Executive Summary
LifeVantage reported a fourth quarter in which revenue declined 9.8% year-over-year to $48.9 million, with currency-adjusted revenue down roughly 8%. Despite the top-line softness, the company delivered a resilient profitability profile, with adjusted EBITDA of $4.8 million (9.8% of revenue), flat versus the prior year, and gross margin held at 79.5%. The balance sheet remains robust (cash of $16.9 million and no debt), and capital allocation included approximately $1.8 million spent on stock repurchases in the quarter and $0.5 million in quarterly dividends, reflecting a disciplined approach to shareholder value. Management emphasized ongoing transformation initiatives (LV360), improvements in consultant engagement, and product pipeline progress as key catalysts for a stepped-up revenue trajectory in FY2025.
Management underscored the geographic mix as a meaningful driver of near-term performance, noting Americas revenue declined modestly while Asia-Pacific/Europe faced steeper declines partly due to FX headwinds. Notably, revenue per consultant rose by more than 2% year-over-year in the quarter, signaling improved productivity within the direct-distributor model amid compensation-plan enhancements. The company highlighted several strategic levers intended to lift growth and margins in 2025, including the GLP-1 weight-management system launching around October 2024, continued expansion of Liquid Collagen, and optimization of the Rewards Circle program (now offering consultant subscription benefits). Management explicitly framed FY2025 guidance as a modest improvement year-over-year with revenue in the $200–$210 million range, adjusted EBITDA of $18–$21 million, and adjusted EPS of $0.70–$0.80, signaling an ambition to return to low-double-digit EBITDA margins as the top-line stabilizes and operating efficiencies accrue.
Key Performance Indicators
QoQ: -21.34% | YoY:-33.62%
QoQ: -15.38% | YoY:-31.25%
Key Insights
Revenue: Q4 2024 $48.9m, down 9.8% YoY; FX impact -$0.9m; ex-FX decline ~8%. Americas revenue $38.1m (-4.1% YoY); Asia-Pacific/Europe $10.8m (-25.2% YoY; ex-FX down ~18.6%). Gross margin: 79.5% (down 0.1pp YoY). Operating income: $2.91m; EBITDA: $3.716m; Adjusted EBITDA: $4.8m (9.8% of revenue). Net income: $1.305m; EPS (GAAP): $0.11; EPS (diluted): $0.32; Weighted average shares: ~12.256m basic / ~12.867m diluted. Cash and equivalents: $16.9m with no debt. Cash flow: net cash provided by operat...
Financial Highlights
Revenue: Q4 2024 $48.9m, down 9.8% YoY; FX impact -$0.9m; ex-FX decline ~8%. Americas revenue $38.1m (-4.1% YoY); Asia-Pacific/Europe $10.8m (-25.2% YoY; ex-FX down ~18.6%). Gross margin: 79.5% (down 0.1pp YoY). Operating income: $2.91m; EBITDA: $3.716m; Adjusted EBITDA: $4.8m (9.8% of revenue). Net income: $1.305m; EPS (GAAP): $0.11; EPS (diluted): $0.32; Weighted average shares: ~12.256m basic / ~12.867m diluted. Cash and equivalents: $16.9m with no debt. Cash flow: net cash provided by operating activities $2.582m; free cash flow $2.304m. Capital allocation: repurchased ~253k shares for ~$1.8m in Q4; full-year 2024 repurchases ~977k shares for ~$6.4m; dividend of $0.04 per share (~$0.5m). Balance sheet health: cash $16.9m, no debt; liquidity supports ongoing buybacks and working-capital needs. Forward guidance (FY2025): revenue $200–$210m; adjusted non-GAAP EBITDA $18–$21m; adjusted non-GAAP EPS $0.70–$0.80.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
48.93M |
-9.76% |
1.42% |
| Gross Profit |
38.91M |
-9.83% |
2.20% |
| Operating Income |
2.91M |
11.79% |
50.47% |
| Net Income |
1.31M |
-33.62% |
-21.34% |
| EPS |
0.11 |
-31.25% |
-15.38% |
Key Financial Ratios
operatingProfitMargin
5.95%
operatingCashFlowPerShare
$0.21
freeCashFlowPerShare
$0.19
dividendPayoutRatio
38.5%
Management Commentary
Key management takeaways from the QQ4 2024 earnings call:
- Profitability leadership in a weak top line: Steve Fife stated, "Our adjusted EBITDA margin was 9.8%, a 90 basis point improvement versus a year ago, reflecting continued progress on initiatives to optimize performance and drive profitability. Adjusted EBITDA for the quarter was flat versus last year, while total revenues were down nearly 10%. Currency adjusted revenue was down 8%." (Q4 2024 call).
