LifeMD, Inc. (LFMD) Q3 2026 Earnings Call Transcript

Operator: Good afternoon, and thank you for joining us today to discuss LifeMD's results for the third quarter ending September 30, 2026. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer; and Atul Kavthekar, Chief Financial Officer. Following management's prepared remarks, we will open the call for a question-and-answer session. Before we begin, I would like to remind everyone that during this call, the company will make a number of forward-looking statements, which are subject to numerous risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties are described in the company's 10-K and 10-Q filings and in other filings LifeMD may make with the SEC from time to time. Forward-looking statements made during this call are based on information available to the company as of today, November 12, 2026. The company assumes no obligation to update or revise any forward-looking statements after today's call, except as required by law. Management will also discuss certain non-GAAP financial measures that the company believes are useful in evaluating its performance. Reconciliation to the most comparable GAAP measures can be found in the press release issued earlier today. Today's call is being recorded and will be available for replay in the Investor Relations section of the company's website. Now, I'd like to turn the call over to LifeMD's Chairman and Chief Executive Officer, Justin Schreiber. Justin?

Justin Schreiber: Thank you, operator, and good afternoon, everyone. Earlier this afternoon, we issued our third quarter release and filed our 10-Q. Let me start with the numbers. Revenue was $44.6 million, below the range we guided to. Adjusted EBITDA was slightly negative within our guidance range and a $3.1 million improvement over the second quarter. We are also resetting our outlook for the fourth quarter and the full year. Last quarter, I told you we expected to exit the year at a $250 million revenue run rate. We won't. We now expect to exit at roughly a $200 million revenue run rate. There were 3 things that drove the shortfall. First, our guidance assumed our branded GLP-1 fulfillment program would begin earlier in the quarter. Finalizing and implementing those arrangements took longer than we planned, so less of that revenue landed in the third quarter. This was a timing issue, not a demand issue. Arrangements with manufacturers are now in place and the program is ramping, as I'll discuss in a moment. Second, we took a conservative approach to new patient acquisition. We cut marketing spend by almost 1/3 quarter-over-quarter, while we improved our technology platform and patient experience to drive better unit economics and patient retention. We also chose longer patient subscription commitments over upfront revenue. Those choices cost us revenue this quarter. Third, and this is related to the second, some of the patient cohorts we brought on earlier this year didn't perform the way we expected. This is a big part of why we pulled back. We made pricing and plan changes to address that and rather than scale spend before we knew those changes were working, we chose to hold back until our new cohorts proved out. The early results are encouraging, and I'll come back to those shortly. The most important takeaway for our shareholders is that despite some continued softness in the business, we are in a strong liquidity position and I believe have an amazing year of high-quality growth ahead of us. I'm going to keep the rest of my remarks short because the message is simple. It comes down to 5 things. First, we are more confident than ever in our decision to build LifeMD's weight management offering around branded GLP-1s. In the last 30 days, we completed arrangements with both Eli Lilly and Novo Nordisk that enable us to integrate self-pay GLP-1 medications directly into our pharmacy operations, further expanding access to these products by removing friction from the patient experience. Second, our enterprise business is off to a strong start. Our AT&T collaboration is live with 100 million customers and 110,000 employees now eligible for access to high-quality care and prescription medications through LifeMD. Third, the unit economics of our core programs continue to improve, driving us towards our goal of sustained profitability, coupled with strong top line performance. Fourth, we are executing a plan to reduce operating expenses by 30% from the first quarter of 2026 to the first quarter of 2027. We have made meaningful progress and will reach the halfway point this quarter. Fifth, early next year, we expect to begin rolling out what we believe will be the most significant evolution of the LifeMD patient experience since our launch. Let me take them in order. In the past 30 days, we entered arrangements with Novo Nordisk and Eli Lilly, enabling LifeMD's pharmacy to fulfill and ship nearly every branded GLP-1 on the market: Wegovy, Wegovy Pill, Ozempic, Zepbound and Foundayo directly to our patients' doors. This is a critical milestone in our overall strategic vision. Think about what this means for a patient. Too often, getting on a branded GLP-1 means a prescription from one place and a trip to a pharmacy counter or another e-commerce platform with no connection in between. At LifeMD, it can all happen within one connected ecosystem. The