Q1 fiscal 2027 (three months ended September 30, 2026)
Filed Nov 9, 2026Revenue fell 22.0% to $37.1 million and the company posted a GAAP net loss of $(0.02) per diluted share, with adjusted EPS of $0.05 against $0.18 a year ago
Revenue declined 22.0% year over year in both regions, active accounts fell 19.0%, GAAP operating income turned to a loss of $(136) thousand from $2,268 thousand, adjusted EBITDA fell to $1,945 thousand from $3,921 thousand, and the release gives no forward guidance. Operating cash flow was positive at $0.5 million and the company has no debt, which partly offsets the picture.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, net (Q1 FY2027)GAAP | $37.12M | – | 22.0% decrease |
| Cost of sales (Q1 FY2027)GAAP | $9.15M | – | – |
| Gross profit (Q1 FY2027)GAAP | $27.97M | – | – |
| Gross profit margin (% of revenue, Q1 FY2027)GAAP | 75.4% | – | – |
| Gross profit excluding MindBody GLP-1 System inventory obsolescence allowance (Q1 FY2027)non-GAAP | $29.01M | – | – |
| Gross profit margin excluding MindBody GLP-1 System inventory obsolescence allowance (Q1 FY2027)non-GAAP | 78.2% | – | – |
| Commissions and incentives (Q1 FY2027)GAAP | $15,380 thousand (41.4% of revenue) | – | – |
| Selling, general and administrative expense (Q1 FY2027)GAAP | $12,725 thousand (34.3% of revenue) | – | – |
| Total operating expenses (Q1 FY2027)GAAP | $28.11M | – | – |
| Operating income (loss) (Q1 FY2027)GAAP | −$136K | – | – |
| Adjusted non-GAAP operating income (Q1 FY2027)non-GAAP | $900K | – | – |
| Interest income, net (Q1 FY2027)GAAP | $45K | – | – |
| Total other income (expense) (Q1 FY2027)GAAP | −$48K | – | – |
| Income tax expense (Q1 FY2027)GAAP | −$12K | – | – |
| Net income (loss) (Q1 FY2027)GAAP | −$196K | – | – |
| Diluted earnings per share (Q1 FY2027)GAAP | $(0.02) | – | – |
| Non-GAAP net income (Q1 FY2027)non-GAAP | $588K | – | – |
| Adjusted diluted earnings per share (Q1 FY2027)non-GAAP | $0.05 | – | – |
| Non-GAAP EBITDA (Q1 FY2027)non-GAAP | $501K | – | – |
| Non-GAAP Adjusted EBITDA (Q1 FY2027)non-GAAP | $1,945 thousand (5.2% of revenue) | – | – |
| Cash from operations (Q1 FY2027)GAAP | $500K | – | – |
| Active Independent Consultants, total (as of September 30)other | 40,000 | – | (16.7)% |
| Active Customers, total (as of September 30)other | 58,000 | – | (20.5)% |
| Total Active Accounts (as of September 30)other | 98,000 | – | (19.0)% |
| Cash and cash equivalents (as of September 30, 2026)GAAP | $13.73M | – | – |
| Total assets (as of September 30, 2026)GAAP | $59.20M | – | – |
| Total stockholders' equity (as of September 30, 2026)GAAP | $33.26M | – | – |
| Debt outstanding (as of September 30, 2026)other | No debt outstanding | – | – |
| Share repurchases during Q1 FY2027other | None; the company did not repurchase any shares in the quarter | – | – |
| Remaining authorization under share repurchase program (as of September 30, 2026)other | $58.5 million remaining under the $60 million program | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AmericasThe filing gives no regional split of drivers. At total-company level the company attributes the decline primarily to lower active accounts, which it links to the broader macro environment, and to lower sales of the MindBody GLP-1 System, partly offset by LoveBiome product line sales acquired in October 2025. | $28,954 thousand (78.0% of total revenue) | – | 22.2% decrease (prior year $37,197 thousand, 78.2% of total revenue) |
| Asia/Pacific & EuropeThe filing gives no regional split of drivers. The foreign currency impact of $0.4 million, or 3.9%, is quoted by the company for this region. The general company drivers (lower active accounts, lower MindBody GLP-1 System sales, partly offset by LoveBiome) are not attributed to this region specifically. | $8,163 thousand (22.0% of total revenue) | – | 21.2% decrease (prior year $10,364 thousand, 21.8% of total revenue); includes a $0.4 million, or 3.9%, negative impact from foreign currency |
Capital returns
- No shares were repurchased in the quarter ended September 30, 2026.
