Core Viewpoint - Lifevantage (LFVN) reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.22 per share, representing a -31.82% earnings surprise [1] - The company also posted revenues of $48.93 million for the quarter, missing the Zacks Consensus Estimate by 10.62% and down from $67.76 million a year ago [2] Company Performance - Over the last four quarters, Lifevantage has surpassed consensus EPS estimates only once [2] - The stock has underperformed, losing about 13% since the beginning of the year compared to the S&P 500's gain of 1.1% [3] Future Outlook - The company's earnings outlook will be crucial for investors, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.34 on revenues of $61.69 million, and for the current fiscal year, it is $1.06 on revenues of $226.02 million [7] Industry Context - Lifevantage belongs to the Zacks Medical - Dental Supplies industry, which is currently in the top 40% of over 250 Zacks industries [8] - The performance of Lifevantage's stock may be influenced by the overall outlook for the industry [8]

Core Insights - The company faced challenges in Q2 2026, with significant revenue and earnings declines compared to the previous year, primarily due to increased competition in the GLP-1 market following the launch of the MINDBODY system [1][4][13] - Despite these challenges, the company is optimistic about long-term growth, particularly through the integration of the LoveBiome acquisition and the launch of new products [6][10][11] Financial Performance - Q2 2026 net revenue was $48.9 million, down 27.8% from $67.8 million in Q2 2025, but up 2.9% sequentially from Q1 2026 [13][14] - Sales of the MINDBODY GLP-1 system decreased by $16.2 million compared to the prior year, while the LoveBiome product line contributed $4.1 million in revenue [13][14] - Gross profit percentage for Q2 was 74%, down from 80.5% in the prior year, primarily due to a one-time inventory reserve related to MINDBODY [15][18] Market Dynamics - The competitive landscape for GLP-1 products has shifted, with pharmaceutical options becoming more accessible and affordable, impacting the sales of the MINDBODY system [5][6] - The company is recognizing a reserve against a portion of its GLP-1 inventory to respond to these changing dynamics [6][18] Product Development and Launches - The integration of LoveBiome has led to operational synergies and the launch of new products, including Axila X and Phytopower B, which are expected to drive engagement and diversify the product portfolio [7][8][10] - The company is also focusing on the HealthyEdge stack, which combines Protandim NRS-2 with P84, as a key enrollment product for consultants [9][40] Strategic Initiatives - The company is modernizing its technology infrastructure through a partnership with Shopify, aiming to enhance e-commerce capabilities and improve customer experience [9][46][47] - A new $60 million share repurchase program has been authorized, reflecting the company's commitment to returning capital to shareholders [11][20] Future Outlook - The company expects revenue for fiscal 2026 to be in the range of $185 million to $200 million, with adjusted EBITDA of $15 million to $19 million [20][21] - The anticipated growth is supported by the positive momentum from the LoveBiome integration and upcoming product launches [21][54]

Financial Data and Key Metrics Changes - For Q2 of fiscal 2026, net revenue was $48.9 million, down 27.8% from $67.8 million in Q2 of fiscal 2025, but up 2.9% sequentially from Q1 [14] - The decline was primarily driven by a $16.2 million decrease in sales of the MindBody GLP-1 System, partially offset by $4.1 million in revenue from the LoveBiome product line [14] - Gross profit percentage decreased to 74% from 80.5% in the prior year, reflecting a one-time inventory obsolescence allowance [15] - GAAP net income was $0.3 million, or $0.02 per diluted share, compared to $2.6 million, or $0.19 per diluted share in the prior year [17] Business Line Data and Key Metrics Changes - Sales of the MindBody GLP-1 System significantly declined due to increased competition from pharmaceutical options, which are now more accessible and affordable [5][6] - The LoveBiome acquisition contributed $4.1 million in revenue, with two new products launched that are expected to drive engagement and growth [8][9] Market Data and Key Metrics Changes - Revenue in the Americas decreased 32.6% to $38.5 million, while revenue in Asia-Pacific and Europe decreased 2.1% to $10.4 million [15] - The Americas decline was attributed to a 25.2% decrease in total active accounts, primarily from the customer base [15] Company Strategy and Development Direction - The company is focused on