LifeVantage Corporation (LFVN) Q1 2025 Earnings Report

Financial Snapshot (QQ1 2025 vs. prior year):
- Revenue: $47.214 million, -8.1% YoY; ex-FX impact of ~-$0.2 million implies ~-7.7% revenue decline YoY.
- Gross Margin: 79.9% (vs 80.2% prior year).
- Adjusted EBITDA: $4.4 million, 9.4% of revenue (vs 7.8% in the prior-year period).
- Operating Income: $2.57 million, margin ~5.44%.
- Net Income: $1.826 million, EPS $0.15 (GAAP); Diluted EPS $0.14.
- SG&A (non-GAAP): $14.7 million, 31.1% of revenue (down 130 bps YoY).
- Cash Flow: Net cash provided by operating activities -$0.583 million; free cash flow -$0.932 million.
- Balance Sheet: Cash and cash equivalents $14.596 million; total debt $13.363 million; net debt negative $1.233 million; total stockholders’ equity $27.697 million; cash per share $1.20.
- Share Repurchases & Dividends: Repurchased ~140k shares for ~$1.46 million; quarterly dividend of $0.04 per share (~$0.5 million annualized impact).
- Fiscal 2025 Guidance: Revenue $200–$210 million; Adjusted EBITDA $18–$21 million; Adjusted EPS $0.70–$0.80.

Key takeaway: Margin resilience amid revenue headwinds and a monetizable product pipeline (MindBody) that management expects to drive stronger Topline in the back half of FY2025 and into 2026, albeit with near-term supply and international execution risks.

Key management takeaways from the QQ1 2025 earnings call:
- Strategy and growth catalysts: Steve Fife emphasized MindBody GLP-1 System as a meaningful expansion of LifeVantage’s activation story into weight management, likening MindBody to a strategic parallel to Protandim Nrf2 in activating endogenous biology. He stated that MindBody significantly expands the total addressable market and highlighted a 12-week human clinical study showing a 140% average GLP-1 increase and meaningful weight loss, with favorable body composition results and high satisfaction metrics (e.g., 95% decreased sugar cravings, 96% chose smaller portions, 82% felt more in control).
- Operational momentum and demand signal: Fife noted that September activity was strong in advance of the product launch, and October bookings were the highest in LifeVantage history with enrollments roughly 4x recent monthly averages, underscoring the market’s receptivity to MindBody.
- Execution and supply chain: The MindBody initial inventory sold out within hours at Market Connect, driving the current backorder of roughly 7 weeks. Management framed this as a proof point of demand rather than a limitation, with plans to prioritize subscribers when inventory returns.
- Product architecture and pricing: MB Core plus MB Enhance is a 2-part system with a customer retail price of $199 and a subscription price of $179; consultant price is $159 for a 30-day supply. The two-part system and its on-brand focus on a complete weight-management solution were highlighted as critical to efficacy and stickiness.
- International rollout and regulatory timeline: Management indicated Canada permits personal-use purchases, but commercial resales will be regulated; a broader international rollout is planned for March–April 2025, with some markets facing longer regulatory timelines.
- Compensation and ecosystem: The Market Connect event introduced enhancements to the Evolve Compensation Plan, including a 10% sharing bonus (with double the sharing bonus for the first 4 months, up to 20%), and a Senior Consultant milestone, aimed at simplifying the plan and accelerating early income for new consultants. A health-insurance partnership with Clearwater was also announced to reduce barriers to entrepreneurship.
- Financial outlook alignment: Carl Aure reiterated full-year 2025 targets of $200–$210 million revenue, $18–$21 million Adjusted EBITDA, and $0.70–$0.80 Adjusted EPS, noting the potential to hit the upper end of the range driven by MindBody demand, while acknowledging near-term stockouts could temper revenue pace briefly until supply normalizes.

Overall, LifeVantage presents a favorable long-term growth profile anchored by a strong balance sheet, stable gross margins, and an executable product strategy via MindBody GLP-1. The QQ1 2025 results show revenue pressures near term, but EBITDA and operating margin demonstrate resilience, underscored by significant margin leverage as the MindBody program scales. The primary catalysts include: (1) MindBody’s revenue ramp and expansion into international markets; (2) improving SG&A efficiency and operating leverage as the business scales; (3) continued enhancements to compensation plans that may accelerate consultant recruitment and activity; and (4) strategic partnerships (e.g., Clearwater) to broaden the advisor ecosystem. Risks to the thesis include slower-than-expected mindfulness of international regulatory timelines, supply constraints impacting product availability, and currency/headline risk from non-U.S. markets. Investors should monitor MindBody inventory restoration (anticipated ~7 weeks backorder resolution), the pace of international launches (March–April 2025 target window), and the degree to which the Q2–Q4 2025 results trend toward the upper end of guided revenue and EBITDA targets. Overall, a cautiously constructive stance is warranted given the company’s margin resilience, clear growth catalysts, and cash-generation potential once MindBody sail through supply constraints and compounding into FY2026 and beyond.