LifeStance Health Group (NASDAQ:LFST) Releases Quarterly Earnings Results, Misses Estimates By $0.02 EPS

LifeStance Health Group (NASDAQ:LFST) released its quarterly earnings data on Wednesday. The company reported $0.03 EPS for the quarter, missing the consensus estimate of $0.05 by ($0.02), Zacks reports. The company had revenue of $382.20 million for the quarter, compared to the consensus estimate of $378.51 million. LifeStance Health Group had a negative net margin of 0.67% and a negative return on equity of 0.62%. The firm’s revenue for the quarter was up 17.4% on a year-over-year basis. During the same period last year, the company earned ($0.01) EPS.

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 Price Performance

NASDAQ:LFST traded down $0.36 during trading hours on Thursday, hitting $7.06. 7,416,179 shares of the stock were exchanged, compared to its average volume of 1,955,629. The firm’s fifty day moving average price is $7.12 and its 200 day moving average price is $6.18. LifeStance Health Group has a 52-week low of $3.74 and a 52-week high of $8.30. The company has a market cap of $2.74 billion, a P/E ratio of -235.17 and a beta of 1.12. The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 0.18.

LifeStance Health Group declared that its Board of Directors has authorized a share buyback plan on Wednesday, February 25th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 3.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Activity at LifeStance Health Group

In related news, insider Ann Varanakis sold 50,000 shares of the stock in a transaction 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 completion of the transaction, the insider directly owned 315,610 shares of the company’s stock, valued at approximately $2,177,709. This represents a 13.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robert Bessler sold 119,942 shares of the firm’s stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $7.04, for a total transaction of $844,391.68. Following the completion of the transaction, the director directly owned 1,318,983 shares in the company, valued at approximately $9,285,640.32. This represents a 8.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 270,086 shares of company stock valued at $1,891,264 over the last quarter. 3.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On LifeStance Health Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in LifeStance Health Group by 62.3% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,793,336 shares of the company’s stock valued at $26,363,000 after buying an additional 1,839,465 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of LifeStance Health Group by 27.2% in the third quarter. Dimensional Fund Advisors LP now owns 8,363,607 shares of the company’s stock valued at $45,998,000 after purchasing an additional 1,790,694 shares during the period. Integral Health Asset Management LLC increased its position in LifeStance Health Group by 100.0% during the fourth quarter. Integral Health Asset Management LLC now owns 3,000,000 shares of the company’s stock worth $21,120,000 after purchasing an additional 1,500,000 shares during the last quarter. Barclays PLC increased its position in LifeStance Health Group by 74.7% during the third quarter. Barclays PLC now owns 3,508,552 shares of the company’s stock worth $19,297,000 after purchasing an additional 1,499,687 shares during the last quarter. Finally, Marshall Wace LLP acquired a new position in LifeStance Health Group in the 3rd quarter valued at about $7,637,000. Institutional investors and hedge funds own 85.50% of the company’s stock.

LifeStance Health Group News Roundup

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

Analyst Ratings Changes

LFST has been the subject of a number of recent research reports. KeyCorp lifted their price objective on shares of LifeStance Health Group from $8.00 to $9.00 and gave the stock an “overweight” rating in a research note on Thursday. BTIG Research increased their price objective on LifeStance Health Group from $10.00 to $11.00 and gave the stock a “buy” rating in a research note on Monday, February 2nd. BMO Capital Markets initiated 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. Wall Street Zen raised shares of LifeStance Health Group from a “hold” rating to a “buy” rating in a report on Sunday, February 8th. Finally, Zacks Research lowered LifeStance Health Group from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 5th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, LifeStance Health Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $9.33.

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.