We feel now is a pretty good time to analyse LifeMD, Inc.'s (NASDAQ:LFMD) business as it appears the company may be on the cusp of a considerable accomplishment. LifeMD, Inc. operates as a direct-to-patient telehealth company that connects consumers to healthcare professionals for medical care in the United States. The company’s loss has recently broadened since it announced a US$24m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$26m, moving it further away from breakeven. As path to profitability is the topic on LifeMD's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for LifeMD

According to the 9 industry analysts covering LifeMD, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$6.8m in 2026. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 111%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving LifeMD's growth isn’t the focus of this broad overview, though, keep in mind that generally a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one issue worth mentioning. LifeMD currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of LifeMD to cover in one brief article, but the key fundamentals for the company can all be found in one place – LifeMD's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:

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.