provider who prescribes, the pharmacy that fills and ships to the patient's door and the care and support teams that stay with them through every refill and dose change are all able to utilize the same platform. There's no need for a third-party handoff and no gap in care. It is simpler for the patient. It gets them started sooner, and it keeps them on the treatment their provider intended. This creates better outcomes for patients, which is the main driver of every decision we make at LifeMD. Now, think about what it means for our economics. Patients eligible for self-pay branded GLP-1 medications whose scripts had been filled exclusively through third-party pharmacies are now able to fill those scripts with LifeMD Pharmacy. Because we now report that revenue on a gross basis, our gross margin percentage will come down, but the revenue and gross profit dollars we earn from each patient on a GLP-1 therapy will go up. Atul will walk you through it. Our pharmacy is what makes this possible, and it is gaining momentum. Pharmacy orders grew 17% from the second quarter to the third, and September volume was up 58% year-over-year. We began fulfilling Novo Nordisk medicines in September and October orders rose another 27% from there. The pharmacy's role also reaches well beyond GLP-1s. It now produces personalized non-GLP-1 compounded therapies that support our men's and women's health programs and orders for those therapies tripled from the second quarter to the third. This quarter, we are launching an updated storefront, giving patients a simple way to browse and order these therapies directly, and we expect it to accelerate that growth meaningfully. We built our pharmacy to own the patient experience. It has become one of our most important strategic advantages, and it will be a key part of our model going forward. Two years ago, we made a decision that some investors did not like. We walked away from mass market GLP-1 compounding and doubled down on FDA-approved medications. It cost us growth and profit in the short term. However, this quarter is proof that the decision was right and the timing could not be better. Here is why. A new generation of branded obesity medicines is approaching the market. Novo Nordisk's CagriSema combined semaglutide with an amylin analog, Cagrilintide, in a single once-weekly injection. In its pivotal trial, patients lost 22.7% of their body weight at 68 weeks versus 16.1% on semaglutide alone. Novo filed with the FDA last December, and a decision is expected in the coming months. This is especially exciting for patients on or considering our women's health program for menopausal care. In Novo's recently announced post-hoc analysis of REDEFINE 1, women with obesity or who are overweight lost an average of 24.8% of their body weight during perimenopause and 23.1% after menopause, with reductions in weight circumference observed across menopausal stages. This highlights a unique synergy created by the breadth of our specialty care platform. Unlike other providers, LifeMD can bring women's health, weight management, labs, pharmacy and ongoing clinical care together in one connected experience, further reinforcing the value of the health care ecosystem we continue to build. That overlap between metabolic care and women's health is one example of why the next generation of GLP-1 therapies is so important to LifeMD, and CagriSema is only one of the major advances now approaching the market. We believe next-generation GLP-1 therapies will drive continued growth in obesity treatment, a market projected to reach $130 billion a year by 2030 and one of the largest in the history of American health care. And here is a strategic point I want investors to focus on. These therapies do not just raise the standard for weight loss. They could fundamentally reshape the competitive structure of this market. The compounded GLP-1 market expanded under temporary shortage conditions that allowed hundreds of direct marketing companies to sell copies of semaglutide and tirzepatide. Those shortages have ended, and we do not believe the same pathway will exist for this next generation of medicines. The FDA has stated that certain next-generation molecules cannot currently be used in compounding under federal law. And CagriSema is a proprietary fixed-dose dual peptide combination. As a result, we do not expect compounded versions of next-generation medicines to be available at scale. That distinction matters because much of today's virtual weight loss market was built around compounded GLP-1 access. As treatment shifts toward next-generation branded medicines, we expect the competitive field to narrow. The company's position to lead will be those with brand equity, serious clinical infrastructure, national pharmacy capabilities and meaningful strategic partnerships. That is where LifeMD stands apart. We ended the quarter with approximately 104,000 weight management patients, and we already have the clinical infrastructure and pharmacy capabilities required to bring these medicines to patients at scale. As the category moves toward next-generation branded therapies, we believe LifeMD will be one of the best positioned virtual care and pharmacy platforms in the country. Second, enterprise. On September 15, we announced our collaboration with AT&T, which became the first and only carrier