LifeMD Inc. (LFMD) had a rough Monday evening, with shares tumbling after the telehealth company delivered third-quarter results that disappointed on multiple fronts and dramatically reduced its revenue expectations for the year.

The culprit? A weight management market that's become brutally competitive, driven largely by an influx of low-price compounded GLP-1 providers undercutting established players.

The Numbers Tell a Challenging Story

LifeMD reported an adjusted quarterly loss of seven cents per share, worse than the five-cent loss analysts anticipated. That adjusted figure excludes a three-cent loss on debt extinguishment.

Revenue came in at $60.17 million, falling short of the $62.06 million consensus estimate. Not a massive miss, but when paired with the guidance cut, it painted a worrying picture.

Some Bright Spots in the Quarter

Despite the market challenges, LifeMD did post some encouraging metrics. Total revenue increased 13% year-over-year to $60.2 million, while adjusted EBITDA rose 20% to $5.1 million.

The telehealth segment showed resilience, with revenue growing 18% to $47.3 million and telehealth adjusted EBITDA jumping 30% to $2.9 million. The company also eliminated all outstanding debt during the quarter, which strengthens the balance sheet considerably.

"The third quarter of 2025 marked an important step forward for LifeMD," said Justin Schreiber, CEO of LifeMD.

"While the weight management market remained challenging, driven largely by fierce competition from low-price compounded GLP-1 providers, our business continued to demonstrate real strength," Schreiber added.

The Guidance Cut That Stung

Here's where things got painful for investors. LifeMD expects fourth-quarter revenue of just $45 million to $46 million, compared to analyst expectations of $63.07 million. That's a significant shortfall.

More dramatically, the company slashed its full fiscal 2025 revenue outlook from a range of $268 million to $275 million down to $192 million to $193 million. Analysts had been expecting $253.07 million. That's roughly a 30% haircut to prior guidance, which explains the market's harsh reaction.

According to market data, LifeMD stock dropped 15.64% to $3.99 in extended trading following the announcement.