LifeStance Health Group, Inc. (LFST)

Price$12.73Cached quoteAs of 2026-09-05 05:43 UTC

AI: Overvalued

Price checkStrong improvement is real, but the current valuation leaves little room for disappointment.

At the observed market value, roughly 382 million shares imply an equity value near $4.8 billion; adding about $248 million of net debt gives an enterprise value near $5.1 billion. Trailing four-quarter free cash flow—cash left after operations and capital spending—was about $174 million, so the stock trades near 28 times that cash. Against the $225 million midpoint of management's 2026 adjusted earnings measure—which excludes interest, taxes, depreciation, stock compensation, and several other costs—enterprise value is about 22 times. That pricing already assumes continued fast growth and margin expansion.

Big pictureRevenue, profits, and cash flow are improving together, making the turnaround more credible.

First-half 2026 revenue rose 24% to $838.8 million, while net income improved to $37.9 million from a $3.1 million loss. Operating cash flow more than doubled to $133.0 million, and free cash flow rose to about $110.3 million from $46.4 million. Q2 visits increased 19%, helped by 834 more clinicians, better productivity, and modest reimbursement gains. Revenue comes from recurring patient visits rather than project cycles, which dampens classic cyclicality, but results still depend on clinician hiring, completed visits, and payor reimbursement rates.

Business strengthThe balance sheet is manageable, while buybacks have finally outweighed recent share dilution.

At June 30, cash was $225.9 million against $474.2 million of debt, leaving about $248.2 million of net debt; current assets of $378.0 million also exceeded current liabilities of $274.8 million. The company spent $97.6 million repurchasing 13 million shares in the first half, cutting shares outstanding about 2% year over year, despite $34.9 million of stock-based compensation. The main balance-sheet caveat is $1.30 billion of goodwill, about 60% of total assets, which offers little liquidation protection.

What could change the storyFaster margin gains could justify the price; slower clinician growth would undermine it.

Bull case: management now expects 2026 revenue of $1.685-$1.725 billion and an adjusted earnings measure of $215-$235 million, after Q2 revenue grew 26% and center margin—a measure of care-site economics before corporate overhead and depreciation—reached 35.2%. If clinician productivity, reimbursement, and overhead leverage keep improving, today's high multiple can shrink quickly. Bear case: the price leaves little cushion if visit growth slows, payors restrain rates, or hiring raises center costs faster than revenue. A sustained free-cash-flow run rate above roughly $200 million would strengthen the valuation case; stagnation near recent trailing levels would weaken it.

AI: News

Q2 outlook raisedSecond-quarter growth accelerated, and management raised full-year revenue and profit guidance again.

On August 6, LifeStance reported Q2 revenue of $435.4 million, up 26%, net income of $23.6 million versus a prior-year loss, and $87.9 million of free cash flow. It raised 2026 revenue guidance to $1.685-$1.725 billion and its adjusted earnings measure to $215-$235 million. Shares finished about 3% higher that day. The move is consistent with stronger expectations, although the simultaneous buyback announcement means the reaction cannot be assigned to earnings alone.

Fresh buyback authorizationThe board renewed a large buyback after using almost all of its earlier authorization.

On August 5, the board approved a new $100 million repurchase program, disclosed August 6, replacing the nearly exhausted February authorization. The company had already spent about $97.6 million to buy 13 million shares during the first half, including 6 million in the second quarter. A fresh authorization can offset equity compensation and support per-share value if purchases are made below intrinsic value. Because it was announced with Q2 results, any same-day price effect cannot be isolated reliably.

Secondary offering pressureA large shareholder sale pressured the stock, even though LifeStance issued no new shares.

On May 7, existing shareholders priced a 35 million-share secondary offering; LifeStance itself issued no new shares and received no proceeds. The company agreed to repurchase 6 million of those shares, so the transaction reduced total shares outstanding even as a large block of existing shares was placed with the market. The stock fell 11.6% in premarket trading after pricing, according to Investing.com. That reaction suggests ownership overhang mattered to investors, but the transaction did not dilute existing holders through new company-issued stock.