stabilizing the GLP-1 business and exploring cost reduction opportunities to maintain profitability [7] - Continued integration of LoveBiome is expected to enhance product diversification and market growth [8] - The company is optimistic about its comprehensive wellness ecosystem, which includes various health products [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q2 performance did not meet expectations but remains confident in long-term growth potential [4] - The company anticipates revenue in the range of $185 million to $200 million for fiscal 2026, with adjusted EBITDA of $15 million to $19 million [19] Other Important Information - A new $60 million share repurchase program was announced, replacing the previous program [18] - A quarterly cash dividend of $0.045 per share was declared, to be paid on March 16, 2026 [19] Q&A Session Summary Question: About LoveBiome transaction costs - The $3.7 million cash at closing was the actual purchase price for LoveBiome, structured in two components: cash down payment and future earnout based on revenue targets [23] Question: Update on MindBody marketing plans - A 20% discount promotion was initiated, along with an "Activate90" event for holistic health discussions and a new app feature for tracking health activities [26][27][28] Question: Revenue split expectations for the second half of the year - Management expects stabilization in MindBody trends and anticipates Q4 will likely have a higher proportion of revenue compared to Q3 [51][53]

Financial Data and Key Metrics Changes - For Q2 of fiscal 2026, net revenue was $48.9 million, down 27.8% from $67.8 million in Q2 of fiscal 2025, but up 2.9% sequentially from Q1 [14] - The decline was primarily driven by a $16.2 million decrease in sales of the MindBody GLP-1 System, partially offset by $4.1 million in revenue from the LoveBiome product line [14] - Gross profit percentage decreased to 74% from 80.5% in the prior year, reflecting a one-time inventory obsolescence allowance [15] - GAAP net income was $0.3 million, or $0.02 per diluted share, compared to $2.6 million, or $0.19 per diluted share in the prior year [17] Business Line Data and Key Metrics Changes - Sales of the MindBody GLP-1 System significantly declined due to increased competition from pharmaceutical options, which have become more accessible and affordable [5][6] - The LoveBiome acquisition contributed $4.1 million in revenue, with two new products launched that are expected to drive engagement and growth [8][9] Market Data and Key Metrics Changes - Revenue in the Americas decreased 32.6% to $38.5 million, while Asia-Pacific and Europe revenue decreased 2.1% to $10.4 million [15] - The Americas decline was attributed to a 25.2% decrease in total active accounts, primarily from the customer base [15] Company Strategy and Development Direction - The company is focused on stabilizing the GLP-1 business and exploring cost reduction opportunities while remaining committed to the MindBody GLP-1 System [7] - The integration of LoveBiome is seen as a strategic move to diversify the product portfolio and enhance market growth [8][11] - The company is modernizing its technology infrastructure through a partnership with Shopify to improve e-commerce capabilities and customer experience [10][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q2 performance did not meet expectations but expressed optimism about long-term growth in the health and wellness ecosystem [4] - The company expects revenue for fiscal 2026 to be in the range of $185 million to $200 million, with adjusted EBITDA of $15 million to $19 million [19] - Management believes the competitive dynamics in the GLP-1 market can be navigated due to the unique value proposition of their natural solutions [47] Other Important Information - The company announced a new $60 million share repurchase program and a quarterly cash dividend of $0.045 per share [18][19] - The CEO announced plans for retirement in April 2026, with a succession plan in place to ensure leadership continuity [20] Q&A Session Summary Question: What was the cash transaction price for LoveBiome? - The cash transaction price for LoveBiome was $3.7 million, with future earnouts based on revenue targets [23] Question: What impacted the reduction in cash on the balance sheet? - The reduction was primarily due to the cash transaction for LoveBiome, timing of accrued payables, and stock-based compensation settlements [24] Question: What are the marketing plans for MindBody as the weight loss season approaches? - The company initiated a go-to-market strategy with a 20% discount and events to engage customers and consultants [26][27] Question: How did LoveBiome impact consultant and customer numbers? - LoveBiome contributed $4 million in product revenue, but specific consultant numbers were not disclosed [30] Question: What are the expectations for revenue in the second half of the year? - The company anticipates a stabilization in MindBody trends and expects Q4 to have a higher proportion of revenue compared to Q3 [51][53]

