LifeVantage (LFVN) Q2 2026 Earnings Transcript

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]