Earnings call transcript: LifeVantage Q3 2025 earnings beat but stock tumbles
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary presents mixed signals. While financial performance shows strong revenue growth and improved margins, concerns about international market decline and competition create uncertainty. Positive aspects include a raised revenue outlook and a stable cash position. However, unresolved supply chain issues and foreign currency impacts add risk. The Q&A highlights subscription strength but also international market uncertainty. The overall sentiment is neutral, as positive domestic performance is balanced by international challenges and market uncertainties.
Key Financial Performance
Revenue $58,400,000, up 21% year over year. Growth driven by demand for the MINDBODY GLP-one system, with U.S. revenues growing 31% but offset by a 7% decline in international markets.
Adjusted EBITDA $6,400,000, up 27% year over year, with an adjusted EBITDA margin of 11%, improved by 50 basis points.
Gross Margin 81%, a 210 basis point improvement from 78.9% in the prior year, due to product mix factors and lower inventory-related expenses.
Active Accounts in Americas Increased by 17.2% year over year, with a 13% increase in independent consultants and a 19% increase in customers.
Total Revenue in Americas $48,200,000, up 29.5% year over year, primarily driven by the MINDBODY GLP-one system.
Revenue in Asia Pacific and Europe Decreased 7.2% to $10,200,000, primarily due to an 8.8% decrease in total active accounts and negative foreign currency impacts.
Non-GAAP Adjusted Operating Income $4,100,000, compared to $3,400,000 in the prior year period.
Adjusted Non-GAAP Net Income $3,500,000 or $0.26 per fully diluted share, compared to $2,800,000 or $0.21 per fully diluted share in the prior year.
Income Tax Expense $700,000 with an effective tax rate of approximately 17%, up from $300,000 and 14% in the prior year.
Cash Position $22,500,000 with no debt at the end of the third quarter.
Capital Expenditures $300,000, unchanged from the same period a year ago.
Share Repurchase 140,000 common shares repurchased for $1,100,000 in the first nine months of fiscal 2025.
Quarterly Cash Dividend $0.45 per share, totaling approximately $600,000, to be paid on 06/13/2025.
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Operating Highlights
MINDBODY GLP-one system: Demand for our MINDBODY GLP-one system served as the primary growth driver in Q3, with revenues in the U.S. growing 31%.
International Launch of MINDBODY: In mid March, we began the international expansion of MINDBODY starting in Japan and other regions, with momentum building.
EVOLVE compensation plan: Launched the EVOLVE compensation plan in multiple markets, designed to provide consultants opportunities for multiple income streams.
International Market Expansion: International markets saw a decline of 7% year over year, but the launch of the MINDBODY system is expected to help reverse this trend.
Global Convention: Held annual global convention in Salt Lake City, revealing results of the latest clinical study on the MINDBODY system.
Supply Chain Stability: Stability in the supply chain of MINDBODY has been achieved, resolving previous out of stock and logistic issues.
Profitability Metrics: Adjusted EBITDA increased 27% year over year to $6,400,000, with an adjusted EBITDA margin improvement to 11%.
Focus on Holistic Wellness: Product strategy is aligned with a heightened focus on holistic wellness, metabolic balance, and overall vitality.
Long-term Growth Strategy: The company is focused on enhancing digital capabilities, building brand awareness, and ramping growth in international markets.
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Risk or Challenges
International Market Decline: LifeVantage experienced a 7% decline in international revenues year over year, which remains a significant area of focus. The company is uncertain about the growth potential in international markets following the recent launch of the MINDBODY system.
Supply Chain Challenges: Although the supply chain issues related to the MINDBODY product have been resolved, the company faced significant challenges during the initial launch period, leading to inventory shortages and affecting customer satisfaction.
Foreign Currency Impact: Foreign currency fluctuations negatively impacted revenue by $500,000 in the third quarter, particularly affecting the Asia Pacific and Europe regions.
Active Accounts Decline: There was a sequential decline in active accounts in The Americas, attributed to elevated attrition among customers due to previous stock-out issues.
Regulatory and Market Competition: The company faces ongoing competitive pressures and regulatory challenges in the direct selling industry, which could impact future growth and profitability.
Economic Uncertainty: The company expressed concerns about uncertainty in international markets, which may affect revenue projections and overall business performance.
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Guidance & Outlook
International Expansion: LifeVantage began the international expansion of the MINDBODY system in March, starting in Japan and extending to Australia, New Zealand, Mexico, the UK, Europe, and Thailand.
LV360 Initiatives: The launch of the LV360 initiatives in various markets is a pivotal milestone, providing consultants with tools, compensation, products, and programs to thrive in the direct selling market.
EVOLVE Compensation Plan: The EVOLVE compensation plan was launched to provide consultants with opportunities for multiple income streams and to support business building and product sales.
Holistic Wellness Focus: LifeVantage's product strategy is aligned with a global focus on holistic wellness, metabolic balance, and overall vitality.
