LifeMD: The Undervalued Growth Stock Making Big Moves

PUBLISHED Mar 23, 2025, 2:14:51 PM        SHARE

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LifeMD is a name that has been making waves in the market recently. With a 21% jump in stock price, this healthcare company is catching the attention of savvy investors. Despite its strong performance, LifeMD remains heavily undervalued, offering a unique opportunity for growth-focused investors. Let’s explore why LifeMD stands out as an overlooked winner in today’s market.

Strong Financial Performance

The recently released earnings report paints a promising picture:

  • Revenue Growth: 43% year-over-year in Q4, indicating robust business expansion.
  • EBITDA Growth: Up 78% year-over-year, showcasing impressive operating leverage as expenses grow slower than revenue.

While LifeMD is still reporting a GAAP net loss, the substantial improvement in financial metrics sets the stage for potential future profitability. Investors could see a major catalyst if LifeMD reports its first EBITDA-positive quarter soon, as the market typically rewards such milestones.

Subscriber Growth and Increasing Spend

LifeMD reported a 27% increase in subscriber count, a healthy indicator of customer acquisition. Even more notable is the 43% revenue growth compared to subscriber growth—indicating that customers are spending more on the platform. This combination of a growing customer base and higher average spend is a key driver of exponential revenue growth.

Medicare: A Game-Changer in 2025

LifeMD is gearing up for a significant growth catalyst with the introduction of Medicare coverage on April 1st, 2025. Here's why this development matters:

  • GLP-1 Coverage: Medicare may cover GLP-1 prescriptions, which are widely used for conditions like diabetes and pre-diabetes.
  • Attracting Older Demographics: The Medicare integration allows LifeMD to tap into a large, underserved demographic of individuals aged 65 and older, boosting both subscriber count and revenue.

This strategic move positions LifeMD as a key player in the telehealth market, leveraging government healthcare benefits to expand its reach.

Diversified Revenue Streams

LifeMD isn’t just about telehealth—it boasts impressive side businesses that add to its value:

  • WorkSimply: A small but growing software business that started as a PDF merge tool. LifeMD invested just $250,000 to build WorkSimply, which is now generating $16 million in EBITDA annually. The business is forecasted to hit $60 million in revenue in 2025.
  • RexMD: A budget-friendly competitor to established brands like Hims, focusing on men’s health. RexMD achieved $75 million in revenue in 2023 and serves half a million patients. Leveraging LifeMD’s platform, RexMD is proving to be a high-margin side business.

These in-house ventures not only diversify LifeMD’s revenue but also highlight the company’s ability to grow and scale businesses effectively.

Undervalued and Poised for Growth

LifeMD’s valuation metrics reveal an immense disconnect between the company’s market price and its underlying value:

  • Market Cap: $210 million, with zero net debt and equivalent cash.
  • 2025 Revenue Estimate: $270 million, implying a Price-to-Sales ratio far below industry averages.
  • Rule of 40 Compliance: The company meets this key SaaS growth metric, with its EBITDA margin and revenue growth adding up to exceed 40%.

Even after the 21% price jump, the stock remains one of the cheapest in the market when evaluated through its enterprise value-to-revenue-growth ratio.

The Path Forward

With its strong financial performance, growing subscriber base, and Medicare integration on the horizon, LifeMD is well-positioned to capitalize on multiple growth opportunities. Add to that its undervalued stock price and diversified business model, and you have a recipe for success.

For investors looking to bet on an overlooked growth stock, LifeMD might just be the hidden gem you’ve been searching for.

https://youtu.be/n7frJ2i1czM?si=xEoJ3kZgDqZyUiAx

**POSITION UPDATE**

LFMD, Buy

LifeMD Inc.
Return: -4.55%

LFMD, Buy

Return: -4.55%


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