LifeStance Health (US:LFST)2025-05-07 20:42Financial Performance - Total revenue for the three months ended March 31, 2025, was $332.97 million, representing an 11% increase from $300.44 million in the same period of 2024[96]. - The company reported a Center Margin of $109.79 million for Q1 2025, up from $94.73 million in Q1 2024[96]. - Adjusted EBITDA for Q1 2025 was $34.65 million, compared to $27.65 million in Q1 2024[96]. - The company reported a net income of $709,000 for Q1 2025, a significant improvement from a net loss of $21.1 million in Q1 2024[96]. - Total revenue increased by $32.6 million, or 11%, to $333.0 million for the three months ended March 31, 2025, compared to $300.4 million for the same period in 2024[108]. - Patient service revenue rose by $32.7 million, driven by a net increase of 699 clinicians and a 10% increase in patient visits[108]. - Adjusted EBITDA for the three months ended March 31, 2025, was $34.6 million, up from $27.7 million in 2024, reflecting an increase of $6.9 million or 25%[103]. - Net income for the three months ended March 31, 2025, was $709,000, compared to a net loss of $21.1 million in 2024[107]. Operational Metrics - Clinicians treated patients through 2.1 million visits in the three months ended March 31, 2025[86]. - The company employed 7,535 licensed mental health clinicians as of March 31, 2025[79]. - Center costs, excluding depreciation and amortization, increased by $17.5 million, or 8%, to $223.2 million for the three months ended March 31, 2025[110]. - General and administrative expenses rose by $5.5 million, or 6%, to $94.4 million for the three months ended March 31, 2025[113]. Cash Flow and Debt - Cash and cash equivalents were $134.3 million as of March 31, 2025, down from $154.6 million at the end of 2024[118]. - Future obligations include $288.2 million in outstanding debt under the 2024 Credit Agreement as of March 31, 2025[120]. - For the three months ended March 31, 2025, net cash used in operating activities was $3.1 million, a significant improvement from $21.8 million in the same period of 2024[124][125]. - The company reported a net decrease in cash and cash equivalents of $20.2 million for the three months ended March 31, 2025, compared to a decrease of $29.4 million in 2024[124]. - Cash flows used in investing activities amounted to $7.2 million for the three months ended March 31, 2025, compared to $5.1 million in 2024, primarily for property and equipment purchases[126]. - Financing activities used $10.0 million in cash during the three months ended March 31, 2025, compared to $2.4 million in 2024, mainly due to loan payments and tax settlements[127]. - The company has an aggregate principal amount of $288.2 million outstanding under its credit facilities as of March 31, 2025[132]. Strategic Initiatives - The company aims to expand its clinician base and patient visit capacity through a rigorous in-house national clinician recruiting model[85]. - The de novo center strategy is a key component of the company's organic growth engine, focusing on opening new centers in existing and attractive new markets[92]. - The company has established a large network of payor relationships, enhancing access to in-network mental health services for patients[89]. - The company plans to continue expanding its market footprint by pursuing selective acquisitions of high-quality practices[94]. - The company expects revenue growth to continue through in-house clinician recruiting and de novo strategies[109]. Interest and Inflation - Interest expense, net decreased by $2.8 million to $3.1 million for the three months ended March 31, 2025, due to lower interest rates[116]. - The company entered into an interest rate swap in August 2022 to hedge against interest rate risks, aiming to stabilize cash flows related to variable-rate loans[132]. - The company does not anticipate that a 100 basis point change in interest rates would materially affect its financial condition or results of operations[133]. - Inflation has not had a material effect on the company's operating results, although future inflation could potentially impact financial performance[134].