LifeStance Health (LFST) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights 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] - 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][3] - As of June 30, 2025, the company held $188.9 million in cash and had net long-term debt of $272.9 million[5] 2025 Financial Guidance 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 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 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 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 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 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 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 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 |