- $58.5 million remained under the $60 million share repurchase program as of September 30, 2026.
- The release contains no dividend declaration for the quarter; the dividend language appears only in the forward-looking statements boilerplate.
What drove it
- Company explanation of the revenue decline: primarily lower active accounts, which it links to the broader macro environment, and lower sales of the MindBody GLP-1 System. Partly offset by sales of the LoveBiome product line, acquired in October 2025.
- Company explanation of the lower gross profit margin (75.4% against 79.5%): primarily an allowance for inventory obsolescence related to the MindBody GLP-1 System of $1,045 thousand, along with increases in shipping and warehouse related expenses.
- Company explanation of the lower commissions and incentives ratio (41.4% against 43.5%): primarily the timing and magnitude of promotional and incentive programs, changes in revenue mix, and changes in the mix of customers and independent consultants.
- SG&A rose as a percentage of revenue (34.3% against 31.2%). The company states this reflects the overall decrease in revenue; SG&A dollars fell to $12,725 thousand from $14,853 thousand.
- Operating income fell to a loss of $(136) thousand from income of $2,268 thousand. Adjusted non-GAAP operating income was $0.9 million against $2.5 million.
- Other adjustments in the non-GAAP reconciliations consisted solely of the MB System allowance for inventory obsolescence of $1,045 thousand in the current quarter. The prior-year adjustment was $217 thousand of other nonrecurring expenses, net of credits.
Concerns
- Revenue fell 22.0% year over year in both reported regions, and Total Active Accounts fell 19.0% to 98,000, with Active Customers down 20.5% and Active Independent Consultants down 16.7%.
- GAAP operating income turned to a loss of $(136) thousand and GAAP net loss was $(196) thousand, against net income of $2,155 thousand a year earlier.
- Adjusted EBITDA was $1,945 thousand, or 5.2% of revenue, against $3,921 thousand, or 8.2% of revenue.
- A $1,045 thousand inventory obsolescence allowance on the MindBody GLP-1 System reduced gross profit, and the company reports rising shipping and warehouse costs.
- The release provides no forward guidance or outlook for revenue, margins or expenses.
- No shares were repurchased in the quarter, and the company's cash balance declined from $14,920 thousand to $13,726 thousand.
What to watch
- Active accounts and active customer counts in the next quarter, since the company names lower active accounts as the primary revenue driver.
- Whether gross margin recovers from 75.4% GAAP, or 78.2% excluding the MindBody GLP-1 inventory allowance, against the prior-year 79.5%.
- Progress of the strategy the CEO describes as moving the company toward a more brand-driven, consumer-focused model, and of the planned creation of a more focused and efficient operating model.
- Whether the LoveBiome product line sales continue to offset declines in other product lines.
- Whether SG&A dollars continue to decline in step with revenue, and whether the company resumes share repurchases under the $58.5 million remaining authorization.
- Any guidance the company provides on the next call, since none is given in this release.
Balance sheet and cash flow
- Cash from operations was $0.5 million in the quarter, compared with $2.3 million used in operations in the prior year period. The company attributes this to decreases in accounts receivable, inventory and other accrued expenses.
- Cash and cash equivalents were $13,726 thousand at September 30, 2026, against $14,920 thousand at June 30, 2026.
- No debt was outstanding at September 30, 2026.
- Inventory, net fell to $14,228 thousand from $16,167 thousand at June 30, 2026, and accounts receivable fell to $1,806 thousand from $2,990 thousand.
- Total liabilities were $25,947 thousand against $28,522 thousand at June 30, 2026. Total stockholders' equity was $33,258 thousand against $33,589 thousand.
- Accumulated deficit increased to $(104,286) thousand from $(103,462) thousand at June 30, 2026, consistent with the quarterly net loss of $(196) thousand.
- Free cash flow and capital expenditure totals are not reported in the release.