Global Rollout of MB System: Plans to complete the global rollout of the MB system in remaining markets in early summer and later this year.
Revenue Guidance: Fiscal 2025 revenue is anticipated to be between $228 million and $235 million, representing a 16% increase year over year at the midpoint.
Adjusted EBITDA Guidance: Expected adjusted EBITDA for fiscal 2025 is between $21 million and $24 million.
Adjusted EPS Guidance: Adjusted non-GAAP earnings per share is projected to be between $0.72 and $0.88.
Capital Expenditures: Total capital expenditures for fiscal 2025 are anticipated to be approximately $1.5 million.
Tax Rate Guidance: Full year FY 2025 income tax rate is expected to be approximately 22% to 24%.
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Shareholder Return Plan
Quarterly Cash Dividend: $0.45 per share of common stock, approximately $600,000 in total, payable on 06/13/2025 to stockholders of record as of 05/30/2025.
Share Repurchase Program: No shares repurchased during Q3 FY2025. Total of 140,000 shares repurchased for $1,100,000 in the first nine months of FY2025. Remaining authorization for share repurchase is $19,300,000.
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Key Q&A
Q:Do you have a rough percentage of people coming subscription?
A:About 85% of the people coming in on Mindbody during the quarter were on a subscription.
Q:Are you guys seeing more purchases in stacks versus standalone?
A:About 55% of the revenue during the quarter was Mindbody’s standalone and the remaining 45% of the purchases were occurring with another product.
Q:Is the revenue reduction mostly due to results in the March or anticipated results in the June?
A:There’s a little of both there, Doug. The change to our range is to really take into account, we still have a lot of chop and uncertainty within our international markets.
Q:Is the active accounts drop in The Americas due to stock out or something else?
A:It really is if you look at the lines there in more detail, it’s really coming from our customer base in The Americas.
Q:What have you learned about educating your sales force on the GLP-one product?
A:We’ve seen two different camps in how consultants are positioning the product, with one group focusing on long-term sustainable growth.
Q:Review of Unclear Management Responses
A:Management did not provide a clear answer regarding the specific reasons for the revenue reduction, stating it was due to both March results and anticipated June results without providing detailed data.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
ARPA stickiness
Brooks
Capital Markets
Fife President
GLP
Lake Street
Lane Water
MB product
Markets color
Research Lane
Street Capital
account consultant
afternoon line
alternative
benefit product
camp
consultant base
customer base
group
idea
inventory
issue
lifestyle
noise
order
people subscription
pill
positioning
purchase
sense
standalone
story
study
week
weight loss
LFVN Transcript
LifeVantage Corporation (LFVN) Q2 2026 Earnings Call Transcript
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The earnings call reflects mixed signals: declining financial performance with reduced net income and cash from operations, but optimistic guidance and strategic initiatives, including the LoveBiome acquisition and Shopify partnership. The Q&A highlighted concerns about declining sales and unclear consultant/customer metrics. The positive aspects, like new product launches and market expansion, are balanced by financial challenges, leading to a neutral sentiment. Without market cap data, the stock's sensitivity to these mixed signals remains uncertain, suggesting a neutral impact over the next two weeks.
LifeVantage Corporation (LFVN) Q1 2026 Earnings Call Transcript
Unknown11-4
The earnings call reveals mixed signals: a slight revenue increase and positive net income growth, but declining margins and cash position raise concerns. The LoveBiome acquisition and technology partnership with Shopify offer growth potential, yet integration risks and competitive pressures persist. The Q&A session didn't reveal major red flags, but the market's reaction to integration progress remains uncertain. The dividend and share repurchase plan provide some support, but overall, the outlook remains balanced with no strong catalysts for significant stock movement.
LifeVantage Corporation (LFVN) Q4 2025 Earnings Call Transcript
Unknown9-4
The earnings call presents mixed signals. Financial performance is positive with revenue growth, improved gross margins, and a strong cash position. However, there are concerns about profitability due to rising expenses and seasonality affecting revenue. The Q&A reveals management's reluctance to provide specific data on LoveBiome, adding uncertainty. The dividend and share repurchase are positive, but the lack of clear guidance on LoveBiome's contribution tempers enthusiasm. Overall, the sentiment is neutral due to balanced positive and negative factors, with potential for modest stock price movement.
Earnings call transcript: LifeVantage Q3 2025 earnings beat but stock tumbles
Unknown5-6
The earnings call summary presents mixed signals. While financial performance shows strong revenue growth and improved margins, concerns about international market decline and competition create uncertainty. Positive aspects include a raised revenue outlook and a stable cash position. However, unresolved supply chain issues and foreign currency impacts add risk. The Q&A highlights subscription strength but also international market uncertainty. The overall sentiment is neutral, as positive domestic performance is balanced by international challenges and market uncertainties.
LFVN Report
Frequently Asked Questions
Where does this earnings call transcript come from?
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Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
