LifeStance Health Group Inc. Common Stock (LFST)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I see LifeStance as a healthcare operator that is only beginning to prove its economics. In fiscal Q2 2026, the quarter ended 2026-06-30, it earned $23.6M on $435.4M of revenue, compared with a $3.8M net loss on $345.3M of revenue in fiscal Q2 2025. Fiscal Q1 2026 was $14.2M net income on $403.5M of revenue. That swing explains the FairStock Lynch TURNAROUND label: returned to profit after a loss within the last three years. FY2025 produced $9.7M of net income after FY2024's $57.4M loss and FY2023's $186.3M loss, while revenue moved from $1.1B to $1.3B to $1.4B. The improvement is real, but the quality is not yet high. FairStock's calculations show ROE of 3.43%, ROCE of 2.32%, and a P/E of 94.77 at the 2026-10-13 close of $12.32. FCF is positive at $173.9M TTM, a 3.7% FCF yield, and leverage looks manageable with D/E 0.32. Still, EV/EBITDA is 37.52, P/B is 3.18, and the Graham Number of $3.36 implies a -266.67% margin of safety, so asset-based value is not there. I do not see a clear moat in these figures—only a scaled outpatient mental health provider with thin margins and low returns. The turnaround trajectory is promising, but the price already assumes much of it continues.

In plain English: LifeStance provides outpatient mental health services such as therapy, psychiatric evaluations, and testing in the United States. The business looks like a turnaround: revenue is growing and it has moved from losses to small profits, but profit margins and returns are still thin. At $12.32, the price looks expensive compared with the company's current earnings and accounting value, so it depends heavily on the recovery continuing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer