LifeMD, Inc. — Earnings Quality Grade F
LFMD · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 18 days, change -7 days YoY
AR growth -11.0% vs revenue growth 25.3%
Revenue grew 25.3% but CFFO declined -52.7%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory -0.9% vs COGS 29.3%. Normal
CapEx growth 16.1% vs revenue 25.3%. Normal
SG&A/Gross Profit = 86.6%, exceeds 70%
Gross margin 85.7%, change -0.4pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = 8.6%. Elevated
Cash $0.0B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 47% of equity
Interest coverage = -5.6x (<2x). Financial stress
Insufficient data
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 16% YoY. Normal
Manipulation Score
M-Score = -2.08 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25