0001493152-26-021536
SEC filingRevenue declined 23.6% YoY to $50.2M, while gross margin expanded to 88.2% on favorable product mix and lower shipping costs. Operating loss widened to $8.9M as the company invested in selling and marketing.
Revenue for the first quarter of 2026 was $50.2 million, a decrease of 23.6% compared to $65.7 million in the same period last year. The decline was primarily driven by lower telehealth product sales, partially offset by growth in subscription revenues. The company continues to shift its focus toward recurring subscription-based services, which provide more predictable revenue streams.
Gross profit decreased 22.5% to $44.2 million, but gross margin expanded to 88.2% from 86.8% in the prior year. The improvement in gross margin was attributed to a favorable product mix shift toward higher-margin offerings and reduced shipping costs on telehealth product revenues. Management noted that the cost of telehealth revenue decreased due to product mix, lower sales volume, and decreased shipping costs.
Net cash provided by operating activities was $444.6 thousand, down from $3.1 million in the prior year, reflecting the operating loss. Capital expenditures were $105.2 thousand, resulting in free cash flow of $339.4 thousand. The company has historically funded operations through cash from operations, equity issuances, and loans. The Avenue Facility was extinguished on August 5, 2025.
In September 2024, the company expanded its Weight Management Program to offer a personalized, non-GLP-1 treatment plan consisting of three oral medications, which is expected to grow the program's addressable market. The company continues to invest in its platform and subscription services to drive long-term growth, though near-term profitability remains pressured by marketing spend. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.