LifeVantage(LFVN) - 2025 Q4 - Annual Results

Executive Summary & Business Highlights LifeVantage reported strong Q4 and full fiscal year 2025 results, marked by significant revenue growth, improved profitability, and international business recovery Fourth Quarter Fiscal 2025 Highlights LifeVantage reported strong Q4 FY2025 results with significant revenue growth, expanded gross margin, and increased earnings, driven by international business returning to growth and continued strong performance in the Americas Fourth Quarter Fiscal 2025 Key Financial Metrics | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :----------------------------- | :-------- | :-------- | :----------- | | Revenue | $55.1 million | $48.9 million | +12.6% | | Revenue (Constant Currency) | | | +11.6% | | Net income per diluted share | $0.15 | $0.10 | +$0.05 | | Adjusted earnings per diluted share | $0.17 | $0.14 | +$0.03 | | Adjusted EBITDA | $4.8 million | $4.8 million | 0% | - International business (Asia/Pacific & Europe) revenue increased approximately 8% (1.6% constant currency), marking a return to growth for the first time in nearly three years[7][8][9] - Americas revenue grew approximately 14% (14.1%), demonstrating continued strong performance[7][8][9] Fiscal Year 2025 Highlights The company achieved robust full fiscal year 2025 results, with substantial revenue growth, improved net income, and increased adjusted EBITDA, alongside strategic share repurchases and a strong balance sheet Fiscal Year 2025 Key Financial Metrics | Metric | FY2025 | FY2024 | Change (YoY) | | :----------------------------- | :--------- | :--------- | :----------- | | Revenue | $228.5 million | $200.2 million | +14.2% | | Revenue (Constant Currency) | | | +14.4% | | Net income per diluted share | $0.75 | $0.23 | +$0.52 | | Adjusted earnings per diluted share | $0.82 | $0.59 | +$0.23 | | Adjusted EBITDA | $22.1 million | $17.0 million | +30.3% | - Repurchased 0.3 million shares for $3.1 million during fiscal year 2025[9] - Maintained a strong balance sheet with $20.2 million of cash and no debt[9] CEO Commentary CEO Steve Fife highlighted Q4 as the capstone of a strong fiscal 2025, emphasizing the return to growth in the international business (Asia/Pacific & Europe) after nearly three years, strong Americas performance, and the establishment of a scalable platform for future growth and long-term value creation - Fourth quarter results capped off a strong fiscal 2025 with approximately 13% revenue growth, expanded gross margin, and increased earnings[7] - International business returned to growth for the first time in nearly three years, with Asia/Pacific & Europe revenue increasing approximately 8% due to successful MindBody System rollout[7] - The company has built a powerful, scalable platform for continued growth and long-term value creation entering fiscal 2026[7] Fourth Quarter Fiscal 2025 Financial Performance LifeVantage's fourth quarter fiscal 2025 financial performance is analyzed, covering revenue, gross profit, operating expenses, net income, and adjusted EBITDA Revenue Analysis Q4 FY2025 revenue increased significantly, driven by strong growth in the Americas and a return to growth in Asia/Pacific & Europe, marking a positive shift for international markets Fourth Quarter Fiscal 2025 Revenue by Region | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :----------------------------- | :-------- | :-------- | :----------- | | Total Revenue | $55.1 million | $48.9 million | +12.6% | | Total Revenue (Constant Currency) | | | +11.6% | | Americas Revenue | | | +14.1% | | Asia/Pacific & Europe Revenue | | | +7.6% | | Asia/Pacific & Europe Revenue (Constant Currency) | | | +1.6% | Gross Profit and Operating Expenses Gross profit margin improved in Q4 FY2025, while commissions and incentives decreased as a percentage of revenue. SG&A expenses increased due to global convention costs and variable compensation Fourth Quarter Fiscal 2025 Gross Profit and Operating Expenses | Metric | Q4 FY2025 | % of Revenue | Q4 FY2024 | % of Revenue | | :-------------------------- | :-------- | :----------- | :-------- | :----------- | | Gross profit | $44.0 million | 79.9% | $38.9 million | 79.5% | | Commissions