LifeStance Health Group Inc (NASDAQ:LFST) Reports Q2 2025 Revenue Growth and Narrowed Losses

LifeStance Health Group Inc (NASDAQ:LFST) Reports Q2 2025 Results: Revenue Growth Amid Narrowed Losses

LifeStance Health Group Inc, one of the nation’s largest providers of outpatient mental healthcare, reported its second-quarter 2025 financial results, showing mixed performance relative to analyst expectations. The company posted revenue of $345.3 million, an 11% year-over-year increase, but fell short of the consensus estimate of $351.7 million. Meanwhile, the net loss improved significantly to $3.8 million, or $(0.01) per share, compared to a net loss of $23.3 million, or $(0.06) per share, in the prior-year period. This outperformed the estimated EPS loss of $(0.0281).

Key Financial Highlights

• Revenue Growth: Revenue rose to $345.3 million, driven by a 12% increase in visit volumes and an 11% expansion in the clinician base to 7,708.
• Profitability Improvements: Net loss narrowed by 84% YoY, while Adjusted EBITDA grew 19% to $34.0 million, reflecting better operating leverage.
• Cash Flow Strength: Free cash flow surged to $56.6 million, the highest quarterly figure to date, supported by $64.4 million in net cash from operations.
• Guidance Update: The company reiterated its full-year revenue outlook of $1.40–$1.44 billion but raised its Adjusted EBITDA forecast to $140–$150 million, up $5 million at the midpoint.

Market Reaction

Despite the earnings beat, LifeStance shares showed muted pre-market movement, rising just 3.6%. The stock has declined 7.8% over the past week and 17.9% over the last month, suggesting broader investor skepticism around growth sustainability or sector-wide pressures. The revenue miss may have tempered enthusiasm, though the improved profitability metrics likely provided some offset.

Outlook vs. Analyst Estimates

For Q3 2025, LifeStance expects revenue between $345–$365 million, bracketing the consensus estimate of $365.6 million. Full-year revenue guidance aligns closely with analyst projections of $1.439 billion, while the raised EBITDA outlook signals confidence in cost management.

Press Release Summary

CEO Dave Bourdon highlighted clinician growth, productivity gains, and strong cash flow as key achievements. The company emphasized its ability to scale operations efficiently, with Center Margin (a non-GAAP measure) rising 11% to $108.4 million.

Conclusion

LifeStance’s Q2 results reflect progress toward profitability, though revenue growth slightly lagged expectations. The raised EBITDA guidance and robust cash flow generation may reassure investors, but the stock’s recent underperformance suggests lingering concerns.

For detailed earnings estimates and historical performance, visit LifeStance’s earnings page.

Disclaimer: This article is not investment advice. Conduct your own research or consult a financial professional before making investment decisions.