Free cash flow margins reached 5.5% in 2026Q1, though liquidity remains subject to working capital volatility, evidenced by a $20.8 million outflow in the most recent quarter.
| Cash from Operations | 182.35M | 146.15M | 107.26M | -16.88M | 52.79M | 9.42M | -8.53M | 17.05M |
| Operating CF Margin % | - | 10.26% | 8.57% | -1.6% | 6.14% | 1.41% | -2.26% | 8.02% |
| Operating CF Growth % | 1229.41% | 36.26% | 735.28% | -131.98% | 460.39% | 210.39% | -150.05% | - |
| Net Income | 23.2M | 9.66M | -57.44M | -186.26M | -215.56M | -307.2M | -38.07M | 5.67M |
| Depreciation & Amortization | 54.31M | 54.75M | 70.95M | 80.44M | 69.2M | 54.14M | 31.05M | 6.09M |
| Stock-Based Compensation | 56.12M | 74.7M | 76.17M | 99.39M | 187.43M | 259.44M | 1.45M | 54K |
| Deferred Taxes | 2.42M | 2.42M | -958K | -21.92M | -16.73M | -26.95M | 0 | 1.76M |
| Other Non-Cash Items | 60.41M | 44.96M | 45.91M | 45.2M | 45.4M | 27.85M | -2.21M | 478K |
| Working Capital Changes | -14.11M | -40.34M | -27.37M | -33.72M | -16.94M | 2.14M | -753K | 2.99M |
| Change in Receivables | 17.71M | 36.09M | -6.4M | -24.18M | -21.66M | -24.21M | -13.3M | -5.76M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -2.5M | -1.56M | 501K | -5.61M | 7.67M | 623K | 829K | 2.54M |
| Cash from Investing | -42.87M | -36.13M | -21.57M | -60.34M | -139.46M | -194.08M | -861.17M | -73.38M |
| Capital Expenditures | -3.6M | -36.13M | -21.57M | -40.52M | -79.25M | -94.49M | -38.07M | -14.31M |
| CapEx % of Revenue | 0.24% | 2.54% | 1.72% | 3.84% | 9.22% | 14.16% | 10.09% | 6.74% |
| Acquisitions | -3.14M | 0 | 0 | -19.82M | -60.21M | -99.58M | -823.1M | -59.06M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -36.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -79.02M | -15.96M | -9.95M | 47.43M | 47.26M | 313.86M | 912.27M | 48.46M |
| Debt Issued (Net) | -5.44M | -7.25M | -1.69M | 55.28M | 69.56M | -223.77M | 291.41M | 55.45M |
| Equity Issued (Net) | -49.34M | 0 | 0 | 0 | -904K | 549.9M | 20M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -49.34M | 0 | 0 | 0 | -904K | 0 | -1M | 0 |
| Other Financing | -24.24M | -8.71M | -8.26M | -7.86M | -21.39M | -12.28M | 600.87M | -6.99M |
| Net Change in Cash | 60.46M | 94.07M | 75.75M | -29.8M | -39.41M | 129.2M | 15.35M | -7.86M |
| Free Cash Flow | 178.75M | 110.03M | 85.69M | -57.4M | -26.47M | -85.07M | -46.6M | 2.73M |
| FCF Margin % | 11.96% | 7.72% | 6.85% | -5.44% | -3.08% | -12.74% | -12.35% | 1.29% |
| FCF Growth % | 74.6% | 28.39% | 249.28% | -116.9% | 68.89% | -82.56% | -1804.43% | - |
| FCF per Share | 0.45 | 0.28 | 0.23 | -0.16 | -0.07 | -0.26 | -0.12 | 0.01 |
| FCF Conversion (FCF/Net Income) | 7.71x | 15.12x | -1.87x | 0.09x | -0.24x | -0.03x | 0.22x | 3.01x |
| Interest Paid | 8.87M | 17.8M | 24.99M | 21.04M | 14.37M | 22.41M | 0 | 4.58M |
| Taxes Paid | 850K | 1.57M | 57K | 80K | 2.24M | 1.09M | 0 | 254K |
Clinician wage inflation pressure
As reported in recent financial filings, the relationship between net income and operating cash flow for LifeStance remains erratic, with the OCF/NI ratio swinging from 2.32 in 2026Q1 to extreme negative values in prior periods, suggesting significant underlying volatility in cash collection cycles.
The wide variance between net income and operating cash flow indicates that reported earnings are heavily influenced by non-cash items and timing differences in working capital. Investors should monitor whether the recent positive conversion in 2026Q1 represents a sustainable improvement in billing efficiency or merely a temporary timing benefit.
Based on the company's reported figures, free cash flow margins have shown a marked improvement from negative territory in early 2024 to a positive 5.5% in 2026Q1, indicating that the business is finally beginning to generate surplus cash after accounting for necessary capital expenditures.
The transition to positive FCF suggests that the company's pivot toward organic growth and operational efficiency is yielding tangible results. However, the sustainability of these margins remains contingent on the company's ability to manage clinician retention without further aggressive capital outlays.
According to quarterly data, working capital changes have been a major source of cash flow instability, with a $20.8 million outflow in 2026Q1 following a $1.8 million inflow in 2025Q4, highlighting the inherent difficulty in predicting cash conversion within the outpatient billing cycle.
These fluctuations suggest that the company's cash position is highly sensitive to payor reimbursement delays and the timing of clinician payments. The recurring nature of these swings warrants further investigation into whether the company is facing structural bottlenecks in its revenue cycle management processes.
As indicated by recent financial statements, LifeStance has pivoted its capital deployment strategy, utilizing $49.1 million for share repurchases in 2026Q1, a significant departure from previous periods where capital was primarily directed toward operational expansion or left on the balance sheet.
This shift toward returning capital to shareholders may signal management's increased confidence in the company's internal cash generation capabilities. However, investors should question if this capital is better utilized in strengthening the clinician workforce or upgrading the digital infrastructure to defend against competitive threats.
Based on historical data, the company's reliance on stock-based compensation has been substantial, with figures reaching as high as $24.6 million in 2024Q2, which effectively obscures the true cash cost of labor required to maintain the company's expansive clinician network.
While the reduction of SBC to zero in 2026Q1 appears to improve reported net income, it may also indicate a change in how the company incentivizes its workforce. Analysts should monitor whether this reduction leads to higher turnover or necessitates future cash-based compensation increases to remain competitive.
Quick answers to the most common questions about buying LFST stock.
LifeStance Health Group, Inc. (LFST) generated $146.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
LifeStance Health Group, Inc. (LFST) generated $110.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
LifeStance Health Group, Inc. (LFST) spent $36.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.