Lifestance Health Group (LFST) AI Stock Analysis

• Market Cap: $2.52B
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 13.39%
• EPS Growth: 90.55%
• Country: US
• Employees: 7,535
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.00
• Shares Outstanding: 389,000,270
• 10 Day Avg. Volume: 1,479,383
• 30 Day Avg. Volume: 2,109,972
• PEG Ratio: 0.69
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 2.23
• P/FCF Ratio: 32.61
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 38.57
• 1Y Price Target: $9.00
• Price Target Upside: 38.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): $1.42B

• Rating: 60 Neutral
• Price Target: $7.00 ▲(8.02% Upside)

Lifestance Health Group's overall stock score reflects strong earnings call performance and positive technical indicators, offset by weak valuation metrics and ongoing profitability challenges. The company's strategic initiatives and cash position provide a foundation for future growth, but profitability and valuation concerns remain significant.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for LFST's services, suggesting effective market penetration and potential for continued expansion.

Clinician Expansion

Expanding the clinician base enhances LFST's service capacity, supporting growth and improving patient access, crucial for long-term success.

Partnership with Calm

The partnership with Calm expands LFST's service offerings and strengthens its market position by integrating mental health resources, enhancing patient care.

Negative Factors

Profitability Challenges

Ongoing profitability issues, indicated by negative margins, could hinder LFST's ability to reinvest in growth and maintain competitive positioning.

Flat Revenue Per Visit

Stagnant revenue per visit suggests challenges in increasing service value or pricing, potentially impacting future revenue growth and profitability.

Reduction in New Center Openings

Reduced center openings may limit LFST's growth potential and market expansion, affecting its ability to capture new patient segments.

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 but struggles with profitability, as indicated by negative net profit and EBIT margins. The balance sheet is stronger with an improved debt-to-equity ratio, but cash flow management remains a concern due to negative free cash flow growth.

Income Statement

Lifestance Health Group shows moderate revenue growth with a TTM increase of 3.88%. However, profitability remains a concern with negative net profit margins and EBIT margins, indicating ongoing operational challenges. The gross profit margin has decreased from the previous year, reflecting potential cost management issues.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.13 in the TTM, indicating a stronger equity position relative to debt. However, the return on equity remains negative, highlighting profitability challenges. The equity ratio is stable, suggesting a solid asset base.

Cash Flow

Operating cash flow has improved significantly, but free cash flow growth is negative, indicating potential cash management issues. The operating cash flow to net income ratio is positive, suggesting improved cash generation relative to net income, but the free cash flow to net income ratio indicates reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.25B	1.06B	859.54M	667.51M	377.22M
Gross Profit	430.23M	402.40M	302.10M	237.02M	201.51M	134.32M
EBITDA	62.46M	39.87M	-104.93M	-143.60M	-240.06M	8.77M
Net Income	-9.12M	-57.44M	-186.26M	-215.56M	-307.20M	-38.07M
Balance Sheet
Total Assets	2.15B	2.12B	2.11B	2.17B	1.93B	1.57B
Cash, Cash Equivalents and Short-Term Investments	203.90M	154.57M	78.82M	108.62M	148.03M	18.83M
Total Debt	473.64M	485.19M	511.04M	478.83M	158.74M	366.27M
Total Liabilities	656.23M	672.01M	681.04M	655.15M	382.08M	571.89M
Stockholders Equity	1.49B	1.45B	1.43B	1.52B	1.55B	997.84M
Cash Flow
Free Cash Flow	119.39M	85.69M	-57.40M	-26.47M	-85.07M	-46.60M
Operating Cash Flow	150.91M	107.26M	-16.88M	52.79M	9.42M	-8.53M
Investing Cash Flow	-31.52M	-21.57M	-60.34M	-139.46M	-194.08M	-861.17M
Financing Cash Flow	-18.10M	-9.95M	47.43M	47.26M	313.86M	912.27M

Lifestance Health Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 6.48 is above the 20-day moving average (MA) of 6.39, above the 50-day MA of 5.70, and above the 200-day MA of 5.74, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 57.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LFST.

Lifestance Health Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHC	74 Outperform	$2.09B	20.79	9.94%	1.86%	23.74%	-18.99%
SEM	69 Neutral	$1.66B	15.35	5.57%	1.68%	-22.96%	-59.35%
ACHC	63 Neutral	$1.43B	13.12	3.49%	―	4.58%	-61.50%
LFST	60 Neutral	$2.52B	-272.27	-0.62%	―	13.39%	90.55%
BKD	59 Neutral	$2.56B	―	-214.33%	―	3.93%	-42.22%
AVAH	59 Neutral	$1.94B	25.86	―	―	15.48%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Lifestance Health Group Corporate Events

LifeStance Health Reports Strong Q3 2025 Financial Results

On November 6, 2025, LifeStance Health Group announced its financial results for the third quarter ended September 30, 2025, highlighting a 16% revenue increase to $363.8 million, driven by a 17% rise in visit volumes and an 11% increase in its clinician base. The company reported a net income of $1.1 million, a significant turnaround from a net loss of $6.0 million in the previous year, and achieved a record Adjusted EBITDA of $40.2 million, reflecting improved operating leverage. LifeStance also raised its full-year Adjusted EBITDA guidance, indicating strong momentum as it enters the fourth quarter and looks ahead to 2026.