LifeMD, Inc.
For the period ended Sep 30, 2025. Filed Nov 17, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 17, 2025
LFMD$2.37+3.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001641172-25-022272
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-17.
0001493152-25-023906
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 63 previous paragraphs and 66 current paragraphs.
33 unchanged; 26 reworded; 7 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
On November 4, 2025, we sold our majority ownership interest in WorkSimpli to Lion Buyer, LLC. The sale positions the Company as a pure-play telehealth technology company focused on scaling its virtual care and pharmacy operations. For a description of the transaction, see Note 15—Subsequent Events.
Current report
During the three months ended September 30, 2025, the Company identified and corrected errors related to the recording of net revenue as agent in certain arrangements with the Company’s third-party pharmacy providersas well as various out-of-period amounts included in our previously issued financial statements that were deemed to be quantitatively and qualitatively immaterial, individually and in the aggregate, to the financial statements in the periods recorded or to the relevant prior periods. Information presented in the tables below for the three and nine months ended September 30, 2024 has been revised to reflect these corrections. See Note 3—Revisions to Previously Issued Financial Statements.
Current report
The above increases in expenses were partially offset by the following decreases in expenses:
Current report
Loss on debt extinguishment. The Company recorded a $1.2 million loss on debt extinguishment related to the repayment of the Avenue Facility during the three months ended September 30, 2025 due to a prepayment penalty and various fees associated with the Avenue Facility.
Current report
Loss on debt extinguishment. The Company recorded a $1.2 million loss on debt extinguishment related to the repayment of the Avenue Facility during the nine months ended September 30, 2025 due to a prepayment penalty and various fees associated with the Avenue Facility.
Current report
The Company expects that its existing cash as of September 30, 2025 of $23.8 million will be sufficient to fund our planned operating expenses and capital expenditure requirements for at least the next 12 months from the issuance date of these unaudited condensed consolidated financial statements.
Current report
In September 2025, the FASB issued ASU 2025-06,Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, to simplify and modernize the accounting for internal-use software costs. The amendments remove references to prescriptive software development stages and clarify that capitalization of eligible software development costs begins when management authorizes and commits to funding the project and it is probable the project will be completed, and the software will be used as intended. The amendments in this update are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual periods. Early adoption is permitted, and the guidance may be applied prospectively, retrospectively, or using a modified approach for in-process projects. The Company is evaluating the impact this guidance will have on the consolidated financial statements and related disclosures.
Removed paragraphs (4)
Previous report
The increases in operating expenses were partially offset by a decrease in general and administrative expenses. This category mainly consists of stock-based compensation expense, merchant processing fees, payroll expenses for corporate employees, taxes and licenses, amortization expense and legal and professional fees. During the three months ended June 30, 2025, the Company had a decrease of approximately $956 thousand in general and administrative expenses, primarily related to the decrease in stock-based compensation expense of $2.1 million, partially offset by an increase in legal and professional fees of $965 thousand.
Previous report
On November 15, 2023, Avenue converted $1 million of the principal amount of the outstanding term loans into shares of the Company’s common stock. This resulted in 672,042 shares of common stock issued to Avenue. Additionally on November 15, 2023, Avenue exercised 96,773 of the Avenue Warrants on a cashless basis resulting in 79,330 shares of the Company’s common stock issued.
Previous report
On May 29, 2025, Avenue converted $1 million of the principal amount of the outstanding term loans into shares of the Company’s common stock. This resulted in 672,042 shares of common stock issued to Avenue. Additionally on May 29, 2025, Avenue exercised 435,484 of the Avenue Warrants on a cashless basis resulting in 388,650 shares of the Company’s common stock issued. As of June 30, 2025, there was $15.9 million in principal outstanding under the Avenue Facility.
Previous report
As of August 4, 2025, the Company has a current cash balance of approximately $36.5 million. The Company reviewed its forecasted operating results and sources and uses of cash used in management’s assessment, which included the available financing and consideration of positive and negative evidence impacting management’s forecasts, market, and industry factors. Positive indicators that lead to the Company’s expectation that it will have sufficient cash over the next 12 months following the date of this report include: (1) the Company’s continued strengthening of its revenues, reduction in losses and improvement of operational efficiencies across the business, (2) the expected improvement in its cash burn rate over the next 12 months and positive operating cash flows during the six months ended June 30, 2025, (3) cash on hand of $36.2 million as of June 30, 2025, (4) $44.6 million available under the ATM Sales Agreement as of August 4, 2025, which is part of the $150.0 million available under the 2024 Shelf,, (5) management’s ability to curtail expenses, if necessary, and (6) the overall market value of the telehealth industry, which the Company believes will continue to drive interest in the Company as evidenced by the collaboration with Medifast, Inc. during the year ended December 31, 2024.