Analysis
LifeVantage reported first quarter fiscal 2027 revenue of $37,117 thousand, a 22.0% decrease from $47,561 thousand a year earlier. Both reported regions declined by similar rates: Americas fell 22.2% to $28,954 thousand and Asia/Pacific & Europe fell 21.2% to $8,163 thousand, with a $0.4 million, or 3.9%, foreign currency headwind in the latter. Active accounts fell 19.0% to 98,000, driven by a 23.7% decline in Americas active customers. The company attributes the revenue decline primarily to lower active accounts, the broader macro environment and lower MindBody GLP-1 System sales, partly offset by the LoveBiome product line acquired in October 2025. The filing does not quantify the LoveBiome contribution.
Profitability weakened across the P&L. GAAP gross margin was 75.4% against 79.5%. The company ties the decline primarily to a $1,045 thousand inventory obsolescence allowance on the MindBody GLP-1 System, with higher shipping and warehouse costs also cited. Excluding that allowance, non-GAAP gross profit was $29,014 thousand, or 78.2% of revenue, which is still below the prior-year 79.5%. Commissions and incentives fell to 41.4% of revenue from 43.5%, which the company attributes to the timing and magnitude of promotional programs, revenue mix and the customer and consultant mix. SG&A dollars fell to $12,725 thousand from $14,853 thousand but rose as a share of revenue to 34.3% from 31.2%. Operating income moved from $2,268 thousand to a loss of $(136) thousand.
Below the operating line, GAAP net loss was $(196) thousand, or $(0.02) per diluted share, against net income of $2,155 thousand, or $0.17 per diluted share. Non-GAAP net income was $588 thousand, or $0.05 per diluted share, against $2,326 thousand, or $0.18. Non-GAAP adjusted EBITDA was $1,945 thousand, or 5.2% of revenue, against $3,921 thousand, or 8.2%. The non-GAAP adjustments this quarter consist of the same $1,045 thousand inventory allowance, while the prior-year quarter carried $217 thousand of other nonrecurring expenses. The reader should note that the adjusted figures exclude this allowance, which is the largest single item in the reconciliation.
On the balance sheet, operating cash flow was positive at $0.5 million, compared with $2.3 million used a year earlier, and the company attributes this to lower receivables, inventory and accrued expenses. Inventory fell to $14,228 thousand from $16,167 thousand, and cash declined to $13,726 thousand from $14,920 thousand at June 30, 2026. The company holds no debt and total stockholders' equity was $33,258 thousand. No shares were repurchased in the quarter, leaving $58.5 million under the $60 million authorization.
The release contains no guidance, outlook or revenue and margin targets for future periods, and the CEO describes a new strategy and operating model without quantifying them. The quarter therefore gives a clear view of the reported decline but no forward reference point. Investors will need the next quarter's active account trend, gross margin excluding the inventory allowance, and any guidance management provides to judge whether the stated strategy is taking hold.
Management, verbatim
Despite a challenging quarter, LifeVantage has significant untapped potential, and we now have a clear strategy designed to capture it,
Terrence Moorehead, President and Chief Executive Officer
We have a lot of work to do, and building the company we envision will take time, but we have a differentiated foundation, a clear roadmap and a strong sense of urgency around execution.
Terrence Moorehead, President and Chief Executive Officer
Not in the filing
stated, not guessed- No forward guidance or outlook is provided for revenue, gross margin, operating expenses or tax rate; guidance is null and vs_prior_guidance is empty.
- No prior-year or prior-quarter figure is printed for revenue sub-lines in dollar change terms; the dollar change of revenue and regional revenue is not printed.
- Prior-year figures are not printed for cost of sales, gross profit, operating expenses, operating income and net income changes on a percentage basis.
- No prior-quarter (June 30, 2026 quarter) income statement figures are printed; prior_quarter is null for all P&L metrics.
- Prior-year non-GAAP gross profit in dollars is not printed; the reconciliation shows the prior-year GAAP gross profit only.
- Prior-year figure for non-GAAP operating income is printed only in millions, and the current-year figure is printed only in millions; no thousands figure is given.
- Free cash flow and capital expenditure are not reported.
- Prior-year cash from operations is printed only as $2.3 million used; no thousands figure is given.
- Share price reaction and analyst consensus are not in the documents and are not reported.
- The regional split of revenue drivers is not provided; drivers are given only at total-company level.
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.