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LifeSpeak (TSE:LSPK)
TSX:LSPK

LifeSpeak (LSPK) AI Stock Analysis

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LifeSpeak

(TSX:LSPK)

44Neutral
LifeSpeak's overall stock score reflects significant financial and operational challenges. The company's high debt levels, negative equity, and recent corporate events involving potential delisting and credit agreement defaults are major concerns. Despite short-term technical momentum, the stock's valuation and financial health remain weak, affecting investor confidence.

LifeSpeak (LSPK) vs. S&P 500 (SPY)

LifeSpeak Business Overview & Revenue Model

Company DescriptionLifeSpeak Inc. provides software-as-a-service solutions for digital mental, physical and total wellbeing resources for mid and enterprise-sized organizations in Canada and internationally. The company offers digital educational resources, such as easily consumable videos, podcasts, and tailored articles for depression, stress management, and financial health; and on-demand workout library, automated, and live sessions in areas, including general fitness, mindfulness, cardio, strength, yoga, pre-natal, Pilates, and others. It also provides caregiver support and SUD resources. The company serves approximately 420 diverse clients including government agencies, insurance providers, and other health technology firms. LifeSpeak Inc. was incorporated in 2004 and is headquartered in Toronto, Canada.
How the Company Makes MoneyLifeSpeak makes money through a subscription-based revenue model. Organizations pay for access to LifeSpeak's digital platform, which provides their employees with a wide array of mental health and wellness resources. These subscriptions are typically structured as annual or multi-year contracts, providing a recurring revenue stream for LifeSpeak. Key revenue streams include corporate clients across various industries, who invest in LifeSpeak's offerings to enhance their employee well-being programs and improve workplace productivity. Additionally, LifeSpeak may engage in partnerships with other wellness and technology companies to expand their reach and integrate their solutions into broader employee benefits packages, further driving revenue growth.

LifeSpeak Financial Statement Overview

Summary
LifeSpeak faces significant financial challenges, including declining revenues, sustained net losses, and a highly leveraged balance sheet. While the company generates positive operating cash flow, its overall financial health is hindered by high debt and negative equity, posing risks for future growth and stability.
Income Statement
45
Neutral
LifeSpeak's revenue has shown volatility, with a decline from 2023 to 2024 following a previous growth trend. The gross profit margin remains high, indicating effective cost management. However, persistent net losses and negative EBIT and EBITDA margins reveal ongoing profitability challenges.
Balance Sheet
30
Negative
The balance sheet reflects financial instability, with negative stockholders' equity and high debt levels leading to an unfavorable debt-to-equity ratio. The company's equity ratio is also negative, highlighting the risks associated with its leveraged position.
Cash Flow
50
Neutral
Operating cash flow is positive, demonstrating some operational efficiency. However, the free cash flow growth has been inconsistent, and the company faces challenges in converting income into cash due to negative net income.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
48.40M52.41M47.37M23.27M10.08M
Gross Profit
42.89M47.02M42.60M20.92M9.07M
EBIT
343.29K-11.67M-21.82M-6.40M1.94M
EBITDA
-5.43M-5.39M-30.12M-25.33M392.75K
Net Income Common Stockholders
-26.54M-26.26M-47.91M-26.32M-139.44K
Balance SheetCash, Cash Equivalents and Short-Term Investments
819.88K3.86M6.53M31.86M130.20K
Total Assets
86.26M116.10M152.43M91.74M5.68M
Total Debt
81.74M86.58M89.62M15.74M1.67M
Net Debt
80.92M82.72M83.09M-16.12M1.54M
Total Liabilities
89.68M100.56M115.26M37.46M10.10M
Stockholders Equity
-3.42M15.54M37.17M54.28M-4.42M
Cash FlowFree Cash Flow
8.33M10.57M-8.76M-11.45M441.30K
Operating Cash Flow
8.75M10.64M-7.61M-11.34M446.64K
Investing Cash Flow
-422.35K-1.55M-101.37M-37.02M-5.35K
Financing Cash Flow
-11.39M-11.71M83.47M80.09M-320.91K

LifeSpeak Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.32
Price Trends
50DMA
0.29
Positive
100DMA
0.32
Negative
200DMA
0.37
Negative
Market Momentum
MACD
0.01
Negative
RSI
58.80
Neutral
STOCH
68.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LSPK, the sentiment is Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.29, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 68.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LSPK.

LifeSpeak Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
C$1.08B13.983.99%18.51%
60
Neutral
$10.94B10.58-7.08%2.98%7.52%-12.04%
TSKSI
57
Neutral
C$561.27M-19.36%43.00%50.39%
44
Neutral
C$18.92M-437.94%-7.64%12.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:LSPK
LifeSpeak
0.32
-0.32
-50.00%
TSE:KSI
kneat.com
6.46
2.51
63.54%
TSE:WELL
WELL Health Technologies Corp
3.95
0.30
8.22%

