LifeStance Health Group (NASDAQ:LFST) Issues Quarterly Earnings Results

LifeStance Health Group (NASDAQ:LFST) posted its earnings results on Wednesday. The company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.02), Zacks reports. LifeStance Health Group had a negative net margin of 0.67% and a negative return on equity of 0.62%. The business had revenue of $382.20 million during the quarter, compared to analysts’ expectations of $378.51 million. During the same quarter in the prior year, the firm earned ($0.01) EPS. LifeStance Health Group’s revenue for the quarter was up 17.4% compared to the same quarter last year.

Here are the key takeaways from LifeStance Health Group’s conference call:

• LifeStance reported strong 2025 operational outperformance — mid-teens revenue growth, ~9% clinician growth to ~8,000 clinicians, a 7% productivity lift in H2, and high patient satisfaction (NPS 84, 4.7 Google rating).
• Financial milestones reached: positive net income, record Adjusted EBITDA margins (11.1% for FY 2025), $110M free cash flow, cash of $249M, low net leverage, and a newly authorized $100M share repurchase program.
• Management guided 2026 revenue of $1.615B–$1.655B and Adjusted EBITDA of $185M–$205M, expects continued mid‑teens revenue growth longer term, plans to open 20–30 centers, and forecasts positive free cash flow again in 2026.
• Company is investing in digital/AI and switching to a new EHR to boost clinician productivity, access, and RCM — expected long‑term benefits but with an estimated $20M–$30M implementation cash outlay (mostly capitalized) across 2026–2027.

LifeStance Health Group Stock Performance

Shares of LifeStance Health Group stock traded down $0.36 on Thursday, reaching $7.06. 7,416,179 shares of the stock were exchanged, compared to its average volume of 1,955,629. The firm has a market capitalization of $2.74 billion, a PE ratio of -235.17 and a beta of 1.12. LifeStance Health Group has a 1-year low of $3.74 and a 1-year high of $8.30. The business has a fifty day moving average price of $7.12 and a two-hundred day moving average price of $6.18. The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 0.18.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Wall Street Zen raised shares of LifeStance Health Group from a “hold” rating to a “buy” rating in a research note on Sunday, February 8th. KeyCorp lifted their target price on LifeStance Health Group from $8.00 to $9.00 and gave the company an “overweight” rating in a research report on Thursday. BMO Capital Markets began coverage on shares of LifeStance Health Group in a research report on Thursday, November 13th. They issued an “outperform” rating and a $8.00 price target for the company. Weiss Ratings restated a “sell (d-)” rating on shares of LifeStance Health Group in a report on Monday, December 29th. Finally, UBS Group lifted their price target on shares of LifeStance Health Group from $10.00 to $12.00 and gave the stock a “buy” rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $9.33.

More LifeStance Health Group News

Here are the key news stories impacting LifeStance Health Group this week:

• Positive Sentiment: Q4 / FY2025 results and 2026 outlook show solid demand and margin progress: revenue +17% in Q4 to $382.2M, positive net income and a meaningful rise in Adjusted EBITDA; management guided 2026 revenue to $1.615B–$1.655B and raised EBITDA expectations, giving a clear growth + profitability story that supports longer‑term upside. LifeStance Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Board authorized a $100M share repurchase program (up to ~3.6% of shares), a capital-allocation move that signals management believes shares are undervalued and can support the stock over time. Press Release
• Positive Sentiment: Analyst support increased: UBS raised its price target to $12 with a Buy and KeyCorp lifted its target to $9 with an Overweight rating — both represent meaningful upside from current levels and can help sustain demand from institutional buyers. Analyst Price Target Raises
• Neutral Sentiment: Company reiterated 1Q26 revenue range ($380M–$400M) and provided detailed center‑margin / EBITDA targets — helpful for modeling but not a surprise given the Q4 print. Earnings Presentation
• Negative Sentiment: Selling stockholders launched a secondary offering of 25M shares (company receives no proceeds), which creates near‑term selling pressure and increases float — a likely key reason for downward pressure despite operational strength. Secondary Public Offering
• Negative Sentiment: EPS missed some sell‑side expectations (reported ~$0.03 vs. consensus ~$0.05), which—combined with the secondary offering and heavy insider/selling‑holder activity reported in filings—has likely amplified intraday weakness even though revenue beat and margins improved. Earnings Call Transcript

Insider Buying and Selling

In related news, insider Ann Varanakis sold 50,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $6.90, for a total value of $345,000.00. Following the sale, the insider owned 315,610 shares in the company, valued at $2,177,709. This represents a 13.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Robert Bessler sold 119,942 shares of the company’s stock in a transaction on Friday, December 19th. The shares were sold at an average price of $7.04, for a total value of $844,391.68. Following the completion of the sale, the director directly owned 1,318,983 shares in the company, valued at $9,285,640.32. This trade represents a 8.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 270,086 shares of company stock valued at $1,891,264. Company insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On LifeStance Health Group

Institutional investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP grew its holdings in shares of LifeStance Health Group by 6.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 8,906,465 shares of the company’s stock worth $62,704,000 after buying an additional 542,858 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of LifeStance Health Group by 27.6% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 6,118,027 shares of the company’s stock worth $43,071,000 after purchasing an additional 1,324,691 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of LifeStance Health Group by 62.3% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,793,336 shares of the company’s stock worth $26,363,000 after purchasing an additional 1,839,465 shares during the last quarter. Geode Capital Management LLC grew its position in shares of LifeStance Health Group by 10.5% in the fourth quarter. Geode Capital Management LLC now owns 4,378,469 shares of the company’s stock valued at $30,830,000 after purchasing an additional 416,404 shares during the period. Finally, State Street Corp lifted its position in LifeStance Health Group by 11.4% during the fourth quarter. State Street Corp now owns 3,663,301 shares of the company’s stock worth $25,790,000 after buying an additional 376,057 shares during the period. 85.50% of the stock is owned by institutional investors and hedge funds.

LifeStance Health Group declared that its board has authorized a share repurchase plan on Wednesday, February 25th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 3.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

LifeStance Health Group Company Profile

LifeStance Health Group (NASDAQ:LFST) is a leading provider of outpatient mental health services in the United States. Headquartered in New York City, the company operates a growing network of clinics that deliver integrated, patient-centered psychological and psychiatric care. LifeStance’s mission is to expand access to high-quality mental health treatment by combining evidence-based therapy modalities with personalized treatment plans.

The company’s service offerings include individual, family, and group psychotherapy, psychiatric medication management, psychological assessment, and telehealth services.