SCOTTSDALE, Ariz., Oct. 16, 2025 (GLOBE NEWSWIRE) -- LifeStance Health Group, Inc. (NASDAQ: LFST), one of the nation’s largest providers of outpatient mental health care, will issue its third quarter 2025 earnings release before the market opens on Thursday, November 6, 2025. LifeStance will host a live earnings conference call to discuss third quarter results on November 6, 2025, at 8:30 a.m. Eastern Time. To participate in the call, please dial 1-800-715-9871, domestically, or 1-646-307-1963, internationa ...

Core Insights - The company operates in a crowded but highly fragmented mental health space, positioning itself as a leader in outpatient mental health services [2]. Group 1: Company Differentiation - The company has a significant scale with over 7,500 clinicians and is expected to conduct 8 million to 9 million visits or sessions this year, serving nearly 1 million patients [2]. - The company offers hybrid delivery of services, providing both in-person and virtual options, unlike many newer entrants that are virtual-only [2]. - The company has nearly 600 centers located across 33 states, enhancing its accessibility and service delivery [2].

Company Overview - LifeStance is a leader in the outpatient mental health space, operating in a crowded but highly fragmented market [2] - The company has over 7,500 clinicians and is expected to conduct 8 million to 9 million visits or sessions this year, serving nearly 1 million patients [2] Differentiation Factors - The scale of operations is a key differentiator, with a significant number of clinicians and patient interactions [2] - LifeStance offers hybrid delivery of services, providing both in-person and virtual care, unlike many newer entrants that are virtual-only [2] - The company operates nearly 600 centers across 33 states, enhancing its accessibility and service delivery [2]

Summary of LifeStance Health Group FY Conference Call Company Overview - LifeStance Health Group operates in the outpatient mental health sector, leading with over 7,500 clinicians and nearly 1 million patients, expecting 8 to 9 million visits in the year [4][5] - The company offers a hybrid delivery model, providing both in-person and virtual services across nearly 600 centers in 33 states [4] - LifeStance focuses primarily on commercially insured patients, which contributes to a durable business model [5] Key Differentiators - **Scale and Reach**: LifeStance's large clinician base and patient volume set it apart in a fragmented market [4] - **Hybrid Service Model**: The ability to provide both in-person and virtual care enhances accessibility [4] - **Comprehensive Services**: The company offers a wide range of licensure, including psychiatry and therapy, allowing for holistic patient treatment [4][5] - **Retention and Compensation**: LifeStance provides competitive compensation packages and support for clinicians, which aids in retention [7][9] Clinician Engagement and Retention - The company has shifted to a cash-based incentive program from long-term incentives, which has been positively received by clinicians [11] - Efforts to improve clinician scheduling and productivity are ongoing, with a focus on utilizing existing clinician capacity effectively [12][13] - LifeStance aims to improve clinician retention rates, currently at about 80%, with a target of reaching the mid-80s in the coming years [17] Payer Dynamics - Payers are under financial pressure but face demands for increased access to mental health services, which LifeStance is well-positioned to meet [19][20] - The company anticipates low to mid-single-digit rate increases from payers, supported by positive signals from Medicare [20][21] - LifeStance has successfully navigated recent rate cuts from a major national payer, managing to maintain margin expansion [26] Value-Based Care and Future Outlook - LifeStance is exploring value-based care models, focusing on demonstrating improved health outcomes to payers [27][28] - The company is positioned to leverage its size and patient volume to engage in meaningful conversations with payers about outcomes [28] Financial Guidance and Performance - LifeStance expects significant revenue growth in the second half of the year, with a focus on clinician additions and productivity improvements [29][30] - The company has raised its adjusted EBITDA guidance, projecting double-digit margins for the full year [31] - Long-term growth expectations include mid-teens revenue growth and adjusted EBITDA margins of 15% to 20% [33][34] Capital Allocation Strategy - LifeStance prioritizes organic growth and tuck-in acquisitions for capital deployment, with discussions around potential stock buybacks due to perceived stock price dislocation [46][47] - The company has a strong balance sheet, allowing for flexibility in executing its business strategy [46] Technology and Innovation - LifeStance is evaluating new electronic health record (EHR) systems and exploring partnerships with AI vendors to enhance operational efficiency [39][40] - AI applications are being piloted to support clinicians, such as AI note-taking, which aims to improve patient-clinician interactions [41][42] Conclusion - LifeStance Health Group is strategically positioned in the mental health sector with a focus on growth, clinician retention, and adapting to payer dynamics while leveraging technology for operational efficiency [4][19][27]

Core Viewpoint - LifeStance Health Group, Inc. is one of the largest providers of outpatient mental health care in the United States and will present at the 23rd Annual Morgan Stanley Global Healthcare Conference in New York City on September 9, 2025 [1][2]. Company Overview - LifeStance Health was founded in 2017 and focuses on reimagining mental health care, providing both virtual and in-person outpatient services for various mental health conditions [4]. - The company employs approximately 7,700 professionals, including psychiatrists, advanced practice nurses, psychologists, and therapists, operating across 33 states with over 550 centers [4]. - LifeStance's mission is to enhance access to trusted, affordable, and personalized mental health care, aiming to help individuals lead healthier and more fulfilling lives [4]. Presentation Details - The presentation will be led by CEO Dave Bourdon and CFO Ryan McGroarty, moderated by Craig Hettenbach, and will take place at 10:00 a.m. Eastern time [2]. - The event will be webcast live and available for replay on the LifeStance Health Investor Relations website [2][3].

Core Insights - LifeStance Health has appointed Sarah Personette to its board of directors, effective immediately, while William Miller will step down after five years of service [1][2][3] Company Overview - LifeStance Health, founded in 2017, is one of the largest providers of outpatient mental health care in the U.S., offering both virtual and in-person services [3] - The company employs approximately 7,700 mental health professionals and operates over 550 centers across 33 states [3] Leadership Changes - Sarah Personette brings over 20 years of experience in customer experience and media, having held significant roles at Puck, X (formerly Twitter), and Refinery29 [2] - The CEO of LifeStance, Dave Bourdon, expressed confidence in Personette's ability to enhance patient-centered care [2][3] - William Miller's contributions during his tenure were acknowledged by the board, highlighting his role in advancing the organization's mission [3]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) LifeStance reported **$678.3 million** in revenue for H1 2025, an **11% increase**, significantly narrowing its net loss to **$3.1 million** from **$44.4 million**, while operating cash flow improved to **$61.3 million** [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$2.15 billion** as of June 30, 2025, driven by a **$34.4 million** rise in cash, while liabilities remained stable and equity grew to **$1.47 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $188,929 | $154,571 | | Total current assets | $358,849 | $312,510 | | Goodwill | $1,293,346 | $1,293,346 | | Total assets | $2,146,804 | $2,118,298 | | **Liabilities & Equity** | | | | Total current liabilities | $242,285 | $228,886 | | Long-term debt, net | $272,856 | $279,790 | | Total liabilities | $672,883 | $672,013 | | Total stockholders' equity | $1,473,921 | $1,446,285 | [Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Q2 2025 revenue grew **11%** to **$345.3 million**, with loss from operations significantly narrowed to **$3.0 million** and net loss reduced to **$3.8 million**, or **($0.01) per share** Q2 and H1 2025 vs 2024 Performance (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $345,311 | $312,331 | $678,281 | $612,768 | | Loss from Operations | $(2,950) | $(15,947) | $(1,346) | $(32,719) | | Net Loss | $(3,791) | $(23,277) | $(3,082) | $(44,374) | | Diluted Loss Per Share | $(0.01) | $(0.06) | $(0.01) | $(0.12) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to **$61.3 million** for H1 2025, with **$14.9 million** used in investing and **$12.0 million** in financing, resulting in a **$34.4 million** increase in cash Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $61,304 | $22,222 | | Net cash used in investing activities | $(14,923) | $(10,214) | | Net cash used in financing activities | $(12,023) | $(3,863) | | **Net increase in cash and cash equivalents** | **$34,358** | **$8,145** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue composition, and debt structure, highlighting **90%** revenue from commercial payors, **$1.29 billion** in goodwill, and **$286.4 million** in outstanding debt - The company operates as a **single reportable segment**: mental health services[32](index=32&type=chunk) Revenue by Payor Mix (Six Months Ended June 30) | Payor | 2025 % of Revenue | 2024 % of Revenue | | :--- | :--- | :--- | | Commercial | 90% | 91% | | Government | 5% | 5% | | Self-pay | 4% | 3% | - As of June 30, 2025, Goodwill remained unchanged from year-end 2024 at **$1.293 billion**[49](index=49&type=chunk) - The company entered into a new credit agreement in December 2024, consisting of a **$290 million** term loan and a **$100 million** revolving facility. The company was **in compliance with all debt covenants** as of June 30, 2025[56](index=56&type=chunk)[57](index=57&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes **11%** H1 2025 revenue growth to increased patient visits from clinician hiring, with Center Margin improving to **$218.2 million** and Adjusted EBITDA to **$68.7 million**, ensuring sufficient liquidity - The company's growth strategy is centered on expanding its clinician base, increasing patient visits, opening de novo centers, and leveraging relationships with payors and physicians[87](index=87&type=chunk)[93](index=93&type=chunk)[98](index=98&type=chunk) - As of June 30, 2025, the company employed **7,708 licensed mental health clinicians**, who conducted **2.2 million patient visits** in Q2 2025[88](index=88&type=chunk)[91](index=91&type=chunk) Key Metrics and Non-GAAP Measures (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $678,281 | $612,768 | | Loss from operations | $(1,346) | $(32,719) | | Center Margin | $218,222 | $192,532 | | Adjusted EBITDA | $68,651 | $56,256 | - Revenue growth of **11%** for H1 2025 was primarily driven by an **11%** increase in patient visits resulting from a net increase of **748 clinicians**. This was partially offset by a decrease in Total Revenue Per Visit (TRPV) due to a single payor rate decrease[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk on variable-rate debt through an interest rate swap, deeming a **100 basis point** change immaterial to financial results - The company utilizes an interest rate swap to hedge its exposure to interest rate risk on its variable-rate debt, effectively fixing the rate on a notional value of **$183.8 million** as of June 30, 2025[144](index=144&type=chunk)[52](index=52&type=chunk) - Management does not believe that a **100 basis point** increase or decrease in interest rates would materially affect the company's financial condition or results of operations[145](index=145&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were **not effective** as of June 30, 2025, due to **material weaknesses** in accounting and IT resources, with remediation efforts ongoing but not yet fully resolved - Due to ongoing **material weaknesses** in internal control over financial reporting, the CEO and CFO concluded that disclosure controls and procedures were **not effective** as of June 30, 2025[147](index=147&type=chunk) - The **material weaknesses** stem from an **insufficient complement of resources** in accounting/finance and IT, leading to deficiencies in accounting policies, procedures, and IT general controls (e.g., change management, user access)[148](index=148&type=chunk) - Remediation actions during the quarter included enhancing controls over prepaid expenses and improving user access controls for financial applications. However, the **material weaknesses** will not be considered fully remediated until the new controls operate effectively for a sufficient period[149](index=149&type=chunk)[151](index=151&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 11, 'Commitments and Contingencies,' for details on legal proceedings, which discusses general contingencies - For details on legal proceedings, the company refers to Note 11, "Commitments and Contingencies," in the financial statements[157](index=157&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) **No material changes** to risk factors were reported since the filing of the Annual Report on Form 10-K for the year ended December 31, 2024 - **No material changes** to risk factors were reported since the filing of the Annual Report on Form 10-K for the year ended December 31, 2024[158](index=158&type=chunk) [Other Items (2, 3, 4, 5, 6)](index=41&type=section&id=Other%20Items%20(2%2C%203%2C%204%2C%205%2C%206)) This section covers standard disclosures, including no unregistered sales of equity securities, no defaults on senior securities, and no Rule 10b5-1 trading plan changes by directors or officers - The company reported no unregistered sales of equity securities or defaults on senior securities during the period[159](index=159&type=chunk)[160](index=160&type=chunk) - No directors or officers entered into, modified, or terminated a Rule 10b5-1 trading plan during the fiscal quarter ended June 30, 2025[162](index=162&type=chunk)