Financial Data and Key Metrics Changes - For Q2 fiscal 2026, the company reported net revenue of $48.9 million, down 27.8% from $67.8 million in Q2 fiscal 2025, but up 2.9% sequentially from Q1 [13] - The gross profit percentage decreased to 74% from 80.5% in the prior year, primarily due to a one-time inventory obsolescence allowance [15] - GAAP net income was $0.3 million, or $0.02 per diluted share, compared to $2.6 million, or $0.19 per diluted share in the prior year [17] Business Line Data and Key Metrics Changes - Sales of the MindBody GLP-1 System decreased by $16.2 million compared to the prior year, significantly impacting overall revenue [14] - The LoveBiome product line contributed $4.1 million in revenue following the acquisition [14] - The decline in total active accounts was 25.2% in the Americas and 6.5% in Asia-Pacific and Europe, reflecting a decrease in the active customer base [15] Market Data and Key Metrics Changes - Revenue in the Americas decreased 32.6% to $38.5 million, while revenue in Asia-Pacific and Europe decreased 2.1% to $10.4 million [15] - The company noted a slight revenue increase in Japan on a constant currency basis [15] Company Strategy and Development Direction - The company is focused on stabilizing the GLP-1 business and exploring cost reduction opportunities to maintain profitability [5] - The integration of LoveBiome is expected to drive product diversification and market growth, with new product launches planned [8] - The company is committed to enhancing e-commerce capabilities through a partnership with Shopify, aiming to improve customer experience and conversion rates [10][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q2 performance did not meet expectations but expressed optimism about long-term growth in the health and wellness ecosystem [4] - The company expects revenue for fiscal 2026 to be in the range of $185 million to $200 million, with adjusted EBITDA of $15 million to $19 million [19] - Management emphasized the importance of natural solutions in the GLP-1 market, believing there is still significant demand for their products [47] Other Important Information - The company announced a new $60 million share repurchase program and a quarterly cash dividend of $0.045 per share [18][19] - The CEO announced plans for retirement in April 2026, with a succession plan in place to ensure leadership continuity [20] Q&A Session Summary Question: What was the cash transaction price for LoveBiome? - The cash transaction price related to LoveBiome was $3.7 million, structured in two components: a cash down payment and a future earnout based on revenue targets [23] Question: What impacted the reduction in cash on the balance sheet? - The reduction was primarily due to the cash transaction for LoveBiome, timing of accrued payables, and cash utilized for stock-based compensation [24] Question: What are the marketing plans for MindBody entering the weight loss season? - The company initiated a go-to-market strategy with a 20% discount on MindBody products and introduced a new app feature for tracking calories and activities [26][28] Question: How did LoveBiome impact consultant and customer numbers? - LoveBiome contributed $4 million in product revenue, but specific numbers on active consultants were not disclosed [30] Question: What is the revenue outlook for the second half of the year? - Management anticipates stabilization in MindBody trends and expects Q4 to have a higher proportion of revenue compared to Q3 [52]

Revenue Performance - Revenue for the second quarter of fiscal 2026 was $48.9 million, a decrease of 27.8% compared to the same period in fiscal 2025[5] - Revenue in the Americas region decreased by 32.6%, while revenue in the Asia/Pacific & Europe region decreased by 2.1%[5] - Total revenue for the three months ended December 31, 2025, was $48,931, a decrease of 28% compared to $67,762 in the same period of 2024[28] - For the six months ended December 31, 2025, revenue totaled $96,493,000, down from $114,976,000 in 2024[39] Profitability - Gross profit for the second quarter was $36.2 million, representing 74.0% of revenue, down from 80.5% in the prior year[6] - Net income for the second quarter was $0.3 million, or $0.02 per diluted share, compared to $2.6 million, or $0.19 per diluted share a year