 million adults with unmet behavioral health needs every single year. LifeMD's platform and affiliated provider group is well positioned to help address this enormous unmet clinical need. We expect this business line to begin scaling in Q4 and become accretive to 2026 results. Similarly, the upcoming launch of our holistic women's health program will address critical care gaps related to menopause, hormone therapy, and bone health, areas historically underserved in traditional health care. Currently, we operate a profitable concierge women's health service through Optimal Human Health, which we acquired in the second quarter. We look forward to tapping into this significant market opportunity with a more affordable and scalable program on the LifeMD platform that is expected to be launched at the end of Q3. We believe the market fundamentals here are compelling, as over 50 million women in the U.S. are age 45 or older, with more than 30 million in perimenopausal or postmenopausal stages. Approximately 2 million U.S. women reach menopause annually, and by 2030, over 60 million women in the U.S. will be postmenopausal. The care gaps are substantial. Approximately 60 to 80 percent of perimenopausal and menopausal women fail to receive adequate care for their symptoms. Additionally, up to 70% of women at high risk for osteoporosis remain untreated, representing a significant gap in screening and intervention. LifeMD's clinical capabilities following the optimal human health acquisition, along with our fully integrated telehealth platform, uniquely position us to capture a meaningful share in this large, growing, and historically underserved care market. This program will begin scaling in the fourth quarter, and we expect it to be accretive to 2026 results. Before I hand it over to Mark, I want to briefly highlight our clear vision for long-term margin expansion, which is fundamental to LifeMD's continued growth. Conventional healthcare still struggles with persistent issues like repetitive paperwork, fragmented records, and inefficient processes, challenges that frustrate both patients and providers. At LifeMD, we're directly addressing these pain points by thoughtfully integrating AI into every aspect of our operations. Our goal is simple, free up our providers from administrative tasks so they can focus on patient care and create a smoother, more efficient patient experience. By streamlining routine tasks, intelligently routing patient requests, and surfacing essential information exactly when it's needed, we're improving patient outcomes, provider productivity, and ultimately driving our overall business performance. We're equally excited about our recently launched LifeMD Plus membership program, a premium offering designed to provide personalized patient care through around the clock access to licensed practitioners, same day prescription renewals, comprehensive lab testing, and numerous additional benefits. Although LifeMD Plus is still in its early stages, we've already seen promising traction with nearly 50 new patient signups per day. We believe this program will be central to deepening long-term patient relationships, boosting retention, and making preventative care, including annual wellness visits, lab tests, and medication adherence, as simple, convenient, and affordable as possible. Together, the strategic integration of AI and continued investment in LifeMD Plus position us strongly for sustainable profitability and long-term growth. With that, I'll now turn the call over to our CFO, Mark Benison, to provide more detail on our second quarter financial results and outlook. Mark?

Thank you, Justin, and good afternoon, everyone. As Justin noted, our long-term financial outlook remains strong. Weight management, though experiencing some impact from higher refund rates from patients without coverage, or for whom discounted cash pay pricing is still inaccessible, performed ahead of guidance plan in the second quarter. New subscribers for weight management continued at strong levels and regularly exceeded 400 new patient signups per day. Work simply maintained its strong bottom line performance with quarterly adjusted EBITDA of nearly 3.7 million on a standalone basis. Our quarterly results were mostly impacted by temporary performance challenges impacting our RexMD business, which are largely behind us. Looking at the numbers, consolidated revenue grew 23% versus the year-ago period to $62.2 million. Telehealth revenue increased 30% to $48.6 million, with standalone adjusted EBITDA growing 560% to $3.4 million. Work Simply adjusted EBITDA grew 119% to 3.7 million. Telehealth subscriber growth remained strong, with the number of active subscribers increasing 16% year-over-year to over 297,000 at quarter end. The number of Work Simply active subscribers contracted by 6% to 149,000, primarily due to their continued focus on acquiring higher LTV customers to maximize profitability. Gross margin for the second quarter was 88 percent, a decline of 210 basis points versus the prior year due to a higher allocation rate of physician costs to COGS driven by higher utilization. Gross profit was $54.5 million, an increase of 19 percent from the year-ago period. Our GAAP net loss attributable to common stockholders for the second quarter of 2025 was $2.9 million, or a loss of six cents per share. This compares with a GAAP net loss attributable to common stockholders for the second quarter of 2024 of $7.7 million, or a loss of $0.19 per share. Adjusted EBITDA is a non-GAAP measure we define as income or loss attributable to common shareholders before various items, as outlined in today's news release. Adjusted EBITDA totaled $7.1 million for the second quarter of 2025, as compared with $2.2 million in the year-ago period. Telehealth adjusted EBITDA is a non-GAAP measure defined as adjusted EBITDA for only our telehealth business excluding WorkSimply. This measure was $3.4 million for the second quarter of 2025 as compared to $0.5 million in the year-ago period. We exited the quarter with $36.2 million in cash and strengthened our balance sheet by fully repaying our senior venture debt subsequent to quarter end. This early retirement of our debt will save life from the approximately $1.1 million of cumulative future interest payments, makes our business debt-free, and reflects the ongoing confidence we have in our long-term outlook. Turning to financial guidance, we are revising our consolidated 2025 revenue guidance to be in the range of $250 million to $255 million from $268 million to $275 million previously. Telehealth standalone revenue guidance is now 195 million to 200 million, compared with 208 million to 213 million. We're also revising our consolidated adjusted EBITDA guidance to be in the range of 27 million to 29 million, from 31 million to 33 million previously. We now expect 2025 telehealth standalone adjusted EBITDA guidance to be between 14 million and 16 million, compared with 21 million previously. Updated adjusted EBITDA guidance still reflects a year-over-year increase of 89% to 116% for a prior year. This wraps up our financial results. I'd now like to turn the call back over to Justin.