to offer its customers free access to a virtual health care platform. AT&T's 100 million wireless and fiber customers and its 110,000 U.S. employees are eligible for a complementary LifeMD membership, a $228 annual value. We launched in 11 states, reaching roughly 29 million customers and we expect to go national this January. On November 2, AT&T sent its first dedicated LifeMD e-mail to approximately 6 million customers. It is the first of many planned outreaches to the AT&T base that we expect to build in waves as we expand nationally in January. It is early, and we will report results as the program scales. Why does this matter? AT&T gives us access to patients at a small fraction of the acquisition cost we typically see through paid media, places LifeMD in front of tens of millions of American households and validates our platform with one of the largest and most trusted companies in the country. It demonstrates that LifeMD can serve not only as a direct-to-consumer health care brand, but also as the health care infrastructure behind major consumer and employee platforms. We view AT&T as a blueprint for a broader enterprise distribution model. We are not replacing our direct-to-consumer business. We are adding a lower cost and more defensible growth channel alongside it. This quarter, we will begin marketing our enterprise offering to approximately 6 million businesses. Roughly 2/3 of American employers do not currently cover GLP-1 medications for weight loss. Through LifeMD's enterprise program, employers will be able to offer their employees access to LifeMD's self-pay health care and pharmacy platform, giving employees access to trusted medications and care at a meaningful discount to almost all direct-to-consumer health care platforms. We believe this creates a simple and scalable offering for employers, a more affordable path to care for their employees and an important new source of patient growth for LifeMD. We expect to provide an update on early traction during our next call. Third, unit economics. Last quarter, we reduced the introductory price of our weight management program to $39. Some view this as a defensive decision. It was the opposite. It was a deliberate move to improve conversion, attract longer duration patients and strengthen lifetime economics. The early results support that decision. Our customer acquisition cost declined 40% from its peak in June. The share of new patients selecting multi-month plans increased from approximately 25% to approximately 85%. Patients who commit to longer plans stay on therapy longer, which leads to better outcomes and higher lifetime value. We are watching rebuild cohorts closely, and so far, they are performing as designed. We ended the quarter with approximately 350,000 active subscribers, up 13% from a year ago and nearly flat from the second quarter despite spending $9.5 million less on marketing. While our unit economics are already healthy, we are extremely optimistic about where they are headed. The improvements we are making to our technology, the expansion of our product offering and a better patient experience should all make each patient more valuable to us and less expensive to acquire. And I believe that will drive meaningfully better unit economics in 2027. We have been executing a plan to cut operating expenses, excluding working marketing spend by at least 25% exiting the first quarter of 2026 to the first quarter of 2027. We will be about halfway there by the end of this quarter, and we expect to reach the full reduction no later than the first quarter of 2027. We have restructured our support operations, and we are putting AI workflows in place across the company so a leaner team can do more without compromising the quality of care that defines LifeMD. Where we are adding cost, it is mostly to expand the clinical capacity we need for the partnerships and growth channels I just talked about. To put that in perspective, we expect to grow our patient base and revenue by approximately 30% in 2027 on roughly the same fixed overhead we have today. And our platform is built to support well beyond that without a meaningful step-up in fixed cost. Fifth and finally, product and technology. Over the past 6 months, our product and technology teams have been working on what we believe will be the most significant evolution of the LifeMD patient experience since we launched the company. Our vision has always been to build something much more comprehensive than a collection of individual telehealth offerings. We want LifeMD to become the place patients turn to for their ongoing health care needs, where they can access high-quality clinical care, prescription medications, laboratory services and personalized treatments through one seamless experience. This next phase is about bringing those capabilities together in a way that is more intuitive, more personalized and easier for patients to use. From a business perspective, we expect it to become one of our most important drivers of retention, patient lifetime value and long-term margin expansion. We expect to begin rolling out the new experience early next year. I'm not going to get into the specifics today because I would rather show you what we've built when it's ready. What I can say is that I'm incredibly excited about what our team is preparing to launch. With that, Atul?

