Core Viewpoint - LifeStance Health Group (LFST) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for LifeStance Health indicates an expected earnings per share (EPS) of -$0.20 for the fiscal year ending December 2024, reflecting a 60.8% change from the previous year's reported number [8]. - Over the past three months, the Zacks Consensus Estimate for LifeStance Health has increased by 6.7%, indicating a positive trend in earnings estimates [8]. Impact of Institutional Investors - Changes in a company's future earnings potential, as shown through earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [4][5]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - LifeStance Health's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Points - Lifeist Wellness Inc. has announced a reorganization of its Board of Directors to enhance corporate governance and strengthen leadership structure [1][4] - Meni Morim has been appointed as Chairman of the Board, continuing to provide strategic guidance to the executive team and Board [2][4] - Branden Spikes transitions to Lead Independent Director, ensuring effective leadership of the Board and overseeing corporate governance and strategic initiatives [3][4] Governance and Compensation - The appointments reflect Lifeist's commitment to a strong governance framework, focusing on growth in its health and wellness portfolio [4] - The Board's Compensation Committee has initiated a review of board compensation to align with the Company's evolving structure and strategic direction [4] Consulting Agreement - Lifeist has reported the issuance of 747,305 common shares and purchase warrants to Singular Narrative Management Ltd. as payment for consulting services, with a monthly fee of $20,000 for services provided [5]

Core Viewpoint - Lifeist Wellness Inc. has appointed Andrea Judge as the new Chief Executive Officer, effective immediately, to lead the company into its next growth phase [1][3]. Company Leadership - Andrea Judge, previously CEO of Mikra Cellular Sciences Inc., has a strong background in sales, marketing, and executive management, making her well-suited for the role [2][3]. - The Board of Directors expressed gratitude to outgoing CEO Meni Morim for his contributions over the past five years, during which the company navigated significant challenges and repositioned itself in the health and wellness sector [3][4]. Strategic Focus - Under Andrea Judge's leadership, Lifeist aims to capitalize on growth momentum from Mikra, focusing on new marketing initiatives and expanding its health and wellness portfolio [3][4]. - The company reaffirms its commitment to the health-tech space and plans to leverage its expertise to develop innovative, science-backed products that meet evolving consumer needs [3][4]. Company Background - Lifeist Wellness Inc. is positioned at the forefront of the post-pandemic wellness revolution, utilizing advancements in science and technology to create innovative products that support human wellness [5].

Company Overview - Zarminali Health is the first outpatient pediatric destination purpose-built to provide modern, seamlessly coordinated primary and specialty care nationwide [1] - The company announced $40M in seed financing led by General Catalyst, including a venture debt facility, to fuel its go-to-market vision and support the opening of initial locations in fall 2024 and beyond [1] - Zarminali Health aims to streamline care journeys for families, improve health outcomes for children, and enable pediatric clinicians to focus on delivering quality care [3] - The company was founded by Danish Qureshi, co-founder and former President and COO of LifeStance Health, inspired by his personal experiences coordinating care for a child with an autoimmune disorder [3] - Zarminali Health's early team includes experienced professionals from other scaled national healthcare startups such as VillageMD, and its first independent board member is Brandon Kerns, with relevant experience from Landmark Health, Carebridge, and Main Street Health [4] Industry Context - The current pediatric care system is highly fragmented, with a disconnect between primary care providers, specialists, and ancillary services, placing the burden of navigating the healthcare system on families [2] - Pediatricians are overburdened with high caseloads and unsustainable administrative tasks, while clinical teams are under-supported with manual processes and outdated technology [2] - Pediatric specialists remain siloed from primary care teams, exacerbating clinician burnout and hindering access to timely care for children [2] Strategic Vision - Zarminali Health is designed to address the flaws of the current healthcare system by creating a world where every child's health journey is seamlessly coordinated, advanced technology enhances every interaction, and clinicians support families every step of the way [4] - The company is building the nation's leading pediatric multispecialty group, focused on transforming the way pediatric care is delivered nationwide through intentional design of care delivery, enhanced by leading technology and collaborative, expert care teams [5] - Zarminali Health aims to lead the way towards a healthier future for pediatric patients and a happier future for pediatric clinicians nationwide [5]

