Lifestance Health Group, Inc. (LFST)
NASDAQ:LFST
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Lifestance Health Group
(NASDAQ:LFST)
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Rating:69Neutral
Price Target:
$8.00
▲(16.11% Upside)
Action:Downgraded
Date:06/05/26
LFST scores well on improving fundamentals and strong cash generation, reinforced by an earnings call with upgraded guidance and expanding EBITDA. Offsetting this are a very expensive valuation (P/E ~125) and only mixed near-term technical signals.
Positive Factors
Strong cash generation
LifeStance converts earnings into cash at a high rate: FCF is nearly equal to net income and grew 22.3% TTM. Durable cash generation supports reinvestment in centers, technology, tuck-ins and a $100M buyback program while providing a buffer against demand or reimbursement shocks.
Negative Factors
Thin margins and gross margin pressure
Profitability remains narrow, leaving limited margin buffer for cost inflation or reimbursement cuts. Sustaining a turnaround requires consistent operational execution and TRPV or utilization gains; persistent gross margin compression would strain free cash flow and constrain strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
LifeStance converts earnings into cash at a high rate: FCF is nearly equal to net income and grew 22.3% TTM. Durable cash generation supports reinvestment in centers, technology, tuck-ins and a $100M buyback program while providing a buffer against demand or reimbursement shocks.
Read all positive factors
Lifestance Health Group (LFST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.97B
Dividend YieldN/A
Average Volume (3M)6.08M
Price to Earnings (P/E)127.9
Beta (1Y)0.60
Revenue Growth16.46%
EPS GrowthN/A
CountryUS
Employees7,535
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.06
Shares Outstanding387,834,440
10 Day Avg. Volume2,257,647
30 Day Avg. Volume6,084,557
Financial Highlights & Ratios
PEG Ratio-2.34
Price to Book (P/B)1.79
Price to Sales (P/S)1.91
P/FCF Ratio24.70
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.00
Enterprise Value/Gross Profit6.70
Enterprise Value/Ebitda30.19
Forecast
1Y Price Target
$10.50Price Target Upside52.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.13
Revenue Forecast (FY)$1.66B
Lifestance Health Group Business Overview & Revenue Model
Company Description
LifeStance Health Group, Inc. specializes in delivering outpatient mental healthcare services through its subsidiary network. The company offers a comprehensive array of mental health solutions, encompassing psychiatric evaluations and treatment, ...
How the Company Makes Money
LifeStance primarily makes money by providing outpatient behavioral health care services and billing third-party payors and patients for those visits. The company’s core revenue stream is patient service revenue generated when its employed and aff...
Lifestance Health Group Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presents a strong operational and financial quarter with robust revenue growth (+21%), substantial adjusted EBITDA expansion (+48%), meaningful visit and clinician productivity gains, upgraded full-year guidance and positive clinical outcomes. Key investments in technology, AI and a planned EHR transition support long-term margin objectives, and specialty services are accelerating. Near-term headwinds include modest per-visit revenue growth (TRPV +3%), a modest G&A increase for strategic investments, implementation risk from a multi-year EHR rollout, and no immediate measurable improvement in clinician retention. Overall, the positive growth, profitability, cash generation, and upgraded guidance significantly outweigh the highlighted challenges.Positive Updates
Strong Top-Line Growth
Revenue grew 21% year-over-year to $403M in Q1 2026, driven by higher visit volumes and better-than-expected total revenue per visit.
Negative Updates
Modest Total Revenue Per Visit (TRPV) Growth
Total revenue per visit rose only 3% to $163 in Q1 2026 and the company continues to guide TRPV growth in the low- to mid-single-digit range, indicating limited near-term pricing/rate expansion per visit.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Revenue grew 21% year-over-year to $403M in Q1 2026, driven by higher visit volumes and better-than-expected total revenue per visit.
