LifeStance Health Group's (NASDAQ:LFST) Q1 Earnings Results: Revenue In Line With Expectations But Quarterly Revenue Guidance Significantly Misses Expectations

Yahoo

07-05-2025

Behavioral health company LifeStance Health (NASDAQ:LFST) met Wall Street's revenue expectations in Q1 CY2025, with sales up 10.8% year on year to $333 million. On the other hand, next quarter's revenue guidance of $342 million was less impressive, coming in 2.7% below analysts' estimates. Its GAAP loss of $0 per share was significantly above analysts' consensus estimates.
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LifeStance Health Group (LFST) Q1 CY2025 Highlights:
Revenue: $333 million vs analyst estimates of $333.5 million (10.8% year-on-year growth, in line)
EPS (GAAP): $0 vs analyst estimates of -$0.03 (significant beat)
Adjusted EBITDA: $34.65 million vs analyst estimates of $30.23 million (10.4% margin, 14.6% beat)
The company reconfirmed its revenue guidance for the full year of $1.42 billion at the midpoint
EBITDA guidance for the full year is $140 million at the midpoint, in line with analyst expectations
Operating Margin: 0.5%, up from -5.6% in the same quarter last year
Free Cash Flow was -$10.26 million compared to -$26.94 million in the same quarter last year
Sales Volumes rose 9.7% year on year (15.2% in the same quarter last year)
Market Capitalization: $2.55 billion
'We delivered a solid quarter to kick off 2025, thanks to the commitment and dedication of our employees, including over 7,500 clinicians,' said Dave Bourdon, CEO of LifeStance.
Company Overview
With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ:LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.
Sales Growth
A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, LifeStance Health Group's sales grew at an incredible 39.2% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.
LifeStance Health Group Quarterly Revenue
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. LifeStance Health Group's annualized revenue growth of 18.8% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.
LifeStance Health Group Year-On-Year Revenue Growth
We can better understand the company's revenue dynamics by analyzing its number of clinicians, which reached 7,535 in the latest quarter. Over the last two years, LifeStance Health Group's clinicians averaged 14.7% year-on-year growth. Because this number is lower than its revenue growth, we can see the company benefited from price increases.