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Lifestance Health Group (LFST)
NASDAQ:LFST
US Market
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Lifestance Health Group (LFST) AI Stock Analysis

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LFST

Lifestance Health Group

(NASDAQ:LFST)

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Outperform 74 (OpenAI - Gpt-5.6Sol)
Rating:74Outperform
Price Target:
$14.00
▲(28.44% Upside)
Action:Reiterated
Date:08/11/26
LFST scores well on improved financial fundamentals (notably strong cash generation and low leverage) and a very positive earnings call with raised guidance and strong operating momentum. The primary offset is valuation risk due to the very high P/E, while technicals are supportive with price trading above key moving averages.
Positive Factors
Sustained Revenue Growth
Strong visit growth, higher revenue per visit and raised full-year guidance indicate durable demand for behavioral healthcare. Continued volume expansion gives LifeStance a foundation for scaling its outpatient and telehealth platform.
Negative Factors
Thin Profitability and Cost Sensitivity
Despite the profitability turnaround, narrow margins provide limited buffer against clinician compensation, benefits, technology and marketing costs. Sustained earnings improvement therefore depends on maintaining utilization and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Strong visit growth, higher revenue per visit and raised full-year guidance indicate durable demand for behavioral healthcare. Continued volume expansion gives LifeStance a foundation for scaling its outpatient and telehealth platform.
Read all positive factors

Lifestance Health Group (LFST) vs. SPDR S&P 500 ETF (SPY)

Lifestance Health Group Business Overview & Revenue Model

Company Description
LifeStance Health Group, Inc. specializes in delivering outpatient mental healthcare services through its subsidiary network. The company offers a comprehensive array of mental health solutions, encompassing psychiatric evaluations and treatment, ...
How the Company Makes Money
LifeStance primarily makes money by delivering outpatient behavioral health services and collecting reimbursement for those clinical encounters. Its core revenue stream is patient service revenue generated from visits with employed and affiliated ...

Lifestance Health Group Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial outperformance: material revenue growth (26%), sizable adjusted EBITDA and margin expansion (94% EBITDA growth; +500+ bps YoY), robust clinician additions and productivity gains, healthy cash generation and low leverage, plus raised full‑year guidance. Management is prioritizing disciplined reinvestment (tech, clinical excellence, marketing, compensation) and executing specialty rollouts and targeted tuck-in M&A while acknowledging near-term impacts to margins, free cash flow timing and potential EHR rollout disruption. Overall, the positives around growth, profitability, balance sheet strength and strategic investments materially outweigh the manageable near-term headwinds.
Positive Updates
Strong Revenue Growth
Revenue grew 26% year-over-year to $435 million in Q2 2026, driven by higher visit volumes and increased total revenue per visit; raised full‑year revenue guidance midpoint by $45 million to a range of $1.685B–$1.725B (midpoint implies ~20% growth for the year).
Negative Updates
Near-Term Margin/EBITDA Headwinds and Q3 Sequential Dip
Third-quarter guidance implies a sequential decline in adjusted EBITDA (Q3 guide $49M–$59M), reflecting planned investments in marketing, technology, clinical support and enhanced compensation; management noted flexibility to invest despite YTD outperformance.
Read all updates
Q2-2026 Updates
Negative
Strong Revenue Growth
Revenue grew 26% year-over-year to $435 million in Q2 2026, driven by higher visit volumes and increased total revenue per visit; raised full‑year revenue guidance midpoint by $45 million to a range of $1.685B–$1.725B (midpoint implies ~20% growth for the year).
Read all positive updates
Company Guidance
Management raised full‑year guidance, increasing revenue midpoint by $45M to a new range of $1.685B–$1.725B (midpoint implying ~20% growth), lifting Center Margin midpoint by $23M to $570M–$594M, and raising adjusted EBITDA midpoint by $15M to $215M–$235M (midpoint = 13.2% adjusted EBITDA margin, >200 bps y/y expansion); they said full‑year revenue growth is expected to be driven by higher visit volumes plus mid‑single‑digit increases in total revenue per visit, reiterated stock‑based comp of ~$60M–$70M, and noted ongoing strategic investments that will affect second‑half margins. For Q3 they guided revenue $420M–$440M, Center Margin $140M–$152M and adjusted EBITDA $49M–$59M. These raises were supported by Q2 outperformance: revenue $435M (+26%), visits 2.6M (+19%), TRPV $167 (+6%), visits per average clinician +7%, clinician base 8,542 (+11%), Center Margin $153M (35.2%), adjusted EBITDA $66M (15.2%), net income $24M, free cash flow $88M, cash $226M, net long‑term debt $259M, net leverage 0.2x and gross leverage 1.3x.

