Executive Summary
LifeVantage reported Q3 FY2024 revenue of $48.2 million, down 10.2% year over year (YoY) and down about 8.7% on an organic basis excluding currency effects. The decline was driven primarily by top-line headwinds in international markets and a shift in activity timing, with January–February softness that moderated into March and April. Despite the weaker revenue trajectory, profitability improved notably: adjusted EBITDA rose 55% YoY to $5.1 million, with an adjusted EBITDA margin of 10.5%, up 440 basis points from the year-ago period as LV360 optimization and productivity gains offset topline headwinds. GAAP operating income was modest at $1.93 million, and GAAP net income was $1.66 million ($0.13 per share), while gross margin held at 78.9% (versus 80.2% prior year). Management framed these results within a broader strategy to accelerate enroller growth, simplify and energize the compensation framework, and broaden LV360 adoption into Canada, Mexico, and Europe. Liquid collagen remained a meaningful growth driver, contributing over $11 million in revenue (roughly 23% of Q3 mix) with international lift, and US penetration for liquid collagen at 27.8%. The company reaffirmed FY2024 guidance: revenue of $202–$205 million, adjusted EBITDA of $16–$18 million, and adjusted EPS of $0.57–$0.67, noting more than $2 million of non-recurring LV360 rollout costs. The balance sheet shows a cash position of about $17.4 million with no debt, and LifeVantage also disclosed a new $5 million revolving line of credit and ongoing capital return activity (share repurchases and a dividend) totaling over $11.5 million year-to-date. Near-term catalysts include ongoing LV360 rollouts, enroller momentum, and international expansion, tempered by currency sensitivity and promotions-driven variability in quarterly results. Investors should monitor enroller growth, active accounts, liquid collagen contribution, regional performance (notably Japan and other APAC markets), and the pace of LV360 adoption across new geographies while weighing ongoing top-line headwinds against margin expansion potential.
Key Performance Indicators
QoQ: -6.55% | YoY:-10.23%
QoQ: -6.13% | YoY:-11.71%
QoQ: 253.37% | YoY:726.50%
QoQ: 352.90% | YoY:62.33%
QoQ: 350.00% | YoY:60.49%
Key Insights
Revenue: $48.245 million in Q3 2024, down 10.2% YoY; FX impact −$0.8 million; Organic revenue decline ≈ 8.7% YoY. Americas revenue: $37.2 million (−5.9% YoY); Asia-Pacific & Europe revenue: $11.0 million (−22.4% YoY; ex-FX −16.1%). Gross margin: 78.9% (vs 80.2% prior year). Operating income: $1.934 million (margin ≈ 4.0%). EBITDA: $2.829 million (EBITDA margin ≈ 5.9%); Adjusted EBITDA: $5.1 million (margin 10.5%). SG&A (non-GAAP): $15.0 million (31% of revenue). Adjusted no...
Financial Highlights
Revenue: $48.245 million in Q3 2024, down 10.2% YoY; FX impact −$0.8 million; Organic revenue decline ≈ 8.7% YoY. Americas revenue: $37.2 million (−5.9% YoY); Asia-Pacific & Europe revenue: $11.0 million (−22.4% YoY; ex-FX −16.1%). Gross margin: 78.9% (vs 80.2% prior year). Operating income: $1.934 million (margin ≈ 4.0%). EBITDA: $2.829 million (EBITDA margin ≈ 5.9%); Adjusted EBITDA: $5.1 million (margin 10.5%). SG&A (non-GAAP): $15.0 million (31% of revenue). Adjusted non-GAAP net income: $2.8 million ($0.21 per fully diluted share). Tax rate: 13.6%. Cash flow: net cash provided by operating activities $3.093 million; capex $0.291 million; free cash flow $2.802 million. Balance sheet: cash & equivalents $17.377 million; total debt $13.527 million; net debt (cash net of debt) −$3.85 million; total assets $61.307 million; total stockholders’ equity $26.769 million. Liquidity & returns: no debt; revolving line of credit $5 million; share repurchases $1.9 million for 292k shares in Q3; quarterly dividend $0.04 per share; year-to-date dividends ≈ $6.9 million and buybacks ≈ $4.6 million for the first nine months. Guidance: FY2024 revenue $202–$205 million;Adjusted non-GAAP EBITDA $16–$18 million;Adjusted non-GAAP EPS $0.57–$0.67; includes >$2 million of non-recurring LV360 rollout costs. Management commentary highlights enroller acceleration, Rise ERA incentives, and product activation (Liquid Collagen, TrueScience skincare) as primary drivers of profitability and engagement. YoY and QoQ earnings metrics indicate cash efficiency improvements even as top-line volatility persists: revenue and gross profit declined, while operating leverage improved through cost control and mix optimization.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
48.25M |
-10.23% |
-6.55% |
| Gross Profit |
38.07M |
-11.71% |
-6.13% |
| Operating Income |
1.93M |
726.50% |
253.37% |
| Net Income |
1.66M |
62.33% |
352.90% |
| EPS |
0.13 |
60.49% |
350.00% |
Key Financial Ratios
operatingProfitMargin
4.01%
operatingCashFlowPerShare
$0.25
freeCashFlowPerShare
$0.23
Management Commentary
Key management insights and quotes from the Q3 FY2024 earnings call:
- Profitability and LV360 progress: Steve Fife stated, “Profitability trends remain very positive in Q3 as we again delivered significant year-over-year improvement in adjusted EBITDA. For the quarter, our adjusted EBITDA was $5.1 million, an increase of 55% from the prior year period. And our adjusted EBITDA margin was up 440 basis points to 10.5% as we continue to optimize our LV360 initiatives and improved productivity despite the persistence of top-line headwinds.”