Reworded paragraphs (26)
Previous wording
The LifeMD telehealth platform integrates best-in-class capabilities including a 50-state medical group, a nationwide pharmacy network, a wholly-owned affiliated commercial pharmacy, nationwide laboratory and diagnostic testing capabilities, a fully integrated electronic medical records (“EMR”) system and a patient care and service call center. These capabilities are integrated by an industry-leading, proprietary telehealth technology that supports a broad range of primary care, chronic disease and lifestyle healthcare needs. Currently, LifeMD treats approximately 297,000 active patient subscribers across a range of their medical needs including primary care, men’s sexual health, weight management, sleep, hair loss and hormonal therapy by providing telehealth clinical services and prescription and over-the-counter (“OTC”) treatments, as medically appropriate. Our virtual primary care services are primarily offered on a subscription basis. Since inception, we have helped approximately 1,261,000 customers and patients by providing them with greater access to high-quality, convenient, and affordable care.
Current wording
The LifeMD telehealth platform integrates best-in-class capabilities including a 50-state medical group, a nationwide pharmacy network, a wholly-owned affiliated commercial pharmacy, nationwide laboratory and diagnostic testing capabilities, a fully integrated electronic medical records (“EMR”) system and a patient care and service call center. These capabilities are integrated by an industry-leading, proprietary telehealth technology that supports a broad range of primary care, chronic disease and lifestyle healthcare needs. Currently, LifeMD treats approximately 311,000 active patient subscribers across a range of their medical needs including primary care, men’s sexual health, weight management, sleep, hair loss and hormonal therapy by providing telehealth clinical services and prescription and over-the-counter (“OTC”) treatments, as medically appropriate. Our virtual primary care services are primarily offered on a subscription basis. Since inception, we have helped approximately 1,293,000 customers and patients by providing them with greater access to high-quality, convenient, and affordable care.
Previous wording
In June 2024, the Company launched the acceptance of private health insurance for its virtual primary care services, including weight management for medically qualified patients. Initially available in select states, the Company plans to continue enrollments with private payors to facilitate access to medically necessary services, ultimately having broad coverage options across all 50 states. In April 2025, the Company expanded acceptance of insurance to Medicare beneficiaries for qualifying care. Initially available to more than 21 million Medicare Part B beneficiaries in 26 states, the Company expects to expand access to medically necessary services for more than 60 million Medicare beneficiaries nationwide, with access to qualifying services across 49 states anticipated by the end of the second quarter of 2025.
Current wording
In June 2024, the Company launched the acceptance of private health insurance for its virtual primary care services, including weight management for medically qualified patients. Initially available in select states, the Company plans to continue enrollments with private payors to facilitate access to medically necessary services, ultimately having broad coverage options across all 50 states. In April 2025, the Company expanded acceptance of insurance to Medicare beneficiaries for qualifying care. Initially available to more than 21 million Medicare Part B beneficiaries in 26 states, the Company expects to expand access to medically necessary services for more than 60 million Medicare beneficiaries nationwide, with access to qualifying services across 49 states.
Previous wording
Our telehealth revenue increased 48% for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Total revenue from recurring subscriptions is approximately 94%. In addition to our telehealth business, we own 73.3% of WorkSimpli, which operates PDFSimpli, a software as a service platform for converting, signing, editing, and sharing PDF documents. WorkSimpli revenue from recurring subscriptions is 100%.
Current wording
Our telehealth revenue increased 34% for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. Total revenue from recurring subscriptions is approximately 95%. In addition to our telehealth business, we owned 73.3% of WorkSimpli, which operates PDFSimpli, a software as a service platform for converting, signing, editing, and sharing PDF documents. WorkSimpli revenue from recurring subscriptions is 100%.
Previous wording
To support our telehealth brands, in November 2024 we announced the opening of a state-of-the-art wholly-owned affiliated commercial pharmacy, marking an important milestone in creating a fully integrated, end-to-end telehealth platform. This 22,500-square-foot facility, located in Lancaster, PA and designed to fill up to 5,000 daily prescriptions, allows us to offer patients a more cohesive care journey for relevant conditions from initial consultation to prescription fulfillment within a single integrated ecosystem.
Current wording
To support our telehealth brands, in November 2024 we announced the opening of a state-of-the-art wholly-owned affiliated commercial pharmacy, marking an important milestone in creating a fully integrated, end-to-end telehealth platform. This 22,500-square-foot facility, located in Lancaster, PA and designed to fill up to 5,000 daily prescriptions, allows us to offer patients a more cohesive care journey for relevant conditions from initial consultation to prescription fulfillment within a single integrated ecosystem. In September 2025, we expanded our pharmacy to include advanced non-sterile compounding capabilities for oral and topical medications, so that we could deliver tailored therapies designed to meet evolving patient needs while improving efficiency and reducing reliance on third-party providers.
