UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40478 LifeStance Health Group, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 86-1832801 (State or other ju ...

Lifestance Health Group (LFST) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Monica Prokocki - Vice President, Investor RelationsDavid Bourdon - CEORyan McGroarty - CFOCraig Hettenbach - Executive DirectorRyan Daniels - Group Head–Healthcare Technology and ServicesRichard Close - Managing DirectorSteve Dechert - AVP Conference Call Participants Jamie Perse - Equity Research AnalystBrian Tanquilut - Equity Research Analyst - Healthcare Services Operator Good day everyone and thank you f ...

Financial Data and Key Metrics Changes - The company reported revenue of $333 million, representing an 11% year-over-year growth driven by better-than-expected clinician productivity and total revenue per visit [18][21] - Adjusted EBITDA was $35 million, increasing 25% year-over-year, with adjusted EBITDA margins at 10.4%, marking the second consecutive quarter of double-digit margins [21][22] - The company achieved positive net income of $700,000 for the first quarter, the first positive net income in its history as a public company [22] Business Line Data and Key Metrics Changes - The clinician base grew by 152 clinicians or 10% year-over-year, totaling 7,535 clinicians [18][21] - Total revenue per visit increased by 1% year-over-year to $159, primarily due to modest payer rate increases [20] - Center margin increased by 16% year-over-year to $110 million, representing 33% of revenue [21] Market Data and Key Metrics Changes - The company noted that 71% of visits were virtual, stable from the previous quarter but lower than the same quarter last year [63] - The company has contracts with nearly all major payers in the country, with limited exposure to exchange and managed Medicaid, accounting for about 5% to 10% of total revenue [57] Company Strategy and Development Direction - The company aims to enhance its position in outpatient mental healthcare, focusing on increasing demand for mental health services and transitioning from cash pay to insurance [9][10] - The company is implementing a cash bonus incentive program for clinicians based on quality and productivity, replacing the previous stock-based incentive program [12][26] - The company is expanding specialty services, particularly in neuropsych testing and treatment-resistant depression, expecting this segment to grow at a higher rate than the core business [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience to economic cycles, suggesting that economic uncertainty could increase demand for mental healthcare services [8][9] - The company maintains its full-year guidance for revenue between $1.4 billion and $1.44 billion, with expectations for continued growth in visit volumes [24][25] - Management acknowledged the potential impact of a recession but emphasized the flexibility of their insurance-based model to navigate economic challenges [40] Other Important Information - The company has made progress in operational execution, including the rollout of a digital patient check-in tool that has improved patient satisfaction and collections [13][51] - The company is evaluating options for enhancing its electronic health record (EHR) capabilities, with a focus on improving clinician and patient experiences [48] Q&A Session Summary Question: Can you discuss clinician recruitment and retention? - Management noted that the environment remains competitive for attracting and retaining clinicians, but the company's value proposition continues to resonate, leading to stable turnover and retention rates [31][32] Question: What are the expectations for total revenue per visit? - Management expects total revenue per visit to be sequentially lower in Q2 due to a rate decrease from a single outlier payer, but anticipates growth in the back half of the year driven by rate increases from other payers [34][35] Question: How does the company plan to navigate a potential recession? - Management indicated that the company's hybrid model allows for flexibility in responding to economic changes, potentially increasing demand for services during economic downturns [40] Question: What are the drivers behind the center cost leverage? - Management explained that while center costs are expected to increase due to clinician compensation timing, they anticipate continued operating leverage and improvements in center margins in the future [42][44] Question: Can you provide an update on the EHR rollout? - Management stated that it is early in the EHR discovery process, focusing on improving clinician and patient experiences, but specific costs and timelines are not yet available [48] Question: How will changes in stock compensation affect retention and recruitment? - Management emphasized that the shift to a cash-based incentive program was driven by clinician feedback, aiming to better align with their preferences for quality and access [54] Question: What is the company's exposure to exchange plans? - Management confirmed that they have contracts with major payers, including exchange plans, but currently have limited exposure to them, accounting for about 5% to 10% of total revenue [57] Question: How is the company rolling out specialty services? - Management expressed excitement about expanding specialty services, particularly in neuropsych testing and treatment-resistant depression, expecting this segment to grow significantly [60]

