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

26 Feb 2026, 23:54 by Sarita Garza · The Markets Daily

LifeStance Health Group (NASDAQ:LFST – Get Free Report) released its earnings results on Wednesday. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.05 by ($0.02), Zacks reports. LifeStance Health Group had a negative net margin of 0.67% and a negative return on equity of 0.62%. The company had revenue of $382.20 million during the quarter, compared to analysts’ expectations of $378.51 million. During the same quarter last year, the business posted ($0.01) earnings per share. The company’s revenue for the quarter was up 17.4% on a year-over-year basis.

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 NASDAQ LFST traded down $0.45 during midday trading on Thursday, reaching $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 stock has a 50 day moving average price of $7.12 and a 200-day moving average price of $6.18. The company has a market capitalization of $2.71 billion, a P/E ratio of -232.00 and a beta of 1.12. The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 0.18.

Insider Buying and Selling at LifeStance Health Group

In related news, insider Ann Varanakis sold 50,000 shares of the company’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 transaction 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 represents a 13.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Robert Bessler sold 119,942 shares of LifeStance Health Group stock in a transaction 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 in the company, valued at approximately $9,285,640.32. This trade represents a 8.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 270,086 shares of company stock worth $1,891,264 in the last 90 days. Insiders own 3.20% of the company’s stock.

Institutional Investors Weigh In On LifeStance Health Group

Large investors have recently made changes to their positions in the business. AXA S.A. acquired a new position in LifeStance Health Group during the 2nd quarter worth $118,000. AQR Capital Management LLC lifted its position in shares of LifeStance Health Group by 223.0% during the first quarter. AQR Capital Management LLC now owns 51,500 shares of the company’s stock worth $343,000 after purchasing an additional 35,554 shares during the last quarter. XTX Topco Ltd bought a new position in shares of LifeStance Health Group during the fourth quarter worth about $96,000. Xponance LLC grew its stake in LifeStance Health Group by 26.4% in the fourth quarter. Xponance LLC now owns 13,144 shares of the company’s stock worth $93,000 after purchasing an additional 2,745 shares in the last quarter. Finally, Orion Porfolio Solutions LLC acquired a new position in LifeStance Health Group in the fourth quarter worth about $88,000. Institutional investors and hedge funds own 85.50% of the company’s stock.

Key Stories Impacting LifeStance Health Group

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

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. UBS Group upped their price objective on LifeStance Health Group from $10.00 to $12.00 and gave the stock a “buy” rating in a research report on Thursday. BTIG Research lifted their price objective on shares of LifeStance Health Group from $10.00 to $11.00 and gave the company a “buy” rating in a research note on Monday, February 2nd. Zacks Research cut LifeStance Health Group from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, November 5th. Weiss Ratings restated a “sell (d-)” rating on shares of LifeStance Health Group in a research note on Monday, December 29th. Finally, KeyCorp upped their price objective on LifeStance Health Group from $8.00 to $9.00 and gave the stock an “overweight” rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $9.67.

Get Our Latest Report on LifeStance Health Group

LifeStance Health Group announced that its board has initiated a stock buyback 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 shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

About LifeStance Health Group

(Get Free Report)

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.