Atul Kavthekar: Thank you, Justin, and good afternoon, everyone. As a reminder, all year-over-year comparisons are on a continuing operations basis, unless otherwise noted, and exclude WorkSimpli, which we divested on November 4, 2025. I'd also like to thank you for your patience over the past few days as we required additional time to make sure our financial results were complete and accurate for a 10-Q filing. A far more descriptive disclosure is included in our filing, but to summarize, we identified some immaterial errors in how we recorded net revenues in certain arrangements with our third-party pharmacy providers. The errors primarily affected 2024 and 2025. And after review, we ultimately concluded that these are immaterial to the previously issued financial statements and that they had no effect on cash in any period presented. With that, revenue for the third quarter was $44.6 million, below our guidance range of $48 million to $51 million and down approximately 7% from $47.7 million in the prior year period. Two primary factors prompted the shortfall to guidance. As Justin previously mentioned, we deliberately reduced marketing spend more than that contemplated in our guidance and our larger collaboration arrangements went live later than we had assumed. From a year-over-year perspective, the current quarter shows a full quarter impact of our weight management pricing changes, including the reduction of our introductory month for new patients from $75 to $39. The benefit of this pricing change is the resulting shift to 3-, 6- and 12-month plans and the corresponding shift of our patient base to historically higher retaining and higher LTV and thus, higher quality cohorts. Active subscribers were approximately 350,000 at quarter end, up 13% year-over-year and nearly flat to the prior quarter despite the significant reduction in marketing spend. Gross profit was $36.4 million compared with $40.7 million a year ago. Gross margin was approximately 82% compared with approximately 89% in the second quarter and 85% a year ago. It's important to note that this decline is primarily driven by a change in presentation, not in economics. Under our new branded pharmaceutical arrangements, we act as principal, recognizing revenue on a gross basis. We purchase inventory and fulfill orders through our wholly owned affiliated pharmacy. And as we scale those branded pharmaceutical arrangements, investors should expect to see a lower gross margin percentage with higher revenue and gross profit dollars. Overall, we are very pleased with this development, which now allows us to capture incremental gross profit going forward for branded drug dispensing. Selling and marketing expense was $18.5 million, down $9.5 million or 34% from the second quarter and down 18% year-over-year. General and administrative expense was $14.7 million, up 6% year-over-year, reflecting clinical capacity we added to support our new collaborations, partially offset by efficiencies in our non-clinical functions. GAAP net loss from continuing operations attributable to common stockholders was $5.2 million, or $0.11 per share compared with $7.9 million, or $0.16 per share in the second quarter. Adjusted EBITDA, a non-GAAP measure we define as income or loss attributable to common stockholders before various items as outlined in today's news release, was nearly breakeven with a loss of $0.4 million and within our guidance range. We ended the quarter with $21.9 million in cash and no debt. Subsequent to quarter end, we are pleased to announce we closed a $12.5 million non-convertible senior secured term loan with Avenue Capital. It replaces our prior revolving credit facility with Citizens Bank and gives us far more flexibility to fund any working capital our direct sourcing arrangements may require. As we consider different financing options, we decided to move forward with Avenue even though we had other larger options because we believe this facility will provide us with the right amount of capital needed for the foreseeable future. Turning to Q4 outlook. Our approach is consistent with last quarter, but with an even narrower definition of what we incorporate. We're capturing the impact of a deliberately smaller marketing budget, a continuing mix shift to multi-month weight management plans and a continuously improving cost base. Our guidance does not assume any contribution from either AT&T or from our broader enterprise program or from new proprietary products introduced through the pharmacy in the fourth quarter. While all these opportunities represent meaningful potential upside in 2027, their impact in the quarter is unclear. And in some cases, the timing is not entirely in our control. Finally, we expect to announce 2027 guidance in early Q1 and expect these opportunities will be much better understood and thus, incorporated into next year's guidance. With that as the basis for the fourth quarter, we are guiding to a revenue range of between $46 million to $49 million and an adjusted EBITDA of negative $4 million to negative $2 million. For the full-year 2026, that equates to revenue of $188 million to $191 million and adjusted EBITDA of negative $12.6 million to negative $10.6 million compared with the prior guidance of $205.5 million to $212.5 million and negative $6 million to breakeven. In closing, our cost structure is meaningfully leaner than it was at the start of the year with more improvements to come. Our new term loan gives us a more flexible capital structure for future growth and our pharmacy infrastructure positions us well as we continue to shift toward directly fulfilling FDA-approved branded medications. Thank you. And I'll hand it back to Justin.

