LifeMD, Inc.

Good afternoon. Thank you for joining us today to discuss LifeMD's result for the first quarter ended March 31, 2026. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Atul Kavitkar, Chief Financial Officer. Following the management's prepared remark, 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 certain information available to companies as of today, May 6, 2026. The company assumes no obligation to update or revise any forward-looking statements after today's call except are 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 and the most comparable GAAP measures and reconciliation thereof can be found in the press release issued earlier today. Finally, I would like to remind everyone that today's call has been recorded and will be available for replay in the Investor Relations section of the company's website. Now, I would like to turn the call over to LIFE MD CEO, Justin Seiber. Please go ahead.

Thank you and good afternoon everyone. After the market closed today, we issued a press release announcing our first quarter financial results. We've also posted an updated corporate presentation, our form 10Q, and our shareholder letter on our investor relations website at ir.lifemd.com. I encourage everyone to review those materials. Q1 was a strong start to 2026. We delivered revenue of 50.2 million ahead of guidance and added more than 42,000 net telehealth subscribers, the largest quarterly net addition in our history. We ended the quarter with over 365,000 subscribers. In weight management, signups increased approximately 120% sequentially from Q4. And we exited the quarter with strong momentum across all of our key growth areas. We're seeing clear early validation of the strategy we laid out on our last call. But what matters most is not just the quarter. It's what this quarter says about the platform we're building. As I outlined in our shareholder letter, I think about LifeMD in very simple terms, quality care, quality products, quality revenue. When we deliver high quality care, patients trust us. When we offer products and services that genuinely improve their lives, they come back. And when patients engage across more of the platform and stay with us longer, the revenue becomes more durable, higher quality, and ultimately more profitable. Today, we have a 50 state affiliated medical group, a fully integrated pharmacy, in-home and national lab capabilities, expanding insurance coverage, deep pharmaceutical collaborations, and a growing set of specialty care programs. Increasingly, we're layering AI across that infrastructure to make care faster, more efficient, and more personalized. LifeMD is no longer just a telehealth company focused on a handful of conditions. We are building what we believe can become one of the most important virtual healthcare platforms in the country. A trusted destination where patients can access care, medications, labs, insurance supported services, and ongoing clinical support through one connected experience. Let me walk you through where we're seeing the most progress. First, weight management. This remains the largest opportunity in our business. More than 100 million Americans are clinically eligible for GLP-1 therapy, and it is estimated that fewer than 15% have tried one. These medications represent one of the most significant breakthroughs in consumer healthcare in decades. And importantly, the market is becoming more dynamic, not less. We are entering the next phase of GLP-1 adoption. The first phase was access to injectables. The second phase is broader access, including oral therapies, lower cost self-pay options, insurance coverage, and a deep pipeline of next-generation drugs. We are built for this phase. We've already benefited from the introduction of oral GLP-1s. Customer acquisition costs improved 4% to 5% sequentially in Q1, even as volumes effectively doubled, from roughly 300 to 400 new patients per day to 600 to 1,000 patients per day. We ended the quarter with just under 100,000 weight management patients. And this opportunity is only getting bigger. There are roughly 40 GLP-1 therapies currently in development, including oral formulations, longer-acting injectables, and multi-pathway treatments. As these therapies come to market, we believe platforms like LifeMD that combine affordable access, insurance integration, and real clinical care will be the long-term winners. Second, women's health. This continues to be one of the programs I'm most excited about. The need is enormous. Tens of millions of women are entering or living through menopause, and access to thoughtful, evidence-based, coordinated care remains limited. We built this program differently around longitudinal care, not just prescriptions. That includes comprehensive intake, appropriate lab work, structured clinical protocols, and ongoing management by providers trained specifically in women's health. The early results have exceeded our expectations. Subscriber count grew more than 7x from the Q4 base. Customer acquisition costs remain attractive. On therapy retention is tracking north of 80%. We believe that performance is a direct reflection of the quality of the program. Over the coming months, we plan to introduce seven new compounded pharmacy products focused on hormone and bone health, highly complimentary to patient needs and well aligned with our in-house pharmacy capabilities. Women's Health has the potential to become one of the largest and most important programs in our company, not just a growth driver, but a category where we can build deep, trusted patient relationships. Third, RexMD and Men's Health. RexMD remains one of the most recognized men's health brands in the country and a critical part of our platform. We now have approximately 215,000 active patients with growth across ED, sleep, and hair loss, with sleep currently the fastest growing category. ED remains the core, and our personalized ED medications, combining sildenafil and tadalafil, grew more than 40% versus Q4. As more fulfillment shifts in-house, we expect continued margin expansion. But RexMD is evolving beyond ED. We are expanding into personalized pharmacy products across sexual health, dermatology, pain management, and longevity. Just as importantly, Rex provides a large, engaged patient base that can expand into the broader LifeMD ecosystem over time, strengthening retention and lifetime value. Fourth, operating leverage in AI. This is one of the most important components of the LifeMD story for 2026. We are deploying AI aggressively but thoughtfully, with quality as the non-negotiable. AI is not just a cost initiative. It is becoming foundational to how we build software, how providers deliver care, and how we operate the business. Our clinical decision support tools will integrate health records, lab data, biomarker insights, and patient intake information to enable more personalized and efficient care. Over time, we expect AI to increase provider capacity without adding headcount, which is a key lever for scaling efficiently. We are also embedding AI across intake, documentation, patient support, revenue cycle, compliance, and back office workflows. This is not about replacing providers. It's about enabling them to spend more time practicing medicine and less time on administrative work. We expect the margin impact to become more visible in the second half of 2026. And when AI is combined with our 503 compounding pharmacy, it unlocks something powerful, personalized prescribing at scale, enabled by data, clinical infrastructure, pharmacy capabilities, and national reach. Very few platforms have that combination, and LifeMD is one of them. Fifth, pharmacy, insurance, and partnerships. Our affiliated pharmacy continues to scale. We now operate a 22,500 square foot facility licensed in all 50 states with both commercial and 503A compounding capabilities. The pharmacy is currently processing approximately 20,000 prescriptions per month, with significant capacity to expand throughout this year as our pharmacy offerings expand. We view pharmacy as one of our most important long-term margin expansion levers, improving economics, patient experience, and speed to market. On the payer side, our insurance and Medicare infrastructure continues to expand. We ended the quarter with approximately 112 million covered lives and expect to reach approximately 230 million by the end of this month. The Medicare GLP-1 bridge launching July 1st is particularly important as it expands access to GLP-1 therapies for Medicare patients at an affordable monthly cost. We also continue to see strong momentum with pharmaceutical partners as the industry increasingly shifts toward direct patient models. Our GLP-1 collaborations are a strong proof point of that trend. On the employer side, we are making progress with enterprise relationships and direct GLP-1 coverage for self-insured groups, a meaningful upside opportunity not yet fully reflected in our outlook. Stepping back, we feel very good about where we are. We are serving more patients, expanding into larger and more durable categories, strengthening the platform, and building a business we believe can compound over the long term. We are reaffirming our full year guidance of $220 million to $230 million in revenue and $12 million to $17 million in adjusted EBITDA. We continue to expect annualized run rate revenue above $250 million and adjusted EBITDA above $25 million by the fourth quarter. With that, I'll turn the call over to our new CFO, Atul Kavthikar, to walk through the quarter in more detail.