ago[10] - Adjusted EBITDA for the second quarter was $3.9 million, down from $6.5 million in the same period last year[11] - Gross profit for the six months ended December 31, 2025, was $74,026, down 20% from $92,290 in 2024[28] - Net income for the three months ended December 31, 2025, was $276, significantly lower than $2,550 in the same period of 2024[28] - Non-GAAP Adjusted EBITDA for the three months ended December 31, 2025, was $3,880, down from $6,474 in 2024[35] - GAAP Gross profit for the three months ended December 31, 2025, was $36,209,000, compared to $54,567,000 in 2024, reflecting a gross profit percentage of 74.0%[39] - Non-GAAP Gross profit for the three months ended December 31, 2025, was $38,577,000, with a gross profit percentage of 78.8%[39] - GAAP Gross profit for the six months ended December 31, 2025, was $74,026,000, compared to $92,290,000 in 2024, with a gross profit percentage of 76.7%[39] - Non-GAAP Gross profit for the six months ended December 31, 2025, was $76,394,000, maintaining a gross profit percentage of 79.2%[39] - The gross profit percentage decreased from 80.5% in Q4 2024 to 74.0% in Q4 2025, indicating a shift in profitability[39] - The company continues to focus on improving its gross profit margins despite the decline in revenue[39] Cash Flow and Financial Position - The company generated $0.5 million of cash from operations during the first six months of fiscal 2026, compared to $8.6 million in the same period of fiscal 2025[12] - Total liabilities decreased to $28,182 as of December 31, 2025, from $37,317 as of June 30, 2025[26] - Cash and cash equivalents decreased to $10,181 as of December 31, 2025, from $20,201 as of June 30, 2025[26] - Total stockholders' equity was $32,987 as of December 31, 2025, down from $34,641 as of June 30, 2025[26] Shareholder Actions - The company announced a new $60 million share repurchase program, replacing the previous program entirely[13] - A cash dividend of $0.045 per common share was declared, payable on March 16, 2026[14] Customer and Consultant Metrics - Active Independent Consultants decreased by 9.6% year-over-year to 47,000 as of December 31, 2025, from 52,000 in 2024[32] - Active Customers dropped by 27.7% to 68,000 in December 2025, compared to 94,000 in December 2024[32] Future Outlook - Fiscal 2026 revenue guidance is projected to be between $185 million and $200 million, with adjusted EBITDA expected to be between $15 million and $19 million[15] - The company plans to launch several new products in the LoveBiome line and expand into new international markets[4]

Financial Performance - For the three months ended December 31, 2025, net revenue was $48.931 million, a decrease of 28% compared to $67.762 million for the same period in 2024[18] - Gross profit for the six months ended December 31, 2025, was $74.026 million, down from $92.290 million in 2024, reflecting a gross margin decline[18] - Operating income for the three months ended December 31, 2025, was $487 thousand, significantly lower than $3.428 million in the same period of 2024[18] - Net income for the three months ended December 31, 2025, was $276 thousand, compared to $2.550 million for the same period in 2024, indicating a substantial decline[18] - The company reported a net income per share of $0.02 for the three months ended December 31, 2025, down from $0.21 in the same period of 2024[18] - As of December 31, 2025, LifeVantage reported a net income of $2,431,000, a decrease of 44.5% compared to $4,376,000 for the same period in 2024[26] - The company experienced a net cash provided by operating activities of $486,000 for the six months ended December 31, 2025, significantly lower than $8,616,000 for the same period in 2024[26] - For the three months ended December 31, 2025, net income was $276,000, compared to $2.55 million for the same period in 2024[60] - Basic net income per share for the three months ended December 31, 2025, was $0.02, down from $0.21 in 2024[60] - The net income for the three months ended December 31, 2025, was $276,000, down from $2,550,000 in the prior year, reflecting a decline of approximately 89%[95] Assets and Liabilities - Total current assets decreased to $38.557 million as of December 31, 2025, down from $50.894 million as of June 30, 2025[17] - Total liabilities decreased to $28.182 million as of December 31, 2025, compared to $37.317 million as of June 30, 2025[17] - The total stockholders' equity as of December 31, 2025, was $32.987 million, a decrease from $34.641 million as of June 30, 2025[17] - Total long-lived assets as of December 31, 2025, were reported at $21,895,000, an increase from $20,819,000 as of June 30, 2025[96] Inventory and