Justin Schreiber: Thanks, Atul. Two years ago, we chose branded medicine over GLP-1 compounding, long-term care over one-time transactions and patients over clicks. This quarter, that strategy began to show through. Our pharmacy now dispenses branded GLP-1s from both Lilly and Novo, and our entire clinical platform is well positioned as the space continues to shift towards FDA-approved branded medicines. AT&T gives us a lower cost path to tens of millions of American households and a blueprint for broader enterprise distribution. At the same time, selling and marketing expense declined 34% sequentially. We are approaching the halfway point in our plan to reduce operating expenses by 25% and adjusted EBITDA improved from a $3.5 million loss to nearly breakeven in a single quarter. Quality care, quality products, quality revenue. That has always been the model. What is different today is that the infrastructure, distribution, unit economics and cost base required to deliver that model profitably are coming together. I expect the next several quarters to show it. Thank you to our providers and employees, to our patients for trusting us with their care and to our shareholders for their continued support. Operator, we are ready for questions.

Operator: [Operator Instructions] And our first question here will come from Sarah James with Cantor Fitzgerald.

Sarah James: I'm wondering, as you think about revenue reaccelerating from here, what do you think about driving it? Is it really the partnership with AT&T or enterprises taking off? Or do you need to reaccelerate some of the marketing spend to hit the implied 4Q revenue?

Justin Schreiber: Sarah, this is Justin. I'll start, and then Atul can follow up with any additional comments. I think there are 4 big things that like we expect to really transform the business in the near term and just drive both top and bottom line. One is continued improvements in the unit economics and a lot of that stems from what we mentioned on the call, which are just major, major improvements to our technology platform and patient experience, which just does a lot of amazing things for patients and also is a big driver of lifetime value and helps to improve unit economics. So that's the #1 thing. We think we're really, really optimistic about CagriSema, the launch of CagriSema later this year, as we mentioned on the call, and as you know, there are lot of next-generation therapies in the pipeline. We think most of those -- we think the competitive landscape is going to be much better for us. You're going to see a lot less compounding. There should be a lot less competition out there. We think we're really, really well positioned for a lot of those launches. So, we're very excited about that. Growth in the enterprise business, this is something that we're going to start reporting on in future quarters. We're really pleased with the AT&T partnership that we announced this quarter. So, we're excited about that. And obviously, the unit economics on that business are very attractive. CPAs are very much lower in that type of business model than in a direct-to-consumer business model. And then we're also excited about the growth of the pharmacy. The numbers are growing every single month in the pharmacy, and I'm excited to put some formal guidance out around this for next year. But I mean, I think this is going to be a major EBITDA driver. And I really believe that we're going to build one of the biggest pharmacies in America. And we're actively in discussions now with a number of even kind of third-party virtual health care platforms that are also interested in using our pharmacy. I'd say more than 10 of them. And I'm just really, really excited about this part of the business.