Previous wording
During the six months ended June 30, 2025, LifeMD executed its integration with LillyDirect’s (“Lilly”) pharmacy provider, Gifthealth, to offer streamlined access of single-dose vials of Lilly’s prescription obesity treatment Zepbound® (tirzepatide) to the Company’s eligible patients. LifeMD also announced plans to offer a simplified pathway for cash-pay patients to access all FDA-approved dose strengths of Wegovy® directly within LifeMD’s virtual care platform.
Current wording
During the nine months ended September 30, 2025, LifeMD executed its integration with LillyDirect’s (“Lilly”) pharmacy provider, Gifthealth, to offer streamlined access of single-dose vials of Lilly’s prescription obesity treatment Zepbound® (tirzepatide) to the Company’s eligible patients. LifeMD also announced plans to offer a simplified pathway for cash-pay patients to access all FDA-approved dose strengths of Wegovy® directly within LifeMD’s virtual care platform and an additional offering through its collaboration with Novo Nordisk that provides access to Ozempic® for patients with type 2 diabetes.
Previous wording
WorkSimpli is a leading provider of workplace and document services for consumers, gig workers, and small businesses. WorkSimpli operates the following brands: (1) PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents, (2) ResumeBuild, a leading provider of digital resume and cover letter services, (3) SignSimpli, a digital signature platform and (4) LegalSimpli, a provider of legal forms for consumers and small businesses. As a result of a series of restructuring transactions, the Company’s ownership interest in WorkSimpli is 73.3%. WorkSimpli had approximately 149,500 active subscriptions as of June 30, 2025.
Current wording
WorkSimpli is a leading provider of workplace and document services for consumers, gig workers, and small businesses. WorkSimpli operates the following brands: (1) PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents, (2) ResumeBuild, a leading provider of digital resume and cover letter services, (3) SignSimpli, a digital signature platform and (4) LegalSimpli, a provider of legal forms for consumers and small businesses. As a result of a series of restructuring transactions, the Company’s ownership interest in WorkSimpli was 73.3%. WorkSimpli had approximately 141,000 active subscriptions as of September 30, 2025.
Previous wording
Total revenue, net. Revenues for the three months ended June 30, 2025 were approximately $62.2 million, an increase of 23% compared to approximately $50.7 million for the three months ended June 30, 2024. The increase in revenues was attributable to the increase in telehealth revenue of 30%. Telehealth revenue accounts for 78% of total revenue and has increased during the three months ended June 30, 2025 due to an increase in telehealth subscription revenue, primarily for LifeMD primary care which experienced an increase of approximately $15.3 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024, partially offset by a decline in telehealth product revenue of approximately $1.1 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to a reduction in online sales demand. WorkSimpli revenue accounts for 22% of total revenue and has increased by approximately $425 thousand, or 3%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to an increase in online sales demand.
Current wording
Total revenue, net. Revenues for the three months ended September 30, 2025 were approximately $60.2 million, an increase of 13% compared to approximately $53.3 million for the three months ended September 30, 2024. The increase in revenues was attributable to an increase in telehealth subscription revenue, primarily for LifeMD primary care which experienced an increase of approximately $6.4 million during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to an increase in online sales demand. Telehealth revenue accounts for 79% of total revenue. WorkSimpli revenue accounts for 21% of total revenue and has decreased by approximately $225 thousand, or 2%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to a decrease in online sales demand.
Previous wording
Total cost of revenue. Total cost of revenue consists of the cost of (1) telehealth revenues, which primarily include product costs, pharmacy fulfilment costs, physician consult fees, and shipping costs directly attributable to our prescription and OTC products and (2) WorkSimpli revenue consisting primarily of information technology fees related to providing the services made available on our online platform. Total cost of revenue increased by approximately 48% to approximately $7.4 million for the three months ended June 30, 2025 compared to approximately $5.0 million for the three months ended June 30, 2024. The combined cost of revenue increase was due to increased sales volume during the three months ended June 30, 2025 when compared to the three months ended June 30, 2024. Telehealth costs increased to 14% of associated telehealth revenues experienced during the three months ended June 30, 2025, from 12% of associated telehealth revenues during the three months ended June 30, 2024. WorkSimpli costs were 4% of associated WorkSimpli revenues for the three months ended June 30, 2025 and for the three months ended June 30, 2024.
Current wording
Total cost of revenue. Total cost of revenue consists of the cost of (1) telehealth revenues, which primarily include product costs, pharmacy fulfilment costs, physician consult fees, and shipping costs directly attributable to our prescription and OTC products and (2) WorkSimpli revenue consisting primarily of information technology fees related to providing the services made available on our online platform. Total cost of revenue increased by approximately 48% to approximately $7.4 million for the three months ended September 30, 2025 compared to approximately $5.0 million for the three months ended September 30, 2024. The combined cost of revenue increase was due to increased sales volume during the three months ended September 30, 2025 when compared to the three months ended September 30, 2024. Telehealth costs increased to 14% of associated telehealth revenues experienced during the three months ended September 30, 2025, from 11% of associated telehealth revenues during the three months ended September 30, 2024 due to increases in physician consult fees and product shipping costs. WorkSimpli costs stayed consistent at 5% of associated WorkSimpli revenues for both the three month periods ended September 30, 2025 and 2024.