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Revenue

2019

2021

2022

2023

2024

2025

Net income

2019

2021

2022

2023

2024

2025

Free cash flow

2019

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2019

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2019
Revenue	$1.42B	$1.25B	$1.06B	$859.5M	$1.4M	$212.5M
Operating expenses	$1.40B	$1.28B	$1.24B	$1.07B	$953.9M	$197.3M
Operating income	$24.1M	−$31.6M	−$189.1M	−$210.2M	−$286.4M	$15.2M
Operating margin	1.70%	−2.53%	−17.92%	−24.45%	−19,816.82%	7.17%
EBITDA	$65.8M	$9.1M	−$151.8M	−$181.3M	−$271.3M	$18.3M
EBITDA margin	4.62%	0.72%	−14.38%	−21.09%	−18,772.25%	8.60%
Net income	$9.7M	−$57.4M	−$186.3M	−$215.6M	−$307.2M	$5.7M
Net profit margin	0.68%	−4.59%	−17.64%	−25.08%	−21,259.31%	2.67%
Basic EPSper basic share	$0.03	-$0.15	-$0.51	-$0.61	—	—
Diluted EPSper diluted share	$0.02	-$0.15	-$0.51	-$0.61	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

29.25%of listed shares

TPG GP A, LLC111.74M shares · Jun 30, 2026

View holders

Top 20 reported holders of LFST
Holder	% owned
TPG GP A, LLC	29.25%111.74M shares
FMR LLC	15.25%58.25M shares
BlackRock, Inc.	9.51%36.35M shares
SUMMIT PARTNERS L P	6.10%23.31M shares
BLACK DARREN M.	≈6.10%23.31M shares
Silversmith Capital Partners I-C, L.P. / Silversmith Capital Partners I-B, L.P. / Silversmith Partners I GP, LLC / Silversmith Partners I GP, L.P. / Silversmith Capital Partners I-A, L.P.	≈3.75%14.32M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	3.65%13.96M shares
JENNISON ASSOCIATES LLC	3.16%12.08M shares
DIMENSIONAL FUND ADVISORS LP	2.99%11.43M shares
VANGUARD CAPITAL MANAGEMENT LLC	2.55%9.74M shares
STATE STREET CORP	2.15%8.23M shares
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	1.56%5.95M shares
GEODE CAPITAL MANAGEMENT, LLC	1.46%5.59M shares
MORGAN STANLEY	1.31%5.02M shares
PRINCIPAL FINANCIAL GROUP INC	1.05%4M shares
Pardo Ryan	≈0.95%3.64M shares
MILLENNIUM MANAGEMENT LLC	0.94%3.61M shares
Burdick Kenneth A	≈0.91%3.47M shares
First Eagle Investment Management, LLC	0.82%3.13M shares
Nuveen, LLC	0.80%3.06M shares

Percentages use 382.02M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$498.3K disclosed value

Sells (SEC code S)45$573.16M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4 · 10b5-1	Bessler RobertDirector	SellCommon Stock · indirect	447.2K	$10.13	$4.53M	656.6K
Jun 26, 2026Form 4 · 10b5-1	Bessler RobertDirector	SellCommon Stock · indirect	447.2K	$10.13	$4.53M	539.8K
May 12, 2026Form 4	TPG GP A, LLC +2TenPercentOwner	SellCommon Stock · indirect	28.28M	$8.02	$226.82M	111.74M
May 12, 2026Form 4	Bessler RobertDirector	SellCommon Stock · indirect	287.5K	$8.02	$2.31M	1.10M
May 12, 2026Form 4	Bessler RobertDirector	SellCommon Stock · indirect	287.5K	$8.02	$2.31M	986.9K