Financial Data and Key Metrics Changes - Revenue grew 11% year over year to $345 million, driven by better-than-expected clinician productivity and total revenue per visit [13] - Adjusted EBITDA increased 19% year over year to $34 million, with adjusted EBITDA margin at 9.8% [15] - Free cash flow reached $57 million, the highest in the company's history, with a solid cash position of $189 million [16] Business Line Data and Key Metrics Changes - The clinician base increased by 173 clinicians this quarter, totaling 7,780 clinicians, an 11% year-over-year increase [14] - Visit volumes rose 12% year over year to 2.2 million, primarily driven by clinician growth [13] Market Data and Key Metrics Changes - The company expects to achieve mid-teens revenue growth in 2026, supported by increasing demand for mental health services [12] - The company anticipates a low to mid single-digit rate improvement and continued organic growth of the clinician base [12] Company Strategy and Development Direction - The company is focused on expanding access to high-quality and affordable mental healthcare, leveraging both in-person and virtual care [6] - Investments in technology, including AI and digital solutions, are aimed at improving operational efficiency and clinician satisfaction [10][11] - The company is exploring M&A opportunities for geographic expansion, particularly in new markets [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic healthcare environment and achieving double-digit margins for the full year [6][18] - The company is optimistic about the future, expecting to benefit from industry tailwinds and increasing demand for mental health services [20] Other Important Information - The company has implemented a patient engagement platform to improve acquisition and retention [8] - A new Chief Technology Officer has been appointed to lead digital transformation initiatives [11] Q&A Session Summary Question: Confidence level for Q4 ramp and productivity improvements - Management expressed strong confidence in revenue growth for the second half of the year, expecting approximately $60 million of revenue growth driven by visit volume and rate increases [26] Question: Clinician adds and retention dynamics - Management noted stable retention and strong recruiting, validating the company's value proposition in a competitive environment [30] Question: Updates on managed care contracting and cash pay shift - Management highlighted a trend of patients shifting from cash pay to insurance, which is expected to benefit the company [34] Question: Sustainability of volume growth and productivity initiatives - Management detailed that productivity initiatives are expected to contribute significantly to volume growth, with a focus on filling clinician schedules [41] Question: Free cash flow outlook - Management indicated that while Q3 cash flow may decrease due to various factors, the overall trajectory for free cash flow remains positive [48] Question: Impact of AI tools and EHR initiative - Management stated that AI tools are being implemented to improve efficiency and clinician experience, with ongoing evaluation of EHR solutions [98]

Financial Performance - Q2 2025 revenue reached $345.3 million, an 11% year-over-year increase[9] - Q2 2025 Center Margin was $108.4 million, representing 31.4% of revenue[9] - Q2 2025 Adjusted EBITDA was $34.0 million, or 9.8% of revenue[9] - The company ended Q2 2025 with a cash position of $188.9 million[9] - Full year 2025 revenue guidance is reaffirmed at $1.40 billion - $1.44 billion[19] - Full year 2025 Adjusted EBITDA guidance is raised to $140 million - $150 million[19] Operational Metrics - Total clinicians reached 7,708, an 11% year-over-year growth, with 173 net clinician additions in Q2[9, 8] - Q2 2025 visit volumes increased by 12% year-over-year to 2.2 million[9] - The company operates over 550 centers in 33 states[8] Balance Sheet and Capital Allocation - Cash and cash equivalents totaled $189 million[17] - Net long-term debt is $273 million[17]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) LifeStance reported strong Q2 2025 results with 11% revenue growth to $345.3 million, significantly improving profitability and achieving record free cash flow Q2 2025 Financial Highlights (vs. Q2 2024) | Financial Metric | Q2 2025 | Q2 2024 | Y/Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | $345.3M | $312.3M | +11% | | Loss from Operations | ($3.0M) | ($15.9M) | -81% | | Net Loss | ($3.8M) | ($23.3M) | -84% | | Center Margin | $108.4M | $97.8M | +11% | | Adjusted EBITDA | $34.0M | $28.6M | +19% | | Adjusted EBITDA Margin | 9.8% | 9.2% | +60 bps | - Operational growth was driven by an **11% increase in the clinician base**, which grew by a net of **173 clinicians** sequentially to a total of **7,708**, leading to a **12% increase in visit volumes**, reaching **2.2 million** for the quarter[3](index=3&type=chunk) - The company generated exceptionally strong Free Cash Flow of **$56.6 million**, the highest in any quarter to date, with net cash provided by operations at **$64.4 million**[2](index=2&type=chunk)[3](index=3&type=chunk) - As of June 30, 2025, the company held **$188.9 million in cash** and had net long-term debt of **$272.9 million**[5](index=5&type=chunk) [2025 Financial Guidance](index=1&type=section&id=2025%20Financial%20Guidance) LifeStance reiterated full-year 2025 revenue guidance while raising profitability outlooks for Center Margin and Adjusted EBITDA, also providing Q3 2025 projections Full Year 2025 Guidance (Raised) | Metric | Previous Guidance | Updated Guidance | | :--- | :--- | :--- | | Total Revenue | $1.40 billion - $1.44 billion | $1.40 billion - $1.44 billion (Reiterated) | | Center Margin | Not specified | $441 million - $465 million (Raised) | | Adjusted EBITDA | Not specified | $140 million - $150 million (Raised by $5 million at midpoint) | Third Quarter 2025 Guidance | Metric | Q3 2025 Outlook | | :--- | :--- | | Total Revenue | $345 million - $365 million | | Center Margin | $105 million - $119 million | | Adjusted EBITDA | $33 million - $39 million | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's financial position, showing total assets of $2.15 billion, reduced net loss, and increased operational cash flow [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, LifeStance's balance sheet reported total assets of $2.15 billion, with cash increasing to $188.9 million and stable total liabilities Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $188,929 | $154,571 | | Total current assets | $358,849 | $312,510 | | Total assets | $2,146,804 | $2,118,298 | | Long-term debt, net | $272,856 | $279,790 | | Total liabilities | $672,883 | $672,013 | | Total stockholders' equity | $1,473,921 | $1,446,285 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue grew 11% to $345.3 million, significantly narrowing loss from operations to $3.0 million and improving net loss by 84% to $3.8 million Q2 Statement of Operations Highlights (in thousands, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenue | $345,311 | $312,331 | | Loss from Operations | $(2,950) | $(15,947) | | Net Loss | $(3,791) | $(23,277) | | Loss Per Share (Basic & Diluted) | $(0.01) | $(0.06) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash from operating activities increased nearly threefold to $61.3 million, resulting in a $34.4 million net increase in cash Cash Flow Summary (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $61,304 | $22,222 | | Net cash used in investing activities | $(14,923) | $(10,214) | | Net cash used in financing activities | $(12,023) | $(3,863) | | Net increase in cash | $34,358 | $8,145 | [Non-GAAP Financial Measures & Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section provides reconciliations for key non-GAAP metrics, Center Margin and Adjusted EBITDA, detailing adjustments to their most directly comparable GAAP measures [Reconciliation of Loss from Operations to Center Margin](index=8&type=section&id=Reconciliation%20of%20Loss%20from%20Operations%20to%20Center%20Margin) Q2 2025 Center Margin increased 11% to $108.4 million, derived by adjusting GAAP Loss from Operations for depreciation, amortization, and general and administrative expenses Center Margin Reconciliation - Q2 2025 (in thousands) | Line Item | Amount | | :--- | :--- | | Loss from operations | $(2,950) | | Add: Depreciation and amortization | $14,006 | | Add: General and administrative expenses | $97,375 | | **Center Margin** | **$108,431** | [Reconciliation of Net Loss to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 increased 19% to $34.0 million, reconciled from net loss by adding back stock-based compensation, depreciation, amortization, interest, taxes, and other adjustments Adjusted EBITDA Reconciliation - Q2 2025 (in thousands) | Line Item | Amount | | :--- | :--- | | Net loss | $(3,791) | | Add: Interest expense, net | $2,900 | | Add: Depreciation and amortization | $14,006 | | Add: Income tax benefit | $(2,151) | | Add: Stock-based compensation expense | $21,116 | | Add: Other adjustments | $1,925 | | **Adjusted EBITDA** | **$34,005** |