10-Q · May 7, 2026
LifeStance Health Group reported strong results for Q1 2026, with revenues of $403.5 million, a 21% increase from the prior year. Diluted EPS was $0.04, slightly below expectations, but the company saw significant…
Earnings analysis · 10-Q
LFST earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
LifeStance delivered strong Q3 growth, with revenue of $455.9 million up approximately 25.3% year over year and operating margin improving to 7.3% from 2.0%. Adjusted EBITDA rose 70% to $68.4 million, and management…
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LifeStance delivered strong Q3 growth, with revenue of $455.9 million up approximately 25.3% year over year and operating margin improving to 7.3% from 2.0%. Adjusted EBITDA rose 70% to $68.4 million, and management raised FY 2026 revenue and profitability outlooks. However, diluted EPS of $0.06 missed the $0.07 consensus estimate, while $271.9 million of credit-facility borrowings and continuing material weaknesses in internal controls remain significant risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.06
- Operating margin
- 7.3%
What stood out
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Revenue growth exceeded expectations
Q3 revenue was $455.9 million, up from $364 million in Q3 2025, representing approximately 25.3% year-over-year growth and exceeding the $431.0 million consensus estimate by $24.9 million.
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Operating leverage continued
Operating margin reached 7.3%, compared with 2.0% in Q3 2025 and 6.9% in Q2 2026, indicating continued year-over-year and sequential operating leverage.
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Adjusted EBITDA expanded sharply
Adjusted EBITDA increased 70% to $68.4 million, with Adjusted EBITDA margin reaching 15.0%, according to the company’s earnings disclosure.
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Full-year outlook was raised
Management raised FY 2026 revenue guidance to $1.741 billion-$1.761 billion and Adjusted EBITDA guidance to $242 million-$250 million, while Q4 revenue guidance is $446 million-$466 million.
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Share repurchases resumed
The company repurchased 2,000 shares during September 2026 at an average price of $12.29, leaving $75.42 million available under the repurchase program.
What to watch
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EPS missed consensus
Diluted EPS was $0.06 versus the $0.07 consensus estimate, a shortfall of approximately 14.3%, despite revenue of $455.9 million.
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Debt and interest-rate exposure
As of September 30, 2026, the company had $271.9 million of principal outstanding under its credit facilities, exposing results to changes in prime-rate-based borrowing costs.
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Material weaknesses remain
Management concluded that disclosure controls were not effective as of September 30, 2026 because previously reported material weaknesses remained, including deficiencies that could affect substantially all financial statement accounts and disclosures.
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Concentrated ownership
TPG and Summit-affiliated entities collectively beneficially owned approximately 25.3% of common stock as of September 30, 2026, giving them significant influence over board composition, capital raising, and change-of-control decisions.
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Governance transition risk
LifeStance is no longer a Nasdaq controlled company and has only a one-year transition period to comply fully with independent committee requirements, temporarily reducing governance protections for stockholders.
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Insider trading-plan overhang
Six directors or officers entered into, modified, or terminated trading arrangements during the quarter; listed plans covered up to 4,357,262 shares for the chairman and 2,216,585 shares for the chief legal officer.
Management's outlook
Management raised FY 2026 revenue guidance to $1.741 billion-$1.761 billion, Center Margin guidance to $599 million-$613 million, and Adjusted EBITDA guidance to $242 million-$250 million. Q4 2026 revenue guidance is $446 million-$466 million; no numeric EPS guidance was provided.
Earlier filings 4
10-K · February 25, 2026
LifeStance positions itself as a tech-enabled hybrid (virtual + in-person) outpatient mental health platform anchored by scale, an employed clinician model and in‑network payor relationships. Operational scale is large…
10-K · February 27, 2025
LifeStance describes a tech-enabled hybrid (virtual + in-person) outpatient mental health platform anchored by scale, in‑network payor relationships and an employed clinician model. Operational metrics show substantial…
10-Q · August 8, 2024
LifeStance reported Q2 total revenue of $312.3M, up 20.3% year-over-year and +3.9% sequentially. Operating loss narrowed to $(15.95)M (operating margin -5.11%) from $(48.41)M in Q2 2023, and GAAP net loss per share…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.