Atul Kavthekar: Yes. I would just add. Justin, I would just add one thing to that, which is -- and just to add on to your pharmacy point, I think there are some new products that we have in the pipeline. We deliberately didn't include that in our Q4 guidance because they require FDA approval, and so the timing is a little unclear. But that is a really exciting opportunity that I see as something that's going to drive revenue alongside all of these other factors as well as some really attractive margin characteristics. So, I think all of that together is really what gives us a lot of optimism about the business.

Sarah James: Great. One more, if I could. Just on booking the branded GLP-1s on gross now. Can you give us an idea of how we should think about where gross margin settles as branded mix grows? And then how should we think about the impact on working capital? I know we saw a little bit this quarter, but what does the time line look like for how long you have to pay on that inventory versus how fast you collect?

Justin Schreiber: Yes. Great question. Let me answer the first one. I think going forward, and you saw there's a reduction in the gross margin we mentioned earlier. And so that is something that is probably going to continue as our revenue recognition on a gross basis for this particular component of revenue grows, and we expect that to grow very rapidly as we go forward. You will see sort of a reduction in the gross margin. Where and when and the exact timing is a little unclear because there are going to be some things that offset it. For example, some of the new drugs that I was just mentioning. But by the time we get to the end of 2027, let's say, when things settle out, I would not be surprised. I think investors should be expecting something that is going to be kind of in the mid- to low 60s and potentially even down into the high 50s. But that's not necessarily an indication of a diminishing economic return. That is just the percentage margin and the reflection of the revenue recognition. We expect that to be a growing gross profit line over the course of next year.

Sarah James: That 50s to 60s, that's on just the weight loss business or total?

Justin Schreiber: Total overall. We see that as kind of -- it's going to be an outsized. The margin on the fulfillment, as you probably are aware, is not as high as some of the other products and services that we offer. So, that is going to compress that. But that's sort of an overall blended expectation of what that's going to look like.

Sarah James: And then just on the working capital, if you could run us through what the time line looks like? Right.

Justin Schreiber: Right. So, I think we are going to be -- we're not going to necessarily disclose all of the exact terms of these arrangements, and they are different. But the working capital is set up so that it is relatively modest in terms of the investment that's required of us. And there is still some movement that we are expecting between now and the end of the year on the exact terms. But with the new capital raise, I think the point I want to drive to investors is that we will have sufficient capital on hand and available for managing all of our working capital needs.

Operator: And our next question will come from David Larsen with BTIG.

David Larsen: Can you talk about the revenue model for Novo and Lilly? How are you making money from those arrangements? And Hims just talked about their gross profit dollars being the same under the branded GLP-1s as they were for compounded scripts. Can you just talk about that a bit, please?

Atul Kavthekar: Why don't I start and I'll -- yes, why don't I start and Justin can jump in at the end of this. But I think the way to think, Dave, about the revenue is we will be booking on a gross basis. So as patient pay amounts are collected, they will be booked as revenue. The offset will be on the COGS side and the offset will be offset by the amount that we are paying for fulfillment fees and services that we provide. So, what's left in the gross margin line will be essentially the fulfillment fees that we earn on any dispense. So, I think that's pretty typical of the way they work. And then going forward, the way we look at it is right now, in Q2, we were making 0 on any of the branded dispenses on the branded fulfillment. So going forward, this is all purely incremental EBITDA and gross profit margin for us on these products.

