Q3 FY2026
Filed Nov 5, 2026LifeStance Reports Strong Third Quarter 2026 Financial Results and Raises Full Year Outlook
Revenue increased 25% to $455.9 million, income from operations rose to $33.1 million from $7.4 million, net income was $22.4 million versus $1.1 million, and Adjusted EBITDA increased 70% to $68.4 million. The company raised full-year revenue, Center Margin and Adjusted EBITDA expectations.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $455.9M | – | 25% |
| Q3 2026 center costs, excluding depreciation and amortization shown separately belowGAAP | $294.5M | – | – |
| Q3 2026 general and administrative expensesGAAP | $113.4M | – | – |
| Q3 2026 depreciation and amortizationGAAP | $14.94M | – | – |
| Q3 2026 total operating expensesGAAP | $422.8M | – | – |
| Q3 2026 income from operationsGAAP | $33.1M | – | NM |
| Q3 2026 income from operations as % of total revenueGAAP | 7.3% | – | – |
| Q3 2026 loss on remeasurement of contingent considerationGAAP | −$2.34M | – | – |
| Q3 2026 transaction costsGAAP | −$510K | – | – |
| Q3 2026 interest expense, netGAAP | −$2.49M | – | – |
| Q3 2026 other expenseGAAP | −$334K | – | – |
| Q3 2026 income before income taxesGAAP | $27.40M | – | – |
| Q3 2026 income tax provisionGAAP | −$5.02M | – | – |
| Q3 2026 net incomeGAAP | $22.4M | – | NM |
| Q3 2026 net income as % of total revenueGAAP | 4.9% | – | – |
| Q3 2026 basic earnings per shareGAAP | 0.06 | – | – |
| Q3 2026 diluted earnings per shareGAAP | 0.06 | – | – |
| Q3 2026 Center Marginnon-GAAP | $161.4M | – | 38% |
| Q3 2026 Center Margin as % of total revenuenon-GAAP | 35.4% | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $68.4M | – | 70% |
| Q3 2026 Adjusted EBITDA as % of total revenuenon-GAAP | 15.0% | – | – |
| Q3 2026 net cash provided by operationsGAAP | $37M | – | – |
| Q3 2026 Free Cash Flownon-GAAP | $22.4M | – | – |
| Q3 2026 clinician baseother | 8,863 clinicians | a sequential net increase of 321 | 11% |
| Q3 2026 visit volumesother | 2.7M | – | 17% |
| Nine months ended September 30, 2026 total revenueGAAP | $1.29B | – | – |
| Nine months ended September 30, 2026 income from operationsGAAP | $86.01M | – | – |
| Nine months ended September 30, 2026 net income (loss)GAAP | $60.24M | – | – |
| Nine months ended September 30, 2026 basic earnings per shareGAAP | 0.16 | – | – |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | 0.15 | – | – |
| Nine months ended September 30, 2026 Center Marginnon-GAAP | $450.4M | – | – |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $185.5M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full year 2026 and fourth quarter of 2026 outlook
- RevenueFull year 2026: $1.741 billion to $1.761 billion
- NoteFull year 2026 Center Margin: $599 million to $613 million
- NoteFull year 2026 Adjusted EBITDA: $242 million to $250 million
- NoteFourth quarter of 2026 total revenue: $446 million to $466 million
- NoteFourth quarter of 2026 Center Margin: $149 million to $163 million
- NoteFourth quarter of 2026 Adjusted EBITDA: $56 million to $64 million
Capital returns
- Repurchases of common stock of $(122,430) for the nine months ended September 30, 2026.
- Taxes related to net share settlement of equity awards of $(24,919) for the nine months ended September 30, 2026.
What drove it
- Third-quarter revenue growth was driven primarily by higher visit volumes from net clinician growth, improved clinician productivity, and higher total revenue per visit.
- Adjusted EBITDA as a percentage of revenue 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 company cited positive patient outcomes across TMS and Spravato.
- Strategic initiatives included evaluating and implementing a critical enterprise-wide scalable electronic health resources system.
Concerns
- Loss on remeasurement of contingent consideration was $(2,339) in the third quarter of 2026.
- Transaction costs were $(510) in the third quarter of 2026.
- Strategic initiatives expense was $1,741 in the third quarter of 2026 and relates to the enterprise-wide scalable electronic health resources system.
- The company identified risks related to reimbursement rates, clinician recruitment and retention, regulatory compliance, supported-practice relationships, competition, data security, information technology systems and indebtedness.