Previous wording
Gross profit. Gross profit increased by approximately 20% to approximately $54.8 million for the three months ended June 30, 2025 compared to approximately $45.6 million for the three months ended June 30, 2024. Gross profit as a percentage of revenues was approximately 88% for the three months ended June 30, 2025 as compared to approximately 90% for the three months ended June 30, 2024. Gross profit as a percentage of revenues for telehealth was 86% for the three months ended June 30, 2025 compared to 88% for the three months ended June 30, 2024, and for WorkSimpli was 96% for the three months ended June 30, 2025 and for the three months ended June 30, 2024. The increase in sales volume and demand for LifeMD primary care partially offset by an increase in shipping and physician consult fees, contributed to the increase in gross profit. The increase in shipping and physician consult fees also contributed to the decrease in gross profit as a percentage of telehealth revenue.
Current wording
Gross profit. Gross profit increased by 9% to approximately $52.8 million for the three months ended September 30, 2025 compared to approximately $48.3 million for the three months ended September 30, 2024. Gross profit as a percentage of revenues was approximately 88% for the three months ended September 30, 2025 as compared to approximately 91% for the three months ended September 30, 2024. Gross profit as a percentage of revenues for telehealth was 86% for the three months ended September 30, 2025 compared to 89% for the three months ended September 30, 2024, and for WorkSimpli was 95% for both the three month periods ended September 30, 2025 and 2024. The increase in sales volume and demand for telehealth subscriptions, partially offset by the increase in physician consult fees and product shipping costs contributed to the increase in gross profit. The increase in physician consult fees and product shipping costs also contributed to the decrease in gross profit as a percentage of telehealth revenue.
Previous wording
Total expenses. Operating expenses for the three months ended June 30, 2025 were approximately $55.7 million, as compared to approximately $51.9 million for the three months ended June 30, 2024. This represents an increase of 7%, or approximately $3.7 million. The increase is primarily attributable to:
Current wording
Total expenses. Operating expenses for the three months ended September 30, 2025 were approximately $54.7 million, as compared to approximately $52.3 million for the three months ended September 30, 2024. This represents an increase of 5%, or approximately $2.5 million. The increase is primarily attributable to:
Previous wording
Interest expense, net. Interest expense, net consists of interest expense related to the Avenue Facility, partially offset by interest income on the Company’s cash account balances for the three months ended June 30, 2025 and interest expense related to the Avenue Facility and notes payable, partially offset by interest income on the Company’s cash account balances for the three months ended June 30, 2024. Interest expense increased by approximately $132 thousand during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to an increase in interest expensed on the Avenue Facility during the three months ended June 30, 2025.
Current wording
Interest expense, net. Interest expense, net consists of interest expense related to the Avenue Facility, partially offset by interest income on the Company’s cash account balances for the three months ended September 30, 2025 and interest expense related to the Avenue Facility and notes payable, partially offset by interest income on the Company’s cash account balances for the three months ended September 30, 2024. Interest expense decreased by approximately $296 thousand during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to the repayment of the Avenue Facility on August 5, 2025.
Previous wording
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Current wording
Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024
Previous wording
Our financial results for the six months ended June 30, 2025 are summarized as follows in comparison to the six months ended June 30, 2024:
Current wording
Our financial results for the nine months ended September 30, 2025 are summarized as follows in comparison to the nine months ended September 30, 2024:
Previous wording
Total revenue, net. Revenues for the six months ended June 30, 2025 were approximately $127.9 million, an increase of 35% compared to approximately $94.8 million for the six months ended June 30, 2024. The increase in revenues was attributable to the increase in telehealth revenue of 48%. Telehealth revenue accounts for 79% of total revenue and has increased during the six months ended June 30, 2025 due to an increase in telehealth subscription revenue, primarily for LifeMD primary care which experienced an increase of approximately $37.8 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, partially offset by a decline in telehealth product revenue of approximately $25 thousand during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to a reduction in online sales demand. WorkSimpli revenue accounts for 21% of total revenue and has increased by approximately $363 thousand, or 1%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to an increase in online sales demand.
