LifeStance Health (US:LFST)2026-02-25 00:18Financial Performance - Fourth quarter revenue increased 17% to $382.2 million, and full year revenue grew 14% to $1,424.3 million compared to $1,251.0 million in the previous year[3] - Net income for the fourth quarter was $11.7 million, compared to a loss of $7.1 million in the prior year, and full year net income was $9.7 million versus a loss of $57.4 million[3] - Adjusted EBITDA for the fourth quarter was $48.8 million, a 49% increase, and for the full year, it grew 32% to $157.7 million[3] - Total revenue for 2025 reached $1,424,285, an increase of 13.8% from $1,250,970 in 2024[19] - Net income for 2025 was $9,663, compared to a net loss of $57,443 in 2024, marking a significant turnaround[19] - Adjusted EBITDA increased to $157,671,000 in 2025, up from $119,742,000 in 2024 and $59,042,000 in 2023, reflecting a strong operational performance[24] Operational Metrics - The clinician base expanded by 9% to 8,040 clinicians, with a net increase of 44 in the fourth quarter and 657 for the full year[3] - Fourth quarter visit volumes rose 18% to 2.4 million, while full year visit volumes increased 14% to 9.0 million[3] - Center Margin for the fourth quarter was $126.3 million, representing 33.0% of total revenue, and for the full year, it was $461.1 million, or 32.4% of total revenue[9] - Center margin for 2025 was $461,099, an increase of 14.6% from $402,399 in 2024[22] Cash Flow and Assets - The company generated $57.6 million in net cash from operations in the fourth quarter and $146.2 million for the full year[4] - Cash and cash equivalents increased to $248,642 in 2025, up 60.8% from $154,571 in 2024[21] - Total assets grew to $2,203,933 in 2025, compared to $2,118,298 in 2024, reflecting a 4.0% increase[17] - Net cash provided by operating activities was $146,151 in 2025, a significant improvement from $107,260 in 2024[21] Debt and Liabilities - Long-term debt decreased to $265,927 in 2025 from $279,790 in 2024, a reduction of 4.9%[17] - Total current liabilities rose to $251,962 in 2025, compared to $228,886 in 2024, indicating a 10.1% increase[17] Shareholder Returns and Future Projections - The Board of Directors approved a $100 million share repurchase program to return capital to shareholders while maintaining a healthy balance sheet[2] - LifeStance expects full year 2026 revenue to be between $1.615 billion and $1.655 billion, with Adjusted EBITDA projected between $185 million and $205 million[10] - The company anticipates first quarter 2026 revenue to be between $380 million and $400 million, with Center Margin expected to be between $118 million and $132 million[10] Cost Management and Investments - Operating expenses totaled $1,400,137 in 2025, up from $1,282,583 in 2024, primarily driven by center costs and general administrative expenses[19] - Interest expense decreased to $11,662,000 in 2025 from $26,535,000 in 2024, indicating improved financial management[24] - Stock-based compensation expense was $74,701,000 in 2025, slightly down from $76,172,000 in 2024, showing a focus on cost control[24] - Litigation costs for 2025 were $1,153,000, a decrease from $1,591,000 in 2024, suggesting a reduction in legal challenges[24] - The company incurred $1,626,000 in amortization of cloud-based software implementation costs in 2025, reflecting ongoing investments in technology[24] - Real estate optimization and restructuring charges were $(134,000) in 2025, indicating a positive shift in asset management compared to $(309,000) in 2024[24] - The company is undergoing a multi-phase system upgrade as part of strategic initiatives, which includes significant investments in enterprise-wide systems[24] - The company continues to evaluate and adopt critical systems for human resources management and clinician credentialing, indicating a focus on operational efficiency[24]