Lifestance Health Group (LFST) AI Stock Analysis

• Market Cap: $2.27B
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: 16.31%
• EPS Growth: 79.86%
• Country: US
• Employees: 7,535
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Care Facilities
• EPS (TTM): 0.00
• Shares Outstanding: 388,875,920
• 10 Day Avg. Volume: 2,185,928
• 30 Day Avg. Volume: 1,786,709
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $9.20
• Price Target Upside: 57.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

LifeStance Health Group's stock score reflects strong revenue growth and positive developments from the recent earnings call, such as achieving positive net income and operational improvements. However, ongoing profitability challenges, negative free cash flow, and bearish technical indicators weigh on the overall score. The stock's high valuation further limits its appeal.

Positive Factors

Business Model

The in-network, 'clicks-and-mortar' operating model at LifeStance is unique and remains well positioned for long-term organic growth in the high demand behavioral healthcare space.

Financial Performance

LifeStance Health reported its first quarter of positive GAAP net income, indicating improved financial performance.

Management Optimism

Management has continued to express optimism in its efforts to standardize and optimize the business, which is playing out.

Negative Factors

Center Margin Pressure

Center margin is expected to be pressured in the remaining quarters, reversing a trend of solid improvement.

Guidance Disappointment

Investors expressed disappointment that Q1 EBITDA upside was not flowed through to guidance and that 2025 revenue guidance was unchanged.

Stock Volatility

Shares of LifeStance gapped down ~18% at one point on the 1Q report, 2Q guidance, and reiteration of annual targets.

Lifestance Health Group Business Overview & Revenue Model

Company Description

LifeStance Health Group (LFST) is a leading provider of outpatient mental health care, focusing on delivering high-quality, accessible care to patients across the United States. The company operates in the healthcare sector, specifically within the mental health services industry, offering a range of services that include therapy, psychiatry, and psychological assessments through a network of licensed clinicians. LifeStance Health is committed to addressing the growing demand for mental health services by providing care in both in-person and telehealth formats, ensuring flexibility and convenience for its patients.

How the Company Makes Money

LifeStance Health Group generates revenue primarily through providing mental health services to patients. The company's revenue model is based on a fee-for-service arrangement, where they charge patients or their insurance providers for each session or service rendered. Key revenue streams include therapy sessions, psychiatric evaluations, medication management, and other mental health services offered by their network of clinicians. LifeStance Health also benefits from significant partnerships with insurance providers, which facilitate access to a broader patient base by ensuring that services are covered under various health insurance plans. Additionally, the company's expansion into telehealth services has opened up new revenue opportunities by allowing them to reach patients beyond geographical limitations, further contributing to their earnings.

Lifestance Health Group Financial Statement Overview

Summary

Lifestance Health Group demonstrates strong revenue growth and improving cash flows, but ongoing losses in net income and negative EBIT margins indicate challenges in achieving profitability. The balance sheet shows strong equity support and reduced leverage, which provides some financial stability. Continued focus on operational efficiency and cost management could help improve profitability and overall financial health.

Income Statement

The company has shown a consistent revenue growth from $212.5 million in 2019 to $1.25 billion in 2024, indicating strong market demand and expansion. However, profitability remains a concern, with negative net income and EBIT over recent years, reflecting challenges in managing costs and achieving operational efficiency. The EBIT and EBITDA margins have improved slightly but are still negative, suggesting ongoing issues with core operational performance.

Balance Sheet

The balance sheet indicates a strong equity base with stockholders' equity at $1.45 billion, showing resilience despite operational losses. The debt-to-equity ratio has improved significantly from 2020, indicating better financial management and reduced leverage. However, a high total debt of $198 million and negative net income pose risks to financial stability. The equity ratio remains robust, highlighting long-term viability.

Cash Flow

The cash flow statement shows a significant improvement in operating cash flow, turning positive in 2024, which is a positive signal for liquidity. Free cash flow has also improved to $107 million in 2024, indicating better cash management. However, historical volatility in cash flows and capital expenditures highlight the need for sustained cash generation to support growth and reduce financial risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.25B	1.06B	859.54M	667.51M	377.22M
	Gross Profit
1.25B	302.10M	237.02M	201.51M	134.32M
	EBIT
-31.61M	-189.13M	-210.17M	-286.35M	15.44M
	EBITDA
39.87M	-104.93M	-136.41M	-229.62M	8.77M
	Net Income Common Stockholders
-57.44M	-186.26M	-215.56M	-307.20M	-38.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
154.57M	78.82M	108.62M	148.03M	18.83M
	Total Assets
2.12B	2.23B	2.17B	1.93B	1.57B
	Total Debt
198.15M	511.04M	476.49M	157.42M	362.53M
	Net Debt
43.58M	432.22M	367.87M	9.39M	343.70M
	Total Liabilities
672.01M	804.28M	655.15M	382.08M	571.89M
	Stockholders Equity
1.45B	1.43B	1.52B	1.55B	997.84M
Cash Flow		Free Cash Flow
85.69M	-57.40M	-26.47M	-85.07M	-46.60M
	Operating Cash Flow
107.26M	-16.88M	52.79M	9.42M	-8.53M
	Investing Cash Flow
-21.57M	-60.34M	-139.46M	-194.08M	-861.17M
	Financing Cash Flow
-9.95M	47.43M	47.26M	313.86M	912.27M