Current wording
Total revenue, net. Revenues for the nine months ended September 30, 2025 were approximately $187.0 million, an increase of 25% compared to approximately $149.3 million for the nine months ended September 30, 2024. The increase in revenues was attributable to the increase in telehealth revenue of 34%. Telehealth revenue accounts for 79% of total revenue and has increased during the nine months ended September 30, 2025 due to an increase in telehealth subscription revenue, primarily for LifeMD primary care which experienced an increase of approximately $41.2 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to increased demand. WorkSimpli revenue accounts for 22% of total revenue and stayed consistent for both the nine month periods ended September 30, 2025 and 2024.
Previous wording
Total cost of revenue. Total cost of revenue consists of the cost of (1) telehealth revenues, which primarily include product costs, pharmacy fulfilment costs, physician consult fees, and shipping costs directly attributable to our prescription and OTC products and (2) WorkSimpli revenue consisting primarily of information technology fees related to providing the services made available on our online platform. Total cost of revenue increased by approximately 67% to approximately $16.1 million for the six months ended June 30, 2025 compared to approximately $9.6 million for the six months ended June 30, 2024. The combined cost of revenue increase was due to increased sales volume during the six months ended June 30, 2025 when compared to the six months ended June 30, 2024. Telehealth costs increased to 15% of associated telehealth revenues experienced during the six months ended June 30, 2025, from 13% of associated telehealth revenues during the six months ended June 30, 2024. WorkSimpli costs increased to 4% of associated WorkSimpli revenues for the six months ended June 30, 2025 as compared to 3% of associated WorkSimpli revenues for the six months ended June 30, 2024.
Current wording
Total cost of revenue. Total cost of revenue consists of the cost of (1) telehealth revenues, which primarily include product costs, pharmacy fulfilment costs, physician consult fees, and shipping costs directly attributable to our prescription and OTC products and (2) WorkSimpli revenue consisting primarily of information technology fees related to providing the services made available on our online platform. Total cost of revenue increased by approximately 60% to approximately $23.5 million for the nine months ended September 30, 2025 compared to approximately $14.6 million for the nine months ended September 30, 2024. The combined cost of revenue increase was due to increased sales volume during the nine months ended September 30, 2025 when compared to the nine months ended September 30, 2024. Telehealth costs increased to 15% of associated telehealth revenues experienced during the nine months ended September 30, 2025, from 12% of associated telehealth revenues during the nine months ended September 30, 2024 primarily due to increases in physician consult fees and product shipping costs. WorkSimpli costs increased to 5% of associated WorkSimpli revenues for the nine months ended September 30, 2025 as compared to 4% of associated WorkSimpli revenues for the nine months ended September 30, 2024.
Previous wording
Gross profit. Gross profit increased by approximately 31% to approximately $111.8 million for the six months ended June 30, 2025 compared to approximately $85.2 million for the six months ended June 30, 2024. Gross profit as a percentage of revenues was approximately 87% for the six months ended June 30, 2025 as compared to approximately 90% for the six months ended June 30, 2024. Gross profit as a percentage of revenues for telehealth was 85% for the six months ended June 30, 2025 compared to 87% for the six months ended June 30, 2024, and for WorkSimpli was 96% for the six months ended June 30, 2025 compared to 97% for the six months ended June 30, 2024. The increase in sales volume and demand for LifeMD primary care partially offset by an increase in shipping and physician consult fees have contributed to the increase in gross profit. The increase in shipping and physician consult fees for the six months ended June 30, 2025 as well as the Medifast Collaboration revenue recognized during the six months ended June 30, 2024 contributed to the decrease in gross profit as a percentage of telehealth revenue.
Current wording
Gross profit. Gross profit increased by approximately 21% to approximately $163.5 million for the nine months ended September 30, 2025 compared to approximately $134.7 million for the nine months ended September 30, 2024. Gross profit as a percentage of revenues was approximately 87% for the nine months ended September 30, 2025 as compared to approximately 90% for the nine months ended September 30, 2024. Gross profit as a percentage of revenues for telehealth was 85% for the nine months ended September 30, 2025 compared to 88% for the nine months ended September 30, 2024, and for WorkSimpli was 95% for the nine months ended September 30, 2025 compared to 96% for the nine months ended September 30, 2024. The increase in sales volume and demand for telehealth subscriptions partially offset by an increase in physician consult fees and product shipping costs, contributed to the increase in gross profit. The increase in physician consult fees and product shipping costs as well as the Medifast Collaboration revenue recognized during the nine months ended September 30, 2024 also contributed to the decrease in gross profit as a percentage of telehealth revenue for the nine months ended September 30, 2025.