Lifestance Health Group Financial Statement Overview

Summary
Financials show a meaningful turnaround with TTM profitability, a conservative balance sheet (low debt-to-equity), and especially strong TTM operating and free cash flow. The main constraint is still-thin profitability (low net and EBITDA margins), which increases sensitivity to cost pressure.
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
86
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.58B1.42B1.25B1.06B859.54M667.51M
Gross Profit531.85M461.10M402.40M302.10M237.02M201.51M
EBITDA131.66M78.78M39.87M-104.93M-143.60M-240.06M
Net Income50.60M9.66M-57.44M-186.26M-215.56M-307.20M
Balance Sheet
Total Assets2.18B2.20B2.12B2.11B2.17B1.93B
Cash, Cash Equivalents and Short-Term Investments225.94M248.64M154.57M78.82M108.62M148.03M
Total Debt200.66M194.10M485.19M511.04M478.83M158.74M
Total Liabilities704.35M682.92M672.01M681.04M655.15M382.08M
Stockholders Equity1.48B1.52B1.45B1.43B1.52B1.55B
Cash Flow
Free Cash Flow210.03M110.03M85.69M-57.40M-26.47M-85.07M
Operating Cash Flow217.87M146.15M107.26M-16.88M52.79M9.42M
Investing Cash Flow-53.00M-36.13M-21.57M-60.34M-139.46M-194.08M
Financing Cash Flow-127.85M-15.96M-9.95M47.43M47.26M313.86M

Lifestance Health Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.90
Price Trends
50DMA
10.93
Positive
100DMA
9.15
Positive
200DMA
7.99
Positive
Market Momentum
MACD
0.51
Negative
RSI
59.98
Neutral
STOCH
50.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFST, the sentiment is Positive. The current price of 10.9 is below the 20-day moving average (MA) of 11.62, below the 50-day MA of 10.93, and above the 200-day MA of 7.99, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 59.98 is Neutral, neither overbought nor oversold. The STOCH value of 50.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LFST.

Lifestance Health Group Risk Analysis

Lifestance Health Group disclosed 49 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
85
Outperform
$3.58B25.2912.94%1.15%7.19%32.91%
77
Outperform
$2.99B10.32150.20%19.52%1337.90%
74
Outperform
$4.65B94.323.39%20.38%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
$2.89B-21.07405.63%-4.42%44.67%
46
Neutral
$2.67B-2.31-50.02%4.27%-917.61%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LFST
Lifestance Health Group
12.28
6.88
127.41%
ACHC
Acadia Healthcare
29.87
8.32
38.61%
BKD
Brookdale Senior Living
12.20
4.47
57.83%
NHC
National Healthcare
224.73
115.21
105.19%
AVAH
Aveanna Healthcare Holdings
13.59
5.92
77.18%

Lifestance Health Group Corporate Events

Business Operations and StrategyStock BuybackFinancial Disclosures
Lifestance Health Lifts Outlook After Strong Q2 Results
Positive
Aug 6, 2026
LifeStance Health Group reported strong second-quarter 2026 results on August 6, 2026, with revenue rising 26% year over year to $435.4 million and visit volumes up 19% to 2.6 million. The outpatient mental health provider expanded its clinician b...
Business Operations and StrategyExecutive/Board Changes
LifeStance Health refreshes board with new directors
Positive
Jul 7, 2026
On July 2, 2026, LifeStance Health Group, Inc. announced that director Jeffrey Rhodes resigned from the board and all its committees, effective immediately, with the company stating his departure was not due to any disagreement. The same day, the ...
Executive/Board ChangesShareholder Meetings
Lifestance Shareholders Reaffirm Board, Auditor and Executive Pay
Positive
Jun 4, 2026
On June 2, 2026, LifeStance Health Group, Inc. held its annual meeting of stockholders, where investors elected Class II directors David Bourdon and Robert Bessler to three-year terms on the board. Stockholders also ratified PricewaterhouseCoopers...
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.Date of analysis: Aug 11, 2026