LifeVantage (NASDAQ:LFVN) reported fiscal second-quarter 2026 results that reflected a sharp year-over-year decline in revenue and earnings as the company cycled the prior-year launch of its MindBody GLP-1 System and faced intensifying competition in the broader GLP-1 category. Management also highlighted early momentum from the LoveBiome acquisition, new product launches, and a major new share repurchase authorization.
GLP-1 competition pressured results and prompted an inventory reserve
Chief Executive Officer Steve Fife said the “primary driver” of the quarter’s revenue decline was the shift in competitive dynamics since the October launch of MindBody GLP-1. Fife pointed to pharmaceutical GLP-1 drugs becoming “more accessible and affordable,” increasingly covered by insurance, and available in new formats, including pills. He said those changes “dramatically impacted” LifeVantage’s GLP-1 sales.
Fife said the company remains committed to MindBody GLP-1, emphasizing it is “scientifically validated and proven effective,” but added that LifeVantage is also reviewing options to respond to the market and “taking a hard look at cost reduction opportunities” while maintaining profitability.
Revenue fell 27.8% year over year as MindBody declined; LoveBiome contributed $4.1 million
For the fiscal second quarter, LifeVantage reported net revenue of $48.9 million, down 27.8% from $67.8 million in the year-ago quarter, but up 2.9% sequentially from the first quarter. Aure attributed the year-over-year decline primarily to a $16.2 million decrease in MindBody GLP-1 System sales. That decline was partially offset by the LoveBiome product line, which contributed $4.1 million in revenue following the October acquisition.
Regionally, revenue in the Americas fell 32.6% to $38.5 million, while Asia-Pacific and Europe revenue decreased 2.1% to $10.4 million. Aure said the Americas decline reflected lower MindBody GLP-1 sales and a 25.2% decrease in total active accounts, “mostly from decreases in our active customer base.” In Asia-Pacific and Europe, total active accounts declined 6.5%; Aure noted revenue increased slightly in Japan on a constant-currency basis.
On profitability, gross profit margin was 74%, down from 80.5% a year earlier, driven by the inventory reserve and higher shipping and warehouse costs. Excluding the reserve, adjusted gross margin was 78.8%.
Earnings declined; balance sheet remained debt-free
LifeVantage posted GAAP operating income of $0.5 million versus $3.4 million in the prior-year period. On a non-GAAP adjusted basis, operating income was $2.6 million compared with $3.9 million a year ago.
GAAP net income was $0.3 million, or $0.02 per diluted share, down from $2.6 million, or $0.19 per diluted share. Adjusted net income was $1.9 million, or $0.15 per diluted share, compared with $3.0 million, or $0.22 per diluted share in the year-ago quarter. Adjusted EBITDA was $3.9 million (7.9% of revenue) compared to $6.5 million (9.6%) a year earlier.
The company ended the quarter with $10.2 million in cash and no debt. Aure said operating cash flow was $0.5 million for the first six months of fiscal 2026, down from $8.6 million in the prior-year period, citing the timing of incentive payments, payments of accrued liabilities, and working capital changes. Capital expenditures were $1.5 million in the first six months, up from $0.8 million, reflecting continued investment in technology infrastructure.
In Q&A, management said $3.7 million of second-quarter cash usage related to closing the LoveBiome transaction was the “actual cash transaction price,” with the deal structured as a cash down payment plus a future earnout tied to revenue targets.
LoveBiome integration and product pipeline highlighted as growth drivers
Fife said management was encouraged by the “continued momentum” from the LoveBiome acquisition, citing integration progress, operational synergies, and an expanded product pipeline. He highlighted two new launches from the LoveBiome portfolio introduced earlier in the week:
- AXIO X, a new addition to the AXIO line aimed at pre-workout consumers seeking long-lasting energy, improved oxygen uptake, and stamina.
- PhytoPower B (with “B” standing for “blocker”), positioned as a product to help slow sugar absorption and support metabolism, intended for use ahead of carbohydrate- and sugar-heavy meals.
Fife also said additional LoveBiome products are expected over the next couple of months. He called the company’s patent-pending P84 product a “hero product” in the gut microbiome category and said the Healthy Edge Stack—combining P84 with Protandim Nrf2 Synergizer—has become a key enrollment story for consultants. He referenced third-party testing and a “cell study” discussed by the company that it said supports the combination’s benefits.
Shopify rollout, capital returns, guidance update, and CEO retirement
LifeVantage also discussed its ongoing Shopify partnership, which Fife described as a modernization effort intended to improve conversion rates and customer checkout experience, streamline promotions and product presentation, and enable enhancements to consultant “back office” tools. He said the company was on track for a pilot program.
On capital allocation, Aure said the company did not repurchase shares during the second quarter, but repurchased 44,000 shares for $0.6 million during the first six months of fiscal 2026. The board approved a new $60 million share repurchase program through December 31, 2027, replacing the prior authorization. The company also declared a quarterly cash dividend of $0.045 per share, payable March 16, 2026, to stockholders of record as of March 2, 2026.
For fiscal 2026, LifeVantage updated its outlook, projecting:
- Revenue: $185 million to $200 million
- Adjusted EBITDA: $15 million to $19 million
- Adjusted EPS: $0.60 to $0.80
Management said the guidance reflects current GLP-1 competitive dynamics, LoveBiome integration momentum, and the expected impact of February product launches. In Q&A, Fife said MindBody trends appeared to have stabilized and that management anticipated revenue building from the third quarter into the fourth quarter, with Q4 likely representing a higher proportion of second-half revenue.
Separately, Fife announced a planned retirement in April 2026, stating the board has been engaged in a succession planning process intended to ensure continuity.
About Lifevantage (NASDAQ:LFVN)
LifeVantage Corporation is a publicly traded company that develops, markets and distributes nutritional supplements, skincare products and weight-management solutions through a direct-selling business model. The company’s flagship offering, Protandim®, is formulated to activate the Nrf2 pathway, which is associated with cellular defense processes. LifeVantage also markets the PhysIQ® line for metabolism and body composition support and the TrueScience® skincare regimen, targeting a range of health and wellness needs.
Founded in 1999 and headquartered in Sandy, Utah, LifeVantage combines research in nutrigenomics with a network of independent distributors to bring its products to market.
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