Cash Management - Total inventory as of December 31, 2025, was $18,978,000, down from $20,669,000 as of June 30, 2025, reflecting a reduction in inventory values of $2.9 million related to obsolete and slow-moving inventory[40] - Cash and cash equivalents at the end of the period were $10,181,000, a decrease from $21,595,000 at the end of December 2024[26] - The company repurchased $577,000 worth of its stock during the six months ended December 31, 2025, compared to $1,114,000 in the same period of 2024[26] - The company experienced a foreign currency translation adjustment loss of $259 thousand for the three months ended December 31, 2025[18] - The company reported a foreign currency effect on cash of $(205,000) for the six months ended December 31, 2025[26] Operational Challenges and Future Outlook - The company anticipates ongoing challenges in managing supply chain pressures and attracting new customers, which may impact future performance[11] Acquisition and Related Costs - The Company completed the acquisition of LoveBiome on October 1, 2025, for a total purchase price of $4,243,000, which includes $3,743,000 in cash consideration[101][104] - The acquisition of LoveBiome is expected to enhance the Company's offerings in microbiome care and wellness solutions, with goodwill from the acquisition estimated at $522,000[105] - The Company incurred acquisition-related costs of approximately $34,000 during the three months ended December 31, 2025, related to the LoveBiome transaction[108] - The estimated earnout related to the LoveBiome acquisition was adjusted to $200,000 as of December 31, 2025, reflecting lower than forecasted revenue performance[107] - Total revenue and net income of LoveBiome from the date of acquisition to December 31, 2025, were not material to the Company's consolidated financial statements[110] Stock and Compensation - During the three months ended December 31, 2025, the Company issued 0.1 million shares of common stock under stock plans, consistent with the same period in 2024[76] - Cash dividends for the three months ended December 31, 2025, totaled $0.6 million, compared to $0.5 million in the same period of 2024, representing a 20% increase[83] - The Company has reserved a total of 0.8 million shares for issuance under the 2019 Employee Stock Purchase Plan, with 0.4 million shares available as of December 31, 2025[88] - Stock-based compensation for the three months ended December 31, 2025, was $0.6 million, a decrease of 64.7% from $1.7 million in the same period of 2024[91] - LifeVantage's stock-based compensation expense was $1,379,000 for the six months ended December 31, 2025, down from $2,639,000 in the same period of 2024[26] Lease and Operating Expenses - Operating lease expense for the three months ended December 31, 2025, was $0.5 million, the same as in 2024[66] - Total lease expense for the three months ended December 31, 2025, was $469,000, a decrease of 7.1% from $505,000 in the same period of 2024[67] - Operating cash outflows from operating leases for the six months ended December 31, 2025, were $1,088,000, down from $1,129,000 in 2024, reflecting a decrease of 3.6%[67] - The weighted average remaining lease term for operating leases was 5.63 years as of December 31, 2025[65] Tax and Accounting Changes - The company recognized income tax expense of $0.2 million for the three months ended December 31, 2025, down from $0.5 million in 2024[57] - The company has early adopted ASU 2025-06 for the current fiscal year, impacting the accounting for internal-use software[63] - The company recorded an increase of $33,000 in contract liabilities impact to revenue for the three months ended December 31, 2025[46] - Deferred revenue related to contract liabilities was $0.7 million as of December 31, 2025, unchanged from June 30, 2025[46] - The returns liability reserve, net, was $0.2 million as of December 31, 2025, consistent with the previous period[47] Revenue Breakdown - The United States accounted for $36,738,000 of total revenue for the three months ended December 31, 2025, representing 75% of total revenue, while Japan contributed $6,278,000[96] - Major product lines, including Protandim, TrueScience, and LifeVantage, accounted for approximately 78.1% of total net revenue for the three months ended December 31, 2025[97] - The Company has identified two major markets, the United States and Japan, which each exceed 10% of consolidated total revenue[96]