What to watch
- Fourth-quarter execution against total revenue guidance of $446 million to $466 million.
- Fourth-quarter Center Margin guidance of $149 million to $163 million and Adjusted EBITDA guidance of $56 million to $64 million.
- Clinician growth, clinician productivity, visit volumes and total revenue per visit.
- Implementation of the new EHR and associated strategic-initiative costs.
- Cash generation, property-and-equipment spending, acquisitions and common-stock repurchases.
Balance sheet and cash flow
- Cash and cash equivalents were $218.8 million at the end of the third quarter; the balance sheet reported $218,818 at September 30, 2026.
- Net long-term debt was $255.5 million at the end of the third quarter; the balance sheet reported long-term debt, net of $255,524 at September 30, 2026.
- Net cash provided by operating activities was $170,037 for the nine months ended September 30, 2026, compared with $88,591 for the nine months ended September 30, 2025.
- Purchases of property and equipment were $(37,415) for the nine months ended September 30, 2026, compared with $(25,214) for the nine months ended September 30, 2025.
- Acquisitions of businesses, net of cash acquired were $(9,590) for the nine months ended September 30, 2026.
- Payments of long-term debt were $(10,875) for the nine months ended September 30, 2026.
- Net cash used in financing activities was $(152,856) for the nine months ended September 30, 2026.
- Cash and cash equivalents at the end of the period were $218,818, compared with $203,903 for the nine months ended September 30, 2025.
Analysis
LifeStance reported a materially stronger third quarter. Revenue increased 25% to $455.9 million, supported by 17% growth in visit volumes to 2.7 million, an 11% increase in the clinician base to 8,863 clinicians, improved clinician productivity and higher total revenue per visit. The clinician base also increased by a sequential net 321 clinicians during the quarter.
Profitability improved sharply. Income from operations was $33.1 million, compared with $7.4 million, while net income was $22.4 million, compared with $1.1 million. Center Margin increased 38% to $161.4 million and represented 35.4% of total revenue versus 32.0%. Adjusted EBITDA increased 70% to $68.4 million, with margin reaching 15.0% from 11.1%. Management attributed the margin improvement to higher 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 positive, with $37.0 million of third-quarter net cash provided by operations and $22.4 million of Free Cash Flow. For the nine months ended September 30, 2026, operating cash flow was $170,037 versus $88,591 in the prior-year period. The company ended the quarter with $218.8 million of cash and cash equivalents and $255.5 million of net long-term debt. Financing cash outflows included $(122,430) of common-stock repurchases during the first nine months of 2026, while investing activities included $(37,415) of property-and-equipment purchases and $(9,590) of business acquisitions.
The company raised its full-year outlook for revenue to $1.741 billion to $1.761 billion, Center Margin to $599 million to $613 million and Adjusted EBITDA to $242 million to $250 million. Fourth-quarter guidance calls for revenue of $446 million to $466 million, Center Margin of $149 million to $163 million and Adjusted EBITDA of $56 million to $64 million. Execution against clinician hiring, utilization, productivity and revenue per visit remains central to delivering that outlook.
Items requiring attention include the enterprise-wide EHR implementation and related strategic initiatives expense of $1,741 in the quarter, as well as the $(2,339) loss on remeasurement of contingent consideration and $(510) of transaction costs. The filing also identifies reimbursement, clinician recruitment and retention, regulatory, technology, security and debt-related risks as factors that could affect results.
Management, verbatim
The team delivered a tremendous quarter, with execution across the business driving results that once again exceeded our expectations.
Dave Bourdon, CEO of LifeStance
The strong momentum gives us the confidence to further raise our full-year 2026 outlook across all financial metrics, while our positive patient outcomes, most recently across TMS and Spravato, reflect our commitment to clinical excellence.
Dave Bourdon, CEO of LifeStance
At the same time, the investments we are making in our platform, including the implementation of our new EHR, are positioning LifeStance for continued success and scale over the long term.
Dave Bourdon, CEO of LifeStance
Not in the filing
stated, not guessed- Gross margin was not reported.
- No prior-quarter financial results were reported for the Q3 2026 income-statement metrics.
- No prior outlook section was provided, so comparisons of actual results with prior guidance are unavailable.
- GAAP operating cash flow for Q3 2025 was not reported.
- Free Cash Flow reconciliation and prior-year Free Cash Flow were not reported.
- No business segments or segment revenue were reported.
- No dividend declaration or dividend payment was reported.
- Forward guidance for gross margin, operating expenses and tax rate was not reported.
- The filing did not provide non-GAAP earnings per share.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.