LifeMD Divests Majority Interest in WorkSimpli Software, Positioning Company as a Pure-Play Virtual Care and Pharmacy Platform
Rhea-AI Summary
LifeMD (Nasdaq: LFMD) sold its majority ownership interest in WorkSimpli Software LLC in a transaction that values WorkSimpli at an approximately $65 million enterprise value. The deal closed on November 4, 2025, and LifeMD received about $22 million cash at closing, representing 91.6% of the $24.0 million base purchase price attributable to the 80% interest sold. Sellers are eligible for up to an additional $28.0 million in cash tied to growth and operational targets over the next three years.
LifeMD said it expects to use existing NOLs to offset most capital gains and will reallocate resources to expand its virtual care and pharmacy offerings, including cardiometabolic care beginning in H1 2026 and continued scaling of Rex MD and e-pharmacy products.
Positive
- Transaction values WorkSimpli at an $65M enterprise value
- LifeMD received approximately $22M cash at closing
- Up to $28M earnout payable over the next three years
- LifeMD will redeploy capital into virtual care and pharmacy growth
- Company expects to use NOLs to offset most capital gains
Negative
- Loss of WorkSimpli’s ongoing positive cash flow contribution to LifeMD
- Significant portion of consideration contingent on future performance
- Proceeds include holdbacks and are subject to post-closing adjustments
News Market Reaction
On the day this news was published, LFMD declined 5.57%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Transaction Values WorkSimpli at
NEW YORK, Nov. 04, 2025 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual healthcare services and pharmacy, today announced the sale of its majority ownership interest in WorkSimpli Software LLC (“WorkSimpli”) in a transaction valuing WorkSimpli at an enterprise value of approximately
Under the terms of the agreement, LifeMD received approximately
The sellers are eligible to receive up to an additional
“This transaction represents a defining moment for LifeMD and for WorkSimpli,” said Justin Schreiber, Chairman and CEO of LifeMD. “By divesting our majority stake in WorkSimpli, we are sharpening our focus on what we do best: building and scaling one of the most comprehensive virtual care technology platforms in the industry. This strategic move strengthens our balance sheet and positions LifeMD to accelerate growth across our core business lines, expand into new clinical verticals, and deliver even greater value to our patients, providers, and shareholders. On behalf of LifeMD, I want to congratulate WorkSimpli founder and CEO Sean Fitzpatrick and his team for their dedication and hard work in building such an exceptional business. Sean is an incredible entrepreneur, operator and marketer, and I have no doubt that WorkSimpli will continue to thrive as an independent, private company.”
“I couldn’t be more excited for Sean and the entire WorkSimpli team,” said Stefan Galluppi, Co-Founder and Chief Innovation Officer of LifeMD. “They’ve built an incredible business with strong leadership, a culture of innovation, and a product suite that continues to deliver value to users. I have complete confidence in Sean’s ability to continue scaling the business to even greater heights, and I look forward to watching WorkSimpli thrive as it enters this next chapter.”
In June 2018, LifeMD made an initial
“This transaction marks the start of an exciting new chapter for WorkSimpli,” said Sean Fitzpatrick, CEO of WorkSimpli. “Our team has worked tirelessly to build one of the most dynamic SaaS productivity platforms in the market. Independence gives us the flexibility to invest in our people and products and continue delivering value to our customers at scale. We’re grateful to LifeMD for their vision and partnership in helping us reach this milestone.”
Following the divestiture, LifeMD will concentrate its resources on expanding its virtual care and pharmacy offerings, with a continued focus on weight management, women’s health, behavioral health, urgent care, and primary care. The Company also plans to broaden its platform into more complex, longitudinal cardiometabolic care offerings beginning in the first half of 2026. In addition, LifeMD will continue to scale its Rex MD product portfolio, which is primarily focused on asynchronous men’s healthcare, e-pharmacy solutions, and men’s hormonal health.
The transaction was executed through a Stock Purchase Agreement between LifeMD and the purchasers, and includes customary representations, warranties, and indemnification provisions.
BTIG, LLC served as exclusive financial advisor, and Baker McKenzie served as legal advisor to LifeMD.
About LifeMD, Inc.
LifeMD® is a leading provider of virtual primary care. LifeMD offers telemedicine, access to laboratory and pharmacy services, and specialized treatment across more than 200 conditions, including primary care, men’s and women’s health, mental health, and weight management. The Company leverages a vertically integrated, proprietary digital care platform, a 50-state affiliated medical group, a state-of-the-art affiliated compounding pharmacy, and a U.S.-based patient care center to increase access to high-quality and affordable care. For more information, please visit LifeMD.com.
Cautionary Note Regarding Forward Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: “believe,” “expect,” “anticipate,” “project,” “should,” “plan,” “will,” “may,” “intend,” “estimate,” “predict,” “continue,” and “potential,” or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition.
Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, “Risk Factors” identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods.
Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation.
Investor Contact
Marc Benathen, Chief Financial Officer
marc@lifemd.com
Media Contact
Jessica Friedeman, Chief Marketing and Product Officer
press@lifemd.com
FAQ
What did LifeMD (LFMD) receive from the WorkSimpli sale on November 4, 2025?
How much was WorkSimpli valued at in LifeMD’s divestiture?
How will the WorkSimpli divestiture affect LifeMD’s business focus (LFMD)?
Does LifeMD (LFMD) face tax on gains from the WorkSimpli sale?
Are all sale proceeds from WorkSimpli guaranteed to LifeMD?
Who led the buyer group for WorkSimpli in the LFMD transaction?
