We came across a bullish thesis on LifeMD, Inc. (LFMD) on Substack by William Fleming-Daniels. In this article, we will summarize the bulls’ thesis on LFMD. LifeMD, Inc. (LFMD)’s share was trading at $5.43 as of April 17th. LFMD’s forward P/E was 24.69 according to Yahoo Finance.
A doctor wearing a face mask utilizing modern telemedicine equipment as part of a telehealth software.
LifeMD (LFMD) is a founder-led, vertically integrated virtual-care provider offering a subscription-based bundle of services spanning primary care, specialist telehealth, weight management, and résumé-building SaaS. Its structure—owning the physician network, pharmacy, and patient-support infrastructure—allows it to capture nearly the entire margin chain, with 90% of revenue recurring through subscriptions and the rest from e-commerce and lab fees. The leadership remains closely aligned with shareholders, with co-founder and CEO Justin Schreiber still at the helm and insider ownership in the mid-teens. In 2024, LifeMD reported $212.5 million in revenue, up 39%, with adjusted EBITDA of $14.4 million (a 6.8% margin) and positive free cash flow of ~$16 million for the first time. While GAAP EPS was -$0.53, adjusted EPS was $0.35. The company holds $35 million in cash against $18.3 million in debt, giving it a modest net cash position.
Despite strong fundamentals, shares have pulled back sharply, closing at $5.43 on April 18, 2025, implying a ~$242 million market cap and $225 million EV. This puts the stock at just 15x EV/EBITDA—less than half the multiple of Teladoc and well below Hims & Hers, even though LifeMD operates with similar gross margins. Though analysts expect a minor GAAP loss in 2025, consensus 2026 EPS of $0.19 implies a forward P/E of 29x and a PEG ratio below 0.2, reflecting the company’s steep expected earnings growth through operating leverage. Growth will be driven by deeper penetration of GLP-1 weight-loss offerings, behavioral and women’s health expansion, greater commercial-insurance coverage to reduce churn, and potential enterprise licensing of its tech stack. However, Medicare’s April 2025 decision to deny reimbursement for obesity-only GLP-1s tempers near-term upside, and competitive and regulatory risks remain from players like Teladoc, Amazon Clinic, and retail pharmacy giants. Still, LifeMD’s asset-light model and net cash buffer limit downside risk.
Valuation hinges on execution. In the bear case, with muted GLP-1 adoption and revenue stalling near $300 million, EPS would reach only $0.05 by 2026, supporting a $6 share price. The base case sees revenue growing to $330 million, low-teen EBITDA margins, and $0.25 EPS, translating to a $12 fair value. A bullish outcome, now less likely due to Medicare’s ruling, projects $380 million in revenue and $0.40 EPS, supporting a $22 target. Weighting all three scenarios results in an intrinsic value of ~$13, more than double the current price, presenting a compelling but execution-dependent opportunity.
LifeMD, Inc. (LFMD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held LFMD at the end of the fourth quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of LFMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LFMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.