and incentives | $23.2 million | 42.1% | $22.0 million | 44.9% | | SG&A expense | $18.7 million | 33.9% | $14.0 million | 28.7% | - The decrease in commissions and incentives as a percentage of revenue was primarily due to reduced incentive expenses[10] - The increase in SG&A was primarily due to costs related to the global convention and increases in the variable portion of employee compensation expenses[11] Net Income and Earnings Per Share Net income and diluted EPS saw substantial increases in Q4 FY2025, with adjusted figures also showing healthy growth Fourth Quarter Fiscal 2025 Net Income and Earnings Per Share | Metric | Q4 FY2025 | Q4 FY2024 | | :----------------------------- | :-------- | :-------- | | Net income | $2.0 million | $1.3 million | | Net income per diluted share | $0.15 | $0.10 | | Adjusted non-GAAP net income | $2.3 million | $1.8 million | | Adjusted non-GAAP diluted EPS | $0.17 | $0.14 | Adjusted EBITDA Adjusted EBITDA remained stable in Q4 FY2025 compared to the prior year period Fourth Quarter Fiscal 2025 Adjusted EBITDA | Metric | Q4 FY2025 | Q4 FY2024 | | :------------- | :-------- | :-------- | | Adjusted EBITDA | $4.8 million | $4.8 million | Full Fiscal Year 2025 Financial Performance LifeVantage's full fiscal year 2025 financial performance is reviewed, encompassing revenue, gross profit, operating expenses, net income, and adjusted EBITDA Revenue Analysis Full fiscal year 2025 revenue grew significantly, driven by strong performance in the Americas, despite a decrease in Asia/Pacific & Europe Fiscal Year 2025 Revenue by Region | Metric | FY2025 | FY2024 | Change (YoY) | | :----------------------------- | :--------- | :--------- | :----------- | | Net Revenue | $228.5 million | $200.2 million | +14.2% | | Americas Revenue | | | +21.5% | | Asia/Pacific & Europe Revenue | | | -9.4% | | Foreign Currency Impact | -$0.5 million | | -0.3% | Gross Profit and Operating Expenses Gross profit margin improved for the full fiscal year 2025 due to favorable product mix and reduced inventory obsolescence. Commissions and incentives increased as a percentage of revenue, while SG&A decreased as a percentage of revenue Fiscal Year 2025 Gross Profit and Operating Expenses | Metric | FY2025 | % of Revenue | FY2024 | % of Revenue | | :-------------------------- | :--------- | :----------- | :--------- | :----------- | | Gross profit | $183.7 million | 80.4% | $158.7 million | 79.3% | | Commissions and incentives | $102.3 million | 44.7% | $85.9 million | 42.9% | | SG&A expense | $69.2 million | 30.3% | $68.5 million | 34.2% | - The increase in gross margin was primarily due to favorable product mix and decreased inventory obsolescence costs[16] - The increase in commissions and incentives as a percentage of revenue was primarily due to higher qualifications within existing promotional and incentive programs and changes in the sales mix[17] Net Income and Earnings Per Share Net income and diluted EPS for fiscal year 2025 saw substantial increases, with adjusted figures also showing strong growth Fiscal Year 2025 Net Income and Earnings Per Share | Metric | FY2025 | FY2024 | | :----------------------------- | :--------- | :--------- | | Net income | $9.8 million | $2.9 million | | Net income per diluted share | $0.75 | $0.23 | | Adjusted non-GAAP net income | $10.6 million | $7.6 million | | Adjusted non-GAAP diluted EPS | $0.82 | $0.59 | Adjusted EBITDA Adjusted EBITDA for fiscal year 2025 increased significantly compared to the prior year Fiscal Year 2025 Adjusted EBITDA | Metric | FY2025 | FY2024 | | :------------- | :--------- | :--------- | | Adjusted EBITDA | $22.1 million | $17.0 million | Capital Management and Financial Position LifeVantage's capital management and financial position are outlined, covering share repurchases, balance sheet strength, and dividend declarations Share Repurchase Program LifeVantage continued its share repurchase program in fiscal 2025, repurchasing shares in Q4 and for the full year, with a significant amount remaining under authorization - During Q4 FY2025, the Company repurchased 0.2 million common shares for approximately $2.0 million[21] - For the full fiscal year 2025, 0.3 million shares were repurchased