EPS of $0.19 increased by 503.9% from previous year
Gross margin of 80.5%
Net income of 2.55M
""We are thrilled to share our second quarter results, which demonstrate the transformational impact our new MindBody GLP-1 System is having on our business."" - Steve Fife
LifeVantage Corporation (LFVN) QQ2 2025 Results: MindBody GLP-1 System Drives Accelerating Growth; International Rollout and Cross-Sell Opportunities
Executive Summary
LifeVantage demonstrated meaningful top-line acceleration in QQ2 2025, led by the MindBody GLP-1 System launch in October 2024 and continued demand into Q2. Revenue reached $67.8 million, up 31.3% year-over-year and 43.5% sequentially, while gross margins expanded to 80.5% (up 190 bps). Adjusted EBITDA improved to $6.5 million (9.6% of revenue), reflecting strong operating leverage even as the company absorbed launch-related incentive costs. The firm reaffirmed its full-year guidance of $235–$245 million in revenue and $21–$24 million in adjusted EBITDA, with adjusted EPS of $0.72–$0.88. Management highlighted disciplined cost management, growing active accounts (Americas up 25% sequentially with 23k adds) and a subscription-based model (subscription rate >70%), as well as a material international expansion plan beginning in March. The QQ2 results position LifeVantage to realize a larger total addressable market via MindBody while maintaining profitability, balance sheet strength, and an explicit focus on scalable growth programs.
Key takeaways for investors include: (1) MindBody is delivering material revenue growth and compelling early clinical/third-party validation; (2) near-term profitability remains robust with ongoing investment in growth initiatives; (3) international rollout and product-stack cross-selling are potential catalysts for multi-year revenue growth, but watch for elevated incentive costs and FX exposure as the business scales.
Key Performance Indicators
Revenue
67.76M
QoQ: 43.52% | YoY:31.26%
Gross Profit
54.57M
80.53% margin
QoQ: 44.65% | YoY:34.54%
Operating Income
3.43M
QoQ: 33.39% | YoY:371.85%
Net Income
2.55M
QoQ: 39.65% | YoY:488.72%
EPS
0.21
QoQ: 40.00% | YoY:503.85%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $67.8 million, +31.3% YoY; +43.5% QoQ. FX impact: -$0.3 million in Q2. Excluding FX, revenue up ~31.9% YoY.
SG&A (non-GAAP): $18.1 million; as a % of revenue: 26.7%.
Financial Highlights
- Revenue: $67.8 million, +31.3% YoY; +43.5% QoQ. FX impact: -$0.3 million in Q2. Excluding FX, revenue up ~31.9% YoY.
- Americas revenue: $57.2 million, +46.3% YoY; Asia-Pacific/Europe: $10.6 million, -15.5% YoY (ex-FX -13.7%).
- Gross margin: 80.5% (up 190 bps YoY).
- Adjusted EBITDA: $6.5 million, 9.6% of revenue.
- SG&A (non-GAAP): $18.1 million; as a % of revenue: 26.7%.
- Adjusted non-GAAP net income: $3.0 million; $0.22 per fully diluted share.
- Net income: $2.55 million; GAAP EPS: $0.21; diluted $0.19.
- Cash flow: Operating cash flow $9.20 million; Free cash flow $7.01 million; Cash at end of period $21.60 million; Net debt basis: net cash position of approximately -$8.83 million.
- Balance sheet: Total assets $68.53 million; total liabilities $38.64 million; stockholders’ equity $29.89 million; current ratio 1.66; quick ratio 1.03.
- Shareholder returns: $1.1 million in six months via buybacks; $0.04 quarterly dividend declared; $19.3 million remaining under buyback authorization.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
67.76M
31.26%
43.52%
Gross Profit
54.57M
34.54%
44.65%
Operating Income
3.43M
371.85%
33.39%
Net Income
2.55M
488.72%
39.65%
EPS
0.21
503.85%
40.00%
Key Financial Ratios
currentRatio
1.66
grossProfitMargin
80.5%
operatingProfitMargin
5.06%
netProfitMargin
3.76%
returnOnAssets
3.72%
returnOnEquity
8.53%
debtEquityRatio
0.43
operatingCashFlowPerShare
$0.75
freeCashFlowPerShare
$0.71
dividendPayoutRatio
19.7%
priceToBookRatio
7.16
priceEarningsRatio
20.99
Net Income vs. Revenue
Expense Breakdown
Management Commentary
- Strategic momentum from MindBody: Steve Fife emphasized that MindBody GLP-1 System is a transformational catalyst for LifeVantage, with Q2 revenue of $67.8 million, up 31.3% YoY and 43.5% QoQ, and adjusted EBITDA of $6.5 million (9.6% of revenue). Management cited a rapid inventory sell-out, backlog clearance by December, and expanded manufacturing capacity to meet ongoing demand.