Group 1 - LifeVantage Corporation announced the retirement of Steve Fife, President and CEO, effective April 2026, with a transition period to ensure business continuity [1][2] - The Board of Directors is conducting an extensive executive search for a new CEO, expected to be announced in the coming months [1][2] - Steve Fife has been recognized for his exceptional leadership and strategic insights that have transformed the company's business and driven growth [2] Group 2 - LifeVantage is a pioneer in nutrigenomics, focusing on how nutrition and natural compounds can enhance health at the cellular level [3] - The company's product line includes the Protandim® family, TrueScience® Liquid Collagen, and various activation-supporting nutrients, among others [3] - LifeVantage operates through independent consultants who sell products and offer business opportunities to entrepreneurs [3]

Core Insights - LifeVantage Corporation reported a significant decline in revenue for the second quarter of fiscal 2026, with total revenue of $48.9 million, representing a 27.8% decrease compared to the same quarter in fiscal 2025 [5][10]. - The company announced a new $60 million share repurchase authorization, replacing the previous program, which reflects its commitment to returning capital to shareholders [13]. - LifeVantage is focusing on stabilizing its GLP-1 business and expanding its product portfolio, particularly with the LoveBiome line, while also planning to enter new international markets [4]. Financial Performance - Revenue for the second quarter of fiscal 2026 was $48.9 million, down 27.8% year-over-year, with a 32.6% decrease in the Americas region and a 2.1% decrease in the Asia/Pacific & Europe region [5][8]. - Gross profit was $36.2 million, or 74.0% of revenue, down from 80.5% in the same period last year, primarily due to a $2.4 million inventory obsolescence allowance related to the MindBody GLP-1 System [6][10]. - Net income for the quarter was $0.3 million, or $0.02 per diluted share, compared to $2.6 million, or $0.19 per diluted share, in the prior year [10][11]. Operational Highlights - Commissions and incentives expense decreased to $19.9 million, or 40.7% of revenue, from $32.5 million, or 48.0% of revenue, in the prior year, reflecting changes in promotional programs and customer mix [7][8]. - Selling, general and administrative (SG&A) expenses increased to $15.8 million, or 32.3% of revenue, compared to $18.6 million, or 27.5% of revenue, in the same period last year [8][9]. - The company generated $0.5 million in cash from operations during the first half of fiscal 2026, down from $8.6 million in the same period last year [12]. Strategic Initiatives - LifeVantage plans to launch several new products under the LoveBiome brand in the upcoming quarters, targeting high-growth categories [4]. - The company anticipates fiscal 2026 revenue in the range of $185 million to $200 million, with adjusted EBITDA expected between $15 million and $19 million [15]. - The company declared a cash dividend of $0.045 per common share, to be paid on March 16, 2026 [14].

Core Viewpoint - Life 360 has experienced a significant stock rally of 23% following an increase in its annual revenue guidance, indicating strong growth potential and market interest [2][5]. Company Overview - Life 360 operates as a comprehensive app and device ecosystem focused on family safety applications, location sharing, and tracking for people, pets, and items [3][4]. - The company has expanded its offerings to include credit score monitoring and identity theft protection, contributing to its growth [4]. Financial Performance - Life 360 raised its preliminary revenue guidance for the fiscal year by approximately $3 million, projecting revenues between $486 million and $489 million, up from around $400 million in the previous four quarters [5]. - The company reported a year-over-year growth of about 20% in monthly active users, reaching approximately 95.8 million, with notable increases of 16% in the U.S. and 26% internationally [6]. Competitive Landscape - Competitors include major tech companies like Apple, Samsung, and Google, which offer similar tracking technologies [7]. - Life 360 differentiates itself by providing a more operationally agnostic solution that can be used across various platforms, enhancing its appeal to privacy-conscious consumers [8][9]. Growth Metrics - Life 360 is projected to continue its revenue growth at close to 30% for the next year, with adjusted earnings growth expected to be around 80% [13][14]. - The company achieved its first net income positive year in the last four quarters, marking a significant milestone in its financial history [12][13]. Valuation Insights - Despite the positive growth metrics, the stock has seen a pullback from its October highs, which may be attributed to valuation concerns, as it is currently trading at 116 times the expected earnings for 2026 [15][16].