LifeStance Reports Strong Second Quarter 2026 Financial Results and Raises Full Year Outlook

SCOTTSDALE, Ariz., Aug. 06, 2026 (GLOBE NEWSWIRE) -- LifeStance Health Group, Inc. (Nasdaq: LFST), one of the nation’s largest providers of outpatient mental healthcare, today announced financial results for the second quarter ended June 30, 2026.

(All results compared to prior-year comparative period, unless otherwise noted)
Q2 2026 Highlights and FY 2026 Outlook

• Revenue of $435.4 million increased 26% compared to revenue of $345.3 million
• Clinician base increased 11% to 8,542 clinicians, a sequential net increase of 193 in the second quarter
• Second quarter visit volumes increased 19% to 2.6 million
• Net income of $23.6 million compared to net loss of $3.8 million
• Adjusted EBITDA of $66.0 million compared to Adjusted EBITDA of $34.0 million
• Net cash provided by operations of $99.9 million in the second quarter
• Free Cash Flow generation of $87.9 million in the second quarter
• For full year 2026, raising revenue expectations to $1.685 billion to $1.725 billion, Center Margin expectations to $570 million to $594 million, and Adjusted EBITDA of $215 million to $235 million
  
  

“This was an outstanding second quarter and first half of 2026 for LifeStance, as we delivered quarterly revenue growth of 26%, positive net income of $24 million, and Adjusted EBITDA margins of 15%.” said Dave Bourdon, CEO of LifeStance. “This momentum underscores the substantial growth opportunity ahead as we extend our reach into new geographies, broaden our specialty capabilities, and strengthen our differentiation through clinical excellence and measurable patient outcomes.”

Financial Highlights           Q2 2026  Q2 2025  Y/Y (in millions)         Total revenue $435.4  $345.3   26%Income (loss) from operations  30.7   (3.0) NM Center Margin  153.0   108.4   41%Net income (loss)  23.6   (3.8) NM Adjusted EBITDA  66.0   34.0   94%As % of Total revenue:         Income (loss) from operations  7.0%  (0.9%)   Center Margin  35.2%  31.4%   Net income (loss)  5.4%  (1.1%)   Adjusted EBITDA  15.2%  9.8%               

__________________________________________
NM - not meaningful

(All results compared to prior-year period, unless otherwise noted)

• Revenue grew 26% to $435.4 million. Revenue growth in the second quarter was driven primarily by higher visit volumes from net clinician growth, improved clinician productivity, and higher total revenue per visit.
• Income from operations was $30.7 million and net income was $23.6 million.
• Center Margin grew 41% to $153.0 million, or 35.2% of total revenue.
• Adjusted EBITDA increased 94% to $66.0 million, or 15.2% of total revenue. Adjusted EBITDA as a percentage of revenue increased in the second quarter as a result of higher total revenue per visit, lower center costs as a percentage of revenue, and improved operating leverage from revenue growing faster than general and administrative expenses.
  
  

Balance Sheet, Cash Flow, and Capital Allocation

For the six months ended June 30, 2026, LifeStance generated $133.0 million of cash flow from operations, including $99.9 million during the second quarter of 2026. The Company ended the second quarter with cash and cash equivalents of $225.9 million and net long-term debt of $259.0 million.

2026 Guidance

LifeStance is providing the following outlook for 2026:

• The Company is raising full year revenue to $1.685 billion to $1.725 billion, Center Margin to $570 million to $594 million, and Adjusted EBITDA to $215 million to $235 million.
• For the third quarter of 2026, the Company expects total revenue of $420 million to $440 million, Center Margin of $140 million to $152 million, and Adjusted EBITDA of $49 million to $59 million.
  
  

Share Repurchase Program

The Company's Board of Directors has approved a share repurchase program authorizing the repurchase of up to $100 million of the Company's outstanding common stock, which replaces the Company's prior $100 million repurchase program approved by the Board of Directors of the Company on February 24, 2026. Repurchases may be made from time to time at the Company's discretion in the open market or through privately negotiated transactions, including accelerated share repurchase programs, subject to market conditions and other relevant factors.

Conference Call, Webcast Information, and Presentations

LifeStance will hold a conference call today, August 6, 2026 at 8:30 a.m. Eastern Time to discuss the second quarter 2026 results. Investors who wish to participate in the call should dial 1-800-715-9871, domestically, or 1-646-307-1963, internationally, approximately 10 minutes before the call begins and provide conference ID number 6776851 or ask to be joined into the LifeStance call. A real-time audio webcast can be accessed via the Events and Presentations section of the LifeStance Investor Relations website (https://investor.lifestance.com), where related materials will be posted prior to the conference call.

