- KeyBanc maintained an Overweight rating for LifeMD (NASDAQ: LFMD), a leading telehealth stock, despite its second-quarter revenue falling short of consensus estimates.
- Despite the revenue miss, the company demonstrated strong underlying profitability with a significant gross margin expansion and robust subscriber growth.
- LifeMD is strategically transitioning its weight management program towards branded GLP-1 therapies, signaling a strong future growth driver and operational shift.
On August 7, 2026, analyst firm KeyBanc maintained its Overweight rating for LifeMD (NASDAQ: LFMD). LifeMD is a prominent telehealth company providing virtual medical care, specializing in weight management solutions and women’s health. At the time of the rating, the stock was trading at a price of $3.40 per share.
The rating follows the company’s second-quarter 2026 results. LifeMD reported revenue of $47.30 million, which was within its guidance. However, as highlighted by Zacks, this figure missed consensus estimates by 3.7% and was a decline from the $62.22 million reported in the same quarter of the previous year, impacting the overall financial performance.
Despite the revenue miss, the company’s underlying profitability metrics show some positive signs. Gross margin, which is revenue minus the cost of goods sold, expanded to approximately 89%. This improvement is mainly due to lower shipping costs and the scaling of its own in-house pharmacy operations, enhancing the company’s operational efficiency.
The company did report an adjusted EBITDA loss of approximately $3.50 million. Adjusted EBITDA is a key measure of a company’s operating performance. This loss was attributed to higher customer acquisition costs and a new, lower $39.00 introductory price for its branded GLP-1 weight management program, a strategic move to boost subscriber growth.
However, key growth drivers appear strong for the telehealth provider. Total active subscribers grew 20% year-over-year to approximately 356,000. Furthermore, about 95% of new weight management patients are starting with branded GLP-1 therapies, signaling the company is near the end of its transition away from compounded medications and focusing on high-value services.