- Q3 revenue headwinds and timing: “January and February were negatively impacted by the timing of certain incentive and promotion activities… we did see trends reverse the last month of the quarter and the promising performance in March carried over into April.”
- Enrollers and optimization: “March results along with continued successes in April have been driven by a focus on increasing our enrollers… Our evolved compensation plan is a modern forward-looking compensation system that rewards independent consultants generously…” and “Rise ERA” incentives and simplification of enroll qualifications aimed at accelerating enrollment and retention.
- Product and activation strategy: “Momentum Academy showcased the global launch of our revamped true science activated skincare collection… TrueClean, TrueLift, TrueHydrate… a broad-spectrum mineral sunstick.”
- Liquid collagen growth: “Liquid collagen… revenue attributable to liquid collagen including the Healthy Glow Essential Stack exceeded $11 million and was up approximately 7% from a year ago. As a percentage of our overall mix, approximately 23% of our Q3 revenue was attributable to liquid collagen.” US penetration for liquid collagen at 27.8% (down from 31.6% in Q2 but up from Q1’s 27.2%).
- International expansion and LV360 rollout: “expansion of our LV360 transformation into Canada, Mexico and Europe” and adoption of the evolved compensation plan in those markets; management highlighted the early growth in February–April as markets adopt the plan.
- Balance sheet and capital allocation: “We ended the third quarter in a strong financial position with $17.4 million of cash and no debt… new $5 million revolving line of credit… repurchased 292,000 shares for $1.9 million and raised the quarterly dividend.” Carl Aure also indicated the FY2024 outlook and non-recurring LV360 costs.
- Guidance and outlook: Carl Aure reaffirmed guidance: FY2024 revenue of $202–$205 million; adjusted EBITDA of $16–$18 million; adjusted EPS of $0.57–$0.67; noting >$2 million of non-recurring LV360 rollout costs and the longer-term goal of achieving low double-digit EBITDA margins.
“Profitability trends remain very positive in Q3 as we again delivered significant year-over-year improvement in adjusted EBITDA. For the quarter, our adjusted EBITDA was $5.1 million, an increase of 55% from the prior year period. And our adjusted EBITDA margin was up 440 basis points to 10.5% as we continue to optimize our LV360 initiatives and improved productivity despite the persistence of top-line headwinds.”
— Steve Fife, President & CEO
“March results along with continued successes in April have been driven by a focus on increasing our enrollers, which we define as the number of consultants who sign up or enroll another customer or consultant.”
— Steve Fife, President & CEO
Forward Guidance
Assessment of LifeVantage’s forward-looking outlook based on management guidance and industry dynamics:
- Management guidance: FY2024 revenue guidance of $202–$205 million; adjusted EBITDA guidance of $16–$18 million; adjusted EPS guidance $0.57–$0.67; with >$2 million of non-recurring LV360 rollout expenses embedded in this year. The company expects to return to higher EBITDA margins, targeting low double-digit margins over the long term.
- Growth catalysts and execution risk: The core growth levers are LV360 adoption (enrollers, retention, and rank advancement), expansion into Canada/Mexico/Europe, and the liquid collagen/tied TrueScience activations. March–April momentum suggests marketing and onboarding changes are resonating, but the top-line headwinds persist in several markets (notably Japan and other APAC regions) and currency fluctuations (especially in Japan and other markets) will continue to influence reported revenue.
- Margin trajectory and cost discipline: The margin expansion in Q3 reflects mix changes, favorable incentives timing, and operating leverage from LV360 reforms. The company indicates a path to low double-digit EBITDA margins, but near-term profitability hinges on sustaining enrollments and monetizing international growth.
- Key monitoring factors for Q4 and beyond: (1) enrollment growth and active accounts in US and international markets; (2) penetration of liquid collagen in key geographies; (3) adoption rate of LV360 in Europe, Canada, and Mexico; (4) impact of promotions and incentive timing; (5) currency exposure in Japan and APAC; (6) ongoing capital allocation effectiveness (share repurchases and dividend policy). Investors should assess whether the sequential improvement observed in March–April can be sustained into Q4 and whether the FY24 targets are achievable given macro and promotional dynamics.