LifeStance Health reported faster growth and stronger profitability in the third quarter, as more clinicians and higher productivity lifted patient visits and revenue. The outpatient mental-health provider also raised its 2026 outlook for revenue, Center Margin and Adjusted EBITDA.
The quarter included positive net income and cash generation. LifeStance said its investments include implementing a new electronic health record system, which CEO Dave Bourdon described as part of the company’s effort to support its long-term growth.
Key details
- Revenue rose 25% year over year to $455.9 million. The company attributed the increase mainly to higher visit volume from clinician growth, improved clinician productivity and higher revenue per visit.
- Patient visits increased 17% to 2.7 million. LifeStance’s clinician base grew 11% to 8,863, including a net increase of 321 clinicians during the quarter.
- Profitability improved: net income was $22.4 million, compared with $1.1 million a year earlier. Income from operations was $33.1 million, versus $7.4 million.
- Center Margin increased 38% to $161.4 million, equal to 35.4% of revenue, up from 32.0% a year earlier.
- Adjusted EBITDA rose 70% to $68.4 million, or 15.0% of revenue, compared with $40.2 million and 11.1% a year earlier. LifeStance cited higher revenue per visit, lower center costs as a share of revenue and operating expenses growing more slowly than revenue.
- Cash flow was positive: cash from operations was $37.0 million in the third quarter and $170.0 million for the first nine months of 2026. Free cash flow was $22.4 million in the quarter.
- LifeStance ended September with $218.8 million in cash and cash equivalents and $255.5 million in net long-term debt.
- The company raised its full-year 2026 outlook to:
- Revenue of $1.741 billion to $1.761 billion
- Center Margin of $599 million to $613 million
- Adjusted EBITDA of $242 million to $250 million
- For the fourth quarter, LifeStance expects revenue of $446 million to $466 million, Center Margin of $149 million to $163 million and Adjusted EBITDA of $56 million to $64 million.
The results show revenue growing alongside improved margins and operating leverage, while the higher full-year ranges reflect LifeStance’s increased expectations for 2026. The company also pointed to patient outcomes in TMS and Spravato treatments and its new electronic health record implementation, but provided no additional financial targets for those initiatives.