LifeVantage (LFVN) Q3 2025 Earnings Call May 06, 2025 04:30 PM ET Company Participants Reed Anderson - Managing DirectorSteve Fife - President, CEO & DirectorCarl Aure - CFOAaron Wukmir - Healthcare Equity Research AssociateDouglas Lane - Head of Consumer Products Operator Good day, ladies and gentlemen. Thank you for standing by. Welcome to today's conference call to discuss LifeVantage's Third Quarter of Fiscal twenty twenty five Results. At this time, all participants are in a listen only mode. Following ...

Financial Data and Key Metrics Changes - Third quarter revenues reached $58.4 million, representing a 21% year-over-year increase [7][18] - Adjusted EBITDA increased by 27% year-over-year to $6.4 million, with an adjusted EBITDA margin improvement of 50 basis points to 11% [10][23] - Gross margin improved to 81%, up from 78.9% in the prior year [21] - Adjusted non-GAAP net income was $3.5 million, or $0.26 per fully diluted share, compared to $2.8 million, or $0.21 per fully diluted share in the prior year [22] Business Line Data and Key Metrics Changes - The MINDBODY GLP-one system was the primary growth driver, with U.S. revenues growing by 31% year-over-year [8] - Active accounts in the Americas increased by 17% year-over-year, with a 13% increase in independent consultants and a 19% increase in customers [11] - Subscription orders showed positive trends, with 85% of new customers opting for subscriptions during the quarter [30] Market Data and Key Metrics Changes - Revenue in the Americas increased by 29.5% to $48.2 million, while revenue in Asia Pacific and Europe decreased by 7.2% to $10.2 million [19][20] - Japan's revenue increased by 2.7% on a constant currency basis, reflecting the launch of the MINDBODY system [20] Company Strategy and Development Direction - The company is focused on enhancing digital capabilities, building brand awareness, and maintaining strong profitability metrics while funding growth initiatives [15] - The EVOLVE compensation plan aims to provide consultants with multiple income streams and support their business growth [13] - The company plans to complete the global rollout of the MINDBODY system in remaining markets later this year [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the MINDBODY system's potential for long-term transformational impact on the business [16] - The company anticipates fiscal year 2025 revenue to be between $228 million and $235 million, representing a 16% increase year-over-year at the midpoint [25] - Management acknowledged challenges in international markets but remains optimistic about future growth opportunities [38] Other Important Information - The company held its annual global convention, revealing positive results from a clinical study on the MINDBODY system, which showed an average increase of GLP-one levels by over 200% [14][15] - A quarterly cash dividend of $0.45 per share was announced, totaling approximately $600,000 [25] Q&A Session Summary Question: What percentage of new customers are coming in on subscription? - Management noted a slight decline in active accounts sequentially, but subscription rates increased, with 85% of new customers on subscriptions during the quarter [30] Question: Are there more purchases in stacks versus standalone products? - Management confirmed that about 55% of revenue during the quarter was from standalone MINDBODY products, while 45% were from stacked purchases with other products [32] Question: What is the reason for the revenue outlook change? - Management indicated that the revenue reduction is due to both past results and anticipated results, with challenges from the initial product launch now resolved [36][38] Question: What have been the learnings about the MINDBODY product? - Management highlighted the importance of educating the sales force on the product's long-term health benefits rather than positioning it solely for weight loss [44][48]