Lifestance Health Group (LFST) AI Stock Analysis

• Market Cap: $1.51B
• Dividend Yield: N/A
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 16.31%
• EPS Growth: 79.86%
• Country: US
• Employees: 7,535
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Care Facilities
• EPS (TTM): -0.01
• Shares Outstanding: 388,875,920
• 10 Day Avg. Volume: 2,029,336
• 30 Day Avg. Volume: 2,326,803
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.95
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 7.68
• Enterprise Value/Ebitda: 71.33
• 1Y Price Target: $8.60
• Price Target Upside: 122.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 59 Neutral
• Price Target: $4.00 ▲(3.63% Upside)

Lifestance Health Group's overall stock score is driven by strong earnings call performance and solid revenue growth. However, the stock's technical indicators and valuation suggest caution due to ongoing profitability challenges and bearish market trends.

Positive Factors

Financial Performance

LifeStance Health reported second quarter 2025 results, which came in modestly above consensus expectations across the board.

Growth and Expansion

Management raised its center margin and profit outlook, which calls for another year of solid growth.

Revenue and Profitability

LifeStance Health Group has shown strong EBITDA margin expansion by more than doubling it in the past two years.

Negative Factors

Cost Management

The company has shifted to a cash-based bonus for clinicians tied to productivity and quality services, which will lead to a reduction in net income by $10mn in 2026 and $40mn run rate by 2029.

Margin Pressure

Center margin is expected to be pressured in the remaining quarters, reversing a trend of solid improvement.

Stock Market Reaction

Recent stock weakness is related to investor de-risking and misunderstood headlines from the 1Q report.

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. The company's key revenue streams include fees collected from patients and reimbursement from insurance providers for therapy and psychiatric services rendered. LifeStance Health contracts with a diverse group of payers, including commercial insurance companies, Medicare, and Medicaid, which contributes significantly to its earnings. The company also benefits from strategic partnerships with healthcare providers and facilities that expand its reach and patient base, supporting its financial growth.

Lifestance Health Group Financial Statement Overview

Summary

Lifestance Health Group shows strong revenue growth and a robust balance sheet, but persistent net losses and operational inefficiencies remain a concern. The company must focus on improving operational margins and aligning cash flow with net income for long-term success.

Income Statement

Lifestance Health Group has demonstrated considerable revenue growth, with a TTM revenue increase of 2.6% and a significant annual growth from 2020 to 2024. However, profitability remains a concern as the company consistently reports negative net income and EBIT margins, indicating ongoing operational challenges.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of approximately 69% in the TTM period. The debt-to-equity ratio remains low, suggesting prudent financial leverage. However, the company has not yet achieved profitability, which could pose challenges in future equity preservation.

Cash Flow

Lifestance Health Group shows improvement in cash flow with significant growth in free cash flow in the TTM period. Despite this, the operating cash flow to net income ratio indicates that cash flow generation is not yet aligned with profitability, posing potential risks for sustaining cash reserves.

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	402.40M	302.10M	237.02M	201.51M	134.32M
EBITDA	39.87M	-104.93M	-136.41M	-229.62M	8.77M
Net Income	-57.44M	-186.26M	-215.56M	-307.20M	-38.07M
Balance Sheet
Total Assets	2.12B	2.23B	2.17B	1.93B	1.57B
Cash, Cash Equivalents and Short-Term Investments	154.57M	78.82M	108.62M	148.03M	18.83M
Total Debt	485.19M	511.04M	476.49M	157.42M	362.53M
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

• Technical Analysis Sentiment: Negative
• Last Price: 3.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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 3.86 is below the 20-day moving average (MA) of 4.16, below the 50-day MA of 4.85, and below the 200-day MA of 6.57, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 28.81 is Positive, neither overbought nor oversold. The STOCH value of 26.54 is Neutral, 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
ASTH	73 Outperform	$1.11B	30.07	5.00%	―	54.81%	-45.07%
PNTG	64 Neutral	$764.87M	29.04	11.44%	―	30.04%	43.47%
ACHC	62 Neutral	$2.00B	11.86	4.62%	―	5.64%	―
TALK	61 Neutral	$403.23M	152.47	2.52%	―	25.02%	―
LFST	59 Neutral	$1.51B	―	-1.11%	―	16.31%	79.86%
Sector *	50 Neutral	AU$2.60B	3.64	-58.14%	2.69%	36.37%	13.78%
CMPS	47 Neutral	$419.27M	―	-71.30%	―	―	3.88%

Lifestance Health Group Corporate Events

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.

LifeStance Health Holds Annual Stockholders Meeting

On June 3, 2025, LifeStance Health Group, Inc. held its annual meeting of stockholders, where several key proposals were voted upon. The stockholders elected new directors, ratified the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved the executive officer compensation on a non-binding advisory basis. These decisions are expected to influence the company’s governance and operational strategies moving forward.

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.

LifeStance Health Group Appoints New Chief Technology Officer

On May 14, 2025, LifeStance Health Group announced the departure of Chief Digital Officer Pablo Pantaleoni, effective July 1, 2025, and the appointment of Vaughn Paunovich as the new Chief Technology Officer, effective June 9, 2025. Paunovich, with extensive experience in healthcare technology, is expected to lead LifeStance’s technology strategy to enhance patient and clinician experiences, aligning with the company’s mission to expand access to mental health services. Pantaleoni, who joined the company in 2020, significantly contributed to its digital transformation and will ensure a smooth transition with Paunovich.

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.

LifeStance Health Reports First Positive Net Income

On May 7, 2025, LifeStance Health Group reported its financial results for the first quarter ending March 31, 2025, highlighting a revenue increase of 11% to $333 million and a net income of $0.7 million, marking the first positive net income since becoming a public company. The company also noted a 10% increase in clinician base and visit volumes, alongside a 25% rise in Adjusted EBITDA. LifeStance reiterated its full-year 2025 guidance, projecting revenues between $1.40 billion and $1.44 billion, and emphasized its commitment to enhancing patient and clinician experiences while expanding access to mental healthcare services.