- Active accounts and cross-sell opportunities: Americas active accounts rose by 23k (25% QoQ), with a 13% increase in independent consultants and 31% more customers; subscription metrics rose to above 70%, signaling sticky, recurring revenue dynamics. Steve highlighted cross-selling potential across MindBody, Protandim, and other activation products as a meaningful growth vector.
- International growth plan: LifeVantage plans international rollout of MindBody beginning in March, with U.S. revenue representing >80% of total; the company expects substantial opportunities from new markets and a modernized compensation plan (Evolve) to expand reach.
- Margin discipline and cost dynamics: Carl Aure noted that gross margins expanded to 80.5% due to MindBody mix and lower obsolescence; SG&A, though higher on a tactical basis due to the launch incentives, remained manageable at 26.7% of revenue on a non-GAAP basis, with anticipated tapering in Q3 and normalization in Q4.
- Balance sheet and capital allocation: LifeVantage reported cash of ~$21.6 million with no debt (net debt negative), ongoing buybacks (~140k shares in H1 2025) and a quarterly dividend of $0.04 per share, reflecting a balanced approach to capital allocation while funding growth initiatives.
- Management commentary on sustainability: Steve Fife reinforced the focus on sustainable profitable growth, product leadership in cellular activation, and the potential to extend MindBody into new segments and geographies, with a global convention in April signaling continued momentum.
"We are thrilled to share our second quarter results, which demonstrate the transformational impact our new MindBody GLP-1 System is having on our business."
— Steve Fife
"Looking ahead, we’re preparing for the international rollout of the MindBody System beginning in March. Given that U.S. currently represents more than 80% of our revenue, we see significant growth opportunities as we expand into our other markets."
— Steve Fife
Forward Guidance
- Revenue trajectory: Management reaffirmed FY2025 guidance of $235–$245 million in revenue, representing mid-single-digit to low-double-digit growth relative to the prior year, supported by MindBody frontend ramp and international expansion.
- Profitability expectations: Adjusted EBITDA guidance maintained at $21–$24 million and adjusted EPS guidance of $0.72–$0.88, underscoring the company’s expectation of sustained operating leverage despite ongoing launch-related investments.
- Margin and cost dynamics: The team highlighted ongoing elevated incentive-related costs in Q3 (and tapering into Q4) as pre-existing incentive programs rollout through March influence near-term margins. They expect similar or slightly stronger flow-through in H2 as incremental revenue grows, with leverage expected to improve beyond FY2025 into FY2026 as MindBody scales.
- Key risk factors to monitor: (i) sustained supply to support MindBody demand and the international rollout, (ii) FX exposure particularly in Japan and non-U.S. markets, (iii) the pace and mix of MindBody adoption and stack-driven cross-sell (e.g., MindBody with Protandim/Nrf2 and Collagen), and (iv) competitive dynamics and regulatory considerations in the direct-to-consumer/distributor channel.
