Revenue growth has accelerated sharply to 26.1% year-over-year in 2026Q2, accompanied by gross margin expansion to 35.2%, which has fueled a dramatic swing in operating income to a $30.7M profit from a $15.9M loss in 2024Q2.
LifeStance Health Group, Inc. (LFST) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 1.58B | 1.42B | 1.25B | 1.06B | 859.54M | 667.51M | 377.22M | 212.52M |
| Revenue Growth % | 20.38% | 13.85% | 18.5% | 22.82% | 28.77% | 76.96% | 77.5% | - |
| Cost of Goods Sold | 1.05B | 963.19M | 848.57M | 753.57M | 622.52M | 466M | 242.9M | 150.12M |
| COGS % of Revenue | - | 67.63% | 67.83% | 71.38% | 72.43% | 69.81% | 64.39% | 70.64% |
| Gross Profit | 531.85M | 461.1M | 402.4M | 302.1M | 237.02M | 201.51M | 134.32M | 62.4M |
| Gross Margin % | 33.56% | 32.37% | 32.17% | 28.62% | 27.57% | 30.19% | 35.61% | 29.36% |
| Gross Profit Growth % | - | 14.59% | 33.2% | 27.46% | 17.62% | 50.02% | 115.27% | - |
| Operating Expenses | 453.42M | 436.95M | 434.01M | 491.23M | 447.19M | 487.86M | 118.88M | 47.16M |
| OpEx % of Revenue | - | 30.68% | 34.69% | 46.53% | 52.03% | 73.09% | 31.52% | 22.19% |
| Selling, General & Admin | 398.86M | 382.2M | 363.06M | 410.79M | 377.99M | 433.73M | 87.84M | 41.06M |
| SG&A % of Revenue | - | 26.83% | 29.02% | 38.91% | 43.98% | 64.98% | 23.29% | 19.32% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 54.75M | 70.95M | 80.44M | 69.2M | 54.14M | 31.05M | 6.09M |
| Operating Income | 78.43M | 24.15M | -31.61M | -189.13M | -210.17M | -286.35M | 15.44M | 15.24M |
| Operating Margin % | 4.95% | 1.7% | -2.53% | -17.92% | -24.45% | -42.9% | 4.09% | 7.17% |
| Operating Income Growth % | - | 176.39% | 83.29% | 10.01% | 26.6% | -1955.1% | 1.28% | - |
| EBITDA | 132.99M | 78.9M | 39.34M | -108.7M | -140.98M | -232.22M | 46.48M | 21.34M |
| EBITDA Margin % | 8.39% | 5.54% | 3.14% | -10.3% | -16.4% | -34.79% | 12.32% | 10.04% |
| EBITDA Growth % | 132.06% | 100.58% | 136.19% | 22.9% | 39.29% | -599.6% | 117.85% | - |
| D&A (Non-Cash Add-back) | 54.56M | 54.75M | 70.95M | 80.44M | 69.2M | 54.14M | 31.05M | 6.09M |
| EBIT | 77.11M | 24.02M | -31.08M | -185.36M | -212.8M | -294.19M | -22.28M | 13.28M |
| Net Interest Income | -10.11M | -11.66M | -26.54M | -21.22M | -19.93M | -38.91M | 0 | -5.41M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 22.13M | 0 |
| Interest Expense | 10.11M | 11.66M | 26.54M | 21.22M | 19.93M | 38.91M | 22.13M | 5.41M |
| Other Income/Expense | -11.44M | -11.79M | -26M | -17.45M | -22.56M | -46.75M | -59.85M | -7.37M |
| Pretax Income | 66.99M | 12.36M | -57.61M | -206.58M | -232.73M | -333.11M | -44.41M | 7.88M |
| Pretax Margin % | 4.23% | 0.87% | -4.61% | -19.57% | -27.08% | -49.9% | -11.77% | 3.71% |
| Income Tax | 16.39M | 2.7M | -170K | -20.32M | -17.17M | -25.91M | -6.34M | 2.21M |
| Effective Tax Rate % | 24.47% | 21.84% | 0.3% | 9.84% | 7.38% | 7.78% | 14.28% | 28.01% |
| Net Income | 50.6M | 9.66M | -57.44M | -186.26M | -215.56M | -307.2M | -38.07M | 5.67M |
| Net Margin % | 3.19% | 0.68% | -4.59% | -17.64% | -25.08% | -46.02% | -10.09% | 2.67% |
| Net Income Growth % | 413.29% | 116.82% | 69.16% | 13.59% | 29.83% | -706.93% | -771.55% | - |
| Net Income (Continuing) | 50.6M | 9.66M | -57.44M | -186.26M | -215.56M | -307.2M | -38.07M | 5.67M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.13 | 0.02 | -0.15 | -0.51 | -0.61 | -1.05 | -0.83 | -0.16 |
| EPS Growth % | 366.32% | 113.33% | 70.59% | 16.39% | 41.9% | -26.51% | -418.75% | - |
| EPS (Basic) | - | 0.03 | -0.15 | -0.51 | -0.61 | -1.05 | -0.83 | -0.16 |
| Diluted Shares Outstanding | 387.3M | 391.14M | 379.15M | 367.46M | 355.28M | 327.52M | 373.65M | 373.65M |
| Basic Shares Outstanding | 383.52M | 386.02M | 379.15M | 367.46M | 355.28M | 327.52M | 373.65M | 373.65M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying LFST stock.
