LifeStance Raises Outlook as Margins Widen
Revenue reached $435.4 million, topping the high end of LifeStance’s prior forecast.
LifeStance Health Group (LFST), a mental-health-care provider, nearly doubled adjusted EBITDA as higher revenue per visit and operating leverage widened margins. Adjusted EBITDA rose 94% to $66.0 million, while its margin increased to 15.2% from 9.8% a year earlier.
The performance extended a two-quarter acceleration and exceeded each range in LifeStance’s previous forecast. Revenue rose 26% from a year earlier, accelerating from 21% growth in the first quarter and 17% in the fourth quarter. The result surpassed the prior range of $405 million to $425 million.
Visit volume increased 19% to 2.6 million, while revenue continued to grow faster than visits. This divergence was partly due to higher total revenue per visit. Its clinician base grew 11% to 8,542, though sequential net additions slowed to 193 from 309 in the first quarter.
Center Margin rose 41% to $153.0 million and expanded to 35.2% of revenue from 31.4% a year earlier. The broader adjusted EBITDA margin resulted from higher revenue per visit, lower center costs as a share of revenue, and revenue growth that outpaced general and administrative expenses.
Operating income increased to $30.7 million from $22.3 million in the first quarter, reversing a $3.0 million operating loss a year earlier. Net income climbed to $23.6 million from $14.2 million sequentially and a $3.8 million loss in the year-earlier period.
LifeStance now expects full-year revenue of $1.685 billion to $1.725 billion, with both endpoints raised by $45 million. The company also lifted its Center Margin forecast to $570 million to $594 million and adjusted EBITDA guidance to $215 million to $235 million, marking the second increase to each outlook since the fourth quarter.
Operating cash flow accelerated to $99.9 million, bringing first-half cash from operations to $133.0 million, while second-quarter free cash flow reached $87.9 million. LifeStance repurchased $97.6 million of shares during the first half and authorized a replacement program covering up to another $100 million.