Q2 FY2026
Filed Aug 6, 2026LifeStance Reports Strong Second Quarter 2026 Financial Results and Raises Full Year Outlook Announces $100 Million Share Repurchase Program
Revenue grew 26%, profitability turned positive, Adjusted EBITDA increased 94%, cash generation was strong, and the company raised its full-year revenue, Center Margin, and Adjusted EBITDA outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $435.4 million | – | 26% |
| Income (loss) from operationsGAAP | $30.7 million | – | NM |
| Income (loss) from operations as % of Total revenueGAAP | 7.0% | – | – |
| Net income (loss)GAAP | $23.6 million | – | NM |
| Net income (loss) as % of Total revenueGAAP | 5.4% | – | – |
| Center Marginnon-GAAP | $153.0 million | – | 41% |
| Center Margin as % of Total revenuenon-GAAP | 35.2% | – | – |
| Adjusted EBITDAnon-GAAP | $66.0 million | – | 94% |
| Adjusted EBITDA as % of Total revenuenon-GAAP | 15.2% | – | – |
| Clinician baseother | 8,542 clinicians | – | 11% |
| Sequential net increase in clinician baseother | 193 | – | – |
| Visit volumesother | 2.6 million | – | 19% |
| Net cash provided by operationsGAAP | $99.9 million | – | – |
| Free Cash Flownon-GAAP | $87.9 million | – | – |
Full year 2026 and third quarter of 2026 outlook
- RevenueFull year 2026: $1.685 billion to $1.725 billion; third quarter of 2026: $420 million to $440 million
- NoteFull year 2026 Center Margin: $570 million to $594 million
- NoteFull year 2026 Adjusted EBITDA: $215 million to $235 million
- NoteThird quarter of 2026 Center Margin: $140 million to $152 million
- NoteThird quarter of 2026 Adjusted EBITDA: $49 million to $59 million
Capital returns
- The Board of Directors approved a share repurchase program authorizing the repurchase of up to $100 million of the Company's outstanding common stock.
- The new program replaces the prior $100 million repurchase program approved on February 24, 2026.
What drove it
- Revenue growth was driven primarily by higher visit volumes from net clinician growth, improved clinician productivity, and higher total revenue per visit.
- Adjusted EBITDA margin increased 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.
- The clinician base increased 11% to 8,542 clinicians, with a sequential net increase of 193 in the second quarter.
- Second quarter visit volumes increased 19% to 2.6 million.
Concerns
- The company identifies reimbursement-rate reductions or restrictions by third-party payors as potential risks to the business.
- The company identifies its ability to recruit new clinicians and retain existing clinicians as a risk.
- The company identifies existing indebtedness as a factor that could adversely affect its business and growth prospects.
- The company states that competition, healthcare regulation, and information-security failures could harm financial performance.
What to watch
- Execution against third-quarter revenue guidance of $420 million to $440 million.
- Execution against third-quarter Center Margin guidance of $140 million to $152 million and Adjusted EBITDA guidance of $49 million to $59 million.
- Whether clinician growth, clinician productivity, visit volumes, and total revenue per visit continue to support revenue growth.
- Whether lower center costs as a percentage of revenue and operating leverage continue to support Adjusted EBITDA margin.
- Repurchases under the newly authorized program of up to $100 million.
Balance sheet and cash flow
- For the six months ended June 30, 2026, LifeStance generated $133.0 million of cash flow from operations.
- Net cash provided by operations was $99.9 million during the second quarter of 2026.
- Free Cash Flow generation was $87.9 million in the second quarter.
- Cash and cash equivalents were $225.9 million at the end of the second quarter.
- Net long-term debt was $259.0 million at the end of the second quarter.
Analysis
LifeStance delivered a strong second quarter, with revenue of $435.4 million, up 26% from $345.3 million. The company attributed growth primarily to higher visit volumes from net clinician growth, improved clinician productivity, and higher total revenue per visit. Visit volumes increased 19% to 2.6 million, while the clinician base rose 11% to 8,542 clinicians, including a sequential net increase of 193 clinicians in the quarter.
Profitability improved materially. Income from operations was $30.7 million compared with a loss from operations of $(3.0) million, and net income was $23.6 million compared with a net loss of $(3.8) million. Income from operations represented 7.0% of revenue, while net income represented 5.4%, compared with negative margins in the prior-year period.
Non-GAAP measures showed faster growth than revenue. Center Margin increased 41% to $153.0 million and reached 35.2% of revenue, compared with 31.4%. Adjusted EBITDA increased 94% to $66.0 million, with margin expanding to 15.2% from 9.8%. Management cited higher total revenue per visit, lower center costs as a percentage of revenue, and operating leverage as revenue grew faster than general and administrative expenses.
Cash generation was also notable, with $99.9 million of net cash provided by operations and $87.9 million of Free Cash Flow in the second quarter. For the six months ended June 30, 2026, cash flow from operations was $133.0 million. The company ended the quarter with $225.9 million of cash and cash equivalents and $259.0 million of net long-term debt, while also authorizing a new program to repurchase up to $100 million of common stock.
The company raised its full-year outlook to revenue of $1.685 billion to $1.725 billion, Center Margin of $570 million to $594 million, and Adjusted EBITDA of $215 million to $235 million. Third-quarter guidance calls for revenue of $420 million to $440 million, Center Margin of $140 million to $152 million, and Adjusted EBITDA of $49 million to $59 million. The central operating questions are whether clinician additions, productivity, visit growth, and revenue per visit can sustain the current revenue and margin trajectory.
Management, verbatim
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%.
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.
Dave Bourdon, CEO of LifeStance
Not in the filing
stated, not guessed- GAAP diluted EPS and non-GAAP diluted EPS
- Gross profit and gross margin
- Operating expenses
- Income tax expense and tax rate
- Detailed revenue segments or geographic revenue segments
- Prior-quarter comparisons for reported quarterly metrics
- Prior-year comparisons for cash flow, Free Cash Flow, cash, and debt
- Total debt and debt maturity details
- Capital expenditures or purchases of property and equipment
- Dividend declaration or payment
- Share repurchases executed during the quarter
- Prior outlook figures, so comparisons with prior guidance cannot be provided
- Forward-looking gross margin, operating expenses, and tax-rate guidance
- Detailed GAAP-to-non-GAAP reconciliation tables were not included in the supplied filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.