Read all positive updates
Company Guidance
LifeStance raised full‑year 2026 guidance after a strong Q1: revenue guidance was increased by $25 million at the midpoint to $1.64–$1.68 billion (midpoint implying ~17% growth), Center Margin guidance was raised by $21 million at the midpoint to $547–$571 million, and adjusted EBITDA guidance was raised by $15 million at the midpoint to $200–$220 million (midpoint implying a 12.7% adjusted EBITDA margin, >150 bps expansion year‑over‑year). The company noted the outlook assumes revenue growth driven primarily by higher visit volume plus low‑to‑mid‑single‑digit total revenue per visit (TRPV) increases, and reiterated expected stock‑based compensation of ~$60–$70 million for the year. For Q2 management guided to revenue of $405–$425 million, Center Margin of $135–$147 million and adjusted EBITDA of $50–$60 million, and longer‑term targets remain mid‑teens annual revenue growth and mid‑teens adjusted EBITDA margins by FY2028—anchored by Q1 outperformance (Q1 revenue $403M, visits 2.5M +18%, TRPV $163 +3%, adjusted EBITDA $51M, clinician base 8,349 with +309 adds).Lifestance Health Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.49B | 1.42B | 1.25B | 1.06B | 859.54M | 667.51M |
| Gross Profit | 446.48M | 406.35M | 402.40M | 302.10M | 237.02M | 201.51M |
| EBITDA | 99.11M | 78.78M | 39.87M | -104.93M | -143.60M | -240.06M |
| Net Income | 23.20M | 9.66M | -57.44M | -186.26M | -215.56M | -307.20M |
Balance Sheet | ||||||
| Total Assets | 2.15B | 2.20B | 2.12B | 2.11B | 2.17B | 1.93B |
| Cash, Cash Equivalents and Short-Term Investments | 194.80M | 248.64M | 154.57M | 78.82M | 108.62M | 148.03M |
| Total Debt | 196.19M | 194.10M | 485.19M | 511.04M | 478.83M | 158.74M |
| Total Liabilities | 668.47M | 682.92M | 672.01M | 681.04M | 655.15M | 382.08M |
| Stockholders Equity | 1.48B | 1.52B | 1.45B | 1.43B | 1.52B | 1.55B |
Cash Flow | ||||||
| Free Cash Flow | 178.75M | 110.03M | 85.69M | -57.40M | -26.47M | -85.07M |
| Operating Cash Flow | 182.35M | 146.15M | 107.26M | -16.88M | 52.79M | 9.42M |
| Investing Cash Flow | -42.87M | -36.13M | -21.57M | -60.34M | -139.46M | -194.08M |
| Financing Cash Flow | -79.02M | -15.96M | -9.95M | 47.43M | 47.26M | 313.86M |
Lifestance Health Group Technical Analysis
Positive
6.89
Price Trends
7.25
Positive
7.09
Positive
6.53
Positive
Market Momentum
0.05
Positive
52.27
Neutral
22.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFST, the sentiment is Positive. The current price of 6.89 is below the 20-day moving average (MA) of 7.68, below the 50-day MA of 7.25, and above the 200-day MA of 6.53, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 22.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LFST.
Lifestance Health Group Risk Analysis
Lifestance Health Group disclosed 49 risk factors in its most recent earnings report. Lifestance Health Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lifestance Health Group Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.00B | 24.14 | 11.68% | 1.80% | 11.40% | 13.96% | |
69 Neutral | $2.97B | 127.88 | 1.56% | ― | 16.46% | ― | |
63 Neutral | $1.50B | 5.64 | 241.47% | ― | 20.49% | 4335.46% | |
62 Neutral | $2.06B | 15.38 | 7.83% | 1.69% | -10.76% | -20.86% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $2.35B | -2.09 | -43.82% | ― | 6.80% | -698.20% | |
47 Neutral | $3.07B | -14.97 | 9999.00% | ― | -0.36% | 16.69% |
* Healthcare Sector Average
LFST
Lifestance Health Group
7.66
2.06
36.79%
ACHC
Acadia Healthcare
25.50
2.73
11.99%
BKD
Brookdale Senior Living
12.86
5.91
85.04%
NHC
National Healthcare
192.12
89.47
87.16%
SEM
Select Medical
16.63
1.77
11.88%
AVAH
Aveanna Healthcare Holdings
6.87
1.62
30.86%
Lifestance Health Group Corporate Events
Executive/Board ChangesShareholder Meetings
Lifestance Shareholders Reaffirm Board, Auditor and Executive Pay
Positive
Jun 4, 2026
On June 2, 2026, LifeStance Health Group, Inc. held its annual meeting of stockholders, where investors elected Class II directors David Bourdon and Robert Bessler to three-year terms on the board. Stockholders also ratified PricewaterhouseCoopers...
Stock BuybackRegulatory Filings and Compliance
LifeStance executes secondary offering and share repurchase
Neutral
May 12, 2026
On May 7, 2026, LifeStance Health Group, Inc. and selling stockholders entered into an underwriting agreement with J.P. Morgan Securities LLC for an underwritten offering of 35 million shares of LifeStance common stock under a previously filed she...
Business Operations and StrategyFinancial Disclosures
LifeStance Health Raises 2026 Outlook After Strong Quarter
Positive
May 7, 2026
On May 7, 2026, LifeStance Health Group reported strong first-quarter 2026 results, with revenue rising 21% year over year to $403.5 million and visit volumes up 18% to 2.5 million. Net income jumped to $14.2 million from $0.7 million, while Adjus...
Business Operations and StrategyExecutive/Board Changes
LifeStance Health Appoints Lisa Miller as Chief Operating Officer
Positive
Mar 12, 2026
On March 10, 2026, LifeStance Health Group, Inc. promoted Lisa Miller, 52, to Chief Operating Officer and Principal Operating Officer, elevating her from her previous roles leading practice operations since September 2022 and drawing on her prior ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.