Lifestance Health Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFST, the sentiment is Negative. The current price of 5.84 is below the 20-day moving average (MA) of 6.20, below the 50-day MA of 6.56, and below the 200-day MA of 6.99, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 29.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFST.

Lifestance Health Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASTH	76 Outperform	$1.36B	37.47	5.00%	―	54.81%	-45.07%
PNTG	69 Neutral	$1.04B	39.43	11.28%	―	30.04%	43.47%
ACHC	65 Neutral	$2.41B	12.84	6.35%	―	5.48%	―
LFST	63 Neutral	$2.27B	―	-2.47%	―	16.31%	79.86%
TALK	61 Neutral	$498.60M	178.44	2.52%	―	25.02%	―
Sector *	52 Neutral	$5.15B	3.02	-44.64%	2.83%	16.44%	-0.47%
CMPS	47 Neutral	$369.54M	―	-60.67%	―	―	3.88%

Lifestance Health Group Corporate Events

LifeStance Health Group Appoints New Chief Technology Officer

On May 14, 2025, LifeStance Health Group announced the departure of Chief Digital Officer Pablo Pantaleoni, effective July 1, 2025, and the appointment of Vaughn Paunovich as the new Chief Technology Officer, effective June 9, 2025. Paunovich, with extensive experience in healthcare technology, is expected to lead LifeStance’s technology strategy to enhance patient and clinician experiences, aligning with the company’s mission to expand access to mental health services. Pantaleoni, who joined the company in 2020, significantly contributed to its digital transformation and will ensure a smooth transition with Paunovich.

The most recent analyst rating on (LFST) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Lifestance Health Group stock, see the LFST Stock Forecast page.

Spark’s Take on LFST Stock

According to Spark, TipRanks’ AI Analyst, LFST is a Neutral.

Lifestance Health Group’s overall stock score reflects strong revenue growth and cash flow improvements, tempered by ongoing profitability challenges and high valuation risks. Technical indicators suggest potential bearish momentum, while the positive earnings call highlights operational achievements. The score indicates a moderate investment outlook, with significant emphasis on improving profitability and market position to enhance future potential.

To see Spark’s full report on LFST stock, click here.

LifeStance Health Reports First Positive Net Income

On May 7, 2025, LifeStance Health Group reported its financial results for the first quarter ending March 31, 2025, highlighting a revenue increase of 11% to $333 million and a net income of $0.7 million, marking the first positive net income since becoming a public company. The company also noted a 10% increase in clinician base and visit volumes, alongside a 25% rise in Adjusted EBITDA. LifeStance reiterated its full-year 2025 guidance, projecting revenues between $1.40 billion and $1.44 billion, and emphasized its commitment to enhancing patient and clinician experiences while expanding access to mental healthcare services.

Spark’s Take on LFST Stock

According to Spark, TipRanks’ AI Analyst, LFST is a Neutral.

LifeStance Health Group’s overall stock score reflects strong revenue growth and cash flow improvements but is tempered by ongoing profitability challenges and high valuation. The technical indicators suggest potential short-term bearish momentum. The positive earnings call highlights operational achievements but also acknowledges rate pressures and increased expenses. The company’s strategic focus on growth and leadership changes are promising, but financial performance improvements are crucial for a higher score.

To see Spark’s full report on LFST stock, click here.

LifeStance Health Group Reports Strong 2024 Financial Results

LifeStance Health Group reported its financial results for the fourth quarter and full year 2024, showing a 19% increase in revenue to $1.251 billion and a 103% growth in Adjusted EBITDA to $119.7 million. Despite a net loss of $57.4 million for the year, the company demonstrated strong operational performance with increased visit volumes and clinician growth, positioning itself for continued momentum in 2025 with projected revenues between $1.40 billion and $1.44 billion.

Lifestance Health Group Announces Leadership Changes for 2025

LifeStance Health Group announced leadership changes effective March 2025, with David Bourdon promoted to Chief Executive Officer, succeeding the retiring Kenneth Burdick, who will become Executive Chairman. Ryan McGroarty will take over as Chief Financial Officer, bringing extensive experience from his previous roles at Help at Home and Cigna. These appointments aim to maintain the company’s strong operational and financial performance, ensuring continued growth and expansion in the mental health care sector.