About LifeStance Health Group, Inc.

Founded in 2017, LifeStance (Nasdaq: LFST) is reimagining mental health. We are one of the nation’s largest providers of virtual and in-person outpatient mental healthcare for children, adolescents and adults experiencing a variety of mental health conditions. Our mission is to help people lead healthier, more fulfilling lives by improving access to trusted, affordable, and personalized mental healthcare. LifeStance and its supported practices employ over 8,500 psychiatrists, advanced practice nurses, psychologists and therapists and operates across 33 states and more than 550 centers. To learn more, please visit www.LifeStance.com.

We routinely post information that may be important to investors on the “Investor Relations” section of our website at investor.lifestance.com. We encourage investors and potential investors to consult our website regularly for important information about us.

Forward-Looking Statements

Statements in this press release and on the related teleconference that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements. These statements include, but are not limited to, statements with respect to: full year and third quarter guidance and management's related assumptions; business plans and objectives; our share repurchase authorization and repurchases thereunder; and other statements contained in this press release that are not historical facts. When used in this press release and on the related teleconference, words such as “may,” “will,” “should,” “could,” “intend,” “potential,” “continue,” “anticipate,” “believe,” “estimate,” “expect,” “plan,” “target,” “predict,” “project,” “seek” and similar expressions as they relate to us are intended to identify forward-looking statements. They involve a number of risks and uncertainties that may cause actual events and results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: if reimbursement rates paid by third-party payors are reduced or if third-party payors otherwise restrain our ability to obtain or deliver care to patients, our business could be materially harmed; we may not grow at the rates we historically have achieved or at all, even if our key metrics may imply future growth, including if we are unable to successfully execute on our growth initiatives and business strategies; if we fail to manage our growth effectively, our expenses could increase more than expected, our revenue may not increase proportionally or at all, and we may be unable to execute on our business strategy; our ability to recruit new clinicians and retain existing clinicians; we conduct business in a heavily regulated industry and if we fail to comply with these laws and government regulations, we could incur penalties or be required to make significant changes to our operations or experience adverse publicity, which could have a material adverse effect on our business, results of operations and financial condition; we are dependent on our relationships with supported practices, which we do not own, to provide healthcare services, and our business would be harmed if those relationships were disrupted or if our arrangements with these entities became subject to legal challenges; we operate in a competitive industry, and if we are not able to compete effectively, our business and financial performance would be harmed; the impact on us of healthcare reform legislation and other changes in the healthcare industry and in healthcare spending is currently unknown, but may harm our business; if our or our vendors’ security measures fail or are breached and unauthorized access to our employees’, patients’ or partners’ data is obtained, our systems may be perceived as insecure, we may incur significant liabilities, including through private litigation or regulatory action, our reputation may be harmed, and we could lose patients and partners; our business depends on our ability to effectively invest in, implement improvements to and properly maintain the uninterrupted operation and data integrity of our information technology and other business systems; our existing indebtedness could adversely affect our business and growth prospects; and other risks and uncertainties set forth under “Risk Factors” included in the reports we have filed or will file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings made with the Securities and Exchange Commission. LifeStance does not undertake to update any forward-looking statements made in this press release to reflect any change in management's expectations or any change in the assumptions or circumstances on which such statements are based, except as otherwise required by law.

Non-GAAP Financial Information

This press release contains certain non-GAAP financial measures, including Center Margin, Adjusted EBITDA, and Adjusted EBITDA margin. Tables showing the reconciliation of these non-GAAP financial measures to the comparable GAAP measures are included at the end of this release. Management believes these non-GAAP financial measures are useful in evaluating the Company’s operating performance, and may be helpful to securities analysts, institutional investors and other interested parties in understanding the Company’s operating performance and prospects. This press release also refers to Free Cash Flow, which is calculated as net cash provided by operating activities less purchases of property and equipment. Management believes Free Cash Flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after investments in property and equipment, can be used for future growth. These non-GAAP financial measures, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance. Therefore, the Company’s non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP, such as net income (loss) or income (loss) from operations.

Center Margin and Adjusted EBITDA anticipated for the third quarter of 2026 and full year 2026 are calculated in a manner consistent with the historical presentation of these measures at the end of this release. Reconciliation for the forward-looking third quarter of 2026 and full year 2026 Center Margin, Adjusted EBITDA guidance and Free Cash Flow is not being provided, as LifeStance does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation. As such, LifeStance management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results.

Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results.