David Larsen: And can you talk about the 30% top line growth you expect for '27, drivers of that, please?

Justin Schreiber: Sure. Dave, this is Justin. I can take that. Again, I think that's very similar to Sarah's question, right? I mean, we think that the GLP-1 business is going to be one of the biggest drivers of that growth, and we expect kind of much more positive unit economics profile given the demand that we expect from new therapies and current therapies and also like just a better overall competitive landscape. And we're also just very optimistic around the enterprise business, the partnerships that we've done like AT&T, other partnerships that are in the pipeline and continued growth of the pharmacy revenue, both from kind of our own patients and we believe there's a very big third-party business there also. We're going to be putting out -- we're going to put out more specific guidance, Dave, early January is the plan.

David Larsen: One more quick one. You've mentioned enterprise sale a couple of times like the AT&T partnership. Like are you going to be able to sell into health plans? Are you going to be able to sell into self-insured employer groups? Are you going to be selling into like the ASL market? Do you have a platform, I guess, I don't know, something like an Omada or a Dario where you have like obesity health services or diabetes services you can wrap around a set of members? Just any more color around that would be great. And then how is the health insurance business ramping?

Justin Schreiber: Sure. I mean -- so we plan to really lean into the self-pay world, Dave. So, not what Omada does, where you're integrated into a benefits plan. What we would like to do is just kind of help employees -- all the employees out there, which is 2/3 of Americans, right, that are commercially insured that either didn't have access or have now lost access to GLP-1 medications for weight loss. We think there's a very big opportunity for us to go through those employers, to those employees. GLP-1s are the hook. And then we have this entire self-pay marketplace, which is the kind of hormone, sexual health, dermatology, longevity and peptides, all these other verticals, right, that many employees are overspending on if they're going to a med spa or going to LifeMD or any of our competitors, right? We know there's demand for this because we get a lot of inbound inquiries every single week from players asking for this exact thing. So, we've put a lot of work into it, into building out a platform for enterprise. We're planning to launch it December -- or I should say, early December. And we're really optimistic on it. Again, the main reason is because we have a great brand across the country. Players know us. Our employees know us, and we've had a lot of inbound interest in this offering. Also, when you don't have to integrate into the health plan, I think it reduces -- it dramatically reduces kind of the time to go to market with this type of offering. Your second question, by the way, on the insurance side of the business, Dave. Again, we've been -- we still treat a lot of insurance patients. We've been very active with patients looking to use the Medicare Bridge program for GLP-1. So, we've seen like continued -- look, I think what I would say is we've built a great infrastructure for that. A lot of the demand for LifeMD continues to be in the self-pay pharmacy world. So when patients want to use insurance, we support it. When patients want to pay cash for care and medication, a lot of patients come to us and they just want like a really simple bundle that includes medication and care and all of our other -- all the other services on our platform. A lot of times, people end up paying cash for that offering.

Operator: And our next question will come from Steven Dechert with KeyBanc.

Steven Dechert: I guess I'm just trying to understand what you were seeing to make you decide to pull back on the marketing spend. Just looking at your press release, it looks like maybe the unit economics were trending a little bit better more recently than they had been. And sorry if I missed it in the prepared remarks, but just hope you could provide some more color there.

