Education
About Us
Working with TipRanks
Follow Us
Lifestance Health Group (LFST)
NASDAQ:LFST
Top Page
Lifestance Health Group
(NASDAQ:LFST)
57Neutral
Positive Factors
Earnings
LifeStance Health reported fourth quarter results, which came in above consensus expectations with sales and adjusted EBITDA beating forecasts.
Management and Leadership
Ken Burdick's leadership as CEO has materially transformed the company, leading to margin expansion and efficient scaling.
Negative Factors
Healthcare Policy
CMS released its CY25 final rule for the physician fee schedule that called for a 2.83% decrease from the current CY24 conversion factor.
Regulatory Concerns
The components in the healthcare package won't be final until the House and Senate vote on the package.
Lifestance Health Group (LFST) vs. S&P 500 (SPY)
Market Cap
$2.58B
Dividend YieldN/A
Average Volume (3M)2.27M
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth18.50%
EPS Growth69.93%
CountryUS
Employees10,218
SectorHealthcare
Sector Strength72
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.15
Shares Outstanding384,550,140
10 Day Avg. Volume2,447,048
30 Day Avg. Volume2,267,377
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.11
Price to Cash Flow (P/CF)10.60
P/FCF Ratio10.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.67Price Target Upside44.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Lifestance Health Group Business Overview & Revenue Model
Company DescriptionLifeStance Health Group, Inc., through its subsidiaries, provides outpatient mental health services. The company offers patients a suite of mental health services, including psychiatric evaluations and treatment, psychological, and neuropsychological testing, as well as individual, family, and group therapy. It treats a range of mental health conditions, including anxiety, depression, bipolar disorder, eating disorders, psychotic disorders, and post-traumatic stress disorder. In addition, the company operates outpatient mental health platform as well as offers patients care virtually through its online delivery platform or in-person at its centers in 32 states. It serves children, adolescents, adults, and geriatrics. LifeStance Health Group, Inc. was founded in 2017 and is based in Scottsdale, Arizona.
How the Company Makes MoneyLifeStance Health Group generates revenue primarily through providing mental health services to patients. The company's revenue model is based on a fee-for-service arrangement, where they charge patients or their insurance providers for each session or service rendered. Key revenue streams include therapy sessions, psychiatric evaluations, medication management, and other mental health services offered by their network of clinicians. LifeStance Health also benefits from significant partnerships with insurance providers, which facilitate access to a broader patient base by ensuring that services are covered under various health insurance plans. Additionally, the company's expansion into telehealth services has opened up new revenue opportunities by allowing them to reach patients beyond geographical limitations, further contributing to their earnings.
Lifestance Health Group Financial Statement Overview
Summary
Lifestance Health Group demonstrates strong revenue growth and improving cash flows, but ongoing losses in net income and negative EBIT margins indicate challenges in achieving profitability. The balance sheet shows strong equity support and reduced leverage, which provides some financial stability. Continued focus on operational efficiency and cost management could help improve profitability and overall financial health.Income Statement
The company has shown a consistent revenue growth from $212.5 million in 2019 to $1.25 billion in 2024, indicating strong market demand and expansion. However, profitability remains a concern, with negative net income and EBIT over recent years, reflecting challenges in managing costs and achieving operational efficiency. The EBIT and EBITDA margins have improved slightly but are still negative, suggesting ongoing issues with core operational performance.62
Positive
Balance Sheet
The balance sheet indicates a strong equity base with stockholders' equity at $1.45 billion, showing resilience despite operational losses. The debt-to-equity ratio has improved significantly from 2020, indicating better financial management and reduced leverage. However, a high total debt of $198 million and negative net income pose risks to financial stability. The equity ratio remains robust, highlighting long-term viability.58
Neutral
Cash Flow
The cash flow statement shows a significant improvement in operating cash flow, turning positive in 2024, which is a positive signal for liquidity. Free cash flow has also improved to $107 million in 2024, indicating better cash management. However, historical volatility in cash flows and capital expenditures highlight the need for sustained cash generation to support growth and reduce financial risk.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.25B | 1.06B | 859.54M | 667.51M | 377.22M | Gross Profit |
| 1.25B | 302.10M | 237.02M | 201.51M | 134.32M | EBIT |
| -31.61M | -189.13M | -210.17M | -286.35M | 15.44M | EBITDA |
| 39.87M | -104.93M | -136.41M | -229.62M | 8.77M | Net Income Common Stockholders |
| -57.44M | -186.26M | -215.56M | -307.20M | -38.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 154.57M | 78.82M | 108.62M | 148.03M | 18.83M | Total Assets |
| 2.12B | 2.23B | 2.17B | 1.93B | 1.57B | Total Debt |
| 198.15M | 511.04M | 476.49M | 157.42M | 362.53M | Net Debt |
| 43.58M | 432.22M | 367.87M | 9.39M | 343.70M | Total Liabilities |
| 672.01M | 804.28M | 655.15M | 382.08M | 571.89M | Stockholders Equity |
| 1.45B | 1.43B | 1.52B | 1.55B | 997.84M |
| Cash Flow | Free Cash Flow | |||
| 85.69M | -57.40M | -26.47M | -85.07M | -46.60M | Operating Cash Flow |
| 107.26M | -16.88M | 52.79M | 9.42M | -8.53M | Investing Cash Flow |
| -21.57M | -60.34M | -139.46M | -194.08M | -861.17M | Financing Cash Flow |
| -9.95M | 47.43M | 47.26M | 313.86M | 912.27M |
Lifestance Health Group Technical Analysis
Negative
6.70
Price Trends
7.57
Negative
7.49
Negative
6.81
Negative
Market Momentum
-0.27
Positive
33.63
Neutral
33.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFST, the sentiment is Negative. The current price of 6.7 is below the 20-day moving average (MA) of 7.04, below the 50-day MA of 7.57, and below the 200-day MA of 6.81, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 33.63 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFST.
Lifestance Health Group Risk Analysis
Lifestance Health Group disclosed 47 risk factors in its most recent earnings report. Lifestance Health Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lifestance Health Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $84.65B | 18.36 | 6.07% | 3.96% | 4.02% | -43.51% | |
71 Outperform | $6.47B | 54.49 | 30.71% | ― | 69.33% | ― | |
69 Neutral | $3.33B | ― | 2.80% | ― | 56.54% | ― | |
57 Neutral | $2.58B | ― | -4.00% | ― | 18.50% | 69.93% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 17.48% | 1.17% | |
45 Neutral | $1.41B | ― | -52.46% | ― | -1.26% | -338.56% | |
43 Neutral | $122.07M | ― | -54.13% | ― | -1.81% | 70.88% |
* Healthcare Sector Average
Performance Comparison
LFST
Lifestance Health Group
6.66
0.46
7.42%
CVS
CVS Health
67.75
-8.34
-10.96%
TDOC
Teladoc
7.96
-6.89
-46.40%
HIMS
Hims & Hers Health
29.55
13.89
88.70%
AMWL
American Well
7.88
-7.55
-48.93%
OSCR
Oscar Health
13.11
-1.58
-10.76%
Lifestance Health Group Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -10.79% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
LifeStance Health displayed strong overall financial performance with significant revenue and EBITDA growth, alongside operational achievements and a successful leadership transition. However, they face challenges with flat rate expectations due to payer negotiations and increased G&A expenses. Overall, the highlights outweigh the lowlights.Highlights
Strong Financial Performance
LifeStance Health reported a 19% revenue growth to $1.25 billion for the full year 2024, with adjusted EBITDA up 103% to $120 million, representing a 9.6% margin.
Operational and Clinical Achievements
LifeStance provided nearly 8 million visits to 1 million patients with a team of over 7,400 clinicians. The company received a patient Net Promoter Score of 85 and an average Google review score of 4.6 out of 5 stars.
Positive Cash Flow and Debt Refinancing
LifeStance generated $86 million in positive free cash flow, a significant achievement ahead of expectations. They also refinanced existing debt with favorable terms, reducing the credit spread to 2.25%.
Leadership Transition
Dave Bourdon will succeed Ken Burdick as CEO, with Ken transitioning to Executive Chairman. Ryan McGroarty has been appointed as the new CFO.
Lowlights
Rate Pressure from Payer Negotiations
LifeStance expects flat rates for 2025 due to the final rate decrease from a single outlier payer negotiating their reimbursement.
Increased G&A Expenses
General and administrative expenses increased materially in Q4, although some of this was due to strategic investments and payroll tax expenses.
Company Guidance
During the LifeStance Health Fourth Quarter 2024 Earnings Call, the company exceeded all guided metrics, achieving a 19% revenue growth to $1.25 billion and a 103% increase in adjusted EBITDA to $120 million, resulting in a 9.6% margin. They provided nearly 8 million visits to about 1 million patients with a clinician base of over 7,400. Their patient Net Promoter Score improved to 85, with Google reviews averaging 4.6 out of 5. The company aims for 2025 revenue between $1.4 billion and $1.44 billion, and adjusted EBITDA between $130 million and $150 million. They anticipate flat total revenue per visit for the year and project a return to low to mid-single digit annual rate improvements by 2026. Additionally, LifeStance plans to open 25 to 30 new centers in 2025, while maintaining a focus on organic growth.Lifestance Health Group Corporate Events
Business Operations and StrategyFinancial Disclosures
LifeStance Health Group Reports Strong 2024 Financial Results
Positive
Feb 27, 2025
LifeStance Health Group reported its financial results for the fourth quarter and full year 2024, showing a 19% increase in revenue to $1.251 billion and a 103% growth in Adjusted EBITDA to $119.7 million. Despite a net loss of $57.4 million for the year, the company demonstrated strong operational performance with increased visit volumes and clinician growth, positioning itself for continued momentum in 2025 with projected revenues between $1.40 billion and $1.44 billion.
Executive/Board ChangesBusiness Operations and Strategy
Lifestance Health Group Announces Leadership Changes for 2025
Positive
Feb 27, 2025
LifeStance Health Group announced leadership changes effective March 2025, with David Bourdon promoted to Chief Executive Officer, succeeding the retiring Kenneth Burdick, who will become Executive Chairman. Ryan McGroarty will take over as Chief Financial Officer, bringing extensive experience from his previous roles at Help at Home and Cigna. These appointments aim to maintain the company’s strong operational and financial performance, ensuring continued growth and expansion in the mental health care sector.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.