For fiscal year 2025, LifeStance Health Group, Inc. (LFST) reported total revenue of $1.42B. This represents a 570.2% increase compared to $212.5M in 2019.
LifeStance Health Group, Inc. (LFST) is profitable, generating $9.7M in net income for the fiscal year ending 2025 with a net profit margin of 0.7%.
LifeStance Health Group, Inc. (LFST) reported an operating income of $24.1M, resulting in an operating profit margin of 1.7%. This margin reflects the operational efficiency of the business before interest and taxes.
LifeStance Health Group, Inc. (LFST) generated $461.1M in gross profit for the year, representing a gross profit margin of 32.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Clinician wage inflation vs. payor rates
Metrics are mathematically derived from official filings.
Revenue Growth Accelerates, Margin Expansion Follows
Quarterly revenue growth has accelerated from 10.6% in 2025Q2 to 26.1% in 2026Q2, suggesting management's operational initiatives are successfully translating top-line momentum into improved profitability across the platform.
The acceleration from low-teens to over 25% year-over-year growth indicates the business is moving beyond a stabilization phase into a period of more durable expansion. This trajectory is supported by a simultaneous expansion in operating margin, which swung from -0.9% to 7.0% over the same period, implying that the incremental revenue is flowing through to profit at an improving rate.
Gross Margin Expansion Signals Improving Mix
Gross margin has improved from a trough of 31.3% in 2024Q2 to 35.2% in 2026Q2, according to recent financial filings, suggesting either favorable payor rate negotiations or a shift toward higher-margin service lines like psychiatry.
This 390 basis point expansion is significant for a labor-intensive model and likely reflects a combination of higher-reimbursement commercial contracts and better clinician utilization. However, the margin still trails peers like UHS, indicating that LifeStance's outpatient model faces inherent reimbursement ceilings. The durability of this expansion is critical, as it appears to be the primary driver of the recent swing to profitability.
SG&A Leverage Emerges as Revenue Scales
Operating income has swung from a loss of $15.9M in 2024Q2 to a profit of $30.7M in 2026Q2, a shift driven almost entirely by operating leverage as SG&A growth of 13% lags revenue growth of 26%.
The fixed-cost nature of corporate overhead is now becoming an asset as revenue scales past the breakeven point. SG&A as a percentage of revenue has declined from over 30% in early 2024 to approximately 25% in the latest quarter. This demonstrates that the platform can generate meaningful incremental profit once the clinical network reaches sufficient density, though the absolute level of operating margin remains thin.
Net Income Positive But Diluted by SBC
While 2026Q2 reported net income of $23.6M represents a material turnaround, the associated $19.7M in stock-based compensation suggests the true cash cost of labor remains a significant drag on economic earnings.
The persistent gap between Adjusted EBITDA and GAAP operating income appears largely attributable to non-cash compensation, which is a common tool in this sector for clinician recruitment. Investors should view the reported net income with caution, as the underlying cash generation is weaker than the bottom line suggests. The recent decline in SBC from over $24M to under $20M per quarter is a positive trend to monitor.
2025 Marks Clear Profitability Inflection Point
The company achieved a sustained operating profit in 2025Q3 after recording operating losses in 2024Q1 and 2024Q2, a structural inflection driven by a combination of accelerated revenue growth and disciplined cost control.
This inflection appears durable, as profitability has improved sequentially for five consecutive quarters. The driver was not a one-time event but rather the crossing of a critical revenue threshold where gross profit sufficiently covered SG&A. The lasting impact is a demonstrated proof of concept that the platform model can achieve positive unit economics at scale.
Margin Gains May Be At Risk from Wage Pressure
The recent operating margin expansion to 7.0% could prove transient if rising clinician wage inflation, a key structural risk, outpaces the annual rate increases secured in payor contracts.
A short-seller would focus on the fragile spread between the 35.2% gross margin and the high-variable-cost labor base. The improvement appears partially cyclical, benefiting from a period of stable labor markets. If competitive pressure from integrated payor-providers like Optum intensifies recruitment costs, the margin could compress quickly, reverting the business to its prior loss-making state. The market is pricing in continued efficiency gains that may not be fully achievable.