Previous wording
Total expenses. Operating expenses for the six months ended June 30, 2025 were approximately $110.2 million, as compared to approximately $97.7 million for the six months ended June 30, 2024. This represents an increase of 13%, or approximately $12.5 million. The increase is primarily attributable to:
Current wording
Total expenses. Operating expenses for the nine months ended September 30, 2025 were approximately $164.9 million, as compared to approximately $149.1 million for the nine months ended September 30, 2024. This represents an increase of 11%, or approximately $15.8 million. The increase is primarily attributable to:
Previous wording
Interest expense, net. Interest expense, net consists of interest expense related to the Avenue Facility, partially offset by interest income on the Company’s cash account balances for the six months ended June 30, 2025 and interest expense related to the Avenue Facility and notes payable, partially offset by interest income on the Company’s cash account balances for the six months ended June 30, 2024. Interest expense increased by approximately $280 thousand during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to an increase in interest expensed on the Avenue Facility during the six months ended June 30, 2025.
Current wording
Interest expense, net. Interest expense, net consists of interest expense related to the Avenue Facility, partially offset by interest income on the Company’s cash account balances for the nine months ended September 30, 2025 and interest expense related to the Avenue Facility and notes payable, partially offset by interest income on the Company’s cash account balances for the nine months ended September 30, 2024. Interest expense stayed consistent for both the nine month periods ended September 30, 2025 and 2024.
Previous wording
Working capital decreased by approximately $3.0 million during the six months ended June 30, 2025. The increase in current assets is primarily attributable to an increase in cash of approximately $1.2 million and an increase in inventory of approximately $454 thousand, partially offset by a decrease in accounts receivable of $888 thousand and a decrease other current assets of approximately $707 thousand. Current liabilities increased by approximately $3.3 million, which was primarily attributable to an increase in current portion of long-term debt of approximately $3.5 million and an increase in accounts payable and accrued expenses of approximately $2.4 million, partially offset by a decrease in deferred revenue of approximately $2.7 million.
Current wording
Working capital decreased by approximately $0.5 million during the nine months ended September 30, 2025. The decrease in current assets is primarily attributable to a decrease in cash of approximately $11.2 million due to the repayment of the Avenue Facility on August 5, 2025 and a decrease in accounts receivable of approximately $1.6 million, partially offset by an increase in other current assets of approximately $0.6 million. Current liabilities decreased by approximately $10.7 million, which was primarily attributable to a decrease in current portion of long-term debt of approximately $8.4 million due to the repayment of the Avenue Facility on August 5, 2025 and a decrease in deferred revenue of $5.3 million, partially offset by an increase in accounts payable and accrued expenses of approximately $2.8 million.
Previous wording
Net cash provided by operating activities was approximately $11.7 million for the six months ended June 30, 2025, as compared with approximately $9.7 million for the six months ended June 30, 2024. The significant factors contributing to the net cash provided by operating activities during the six months ended June 30, 2025, include: (1) $5.7 million in non-cash depreciation and amortization, (2) $4.6 million in non-cash stock-based compensation charges, (3) the Company’s net income of $347 thousand, (4) an increase in accounts payable and accrued expenses of $2.4 million and (5) an increase in accounts receivable of $888 thousand, partially offset by a decrease in deferred revenue of $2.7 million. The significant factors contributing to the net cash provided by operating activities during the six months ended June 30, 2024, include: (1) $6.7 million in non-cash stock-based compensation charges, (2) an increase in deferred revenue of $6.3 million, (3) an increase in accounts payable and accrued expenses of $5.4 million and (4) $4.6 million in non-cash depreciation and amortization. These increases were partially offset by the Company’s net loss of $13.5 million for the six months ended June 30, 2024.
Current wording
Net cash provided by operating activities was approximately $11.6 million for the nine months ended September 30, 2025, as compared with approximately $16.4 million for the nine months ended September 30, 2024. The significant factors contributing to the net cash provided by operating activities during the nine months ended September 30, 2025, include: (1) $8.7 million in non-cash depreciation and amortization, (2) $7.8 million in non-cash stock-based compensation charges, (3) an increase in accounts payable and accrued expenses of $2.8 million and (4) $1.2 million loss on debt extinguishment recorded related to the repayment of the Avenue Facility on August 5, 2025. These increases were partially offset by a decrease in deferred revenue of $5.3 million and the Company’s net loss of $4.3 million for the nine months ended September 30, 2025. The significant factors contributing to the net cash provided by operating activities during the nine months ended September 30, 2024, include: (1) an increase in accounts payable and accrued expenses of $12.4 million, (2) an increase in deferred revenue of $10.9 million, (3) $9.1 million in non-cash stock-based compensation charges, and (4) $7.3 million in non-cash depreciation and amortization. These increases were partially offset by: (1) the Company’s net loss of $16.2 million for the nine months ended September 30, 2024, (2) an increase in accounts receivable of $5.2 million and (3) an increase in other current assets of $2.3 million.