Consolidated Financial Information and Reconciliations
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except for par value)         June 30, 2026  December 31, 2025 CURRENT ASSETS      Cash and cash equivalents $225,943  $248,642 Patient accounts receivable, net  110,960   95,710 Prepaid expenses and other current assets  41,063   71,848 Total current assets  377,966   416,200 NONCURRENT ASSETS      Property and equipment, net  164,696   161,583 Right-of-use assets  157,007   149,720 Intangible assets, net  172,805   177,665 Goodwill  1,304,556   1,293,346 Other noncurrent assets  4,466   5,419 Total noncurrent assets  1,803,530   1,787,733 Total assets $2,181,496  $2,203,933 LIABILITIES AND STOCKHOLDERS' EQUITY      CURRENT LIABILITIES      Accounts payable $11,053  $6,122 Accrued payroll expenses  149,320   143,327 Other accrued expenses  49,551   42,187 Operating lease liabilities, current  46,500   45,544 Other current liabilities  18,329   14,782 Total current liabilities  274,753   251,962 NONCURRENT LIABILITIES      Long-term debt, net  258,991   265,927 Operating lease liabilities, noncurrent  154,159   148,553 Deferred tax liability, net  16,408   16,408 Other noncurrent liabilities  37   68 Total noncurrent liabilities  429,595   430,956 Total liabilities $704,348  $682,918 COMMITMENTS AND CONTINGENCIES      STOCKHOLDERS’ EQUITY      Preferred stock – par value $0.01 per share; 25,000 shares authorized as of
   June 30, 2026 and December 31, 2025; 0 shares issued and outstanding as
   of June 30, 2026 and December 31, 2025  —   — Common stock – par value $0.01 per share; 800,000 shares authorized as of
   June 30, 2026 and December 31, 2025; 382,022 and 388,318 shares
   issued and outstanding as of June 30, 2026 and December 31, 2025,
   respectively  3,820   3,883 Additional paid-in capital  2,244,099   2,325,758 Accumulated deficit  (770,771)  (808,626)Total stockholders' equity  1,477,148   1,521,015   Total liabilities and stockholders’ equity $2,181,496  $2,203,933 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited)
(In thousands, except per share amounts)         Three Months Ended June 30,  Six Months Ended June 30,   2026  2025  2026  2025 TOTAL REVENUE $435,354  $345,311  $838,830  $678,281 OPERATING EXPENSES            Center costs, excluding depreciation and
   amortization shown separately below  282,313   236,880   549,857   460,059 General and administrative expenses  108,139   97,375   208,469   191,806 Depreciation and amortization  14,249   14,006   27,567   27,762 Total operating expenses $404,701  $348,261  $785,893  $679,627 INCOME (LOSS) FROM OPERATIONS $30,653  $(2,950) $52,937  $(1,346)OTHER EXPENSE            Loss on remeasurement of contingent
   consideration  (26)  —   (31)  — Transaction costs  (445)  —   (989)  — Interest expense, net  (2,632)  (2,900)  (4,425)  (5,973)Other expense  (93)  (92)  (275)  (93)Total other expense $(3,196) $(2,992) $(5,720) $(6,066)INCOME (LOSS) BEFORE INCOME TAXES  27,457   (5,942)  47,217   (7,412)INCOME TAX (PROVISION) BENEFIT  (3,845)  2,151   (9,362)  4,330 NET INCOME (LOSS) $23,612  $(3,791) $37,855  $(3,082)EARNINGS (LOSS) PER SHARE            Basic  0.06   (0.01)  0.10   (0.01)Diluted  0.06   (0.01)  0.10   (0.01)Weighted-average shares outstanding            Basic  383,516   386,733   385,379   385,015 Diluted  387,299   386,733   391,181   385,015              NET INCOME (LOSS) $23,612  $(3,791) $37,855  $(3,082)OTHER COMPREHENSIVE LOSS            Unrealized losses on cash flow hedge, net of tax  —   (267)  —   (584)COMPREHENSIVE INCOME (LOSS) $23,612  $(4,058) $37,855  $(3,666)

CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)      Six Months Ended June 30,   2026  2025 CASH FLOWS FROM OPERATING ACTIVITIES      Net income (loss) $37,855  $(3,082)Adjustments to reconcile net income (loss) to net cash provided by operating
   activities:      Depreciation and amortization  27,567   27,762 Non-cash operating lease costs  21,663   20,669 Stock-based compensation  34,949   39,700 Amortization of discount and debt issue costs  504   506 Other, net  1,283   753 Change in operating assets and liabilities, net of businesses acquired:      Patient accounts receivable, net  (14,402)  2,318 Prepaid expenses and other current assets  30,810   (15,179)Accounts payable  3,946   (277)Accrued payroll expenses  5,430   11,725 Operating lease liabilities  (22,536)  (23,498)Other accrued expenses  5,952   (93)   Net cash provided by operating activities $133,021  $61,304 CASH FLOWS FROM INVESTING ACTIVITIES      Purchases of property and equipment  (22,761)  (14,923)Acquisitions of businesses, net of cash acquired  (9,038)  —    Net cash used in investing activities $(31,799) $(14,923)CASH FLOWS FROM FINANCING ACTIVITIES      Payments of long-term debt  (7,250)  (3,625)Taxes related to net share settlement of equity awards  (24,414)  (8,398)Proceeds from the exercise of stock options  5,368   — Repurchases of common stock  (97,625)  —    Net cash used in financing activities $(123,921) $(12,023)NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS  (22,699)  34,358 Cash and cash equivalents - beginning of period  248,642   154,571 CASH AND CASH EQUIVALENTS – END OF PERIOD $225,943  $188,929 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION      Cash paid for interest, net $8,185  $8,753 Cash paid for taxes, net of refunds $1,041  $1,459 SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND
FINANCING ACTIVITIES      Contingent consideration incurred in acquisitions of businesses $3,646  $— Acquisition of property and equipment included in liabilities $5,142  $2,286 

RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO CENTER MARGIN         Three Months Ended June 30,  Six Months Ended June 30,   2026  2025  2026  2025 (in thousands)            Income (loss) from operations $30,653  $(2,950) $52,937  $(1,346)Adjusted for:            Depreciation and amortization  14,249   14,006   27,567   27,762 General and administrative expenses (1)  108,139   97,375   208,469   191,806 Center Margin $153,041  $108,431  $288,973  $218,222 

 (1)Represents salaries, wages and employee benefits for our executive leadership, finance, human resources, marketing, billing and credentialing support and technology infrastructure and stock-based compensation for all employees.   

 

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA         Three Months Ended June 30,  Six Months Ended June 30,   2026  2025  2026  2025 (in thousands)            Net income (loss) $23,612  $(3,791) $37,855  $(3,082)Adjusted for:            Interest expense, net  2,632   2,900   4,425   5,973 Depreciation and amortization  14,249   14,006   27,567   27,762 Income tax provision (benefit)  3,845   (2,151)  9,362   (4,330)Loss on remeasurement of contingent
  consideration  26   —   31   — Stock-based compensation expense  19,748   21,116   34,949   39,700 Loss on disposal of assets  93   92   275   93 Transaction costs (1)  445   —   989   — Executive transition costs  —   534   —   719 Litigation costs (2)  69   953   (128)  1,158 Strategic initiatives (3)  911   —   997   — Real estate optimization and restructuring
  charges (4)  (11)  (52)  (11)  (97)Amortization of cloud-based software
  implementation costs (5)  423   398   841   755 Adjusted EBITDA $66,042  $34,005  $117,152  $68,651 

 (1)Primarily includes capital markets advisory, consulting, accounting and legal expenses related to the underwritten public offerings of shares of our common stock by certain selling stockholders completed in the first and second quarters of 2026. (2)Litigation costs, net of insurance recoveries, include only those costs which are considered non-recurring and outside of the ordinary course of business based on the following considerations, which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) the complexity of the case (e.g., complex class action litigation), (iii) the nature of the remedy(ies) sought, including the size of any monetary damages sought, (iv) the counterparty involved, and (v) our overall litigation strategy. During each of the three and six months ended June 30, 2026 and 2025, litigation costs included cash expenses related to certain litigation matters, including a privacy class action litigation, and for the three and six months ended June 30, 2025, a compensation model class action litigation. (3)Strategic initiatives consist of expenses directly related to evaluating and implementing a critical enterprise-wide scalable electronic health resources system in connection with our significant expansion. Strategic initiatives represents costs, such as third-party consulting costs and one-time costs, that are not part of our ongoing operations related to this enterprise-wide system. We considered the frequency and scale of this enterprise upgrade when determining that the expenses were not normal, recurring operating expenses. (4)Real estate optimization and restructuring charges consist of cash expenses and non-cash charges related to our real estate optimization initiative, which included certain asset impairment and disposal costs, certain gains and losses related to early lease terminations, and exit and disposal costs related to our real estate optimization initiative to consolidate our physical footprint during 2023. As the decision to close these centers was part of a significant strategic project driven by a historic shift in behavior, the magnitude of center closures was greater than what would be expected as part of ordinary business operations and did not constitute normal recurring operating activities. During the three and six months ended June 30, 2026 and 2025, real estate optimization and restructuring charges consisted of certain gains and losses related to early lease terminations of previously abandoned real estate leases in 2023. (5)Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within general and administrative expenses included in our unaudited consolidated statements of operations and comprehensive income (loss).