LifeStance Raises 2026 Outlook as Q3 Revenue Grows 25%

LifeStance Health Group, Inc. (Nasdaq: LFST) raised its full-year 2026 outlook after third-quarter revenue increased 25% and adjusted EBITDA rose 70%, supported by higher visit volumes, clinician growth and improved center-level profitability.

The outpatient mental healthcare provider now expects 2026 revenue of $1.741 billion to $1.761 billion, up from its previous range of $1.685 billion to $1.725 billion. It also raised its Center Margin forecast to $599 million to $613 million from $570 million to $594 million and adjusted EBITDA guidance to $242 million to $250 million from $215 million to $235 million.

Revenue and profitability expand

Third-quarter revenue reached $455.9 million, compared with $363.8 million a year earlier. Total visits increased 17% to 2.687 million, while total revenue per visit rose to $169.70 from $158.20.

LifeStance ended the quarter with 8,863 clinicians, an 11% year-over-year increase, after adding 321 clinicians on a net basis during the period. The company operates more than 575 centers across 34 states and provides both virtual and in-person care.

Center Margin, a non-GAAP measure, increased 38% to $161.4 million. Center Margin represented 35.4% of revenue, up from 32.0% in the prior-year quarter.

Adjusted EBITDA rose to $68.4 million from $40.2 million, while the adjusted EBITDA margin expanded to 15.0% from 11.1%. The measure included adjustments for items such as stock-based compensation, depreciation and amortization, taxes, interest expense, strategic initiatives and transaction costs.

On a GAAP basis, operating income increased to $33.1 million from $7.4 million. Net income was $22.4 million, or $0.06 per diluted share, compared with $1.1 million and approximately breakeven diluted earnings per share in the third quarter of 2025.

Cash flow and capital deployment

LifeStance generated $37.0 million of operating cash flow during the quarter and spent $14.7 million on property and equipment, resulting in non-GAAP free cash flow of $22.4 million. For the first nine months of 2026, operating cash flow totaled $170.0 million, compared with $88.6 million in the corresponding period of 2025.

The company finished September with $218.8 million in cash and cash equivalents and $255.5 million of long-term debt, net of the current portion and unamortized discounts and issuance costs. It repurchased $122.4 million of common stock during the first nine months of the year.

Management described its capital-allocation approach as balancing operational excellence, profitable growth and disciplined deployment. LifeStance opened eight centers in the third quarter and 20 during the first nine months. It also completed one tuck-in acquisition during the quarter and four year to date.

Fourth-quarter outlook

For the fourth quarter, LifeStance expects revenue of $446 million to $466 million, Center Margin of $149 million to $163 million and adjusted EBITDA of $56 million to $64 million. Its full-year planning assumptions call for 20 to 30 new center openings.

The company did not provide GAAP reconciliations for its forward-looking Center Margin and adjusted EBITDA forecasts, saying it could not estimate the necessary variables and adjustments without unreasonable effort.

LifeStance identified reimbursement pressure from third-party payors, clinician recruitment and retention, execution of growth initiatives, healthcare regulation and reliance on affiliated practices as key uncertainties. Other disclosed risks include competition, cybersecurity and data privacy incidents, technology-system reliability, changes in healthcare policy and the effects of existing debt.