When Will LifeMD, Inc. (NASDAQ:LFMD) Become Profitable?

With the business potentially at an important milestone, we thought we'd take a closer look at LifeMD, Inc.'s (NASDAQ:LFMD) future prospects. LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The US$218m market-cap company posted a loss in its most recent financial year of US$24m and a latest trailing-twelve-month loss of US$26m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which LifeMD will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for LifeMD

LifeMD is bordering on breakeven, according to the 9 American Healthcare Services analysts. They expect the company to post a final loss in 2025, before turning a profit of US$6.8m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 111% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving LifeMD's growth isn’t the focus of this broad overview, though, bear in mind that by and large a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we would like to bring into light with LifeMD is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of LifeMD which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at LifeMD, take a look at LifeMD's company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is LifeMD worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether LifeMD is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on LifeMD’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.