Lifestance Health Group (LFST) AI Stock Analysis

• Market Cap: $2.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• 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: 1,388,847
• 30 Day Avg. Volume: 1,702,604
• 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: 1.09
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: 48.35
• 1Y Price Target: $9.07
• Price Target Upside: 28.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $7.50 ▲(6.08% Upside)

Lifestance Health Group's overall score is driven by strong earnings call results and positive technical indicators. However, profitability challenges and a negative valuation score due to the high P/E ratio and lack of dividend yield weigh down the score.

Positive Factors

Sustained visit and revenue growth

Consistent double-digit revenue and 17% visit growth indicate durable demand for outpatient and telehealth behavioral care. Rising volumes expand payer relationships, scale fixed costs, and underpin long-term margin improvement if visit mix and reimbursement remain stable.

Expanding clinician network and productivity

Rapid organic clinician adds and higher visits per clinician strengthen capacity to capture demand and lower per-visit costs. A larger, productive clinician base supports scaled growth, referral networks, and resilience versus single-site constraints over the medium term.

Strong cash position supports investment and M&A optionality

A sizable and improving cash balance provides strategic flexibility to fund clinic openings, technology, and tuck-in acquisitions without immediate equity raises. This strengthens execution of hybrid care strategy and supports multi-year expansion and product integration plans.

Negative Factors

Ongoing negative profitability and ROE

Persistent negative net margins and a negative ROE signal the company has yet to fully translate scale into sustained profitability. This constrains retained capital, limits dividend or buyback optionality, and pressures the ability to self-fund long-term growth initiatives.

Flat revenue per visit

Stagnant revenue per visit suggests limited pricing power and headwinds from payer mix or service mix. Over time, inability to raise yield per visit forces growth reliance on volume alone, compressing margin potential and amplifying the need for operational efficiency gains.

Free cash flow weakness and reliance on external financing

Negative free cash flow growth indicates the business still consumes capital after operations, creating reliance on external financing for expansion. Over months this can limit strategic flexibility, increase financing costs, and elevate execution risk for clinic rollouts and tech investments.

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 faces profitability challenges with negative margins. The balance sheet indicates improved leverage, yet profitability metrics remain weak. Cash flow improvements are noted, but free cash flow management requires attention.

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: Neutral
• Last Price: 7.07
• 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 Neutral. The current price of 7.07 is below the 20-day moving average (MA) of 7.24, above the 50-day MA of 6.90, and above the 200-day MA of 5.74, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 20.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$2.16B	21.46	9.94%	1.80%	23.74%	-18.99%
SEM	69 Neutral	$1.83B	16.93	5.57%	1.69%	-22.96%	-59.35%
ACHC	62 Neutral	$1.24B	11.07	3.49%	―	4.58%	-61.50%
LFST	61 Neutral	$2.76B	-297.06	-0.62%	―	13.39%	90.55%
BKD	55 Neutral	$3.12B	-13.13	-214.33%	―	3.93%	-42.22%
AVAH	52 Neutral	$1.72B	23.17	―	―	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.

The most recent analyst rating on (LFST) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Lifestance Health Group stock, see the LFST Stock Forecast page.