Atul. Thank you, Justin, and good afternoon, everyone. I'm delighted to be joining my first quarterly call as CFO of LifeMD and pleased to be leading its financial operations. It's been a positive first few weeks, and I've been impressed by the team and their commitment to continuous improvement, their entrepreneurial mindset, and their general curiosity. I'll be doing everything I can to continue that culture. As for results, the first quarter played out largely as we expected. Strong subscriber momentum following a planned step-up in patient acquisition spend and the early benefits of platform efficiency beginning to show in our gross margin. As a reminder, all year-over-year comparisons are on a continuing operations basis, excluding WorkSimply, which was divested on November 4th, 2025. Revenue for the first quarter was 50.2 million, exceeding our guidance range of 48 to 49 million, and essentially flat versus the prior year period of 50.9 million, and with nearly all revenue derived from recurring subscriptions. Active subscribers grew approximately 26% year over year to over 365,000 at quarter end, with over 42,000 net ads in Q1, the largest quarterly net addition in our history. Gross margin for the quarter expanded approximately 420 basis points to 88%, primarily reflecting improvements in lower shipping and fulfillment costs, including the continued scaling of our in-house pharmacy fulfillment that Justin described previously. Gross profit was $44.2 million, up 3% for the year-ago period despite the flat year-over-year revenue growth. Selling and marketing expenses were $29.8 million, an increase of 34% year-over-year, reflecting the strategic, front-loaded patient acquisition investment, which is designed to drive subscriber growth in subsequent quarters. Q1 was the peak of our marketing investment for the year. Marketing spend has begun normalizing, and we expect sales and marketing to step down in Q2 and remain at more typical levels throughout the back half. Gap net loss from continuing operations attributable to common stockholders was $9.6 million or $0.20 per diluted share compared to a net loss from continuing operations attributable to common stockholders of $2.4 million or $0.06 per diluted share in the prior year period. Stock-based compensation was $1.4 million down from 2.5 million in the prior year period, reflecting our continued focus on aligning our management with long-term goals. Adjusted EBITDA, a non-GAAP measure we define as income or loss attributable to common stockholders before various items, as outlined in today's news release, was a loss of approximately 4.5 million for the first quarter, in line with our previously issued first quarter guidance range of a loss of 4 million to 5 million. This compares with an adjusted EBITDA of approximately $3.7 million in the prior year period. Turning to the balance sheet, we exited the quarter with $34.5 million in cash, no debt, and a $30 million undrawn revolving credit facility that we put into place at the start of the year. Our balance sheet remains a strategic asset, providing ample flexibility to fund our expanding growth initiatives. Looking forward, we are reaffirming our 2026 full-year guidance revenue of $220 to $230 million representing 13% to 19% year-over-year growth and adjusted EBITDA of $12 million to $17 million. We expect to return to adjusted EBITDA profitability in the second half of the year as customer acquisition costs decline sequentially and the patient volumes added in Q1 become accretive. This is in addition to multiple initiatives around our business that we expect to impact the second half. These include the expansion of our pharmacy offerings, which will allow us to capture revenue and margin we do not currently benefit from. As was established during our 2025 Q4 call, we continue to expect annualized run rate revenue exceeding $250 million and annualized run rate adjusted to exceeding $25 million by the fourth quarter of 2026. For Q2, we are expecting the business to continue its transition to branded GLP-1s, and as such, we expect to see our Q2 revenue between $47 million to $50 million and adjusted EBITDA of between negative $2 million to positive $1 million as we continue to realize efficiencies and cost savings in our business. With that, I'll turn it back to Justin.