Workforce and Patient Care - As of September 30, 2024, LifeStance Health Group employed 7,269 licensed mental health clinicians, contributing to its position as one of the largest outpatient mental health platforms in the U.S.[62] - In the three months ended September 30, 2024, LifeStance clinicians treated patients through 2.0 million visits, while in the nine months ended September 30, 2024, the total visits reached 5.9 million[64] - LifeStance aims to expand its clinician base from the current 7,269, leveraging a national clinician recruiting model to enhance patient visit capacity and improve access to care[63] - The company has implemented a de novo center strategy to increase its presence in existing markets, focusing on sustainable designs for new centers to enhance patient and clinician experiences[67] - LifeStance's patient referral network with primary care and specialist physicians is designed to streamline care and improve health outcomes, driving patient growth across its platform[65] Financial Performance - Total revenue for the three months ended September 30, 2024, was $312,722,000, representing a 19% increase from $262,895,000 in the same period of 2023[72] - Adjusted EBITDA for the three months ended September 30, 2024, was $30,713,000, compared to $14,582,000 in 2023, indicating a significant improvement[76] - Net loss for the three months ended September 30, 2024, was $(5,957,000), a reduction from $(61,583,000) in the same period of 2023[79] - General and administrative expenses decreased to $85,269,000 for the three months ended September 30, 2024, down from $130,945,000 in 2023[73] - Total operating expenses for the three months ended September 30, 2024, were $312,675,000, down from $337,252,000 in 2023[79] - The company reported an income from operations of $47,000 for the three months ended September 30, 2024, compared to a loss of $(74,357,000) in 2023[79] Cost Management and Efficiency - LifeStance's Center Margin, which reflects the direct costs of delivering care, is a key performance metric, excluding general and administrative expenses and depreciation[70] - The company has strategically reduced its physical space by closing underoccupied offices in response to a shift towards more virtual visits, optimizing its real estate footprint[69] - Operating expenses, excluding depreciation and amortization, rose by $25.6 million, or 14%, to $212.3 million for Q3 2024, primarily due to a $24.0 million increase in center-based compensation[82] - General and administrative expenses decreased by $45.6 million, or 35%, to $85.3 million for Q3 2024, mainly due to a reduction in professional fees related to a shareholder class action lawsuit[83] Strategic Initiatives and Future Outlook - The company is pursuing acquisitions in the fragmented mental health market to enhance its geographic reach and clinician base, thereby expanding patient access[68] - The company is focusing on strategic initiatives related to system upgrades and real estate optimization, which are expected to impact future performance positively[77] - The company expects revenue growth to continue driven by in-house clinician recruiting and the ability to accommodate virtual sessions[81] Cash Flow and Debt Management - Cash and cash equivalents increased to $102.6 million as of September 30, 2024, up from $78.8 million at the end of 2023[85] - Net cash provided by operating activities was $44.9 million for the nine months ended September 30, 2024, compared to a cash usage of $33.7 million in the same period of 2023[87] - Total principal amount outstanding under the 2022 Credit Agreement was $287.3 million as of September 30, 2024[86] - Future obligations primarily consist of debt and lease obligations, with non-cancellable future minimum operating lease payments totaling $243.8 million[86] - The company manages interest expense using a combination of variable-rate debt and a fixed-interest-rate swap[92] Interest Rate and Inflation Impact - In August 2022, the company entered into an interest rate swap to hedge exposure to interest rate risks, aiming to eliminate variability in cash flows related to Secured Overnight Financing Rate interest payments[92] - The company does not anticipate that a 100 basis point change in interest rates would materially affect its business or financial condition[92] - The company believes that inflation has not had a material effect on its operating results based on historical analysis[93] - There is no assurance that future inflation will not adversely impact the company's operating results and financial condition[93]

Core Viewpoint - LifeStance Health Group (LFST) reported a quarterly loss of $0.02 per share, outperforming the Zacks Consensus Estimate of a loss of $0.07, and showing improvement from a loss of $0.17 per share a year ago [1] Financial Performance - The company achieved revenues of $312.72 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 3.72% and up from $262.9 million in the same quarter last year [2] - Over the last four quarters, LifeStance Health has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - LifeStance Health shares have declined approximately 8.9% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $308.84 million, and -$0.25 on revenues of $1.22 billion for the current fiscal year [7] - The estimate revisions trend for LifeStance Health is mixed, which may change following the recent earnings report [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which LifeStance Health belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

SCOTTSDALE, Ariz., Nov. 07, 2024 (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 third quarter ended September 30, 2024. (All results compared to prior-year comparative period, unless otherwise noted)Q3 2024 Highlights and FY 2024 Outlook Revenue of $312.7 million increased 19% compared to revenue of $262.9 millionClinician base increased 13% to 7,269 clinicians, a sequential ne ...

Core Viewpoint - Lifeist Wellness Inc. reported a significant decline in net revenue and gross profit for Q3 2024 compared to Q3 2023, while also focusing on strategic growth in its core nutraceutical business following the sale of CannMart [1][3][4]. Financial Performance - Net revenue from continued operations was $2.1 million in Q3 2024, down from $4.8 million in Q3 2023 [2][4]. - Gross profit before inventory adjustment was $0.9 million in Q3 2024, with a gross margin of 43%, compared to $3.1 million and a gross margin of 65% in Q3 2023 [2][4]. - Total expenses decreased by $1.4 million to $1.8 million in Q3 2024, reflecting cost control measures across various categories [5]. - Adjusted EBITDA loss was $0.6 million in Q3 2024, compared to a loss of $0.3 million in Q3 2023 [6]. Cash Flow and Balance Sheet - Cash and cash equivalents decreased to $1.0 million at the end of Q3 2024, down from $1.5 million at the end of fiscal 2023 [7]. - Inventories were reported at $1.4 million at August 31, 2024, compared to $4.5 million at November 30, 2023 [7]. - Net cash used in operations was $0.3 million in Q3 2024, significantly lower than $3.0 million in Q3 2023 [7]. Strategic Developments - The company completed the sale of CannMart in September 2024, which included a cash payment of $500,000 and the issuance of 2,000,000 units of securities [8][9]. - The CEO emphasized a renewed focus on delivering science-based nutraceuticals and taking strategic steps to accelerate growth and optimize operations [3].

SCOTTSDALE, Ariz., Oct. 17, 2024 (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 2024 earnings release before the market opens on Thursday, November 7, 2024. LifeStance will host a live earnings conference call to discuss third quarter results on November 7, 2024, 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 ...

Election stress is contributing to an increase in anxiety and strained relationships, reinforcing the importance of accessible mental healthcare SCOTTSDALE, Ariz., Oct. 8, 2024 /PRNewswire/ -- A LifeStance Health survey released today reveals how widespread election-related anxiety is impacting Americans' mental health, straining their personal relationships and prompting many to limit social media exposure. Nearly four out of five (79%) respondents said the upcoming U.S. presidential election has caused th ...