Lifestance Health Group (LFST) Q1 2025 earnings summary

Executive summary

• Revenue grew 11% year-over-year to $333.0 million in Q1 2025, driven by higher visit volumes and a 10% increase in the clinician base to 7,535.

• Net income was $0.7 million, a turnaround from a net loss of $21.1 million in Q1 2024, marking the first positive net income as a public company.

• Adjusted EBITDA rose 25% year-over-year to $34.6 million (10.4% margin), with Center Margin up 16% to $109.8 million (33.0% of revenue).

• Visit volumes increased 10% to 2.1 million in Q1 2025.

• Leadership changes included the appointment of a new CEO and CFO, with amended executive agreements.

Financial highlights

• Revenue reached $333.0 million in Q1 2025, up from $300.44 million in Q1 2024.

• Net income was $0.7 million, compared to a net loss of $21.1 million in Q1 2024.

• Adjusted EBITDA was $34.6 million (10.4% margin), up from $27.7 million (9.2% margin) year-over-year.

• Center Margin was $109.8 million (33.0% of revenue), up from $94.7 million (31.5%) in Q1 2024.

• Ended Q1 with $134.3 million in cash and net long-term debt of $276.3 million.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: revenue of $1.4–$1.44 billion, Center Margin of $440–$464 million, and Adjusted EBITDA of $130–$150 million.

• Q2 2025 guidance: revenue of $332–$352 million, Center Margin of $100–$114 million, Adjusted EBITDA of $28–$34 million.

• Growth expected from clinician expansion, de novo center openings (25–30 in 2025), and increased patient visits.

• Management believes existing liquidity is sufficient for at least the next 12 months.

• Stock-based compensation expected at $70–$85 million in 2025, decreasing by ~$10 million annually from 2026.