LifeStance Health Group Reports 11% Revenue Growth to $332.97 Million in Q1 2025

LifeStance Health Group, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $332.97 million, an increase of 11% from $300.44 million in the same period last year. This growth was primarily driven by a $32.7 million rise in patient service revenue, attributed to an increase of 699 clinicians, which led to a 10% rise in patient visits. The company also noted a modest increase in total revenue per visit, supported by slight payor rate increases. Despite the revenue growth, the company recorded a net income of $709,000, a significant turnaround from a net loss of $21.1 million in the prior year.

Operating expenses for the quarter totaled $331.37 million, up from $317.21 million in the previous year. Center costs, excluding depreciation and amortization, rose by 8% to $223.18 million, largely due to increased compensation costs associated with the higher number of clinicians. General and administrative expenses also increased by 6% to $94.43 million, driven by higher salaries and professional fees. Notably, depreciation and amortization expenses decreased significantly to $13.76 million from $22.56 million, reflecting changes in asset amortization schedules.

LifeStance continues to expand its operational footprint, employing 7,535 licensed mental health clinicians as of March 31, 2025. The company reported 2.1 million patient visits during the quarter, indicating a strong demand for its services. The company is actively pursuing a strategy of opening new de novo centers and enhancing its existing facilities to accommodate more patients. This strategy is complemented by partnerships with primary care and specialist physicians, which are expected to drive further patient referrals and growth.

Looking ahead, LifeStance anticipates continued revenue growth driven by its clinician recruitment efforts and the expansion of virtual care offerings. The company is also focused on optimizing its center base and exploring acquisition opportunities in the fragmented mental health market. However, it faces challenges, including potential reimbursement rate negotiations with payors and the need to maintain compliance with regulatory requirements in the healthcare sector. The company believes its existing cash reserves of $134.34 million will be sufficient to support its operations and growth initiatives for at least the next 12 months.