- Geographic mix and productivity: Fife noted Americas accounts for over three quarters of business, with revenues down 4% YoY but up 2.4% sequentially vs Q3; revenue per consultant rose >2% YoY, signaling improving productivity amid transformation.
- Transformation and incentive design: The company highlighted LV360, including the Evolves compensation platform, and emphasized the Rise ERA behaviors (Enroll, Retain, Advance) as drivers of improved consultant performance, retention, and leader progression.
- Rewards Circle optimization: The call described a program refresh in the U.S., Australia and New Zealand that adds consultant subscription benefits (free shipping on enrollment orders with future subscriptions) and improved customer incentives (free shipping, gifts on subscriptions; lower redemption thresholds).
- Liquid Collagen momentum: Management highlighted Liquid Collagen as a growth vector contributing to higher ARPA (average revenue per account) and a strengthening product cycle for up-selling and cross-selling across consultants and customers.
- GLP-1 weight management launch: Steve Fife outlined a GLP-1–based weight-management system launching mid-October, consisting of two formulas (tablets and powder) designed to suppress cravings and balance hunger hormones by activating GLP-1 production; emphasized 100% natural ingredients and a differentiated activation narrative aligned with LifeVantage’s brand. He framed it as a potential game changer in the weight-management category, with a Market Connect launch in Kansas City on Oct 11–12.
- Financial outlook and margin target: Fife framed the company’s path toward long-term low double-digit EBITDA margins, supported by ongoing profitability initiatives and the anticipated lift from the new product system and optimization efforts.
- Balance sheet and capital return: The CFO, Carl Aure, reiterated a debt-free balance sheet with a strong cash position and ongoing capital return strategy (buybacks and a $0.04 quarterly dividend).
- Governance updates: Erin Brockovich resigned from the Board; Raj Anbalagan appointed as new director, signaling governance enhancements to support digital and e-commerce strategy.
"Our adjusted EBITDA margin was 9.8%, a 90 basis point improvement versus a year ago, reflecting continued progress on initiatives to optimize performance and drive profitability. Adjusted EBITDA for the quarter was flat versus last year, while total revenues were down nearly 10%. Currency adjusted revenue was down 8%."
— Steve Fife
"As we look forward to fiscal 2025, I mean, I do think that we expect a moderate improvement in each quarter in FY '25. Q1 likely will be a little bit lower in comparison to the other quarters, but we do expect the momentum to build towards the back half of the year, especially with -- we've got a lot that we're anticipating with in Q2 surrounded the product launch that we had, and the following momentum that we expect to see in Q3 and Q4 following."
— Carl Aure
Forward Guidance
Outlook and catalysts for FY2025:
- Revenue trajectory: On the FY2025 call, management guided revenue of $200–$210 million, implying stabilization versus the FY2024 published base and potential growth as new products gain traction and international markets expand.
- Profitability trajectory: Adjusted EBITDA expected to be $18–$21 million, with a stated objective to move toward low double-digit margins as scale and operating leverage improve, despite an anticipated modest quarterly improvement pattern (Q1 weaker; momentum building into Q2–Q4).
- Key catalysts and cadence: The GLP-1 weight-management system launch in October 2024 is a major near-term catalyst with potential to drive new enrollments and higher ARPA, complemented by continued Liquid Collagen uptake and upgrades to Rewards Circle that improve customer retention and consultant activity.
- Risks and considerations: FX headwinds persisted in 4Q and could remain a variable; sensitivity to macro conditions and distributor activity remains relevant. Execution risk around the GLP-1 launch and the speed of adoption in the Americas and international markets will heavily influence 2025 performance. Investors should monitor quarterly cadence to assess whether the expected back-half acceleration materializes as product launches and compensation changes take hold.