Group 1: Earnings Performance - LifeStance Health Group (LFST) reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.04, and improved from a loss of $0.06 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $332.97 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.08%, compared to year-ago revenues of $300.44 million [2] - Over the last four quarters, LifeStance Health has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - LifeStance Health shares have declined approximately 11.1% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.03 on revenues of $351.71 million, and -$0.10 on revenues of $1.42 billion for the current fiscal year [7] Group 3: Industry Context - The Medical - Outpatient and Home Healthcare industry, to which LifeStance Health belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The favorable estimate revisions trend for LifeStance Health has resulted in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]

Reimagining Mental Health Q1 2025 Earnings Presentation • May 7, 2025 Forward-Looking Statements DISCLAIMERS Cautionary Note Regarding Forward-Looking Statements This presentation and related oral statements, including during any question and answer portion of the presentation, contain forward-looking statements about LifeStance Health Group, Inc. and its subsidiaries ("LifeStance") and the industry in which LifeStance operates, including statements regarding: full-year and second quarter guidance and manag ...

SCOTTSDALE, Ariz., May 07, 2025 (GLOBE NEWSWIRE) -- LifeStance Health Group, Inc. (Nasdaq: LFST), one of the nation’s largest providers of outpatient mental healthcare, today announced financial results for the first quarter ended March 31, 2025. (All results compared to prior-year comparative period, unless otherwise noted)Q1 2025 Highlights and FY 2025 Outlook Revenue of $333.0 million increased 11% compared to revenue of $300.4 millionClinician base increased 10% to 7,535 clinicians, a sequential net inc ...

Investor Relations Contact "We delivered a solid quarter to kick off 2025, thanks to the commitment and dedication of our employees, including over 7,500 clinicians," said Dave Bourdon, CEO of LifeStance. "We exceeded our financial expectations with double-digit margins as well as positive net income in the quarter for the first time in our history as a public company. We look forward to continuing to enhance the patient and clinician experience at LifeStance while delivering on our mission of expanding acc ...

LifeStance Health Group (LFST) closed the last trading session at $6.80, gaining 2.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $8.75 indicates a 28.7% upside potential.The average comprises eight short-term price targets ranging from a low of $7 to a high of $10, with a standard deviation of $1.07. While the lowest estimate indicates an increase of 2.9% from the current pric ...

Group 1 - The core thesis for LifeStance Health Group (NASDAQ: LFST) is based on the growing demand in the industry, which the company is positioned to capitalize on [1] - The investment approach emphasizes identifying undervalued companies with long-term growth potential, focusing on quality companies purchased at a discount to their intrinsic value [1] Group 2 - The article does not provide any specific financial data or performance metrics related to LifeStance Health Group or the industry [2][3]

Core Viewpoint - LifeStance Health Group, Inc. is set to release its first quarter 2025 earnings on May 7, 2025, before market opening, highlighting its position as a major player in outpatient mental health care [1]. Group 1: Earnings Release Information - LifeStance will host a live earnings conference call on May 7, 2025, at 8:30 a.m. Eastern Time to discuss the first quarter results [2]. - Participants can join the call by dialing specific domestic and international numbers and using a conference ID [2]. - A real-time audio webcast will be available on the LifeStance Investor Relations website, with related materials posted prior to the call [3]. Group 2: Company Overview - Founded in 2017, LifeStance is one of the largest providers of virtual and in-person outpatient mental health care in the U.S. [4]. - The company employs approximately 7,400 mental health professionals and operates over 550 centers across 33 states [4]. - LifeStance aims to improve access to affordable and personalized mental health care, helping individuals lead healthier lives [4].