Previous wording
Net cash used in investing activities for the six months ended June 30, 2025 was approximately $6.6 million, as compared with approximately $5.3 million for the six months ended June 30, 2024. Net cash used in investing activities for the six months ended June 30, 2025, was due to cash paid for capitalized software costs of approximately $5.6 million, and cash paid for the purchase of equipment of approximately $918 thousand. Net cash used in investing activities for the six months ended June 30, 2024, was primarily due to cash paid for capitalized software costs of approximately $4.5 million, and cash paid for the purchase of equipment of approximately $818 thousand.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2025 was approximately $10.2 million, as compared with approximately $8.8 million for the nine months ended September 30, 2024. Net cash used in investing activities for the nine months ended September 30, 2025, was due to cash paid for capitalized software costs of approximately $8.4 million, and cash paid for the purchase of equipment of approximately $1.7 million. Net cash used in investing activities for the nine months ended September 30, 2024, was due to cash paid for capitalized software costs of approximately $7.5 million, and cash paid for the purchase of equipment of approximately $1.3 million.
Previous wording
Net cash used in financing activities for the six months ended June 30, 2025 was approximately $3.9 million as compared with approximately $1.9 million for the six months ended June 30, 2024. Net cash used in financing activities for the six months ended June 30, 2025, consisted of: (1) principal repayments on the Avenue Credit Agreement as defined below of approximately $2.1 million, (2) preferred stock dividends of $1.6 million, and (3) distributions to non-controlling interest of $312 thousand. Net cash used in financing activities for the six months ended June 30, 2024, consisted of: (1) preferred stock dividends of $1.6 million, (2) repayments of notes payable of approximately $315 thousand, (3) distributions to non-controlling interest of $72 thousand, and (4) the final contingent consideration payment made related to the ResumeBuild acquisition of approximately $31 thousand, partially offset by proceeds from the exercise of options of approximately $108 thousand.
Current wording
Net cash used in financing activities for the nine months ended September 30, 2025 was approximately $12.6 million as compared with approximately $3.2 million for the nine months ended September 30, 2024. Net cash used in financing activities for the nine months ended September 30, 2025, consisted of: (1) the repayment of the Avenue Facility on August 5, 2025 of approximately $18.7 million, (2) preferred stock dividends of $2.3 million, and (3) distributions to non-controlling interest of $762 thousand partially offset by $8.7 million net proceeds received related to sales of common stock under the ATM Sales Agreement and $471 thousand of cash proceeds received from the exercise of options and warrants. Net cash used in financing activities for the nine months ended September 30, 2024, consisted of: (1) preferred stock dividends of $2.3 million, (2) distributions to non-controlling interest of $603 thousand, (3) repayments of notes payable of approximately $328 thousand, and (4) the final contingent consideration payment made related to the ResumeBuild acquisition of approximately $31 thousand, partially offset by proceeds from the exercise of options of approximately $108 thousand.
Previous wording
To date, the Company has been funding operations primarily through the sales of its products, issuance of common and preferred stock, and through loans and advances. The Company’s continued operations are dependent upon obtaining an increase in its sale volumes and obtaining funding from third-party sources or the issuance of additional shares of common stock. Our primary short-term and long-term requirements for liquidity and capital are for customer acquisitions, funding business acquisitions and investments we may make from time to time, working capital including our noncancelable operating lease obligations, long-term debt obligations, capital expenditures and general corporate purposes. For more information on our operating lease obligations, see Note 9—Leases to our unaudited condensed consolidated financial statements included in this report. There can be no assurances that we will be successful in increasing revenues, improving operational efficiencies, or that financing will be available or, if available, that such financing will be available under favorable terms.
Current wording
To date, the Company has been funding operations primarily through the sales of its products, issuance of common and preferred stock, and through loans and advances. Our primary short-term and long-term requirements for liquidity and capital are for customer acquisitions, funding business acquisitions and investments we may make from time to time, working capital including our noncancelable operating lease obligations, long-term debt obligations, capital expenditures and general corporate purposes. For more information on our operating lease obligations, see Note 10—Leases to our unaudited condensed consolidated financial statements included in this report.
Previous wording
On March 21, 2023, the Company entered into and closed on a loan and security agreement (the “Avenue Credit Agreement”), and a supplement to the Credit Agreement (the “Avenue Supplement”), with Avenue Venture Opportunities Fund II, L.P. and Avenue Venture Opportunities Fund, L.P. (collectively, “Avenue”). The Avenue Credit Agreement provides for a convertible senior secured credit facility of up to an aggregate amount of $40 million, comprised of the following: (1) $15 million in term loans funded at closing, (2) $5 million of additional committed term loans which the Company received on September 26, 2023 under the First Amendment to the Avenue Credit Agreement (the “Avenue First Amendment”) and (3) $20 million of additional uncommitted term loans, collectively referred to as the “Avenue Facility”. The Avenue Facility matures on October 1, 2026. The Company issued Avenue warrants to purchase $1.2 million of the Company’s common stock at an exercise price of $1.24, subject to adjustments, of which $660 thousand has been exercised. In addition, Avenue has converted $2 million of the $15 million in term loans funded at closing into shares of the Company’s common stock, at a price per share equal to $1.49. Proceeds from the Avenue Facility were used to repay the Company’s outstanding notes payable balances with CRG Financial and are expected to be used for general corporate purposes. On August 5, 2025, the Company paid the remaining $14.0 million in outstanding principal payments on the Avenue Facility and the prepayment penalty as noted in the Avenue Credit Agreement. As of August 5, 2025, there are no remaining principal payments on the Avenue Facility.
