LifeMD (LFMD) Stock Forecast & Price Target

LifeMD Inc. has demonstrated strong growth in its Telehealth segment, with an impressive 27% year-over-year increase in active subscribers, reaching 275,267 by the end of 2024, and a significant 60% year-over-year revenue increase to $49.9 million. The notable growth in Telehealth revenue indicates healthy average revenue per subscriber, supported by strategic initiatives such as a partnership with a prior authorization expert firm that has positively impacted approval rates. Additionally, the company's plans to expand into both commercial and Medicare networks present a substantial growth opportunity, with management projecting this expansion could contribute 30-50% of revenue within three to four years, signaling a promising outlook for the company's financial performance.

LifeMD faces several fundamental challenges that contribute to a negative outlook on its stock. The company has issued conservative revenue guidance that includes a substantial write-off of nearly half of its compounded medication revenue, indicating concerns over its ability to sustain growth in its Telehealth segment, which is its primary revenue source. Additionally, the net loss of $22.0 million reflects ongoing profitability issues, while risks such as increased competition from larger players and difficulty in attracting and retaining patients further exacerbate uncertainties regarding the company's financial stability.