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

LifeStance Health Group (NASDAQ:LFST) announced its quarterly earnings data on Wednesday. The company reported $0.03 EPS for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.02), Zacks reports. The company had revenue of $382.20 million for the quarter, compared to analysts’ expectations of $378.51 million. LifeStance Health Group had a negative return on equity of 0.62% and a negative net margin of 0.67%.The business’s quarterly revenue was up 17.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($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 Trading Down 6.1%

Shares of LFST traded down $0.45 during midday trading on Thursday, hitting $6.96. 10,746,727 shares of the stock were exchanged, compared to its average volume of 2,047,072. LifeStance Health Group has a 52-week low of $3.74 and a 52-week high of $8.30. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.58 and a current ratio of 1.58. The stock has a fifty day simple moving average of $7.12 and a 200 day simple moving average of $6.18. The firm has a market cap of $2.71 billion, a P/E ratio of -232.00 and a beta of 1.12.

LifeStance Health Group News Roundup

Here are the key news stories impacting LifeStance Health Group this week:

• Positive Sentiment: Company reported strong top‑line growth and issued upbeat 2026 revenue guidance of $1.615B–$1.655B, signaling continued demand and growth visibility. Seeking Alpha: 2026 revenue target & initiatives
• Positive Sentiment: Board approved a $100M share repurchase program (≈3.6% of shares outstanding), which supports shareholder value and offsets some dilution concerns. GlobeNewswire: Q4 & buyback press release
• Positive Sentiment: Multiple sell‑side firms raised targets/ratings (UBS to $12 with a Buy; KeyCorp to $9 Overweight), offering upside from current levels and providing sell‑side support. Benzinga: Analyst roundup
• Neutral Sentiment: Q4 revenue beat/was roughly in line (Q4 revenue $382.2M, +17% y/y) but GAAP EPS was mixed — some outlets flagged beats vs certain estimates while others highlight an EPS miss vs consensus. Investors are parsing the quality of growth. Yahoo Finance: Q4 highlights
• Negative Sentiment: The company reported GAAP EPS below some analyst expectations (reported ~$0.03 vs $0.05 consensus on some reads), which can pressure the short‑term multiple. Seeking Alpha: Earnings transcript
• Negative Sentiment: Selling stockholders launched a secondary offering of 25M shares (company receives no proceeds). That large potential supply increase can weigh on the stock until it’s absorbed. GlobeNewswire: Secondary offering

Insider Activity

In other news, insider Ann Varanakis sold 50,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $6.90, for a total value of $345,000.00. Following the completion of the transaction, the insider owned 315,610 shares of the company’s stock, valued at approximately $2,177,709. This trade represents a 13.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Robert Bessler sold 119,942 shares of LifeStance Health Group stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $7.04, for a total transaction of $844,391.68. Following the completion of the transaction, the director owned 1,318,983 shares of the company’s stock, valued at $9,285,640.32. This trade represents a 8.34% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 270,086 shares of company stock worth $1,891,264. 3.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On LifeStance Health Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP grew its stake in shares of LifeStance Health Group by 6.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 8,906,465 shares of the company’s stock worth $62,704,000 after acquiring an additional 542,858 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in LifeStance Health Group by 27.6% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 6,118,027 shares of the company’s stock valued at $43,071,000 after purchasing an additional 1,324,691 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in LifeStance Health Group by 62.3% during 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 worth $26,363,000 after purchasing an additional 1,839,465 shares in the last quarter. Geode Capital Management LLC increased its holdings in LifeStance Health Group by 10.5% during the 4th quarter. Geode Capital Management LLC now owns 4,378,469 shares of the company’s stock worth $30,830,000 after purchasing an additional 416,404 shares during the period. Finally, State Street Corp raised its position in LifeStance Health Group by 11.4% in the 4th quarter. State Street Corp now owns 3,663,301 shares of the company’s stock valued at $25,790,000 after purchasing an additional 376,057 shares in the last quarter. Hedge funds and other institutional investors own 85.50% of the company’s stock.

Analysts Set New Price Targets

LFST has been the topic of several recent research reports. BMO Capital Markets assumed coverage on shares of LifeStance Health Group in a research report on Thursday, November 13th. They set an “outperform” rating and a $8.00 price target on the stock. Canaccord Genuity Group boosted their target price on shares of LifeStance Health Group from $9.00 to $10.00 and gave the company a “buy” rating in a report on Thursday. Barclays started coverage on shares of LifeStance Health Group in a report on Tuesday, December 9th. They set an “overweight” rating and a $8.00 price target for the company. BTIG Research lifted their price target on shares of LifeStance Health Group from $10.00 to $11.00 and gave the company a “buy” rating in a research report on Monday, February 2nd. Finally, Zacks Research lowered LifeStance Health Group from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 5th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $9.67.

LifeStance Health Group declared that its board has approved a share repurchase program on Wednesday, February 25th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 3.6% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

About LifeStance Health Group

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.