Current wording
On March 21, 2023, the Company entered into and closed on a loan and security agreement (the “Avenue Credit Agreement”), and a supplement to the Credit Agreement (the “Avenue Supplement”), with Avenue Venture Opportunities Fund II, L.P. and Avenue Venture Opportunities Fund, L.P. (collectively, “Avenue”). The Avenue Credit Agreement provided for a convertible senior secured credit facility of up to an aggregate amount of $40 million, comprised of the following: (1) $15 million in term loans funded at closing, (2) $5 million of additional committed term loans which the Company received on September 26, 2023 under the First Amendment to the Avenue Credit Agreement (the “Avenue First Amendment”) and (3) $20 million of additional uncommitted term loans, collectively referred to as the “Avenue Facility”. The Company issued Avenue warrants to purchase $1.2 million of the Company’s common stock at an exercise price of $1.24, subject to adjustments, of which $660 thousand have been exercised (the “Avenue Warrants”). In addition, Avenue converted $2 million of the $15 million in term loans funded at closing into shares of the Company’s common stock at a price per share equal to $1.49. Proceeds from the Avenue Facility were used to repay the Company’s outstanding notes payable balances with CRG Financial. On August 5, 2025, the Company paid the remaining $14.0 million in outstanding principal payments on the Avenue Facility and the prepayment penalty as noted in the Avenue Credit Agreement. As of September 30, 2025, there are no principal payments remaining on the Avenue Facility. The Company recorded a loss on debt extinguishment of $1.2 million within its unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2025.
Previous wording
The Company entered into an At Market Issuance Sales Agreement (the “ATM Sales Agreement”) with B. Riley Securities, Inc. and Cantor Fitzgerald & Co. relating to the sale of its common stock. In accordance with the terms of the ATM Sales Agreement, the Company may, but is not obligated to, offer and sell, from time to time, shares of common stock, through or to the Agents, acting as agent or principal. Sales of common stock, if any, will be made by any method permitted that is deemed an “at the market offering” as defined in Rule 415 under the Securities Act. On June 7, 2024, the Company filed a shelf registration statement on Form S-3 under the Securities Act, which was declared effective on July 18, 2024 (the “2024 Shelf”). Under the 2024 Shelf at the time of effectiveness, the Company had the ability to raise up to $150.0 million by selling common stock, preferred stock, debt securities, warrants, and units including $53.3 million of its common stock under the ATM Sales Agreement. As of June 30, 2025, the Company had $53.3 million available under the ATM Sales Agreement, which is part of the $150.0 million available under the 2024 Shelf. Refer to Note 13-Subsequent Events for sales of common stock under the ATM Sales Agreement subsequent to June 30, 2025.
Current wording
The Company entered into an At Market Issuance Sales Agreement (the “ATM Sales Agreement”) with B. Riley Securities, Inc. and Cantor Fitzgerald & Co. relating to the sale of its common stock. In accordance with the terms of the ATM Sales Agreement, the Company may, but is not obligated to, offer and sell, from time to time, shares of common stock, through or to the Agents, acting as agent or principal. Sales of common stock, if any, will be made by any method permitted that is deemed an “at the market offering” as defined in Rule 415 under the Securities Act. On June 7, 2024, the Company filed a shelf registration statement on Form S-3 under the Securities Act, which was declared effective on July 18, 2024 (the “2024 Shelf”). Under the 2024 Shelf at the time of effectiveness, the Company had the ability to raise up to $150.0 million by selling common stock, preferred stock, debt securities, warrants, and units including $53.3 million of its common stock under the ATM Sales Agreement. During the three months ended September 30, 2025, the Company sold 762,990 shares of common stock under the ATM Sales Agreement and net proceeds received were $8.7 million. As of September 30, 2025, the Company had $44.6 million available under the ATM Sales Agreement.
Previous wording
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09,Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to improve its income tax disclosure requirements. Under ASU 2023-09, entities must annually: (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update are effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact that ASU 2023-09 will have to its consolidated financial statements and related disclosures.
Current wording
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09,Income Taxes (Topic 740): Improvements to Income Tax Disclosures, to improve its income tax disclosure requirements. Under ASU 2023-09, entities must annually: (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. The amendments in this update are effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact that ASU 2023-09 will have to its financial disclosures.