- Management's key milestones: successful international launches in March (Japan first) and subsequent markets in April; deployment of the Evolve compensation plan in additional Asian markets in March; continued enhancement of digital tools for consultants; broader brand-building initiatives and a language around MindBody as a lifestyle platform. Investors should monitor MindBody adoption rates, subscription growth, backlog/fulfillment efficiency, and the evolution of incentive-related costs as the company transitions through the post-launch period.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
LFVN Focus
80.53%
5.06%
8.53%
20.99%
NATR
71.40%
5.10%
0.90%
51.84%
BRID
22.70%
-6.86%
-1.71%
-10.98%
LWAY
26.70%
11.00%
5.56%
11.97%
CENTA
32.80%
11.20%
4.13%
8.09%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
LifeVantage’s QQ2 2025 results underscore a strategic inflection point driven by the MindBody GLP-1 System. The product has delivered meaningful revenue acceleration, improved gross margins, and a pathway to sustainable profitability through scaling and cross-selling across a broader activation portfolio. The QQ2 metrics — revenue of $67.8 million, gross margin 80.5%, and adjusted EBITDA of $6.5 million — demonstrate a resilient business model with material leverage as the MindBody platform gains traction. The company’s balance sheet remains league-appropriate for a growth-stage micro-cap with cash generation and no net debt, supporting continued investments in international expansion and IT/digital tools, while maintaining a track record of returning capital via buybacks and a small quarterly dividend. Management’s guidance for FY2025 ($235–$245 million revenue; $21–$24 million adjusted EBITDA; $0.72–$0.88 adj. EPS) is credible given the early-stage velocity of MindBody, the observed cross-sell momentum, and the easing of initial launch constraints (inventory backlogs cleared by December). Key catalysts to monitor include: (1) the international rollout execution in March and subsequent markets, (2) the extent to which MindBody becomes a system-driven stack with Protandim and Collagen, (3) sustenance of >70% subscription penetration, and (4) the economics of incentives as the business transitions from launch-driven costs toward sustained profitability. Risks include currency headwinds, channel concentration risk, and the potential for slower-than-expected adoption in non-U.S. markets. Overall, the investment thesis remains constructive given the scaling potential of MindBody, the profitable cash-generating profile, and the upside from cross-selling and geographic diversification within a supportive capital allocation framework.
Key Investment Factors
Growth Potential
MindBody expands LifeVantage’s total addressable market beyond U.S. borders; international rollout beginning in March augments revenue scale and diversifies geographic risk. Cross-sell opportunities across activation products (Protandim, Collagen, Nrf2) position MindBody as a platform-based growth engine with potential for higher LTV per customer and longer customer lifecycles.
Profitability Risk
Concentration risk in MLM/distributor channel; ongoing reliance on inventory-managed supply chains for timely fulfillment; FX volatility (notably Japan) and currency headwinds; upfront launch incentives and SG&A investments weighing on near-term margins; potential delays or underperformance in international markets and regulatory changes that could affect direct selling dynamics.
Financial Position
Strong liquidity with ~$21.6 million in cash and no net debt (net cash position), enabling continued investments in marketing, IT, and international expansion while funding potential shareholder returns (buybacks and dividends). Balance sheet metrics show solid current ratio (~1.66) and conservative leverage (debt to capitalization ~0.30; debt to equity ~0.43).
SWOT Analysis
Strengths
High gross margin profile (80.5%) driven by MindBody mix and efficient inventory management
Robust top-line growth: Q2 revenue of $67.8m, +31.3% YoY and +43.5% QoQ
Strong cash generation and debt-free balance sheet (net cash ~$-8.83m)
Growing active accounts and subscriptions: Americas active accounts +25% QoQ; >70% subscription rate
Cross-sell opportunities across activation portfolio (MindBody, Protandim, Collagen, Nrf2) and evidence of gene activation synergy from third-party studies
International expansion potential with March rollout to diversify geographic mix and TAM
Weaknesses
Short-term elevated incentive and SG&A costs tied to MindBody launch
FX exposure from non-U.S. markets (notably Japan) impacting reported revenue
Reliance on MLM/distributor channel exposes the business to channel risk and regulatory scrutiny
Near-term margin pressure from launch-related investments (incentives, marketing, IT) before full operating leverage is realized
Opportunities
International MindBody rollout beginning March expands addressable market
Stack-based product strategy (MindBody + Protandim + Collagen) may drive higher ASP and retention
Growth in subscriptions supports predictable revenue and longer customer lifetimes
Brand awareness initiatives and influencer partnerships to broaden market reach
Potential for a special dividend given the cash position and to supplement buybacks
Threats
Competitive pressure in nutraceutical/dietary supplements and direct selling channels
Regulatory changes impacting MLM compensation or product claims
Supply chain disruptions or inventory constraints that could throttle growth
Currency volatility in international markets that could dampen reported results
Market adoption risk for MindBody pacing in international markets and potential delays
LifeVantage Corporation (LFVN) QQ3 2025 Results: MindBody GLP-1 System Accelerates Revenue Growth, Margin Expansion, and Global Rollout in a Cash-Rich...