Lifestance Health Group (LFST) AI Stock Analysis

• Market Cap: $2.10B
• Dividend Yield: N/A
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 13.86%
• EPS Growth: 89.49%
• Country: US
• Employees: 7,535
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Care Facilities
• EPS (TTM): -0.01
• Shares Outstanding: 388,936,400
• 10 Day Avg. Volume: 3,343,621
• 30 Day Avg. Volume: 2,962,389
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: 40.32
• 1Y Price Target: $8.20
• Price Target Upside: 49.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 61 Neutral
• Price Target: $6.00 ▲(9.49% Upside)

Lifestance Health Group's overall stock score is driven by strong earnings call performance and positive technical indicators, despite challenges in profitability and valuation. The company's ability to exceed guidance and achieve record free cash flow are significant strengths, while the negative P/E ratio and lack of dividend yield are notable weaknesses.

Positive Factors

Management Outlook

Management's tone on the conference was much stronger and with greater details than last quarter.

Revenue Growth

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

Negative Factors

Clinician Retention

Clinician retention remains stable, but it has not improved.

Net Income Reduction

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.

Lifestance Health Group Business Overview & Revenue Model

Company Description

LifeStance 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 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 moderate revenue growth and improving cash flow, but profitability remains a challenge with negative net income and low margins. The balance sheet is stable with manageable leverage, but the company needs to focus on improving operational efficiency to enhance profitability.

Income Statement

Lifestance Health Group shows moderate revenue growth with a TTM increase of 2.57%, but profitability remains a concern. The gross profit margin has declined significantly from 32.17% in 2024 to 15.94% in TTM, indicating increased cost pressures. The net profit margin is negative, although it has improved slightly from -4.59% in 2024 to -1.88% in TTM. EBIT and EBITDA margins are low, reflecting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.31 in TTM, indicating a reasonable leverage level. However, return on equity remains negative, though it has improved from -3.97% in 2024 to -1.71% in TTM, suggesting ongoing profitability challenges. The equity ratio is not provided, but the overall balance sheet shows a stable capital structure.

Cash Flow

Lifestance Health Group's cash flow situation is improving, with a 17.28% growth in free cash flow in TTM. The operating cash flow to net income ratio is 0.60, indicating a decent conversion of earnings to cash. The free cash flow to net income ratio is strong at 0.82, showing effective cash management despite negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.25B	1.06B	859.54M	667.51M	377.22M
Gross Profit	414.08M	402.40M	302.10M	237.02M	201.51M	134.32M
EBITDA	56.66M	39.87M	-104.93M	-154.70M	-254.46M	8.77M
Net Income	-16.15M	-57.44M	-186.26M	-215.56M	-307.20M	-38.07M
Balance Sheet
Total Assets	2.15B	2.12B	2.23B	2.17B	1.93B	1.57B
Cash, Cash Equivalents and Short-Term Investments	188.93M	154.57M	78.82M	108.62M	148.03M	18.83M
Total Debt	463.37M	485.19M	511.04M	476.49M	158.74M	366.27M
Total Liabilities	672.88M	672.01M	804.28M	655.15M	382.08M	571.89M
Stockholders Equity	1.47B	1.45B	1.43B	1.52B	1.55B	997.84M
Cash Flow
Free Cash Flow	120.07M	85.69M	-57.40M	-26.47M	-85.07M	-46.60M
Operating Cash Flow	146.34M	107.26M	-16.88M	52.79M	9.42M	-8.53M
Investing Cash Flow	-26.27M	-21.57M	-60.34M	-139.46M	-194.08M	-861.17M
Financing Cash Flow	-18.11M	-9.95M	47.43M	47.26M	313.86M	912.27M

Lifestance Health Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 5.48 is above the 20-day moving average (MA) of 4.90, above the 50-day MA of 4.71, and below the 200-day MA of 6.44, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 66.24 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 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
ASTH	72 Outperform	$1.51B	60.46	3.50%	―	51.97%	-64.10%
PNTG	71 Outperform	$838.82M	31.32	11.44%	―	30.58%	24.86%
ACHC	70 Outperform	$1.99B	14.62	4.62%	―	5.64%	―
LFST	61 Neutral	$2.10B	―	-1.11%	―	13.86%	89.49%
TALK	61 Neutral	$447.14M	167.28	2.52%	―	17.43%	―
Sector *	51 Neutral	$7.81B	-0.22	-40.01%	2.29%	21.48%	-2.11%
CMPS	47 Neutral	$445.47M	―	-71.30%	―	―	21.30%

Lifestance Health Group Corporate Events

Sarah Personette Joins Lifestance Health Board

On August 19, 2025, William Miller resigned from the board of directors of LifeStance Health Group, Inc., with no disagreements cited as the reason. Following his resignation, Sarah Personette was appointed to the board on August 20, 2025, and was granted an initial award of 74,766 restricted stock units under the company’s 2021 Equity Incentive Plan, contingent on her continued service.

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.

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.