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Lifestance Health Group (LFST)
NASDAQ:LFST
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Lifestance Health Group
(NASDAQ:LFST)
Rating:58Neutral
Price Target:
$4.50
▲(2.27%Upside)
Positive Factors
Financial Performance
LifeStance Health Group has shown strong EBITDA margin expansion by more than doubling it in the past two years.
Growth Opportunities
LifeStance is focused on adding higher margin services to its platform to meet rising demand, with revenue run rate for these services at ~$50mn.
Market Positioning
LifeStance is well positioned to capture increasing demand in outpatient mental health, driven by a shift from cash pay to in-network insurance coverage and decreased social stigma of seeking behavioral health.
Negative Factors
Center Margin Pressure
Center margin is expected to be pressured in the remaining quarters, reversing a trend of solid improvement.
Revenue Guidance
Investors expressed disappointment that Q1 EBITDA upside was not flowed through to guidance and that 2025 revenue guidance was unchanged.
Stock Reaction
Recent stock weakness is related to investor de-risking and misunderstood headlines from the 1Q report.
Lifestance Health Group (LFST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.71B
Dividend YieldN/A
Average Volume (3M)2.18M
Price to Earnings (P/E)―
Beta (1Y)0.84
Revenue Growth16.31%
EPS Growth79.86%
CountryUS
Employees7,535
SectorHealthcare
Sector Strength44
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.00
Shares Outstanding388,875,920
10 Day Avg. Volume2,284,402
30 Day Avg. Volume2,181,341
Financial Highlights & Ratios
PEG Ratio-1.27
Price to Book (P/B)1.16
Price to Sales (P/S)0.00
P/FCF Ratio16.71
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.36
Enterprise Value/Gross Profit4.62
Enterprise Value/Ebitda42.80
Forecast
1Y Price Target
$8.63Price Target Upside96.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Lifestance Health Group Business Overview & Revenue Model
Company DescriptionLifeStance Health Group (LFST) is a leading provider of outpatient mental health services in the United States. The company operates in the healthcare sector, focusing on offering a wide range of behavioral health services to patients of all ages. LifeStance Health provides therapy and psychiatric services through a network of highly qualified clinicians, leveraging both in-person and telehealth platforms to increase accessibility and convenience for patients seeking mental health care.
How the Company Makes MoneyLifeStance 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 Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -32.82%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
LifeStance Health reported a solid start to 2025, exceeding guided metrics and achieving positive net income for the first time. The company showed strong clinician growth, improved operational efficiencies, and a significant improvement in free cash flow. However, pressures on revenue per visit and the competitive environment for recruiting clinicians present challenges. Overall, the positive aspects of the earnings call outweigh the negatives, indicating a strong performance and outlook.Q1-2025 Updates
Positive Updates
Exceeded Guided Metrics
LifeStance Health exceeded each of its guided metrics for the first quarter of 2025, instilling confidence in their ability to deliver on full-year guidance.
Solid Financial Performance
Reported revenue of $333 million, representing an 11% year-over-year growth, with double-digit adjusted EBITDA margins of 10.4%.
Positive Net Income
Achieved positive net income for the first time in LifeStance's history as a public company, with net income of $700,000.
Clinician Growth
Increased clinician base by 152 clinicians or 10% year-over-year, bringing the total to 7,535 clinicians.
Operational Excellence
Completed the rollout of the digital patient check-in tool, driving higher patient satisfaction, operational efficiencies, and significant improvements in patient collections.
Strong Free Cash Flow Improvement
Improved free cash flow by $17 million year-over-year in the first quarter, despite being negative $10 million.
Negative Updates
Pressure on Revenue Per Visit
Total revenue per visit increased only 1% year-over-year, with downward pressure expected due to rate decreases from a single outlier payer.
Negative Free Cash Flow
Reported negative free cash flow of $10 million in the first quarter.
Competitive Environment for Clinicians
Continues to face a very competitive environment for attracting and retaining clinicians, despite stable turnover and retention.
Company Guidance
In the first quarter of 2025, LifeStance Health surpassed its financial guidance, reporting a robust performance across several metrics. They achieved a double-digit adjusted EBITDA margin of 10.4%, marking an improvement over expectations, and recorded positive net income for the first time since becoming a public company. The company also reported a solid revenue growth of 11% year-over-year, reaching $333 million, driven by a 10% increase in visit volumes to 2.1 million, primarily due to a 10% growth in their clinician base, now totaling 7,535 clinicians. Total revenue per visit rose by 1% to $159. Furthermore, LifeStance improved its free cash flow by $17 million compared to the same period last year, although it was still negative $10 million. They maintained strong leverage ratios with net leverage at 1.2x and gross leverage at 2.3x, significantly improved from the prior year's figures. Looking ahead, they are confident in their full-year guidance ranges, expecting revenues of $1.4 billion to $1.44 billion, center margin between $440 million to $464 million, and adjusted EBITDA ranging from $130 million to $150 million.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.65
Positive
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.70
Positive
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.60
Neutral
| 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
Negative
4.40
Price Trends
5.37
Negative
6.14
Negative
6.78
Negative
Market Momentum
-0.29
Positive
28.23
Positive
11.43
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 4.4 is below the 20-day moving average (MA) of 4.79, below the 50-day MA of 5.37, and below the 200-day MA of 6.78, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 28.23 is Positive, neither overbought nor oversold. The STOCH value of 11.43 is Positive, 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 (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.26B | 34.04 | 5.00% | ― | 54.81% | -45.07% | |
68 Neutral | $818.98M | 31.19 | 11.28% | ― | 30.04% | 43.47% | |
61 Neutral | $419.96M | 148.80 | 2.52% | ― | 25.02% | ― | |
60 Neutral | $2.14B | 11.13 | 6.35% | ― | 5.48% | ― | |
58 Neutral | $1.71B | ― | -2.47% | ― | 16.31% | 79.86% | |
47 Neutral | $364.89M | ― | -60.67% | ― | ― | 3.88% | |
46 Neutral | C$197.02M | -3.33 | -23.14% | 2.65% | 20.75% | -0.36% |
* Healthcare Sector Average
Performance Comparison
LFST
Lifestance Health Group
4.42
-1.08
-19.64%
ACHC
Acadia Healthcare
22.77
-42.39
-65.06%
ASTH
Astrana Health
24.69
-24.64
-49.95%
PNTG
Pennant Group
23.91
-3.23
-11.90%
TALK
Talkspace
2.52
0.41
19.43%
CMPS
COMPASS Pathways
3.88
-3.42
-46.85%
Lifestance Health Group Corporate Events
Executive/Board ChangesShareholder Meetings
LifeStance Health Holds Annual Stockholders Meeting
Neutral
Jun 6, 2025
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.
Executive/Board ChangesBusiness Operations and Strategy
LifeStance Health Group Appoints New Chief Technology Officer
Neutral
May 14, 2025
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.
Business Operations and StrategyFinancial Disclosures
LifeStance Health Reports First Positive Net Income
Positive
May 7, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.