Question-and-Answer SessionGreat. I think investors are familiar with the company at this point, but still would be great to just have kind of a refresher in terms of LifeStance? And most importantly, how the company kind of differentiates in what kind of a crowded kind of mental health field.David BourdonCEO & Director Yes. It's crowded but highly fragmented mental health space. And we're the leader in outpatient mental health and that leadership for the uniqueness comes from a combination of the first, I' ...

Question-and-Answer SessionGreat. I think investors are familiar with the company at this point, but still would be great to just have kind of a refresher in terms of LifeStance? And most importantly, how the company kind of differentiates in what kind of a crowded kind of mental health field.David BourdonCEO & Director Yes. It's crowded but highly fragmented mental health space. And we're the leader in outpatient mental health and that leadership for the uniqueness comes from a combination of the first, I' ...

Lifestance Health Group (NasdaqGS:LFST) FY Conference September 09, 2025 10:00 AM ET Company ParticipantsRyan McGroarty - COOCraig Hettenbach - Executive DirectorCraig HettenbachHey, good morning everyone. Thanks for being here at the second day of the conference. I'm Craig Hettenbach. I cover the health tech and provider space at Morgan Stanley. I'm very pleased to have with us LifeStance this morning. Just before we get started, just from a disclosure perspective, you can see the disclosures at www.morgan ...

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].

Personette brings to LifeStance more than 20 years of experience delivering exceptional customer experiences for some of the world's most influential brands. Currently, she serves as the CEO of Puck, a journalist-owned media platform. Previously, she served as Chief Customer Officer at the social platform X (formerly known as Twitter), overseeing global revenue, customer relationships and business operations. Prior to X, Personette was the Chief Operating Officer of Refinery29, where she oversaw the company ...

[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** |

"People are prioritizing their mental health like never before, but economic challenges — from increased grocery bills to housing costs — are making it harder for many to get the care they need," said Dr. Rachel Dalthorp, Executive Medical Director, LifeStance Health. "As demand for mental health care continues to grow, our health care system must rise to meet that need by improving access to high-quality, affordable mental health care." Key findings include: 1. Most Americans are experiencing financial str ...