for an aggregate price of $3.1 million[21] - Approximately $17.3 million remained under the current repurchase program authorization as of June 30, 2025[21] Balance Sheet & Liquidity The company maintained a strong balance sheet with increased cash and cash equivalents and no outstanding debt at the end of fiscal 2025 Fiscal Year 2025 Balance Sheet and Liquidity | Metric | FY2025 | FY2024 | | :-------------------------- | :--------- | :--------- | | Cash from operations | $11.9 million | $12.2 million | | Cash and cash equivalents (period end) | $20.2 million | $16.9 million | | Debt | $0 | $0 | Dividend Announcement LifeVantage declared a cash dividend for its common shares, payable in September 2025 - A cash dividend of $0.045 per common share was declared on August 28, 2025[23] - The dividend will be paid on September 16, 2025, to stockholders of record on September 8, 2025[23] Fiscal Year 2026 Guidance LifeVantage's financial outlook for fiscal year 2026 is presented, including projected ranges for revenue, adjusted EBITDA, and adjusted earnings per share FY2026 Outlook LifeVantage provided its financial outlook for fiscal year 2026, projecting revenue, adjusted EBITDA, and adjusted EPS ranges, reflecting current business trends Fiscal Year 2026 Financial Guidance | Metric | FY2026 Guidance | | :-------------------------- | :---------------- | | Revenue | $225 million to $240 million | | Adjusted EBITDA | $23 million to $26 million | | Adjusted Earnings Per Share | $1.00 to $1.15 | | Full Year Tax Rate | 24% to 26% | - Guidance reflects current trends in the business and excludes any non-operating or non-recurring expenses[24] Corporate Information and Disclosures Corporate information and disclosures cover conference call details, company overview, forward-looking statements, non-GAAP financial measures, and investor relations contact Conference Call Information Details for the investor conference call and webcast to discuss the financial results, including dial-in numbers and replay information - An investor conference call was scheduled for September 4, 2025, at 2:30 p.m. MST (4:30 p.m. EST)[25] - A telephone replay will be available until September 18, 2025[25] - A live webcast is available on the Investor Relations section of the Company's website[26] About LifeVantage Corporation LifeVantage Corporation is a health and wellness company specializing in nutrigenomics, offering a range of scientifically validated products designed to activate optimal cellular health processes, sold through independent consultants - LifeVantage Corporation (Nasdaq: LFVN) is the Activation company, a pioneer in nutrigenomics[27] - Products include Protandim® family, TrueScience® Liquid Collagen, MindBody GLP-1 System™, AXIO® nootropic energy drink mixes, TrueScience® skin/hair care, and Petandim®[27] - Products are sold to Customers by independent Consultants who also share business opportunities[27] Cautionary Note Regarding Forward Looking Statements This section advises investors that the document contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially. It also clarifies that dividend declarations do not guarantee future dividends - Forward-looking statements are not guarantees of performance, and actual results could differ materially[28] - These statements are based on current expectations and involve known and unknown risks and uncertainties[28] - The declaration and/or payment of a dividend provides no assurance as to future dividends[28] About Non-GAAP Financial Measures This section defines Non-GAAP financial measures used by the company (EBITDA, Adjusted EBITDA, Net Income, EPS) and explains management's rationale for presenting them as supplemental disclosure, while also noting their limitations - Non-GAAP EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization[29] - Non-GAAP Adjusted EBITDA includes adjustments for stock compensation expense, other income, net, and certain other adjustments[29] - These measures are presented as supplemental disclosure to provide additional ways to view operations and assess performance, but should not be considered in isolation from GAAP measures[31] Investor Relations Contact Provides contact information