Atul Kavthekar: Yes. Steve, this is Atul. So, a couple of things going on. And maybe I'll talk a little bit about the -- I'll focus a little bit on weight management because I think it's a little clearer example. So, over the course of the quarter from Q2 to Q3, we actually saw quite a bit of improvement in terms of the efficiency. CPA is getting a lot better. We talked a little bit about that in the prepared remarks. We also saw the benefits of a shift from -- as part of this pricing change from the 1-month subscribers to multi-month subscribers. And the inherent benefit of that is, of course, you have an improvement in the overall retention. So the things I'll point to sort of this expectation that you can reduce our marketing spend because you just -- you don't have to spend as much and you can take more to profit. And for the most part, we did do that. But this is not a perfectly linear thing. Every day is a little bit of inconsistency. So, there were certain days where -- and certain periods where we weren't able to realize some of these efficiencies. And so it wasn't so much -- if you look at it on the grand scheme of things, it wasn't that it was a bad quarter. It was actually an excellent quarter from a marketing standpoint. But there were periods where we just -- we didn't really feel good about deploying the capital just given where certain campaigns were going, given the environment around marketing at the time. And so we just -- we wound up spending a little bit less than anticipated, which is really what the delta was in the -- versus guidance. But overall, we felt that we were able to bring down our marketing. We brought it down by nearly 1/3, and really didn't pay for it too much in terms of a loss of subscribers of active subs. So, we're feeling pretty good about that. Going forward, I don't think you're going to see quite the same level of efficiency improvements. We expect to see some level of efficiency improvements. But we are also anticipating we want to keep enough dry powder, and we want to invest when we see the right opportunities present themselves. And we're going into a bit of a noisy season. So, that's kind of a little bit of a story of Q2 to Q3 and then a little taste of what we're expecting to see in Q4.

Steven Dechert: Okay. I guess just to build on that, can you talk a little bit about how unit economics perform between weight management and RexMD or other segments?

Atul Kavthekar: Yes. I mean, I think on both sides of the house, both of those 2 categories, unit economics are improving. We saw a lot of improvement, as I just sort of went through in weight management. We also saw a lot of improvement in efficiency in Rex, meaning we were getting better CPAs, and we were able to actually spend less and either keep the same level of new acquisitions or in fact, in some cases, improve it. So, we're seeing generally better and better unit economics. But again, sometimes it's non-linear and it's a little bit imperfect in any given week to be able to deploy an amount of capital. We have a daily budget that we manage to. So overall trend, great improvement in unit economics, sometimes a little bit inconsistent through the quarter.

Operator: [Operator Instructions] Our next question is coming from William Wood with B. Riley.

William Wood: So, just looking for a little bit clarity on the partnerships. You mentioned that they're going to take a little bit longer to ramp than expected this quarter. Could you just give us a little color possibly on which ones and how we should sort of be thinking about that time frame? Is this more of a 1- to 2-quarter reset? Or should it be more meaningful contribution later than pushing out to like 2027 or something? And then I have a follow-up.

Justin Schreiber: William, it's Justin Schreiber. We're not going to get into specific kind of guidance or expectations around particular partnerships. I think what we will do is try to provide as much detail on this when we put out guidance in early January for next year. But it is a very important part of the strategy, and we're super optimistic that these partnerships are kind of very durable and will result in a lot of new patients using the LifeMD platform for care and pharmacy.

William Wood: Got it. And then also on the HHS issued enforcement discretion on their 6 peptides at the end of October, but that's only on 503A pharmacies, not 503B. So, I believe your facility is a 503A and it's not sterile. So, I'm just sort of thinking like how does this potentially play into your potential offerings down the road, how it may feed into either women's health or RexMD sort of opening up that peptide area larger for your prescribers?

Justin Schreiber: Sure. This is Justin again. I mean we're looking forward to launching these peptides that FDA is going to allow. We're going to do it in a really, really high quality and thoughtful and transparent way. We're already working on kind of all 6 of those. I think that it's most likely they're going to launch early next year. And we really don't have a lot of any insight or kind of guidance we can put out there on what the demand is going to be for these. But we're certainly going to offer them. And I think we'll be one of the highest quality platforms for accessing peptides along with all the care and like personalized diagnostics that I think are really important for somebody that wants to take peptides either by themselves or alongside of or in combination with another therapy like a GLP-1, like we're going to have an amazing offering that's kind of AI-first and excited to launch that early in the year.

Operator: And this concludes our question-and-answer session in addition to the call. Thank you for attending today's presentation. You may now disconnect your lines.