LifeVantage misses Q3 revenue estimates on MindBody GLP-1 sales drop; dividend up 11%

Overview

• U.S. health supplement maker's fiscal Q3 revenue fell 25%, missing analyst expectations

• Adjusted EPS for fiscal Q3 missed analyst expectations

• Company raised quarterly dividend by 11% and continued share repurchases

Outlook

• Company expects fiscal 2026 revenue, adj EBITDA and adj EPS near lower end of prior guidance

• LifeVantage expects full-year tax rate of about 18% to 20%

• Outlook reflects current trends and strategic initiatives, including international expansion and new product launches

Result Drivers

• MIND/BODY GLP-1 SALES DROP - Co said lower sales of MindBody GLP-1 System were the main reason for revenue decline, especially in the Americas

• INVENTORY OBSOLESCENCE - Gross profit margin decreased due to an allowance for inventory obsolescence related to the MindBody GLP-1 System and increased shipping and warehouse expenses

• PROMOTIONAL PROGRAMS - Lower commissions and incentives expense as a percentage of revenue was mainly due to the timing and magnitude of promotional and incentive programs and changes to the mix of customers and independent consultants

Company press release: ID:nGNXbRLQWC

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for LifeVantage Corp is $8.00, about 45.7% above its May 5 closing price of $5.49

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 5 three months ago

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