Lifestance Health Group (LFST) AI Stock Analysis

• Market Cap: $2.00B
• Dividend Yield: N/A
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 13.86%
• EPS Growth: 89.49%
• Country: US
• Employees: 7,535
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.01
• Shares Outstanding: 388,936,400
• 10 Day Avg. Volume: 1,889,426
• 30 Day Avg. Volume: 2,781,604
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: 40.32
• 1Y Price Target: $8.10
• Price Target Upside: 50.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 59 Neutral
• Price Target: $5.50 ▲(2.42% Upside)

Lifestance Health Group's overall stock score is driven by strong earnings call performance and positive technical indicators. However, ongoing profitability challenges and a negative valuation score due to a high negative P/E ratio weigh down the overall score. The company's stable balance sheet and improving cash flow provide some support, but operational efficiency improvements are needed for better profitability.

Positive Factors

Clinician Growth

The increase in clinician numbers supports expanded service capacity and potential revenue growth, enhancing the company's ability to meet rising demand for mental health services.

Free Cash Flow

Record free cash flow indicates effective cash management and provides financial flexibility for future investments, supporting long-term growth and operational stability.

Technology and AI Investments

Investments in technology and AI can enhance operational efficiency and streamline processes, potentially improving margins and competitive positioning over time.

Negative Factors

Profitability Challenges

Ongoing profitability issues, reflected in negative net income and low margins, can hinder reinvestment and growth, impacting long-term financial health.

Gross Profit Margin Decline

A significant decline in gross profit margin indicates rising cost pressures, which can erode profitability and require strategic cost management to sustain margins.

Competitive Recruiting Environment

A competitive recruiting environment may increase costs and impact the ability to attract and retain talent, affecting service delivery and growth potential.

Lifestance Health Group Business Overview & Revenue Model

Company Description

LifeStance 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 Money

Lifestance Health Group generates revenue primarily through the provision of mental health services billed to patients and their insurance providers. The company's revenue model is based on fee-for-service arrangements, where patients pay for individual therapy sessions, psychiatric evaluations, and ongoing treatment plans. Key revenue streams include reimbursements from private health insurance companies, Medicare, and Medicaid for covered services, as well as out-of-pocket payments from patients. Additionally, LFST may engage in partnerships with healthcare organizations and insurers to expand its patient base and enhance service delivery, which can also contribute to its earnings.

Lifestance Health Group Financial Statement Overview

Summary

Lifestance Health Group shows moderate revenue growth and improving cash flow, but profitability remains a challenge with negative net income and low margins. The balance sheet is stable with manageable leverage, but the company needs to focus on improving operational efficiency to enhance profitability.

Income Statement

Lifestance Health Group shows moderate revenue growth with a TTM increase of 2.57%, but profitability remains a concern. The gross profit margin has declined significantly from 32.17% in 2024 to 15.94% in TTM, indicating increased cost pressures. The net profit margin is negative, although it has improved slightly from -4.59% in 2024 to -1.88% in TTM. EBIT and EBITDA margins are low, reflecting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.31 in TTM, indicating a reasonable leverage level. However, return on equity remains negative, though it has improved from -3.97% in 2024 to -1.71% in TTM, suggesting ongoing profitability challenges. The equity ratio is not provided, but the overall balance sheet shows a stable capital structure.

Cash Flow

Lifestance Health Group's cash flow situation is improving, with a 17.28% growth in free cash flow in TTM. The operating cash flow to net income ratio is 0.60, indicating a decent conversion of earnings to cash. The free cash flow to net income ratio is strong at 0.82, showing effective cash management despite negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.25B	1.06B	859.54M	667.51M	377.22M
Gross Profit	414.08M	402.40M	302.10M	237.02M	201.51M	134.32M
EBITDA	56.66M	39.87M	-104.93M	-154.70M	-254.46M	8.77M
Net Income	-16.15M	-57.44M	-186.26M	-215.56M	-307.20M	-38.07M
Balance Sheet
Total Assets	2.15B	2.12B	2.23B	2.17B	1.93B	1.57B
Cash, Cash Equivalents and Short-Term Investments	188.93M	154.57M	78.82M	108.62M	148.03M	18.83M
Total Debt	463.37M	485.19M	511.04M	476.49M	158.74M	366.27M
Total Liabilities	672.88M	672.01M	804.28M	655.15M	382.08M	571.89M
Stockholders Equity	1.47B	1.45B	1.43B	1.52B	1.55B	997.84M
Cash Flow
Free Cash Flow	120.07M	85.69M	-57.40M	-26.47M	-85.07M	-46.60M
Operating Cash Flow	146.34M	107.26M	-16.88M	52.79M	9.42M	-8.53M
Investing Cash Flow	-26.27M	-21.57M	-60.34M	-139.46M	-194.08M	-861.17M
Financing Cash Flow	-18.11M	-9.95M	47.43M	47.26M	313.86M	912.27M

Lifestance Health Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.37
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 5.37 is below the 20-day moving average (MA) of 5.40, above the 50-day MA of 4.83, and below the 200-day MA of 6.31, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 13.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFST.

Lifestance Health Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	69 Neutral	1.79B	17.19	10.26%	2.07%	25.19%	13.44%
SEM	69 Neutral	1.52B	11.50	8.21%	2.02%	-16.10%	-48.97%
ACHC	64 Neutral	2.02B	14.54	4.52%	―	5.64%	0.00%
LFST	59 Neutral	$2.00B	―	-1.11%	―	13.86%	89.49%
AVAH	59 Neutral	1.69B	112.50	-154.73%	―	11.53%	0.00%
BKD	46 Neutral	1.79B	-7.60	-230.26%	―	3.99%	-14.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Lifestance Health Group Corporate Events

Sarah Personette Joins Lifestance Health Board

On August 19, 2025, William Miller resigned from the board of directors of LifeStance Health Group, Inc., with no disagreements cited as the reason. Following his resignation, Sarah Personette was appointed to the board on August 20, 2025, and was granted an initial award of 74,766 restricted stock units under the company’s 2021 Equity Incentive Plan, contingent on her continued service.

The most recent analyst rating on (LFST) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Lifestance Health Group stock, see the LFST Stock Forecast page.

LifeStance Health Group Reports Strong Q2 2025 Results

LifeStance Health Group reported its financial results for the second quarter of 2025, highlighting an 11% increase in revenue to $345.3 million and a significant reduction in net loss from $23.3 million to $3.8 million compared to the previous year. The company also experienced a 12% rise in visit volumes and an 11% growth in its clinician base, reflecting strong operational performance. The adjusted EBITDA grew by 19% to $34.0 million, and free cash flow reached a record $56.6 million, allowing for further investment in the business. LifeStance raised its full-year guidance for adjusted EBITDA and center margin, indicating positive future expectations.

The most recent analyst rating on (LFST) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Lifestance Health Group stock, see the LFST Stock Forecast page.