for investor relations inquiries - Investor Relations Contact: Reed Anderson, ICR[33] - Contact Phone: (646) 277-1260[33] - Contact Email: reed.anderson@icrinc.com[33] Consolidated Financial Statements and Reconciliations Consolidated financial statements and reconciliations are presented, including balance sheets, statements of operations, revenue by region, active accounts, and GAAP to Non-GAAP adjustments Consolidated Balance Sheets Presents the company's consolidated balance sheets as of June 30, 2025, and June 30, 2024, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheets (in thousands) | (In thousands, except per share data) | June 30, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------ | | ASSETS | | | | Cash and cash equivalents | $20,201 | $16,886 | | Total current assets | $50,894 | $37,646 | | TOTAL ASSETS | $71,958 | $60,299 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Total current liabilities | $27,217 | $22,309 | | Total liabilities | $37,317 | $34,308 | | Total stockholders' equity | $34,641 | $25,991 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $71,958 | $60,299 | Consolidated Statements of Operations Provides the consolidated statements of operations for the three months and full fiscal years ended June 30, 2025, and 2024, showing revenue, expenses, and net income Consolidated Statements of Operations (in thousands, except per share data) | (In thousands, except per share data) | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :---------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------ | :------------------------------ | | Revenue, net | $55,114 | $48,931 | $228,530 | $200,164 | | Gross profit | $44,049 | $38,909 | $183,666 | $158,724 | | Operating income | $2,148 | $2,910 | $12,199 | $4,332 | | Net income | $1,959 | $1,305 | $9,805 | $2,937 | | Diluted EPS | $0.15 | $0.10 | $0.75 | $0.23 | Revenue by Region and Active Accounts Details revenue breakdown by region and the number of active independent consultants, active customers, and total active accounts for both the fourth quarter and full fiscal year, with year-over-year changes Revenue by Region (in thousands) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Americas | $43,477 | $38,112 | $185,723 | $152,907 | | Asia/Pacific & Europe | $11,637 | $10,819 | $42,807 | $47,257 | | Total | $55,114 | $48,931 | $228,530 | $200,164 | Active Accounts | Active Accounts | As of June 30, 2025 | As of June 30, 2024 | Change from Prior Year | Percent Change | | :-------------------------------- | :------------------ | :------------------ | :--------------------- | :------------- | | Total Active Independent Consultants | 51,000 | 49,000 | 2,000 | 4.1 % | | Total Active Customers | 81,000 | 79,000 | 2,000 | 2.5 % | | Total Active Accounts | 132,000 | 128,000 | 4,000 | 3.1 % | Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA Provides a reconciliation table showing the adjustments from GAAP Net Income to Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA for the three months and full fiscal years ended June 30, 2025, and 2024 Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA (in thousands) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | GAAP Net income (loss) | $1,959 | $1,305 | $9,805 | $2,937 | | Non-GAAP EBITDA | $3,035 | $3,438 | $14,968 | $7,501 | | Non-GAAP Adjusted EBITDA | $4,783 | $4,805 | $22,111 | $16,962 | Reconciliation of GAAP Net Income to Non-GAAP Net Income and Non-GAAP Adjusted EPS Presents a reconciliation table detailing the adjustments from GAAP Net Income to Non-GAAP Net Income and Non-GAAP Adjusted EPS for the three months and full fiscal years ended June 30, 2025, and 2024 Reconciliation of GAAP Net Income to Non-GAAP Net Income and Non-GAAP Adjusted EPS (in thousands, except per share data) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Fiscal Year Ended June 30, 2025 | Fiscal Year Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | GAAP Net income (loss) | $1,959 | $1,305 | $9,805 | $2,937 | | Non-GAAP Net Income | $2,256 | $1,797 | $10,649 | $7,614 | | Diluted earnings (loss) per share, as reported | $0.15 | $0.10 | $0.75 | $0.23 | | Diluted earnings per share, as adjusted | $0.17 | $0.14 | $0.82 | $0.59 |