LifeSpeak Earnings Call Summary

Earnings Call Date:Mar 31, 2025
(Q3-2024)
|
% Change Since: 10.34%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong partnerships and leadership appointments indicating positive developments, while financial challenges and customer retention issues suggest underlying struggles.
Q3-2024 Updates
Positive Updates
Consistent Revenue and Adjusted EBITDA Growth
Revenue for Q3 2024 was $11.8 million with strong adjusted EBITDA growth to $3 million, which is 26% of revenue. This represents a 17% increase compared to the second quarter of 2024.
Significant Partnership with GreenShield
LifeSpeak signed a major deal with GreenShield, a leading Canadian integrated health and benefits organization, marking one of the most significant deals in the company's history.
Strong Interest in Digital Well-being Services
Continued strong interest for LifeSpeak's whole person digital well-being services, leading to agreements with notable clients such as GreenShield, Allstate, and Asset Health.
Leadership Strengthening
Appointment of Lee Dabberdt as CFO, strengthening the senior leadership team, and enhancing the company's ability to scale business.
Geographic Diversification
67% of ARR for the quarter originated from markets outside of Canada, indicating strong international presence.
Negative Updates
Revenue Decline and Headwinds
Despite consistent revenue of $11.8 million, the company faced a decline compared to previous periods and continued headwinds in the wellness software market.
Increased Net Loss
Net loss for Q3 2024 was $5.7 million, up from a net loss of $2 million in Q3 2023, largely due to financing expenses.
Decreased Net Dollar Retention and Logo Retention Rates
Net dollar retention (NDR) rate for Q3 2024 was 82%, down 6% from Q3 2023. Logo retention rate was 73%, 8% lower than in the same quarter last year.
Churn and Budgetary Constraints
Continued churn, particularly among smaller clients, driven by budgetary constraints and macroeconomic factors.
Company Guidance
During the LifeSpeak Q3 2024 earnings call, the company highlighted several key financial metrics and strategic developments. The third quarter revenue was reported at $11.8 million, with an adjusted EBITDA of $3 million, representing 26% of revenue. Despite a decline in revenue, this marked a 17% increase in adjusted EBITDA compared to the previous quarter, as LifeSpeak focused on operational efficiencies. The company's annual recurring revenue (ARR) was $45.9 million, with 67% originating from markets outside of Canada. Net loss for the quarter was $5.7 million, largely due to financing expenses. The net dollar retention rate was noted at 82%, while the logo retention rate stood at 73%. LifeSpeak also highlighted significant partnerships, including a major deal with GreenShield, and discussed ongoing efforts to mitigate client churn and pursue larger, high-margin opportunities as part of their growth strategy. Looking ahead, the company anticipates fourth-quarter results to be consistent with Q3, with growth expected to pick up in early 2025.

LifeSpeak Corporate Events

Delistings and Listing ChangesM&A Transactions
LifeSpeak Inc. Announces Arrangement Agreement and Plans to Delist from TSX
Neutral
Apr 22, 2025

LifeSpeak Inc. has entered into an arrangement agreement with 1001180076 Ontario Inc., where certain shareholders will receive a cash purchase price of $0.32 per common share through a court-approved plan of arrangement. As part of this agreement, shareholders Michael Held and Nolan Bederman will exchange their shares for shares in the purchaser company, resulting in the purchaser owning 100% of LifeSpeak’s common shares. Following the completion of this arrangement, LifeSpeak plans to delist from the Toronto Stock Exchange and cease being a reporting issuer, marking a significant shift in its market presence.

Spark’s Take on TSE:LSPK Stock

According to Spark, TipRanks’ AI Analyst, TSE:LSPK is a Underperform.

LifeSpeak’s overall score reflects substantial financial instability, with high debt levels and negative equity being significant concerns. The bearish technical indicators add to the negative outlook, while the potential TSX delisting and credit agreement issues exacerbate risks. Positive aspects from the earnings call, such as strong partnerships, are overshadowed by these larger challenges.

To see Spark’s full report on TSE:LSPK stock, click here.

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
LifeSpeak Inc. Announces Go-Private Transaction Amidst Strategic Review
Neutral
Apr 17, 2025

LifeSpeak Inc. has announced a go-private transaction involving a cash offer of $0.32 per common share, representing a 28% premium to the 20-day VWAP as of April 16, 2025. This decision follows a strategic review to address liquidity issues stemming from a significant debt burden. The transaction, supported by a consortium including Beedie Capital and LifeSpeak management, aims to ensure the company’s ongoing viability and involves entering into extension and forbearance agreements with lenders.

Spark’s Take on TSE:LSPK Stock

According to Spark, TipRanks’ AI Analyst, TSE:LSPK is a Neutral.

LifeSpeak’s stock faces substantial challenges with its financial performance marked by high debt levels, declining revenues, and profitability issues. The negative valuation indicators, along with bearish technical signals, further add to the concerns. Although the company has reported some strategic partnerships, ongoing financial distress, including potential delisting and credit agreement issues, weighs heavily on its overall outlook.

To see Spark’s full report on TSE:LSPK stock, click here.

Business Operations and StrategyFinancial Disclosures
LifeSpeak Inc. Reports Fiscal 2024 Results Amid Economic Challenges
Neutral
Mar 31, 2025

LifeSpeak Inc. reported its fiscal 2024 results, highlighting a revenue of $48.4 million and an Adjusted EBITDA of $11.5 million, despite facing economic challenges. The company experienced a 9% decline in fourth-quarter revenue and a 12% decrease in annual recurring revenue compared to the previous year. Despite these declines, LifeSpeak’s Adjusted EBITDA increased due to an optimized cost structure. The company is actively negotiating with lenders to address defaults on credit agreements, while notable client acquisitions and a significant agreement with GreenShield are expected to contribute positively to its business.

Delistings and Listing ChangesPrivate Placements and Financing
LifeSpeak Faces TSX Delisting Review and Credit Agreement Challenges
Negative
Mar 17, 2025

LifeSpeak Inc. announced that the Toronto Stock Exchange has deferred its decision on the company’s delisting review until April 14, 2025, following the company’s use of TSX rules related to financial difficulty for a private placement in March 2024. Additionally, LifeSpeak is in default under its senior credit agreement, which has led to a cross-default with its junior lender. The company is actively negotiating with its lenders to address these defaults and is committed to maintaining constructive relationships with them.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.