Executive Summary
LifeVantage (LFVN) reported a solid QQ3 2025 performance driven by the MindBody GLPâ1 system, with revenue of $58.4 million, up 21% year over year. U.S. demand surged 31% while international markets continued to face currency headwinds and weaker activity, contributing to a 7.2% regional decline to $10.2 million in Asia Pacific and Europe. Despite near-term international volatility, the company delivered meaningful margin expansion (gross margin up 210 bps to 81%) and improved profitability, including Adjusted EBITDA of $6.4 million (11% of revenues). Management reaffirmed full-year guidance of revenue in the $228â235 million range and Adjusted EBITDA of $21â24 million, with Adjusted non-GAAP EPS of $0.72â$0.88. LifeVantage also emphasized the LV360 program and the MindBody international rollout as key growth catalysts, including the March 2025 launch into Japan and a planned broader rollout into remaining markets later in 2025. The balance sheet remains robust with $22.5 million of cash and no debt, plus access to a $5 million revolving line of credit, underpinning ongoing investments in growth and shareholder returns (dividends of $0. per share and ongoing buybacks). The QQ3 results underscore a company actively migrating toward higherâquality, recurring revenue through subscriptions (MindBody now roughly 85% subscriptionâbased for MB entrants) and a diversified product portfolio, supported by a disciplined capital allocation stance. Investors should note currency sensitivity, execution risk in international markets, and regulatory/macro risks inherent to a directâsales nutraceutical model as ongoing considerations.
Key Performance Indicators
QoQ: -13.76% | YoY:21.13%
QoQ: -13.27% | YoY:24.31%
QoQ: 18.23% | YoY:109.57%
QoQ: 36.08% | YoY:109.16%
QoQ: 33.33% | YoY:115.38%
Key Insights
Revenue: $58.4 million, up 21.0% YoY (+22.1% ex FX). Gross margin: 81.0% (+210 bps YoY). Operating income: $4.05 million (operating margin ~6.93%). Adjusted EBITDA: $6.40 million (11% of revenue). Net income: $3.47 million (net margin 5.94%). Diluted EPS (non-GAAP): $0.26; GAAP EPS (basic): $0.28. Cash & equivalents: $22.5 million; Net debt: negative (cash greater than debt) after no debt and $12.36 million gross debt reported. Tax rate: ~17% for the quarter; full-year guidance implies a 22â...
Financial Highlights
Revenue: $58.4 million, up 21.0% YoY (+22.1% ex FX). Gross margin: 81.0% (+210 bps YoY). Operating income: $4.05 million (operating margin ~6.93%). Adjusted EBITDA: $6.40 million (11% of revenue). Net income: $3.47 million (net margin 5.94%). Diluted EPS (non-GAAP): $0.26; GAAP EPS (basic): $0.28. Cash & equivalents: $22.5 million; Net debt: negative (cash greater than debt) after no debt and $12.36 million gross debt reported. Tax rate: ~17% for the quarter; full-year guidance implies a 22â24% tax rate. Operating cash flow: $2.23 million; Free cash flow: ~$1.90 million. Active Americas accounts: up 17.2% YoY; MB system launched in US Oct 2024 and in Japan Mar 2025; MB standalone revenue ~55% of MindBody MB-related revenue, with ~45% from bundles.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
58.44M |
21.13% |
-13.76% |
| Gross Profit |
47.33M |
24.31% |
-13.27% |
| Operating Income |
4.05M |
109.57% |
18.23% |
| Net Income |
3.47M |
109.16% |
36.08% |
| EPS |
0.28 |
115.38% |
33.33% |
Key Financial Ratios
operatingProfitMargin
6.94%
operatingCashFlowPerShare
$0.18
freeCashFlowPerShare
$0.15
dividendPayoutRatio
14.5%
Management Commentary
Key takeaways from management call and remarks: - MindBody GLP-1 system continues to be the primary growth engine, with U.S. demand leading international growth challenges. - Management highlighted supply chain stability, resolving past out-of-stock issues, and a positive trajectory in international launches (e.g., Japan, with fuller access in April 2025). - LV360 and the Evolve compensation plan are core strategic levers, expanding global consultant capacity and incentives to drive faster product adoption and team-building. - The company underscored the long-term framing of MindBody as a transformational, natural activation solution with a focus on holistic wellness, metabolic balance, and vitality, while emphasizing that MB is in the early innings of market penetration. - Management reaffirmed full-year guidance and signaled continued investments to ramp MB in remaining markets, with a commitment to profitability expansion and capital returns.
"Third quarter results were strong with revenues of $58.4 million, up 21% yearâoverâyear."
â Steve Fife
"Gross margin was 81% for the third quarter, a 210âbasis point improvement, compared to 78.9% in the prior year period."
â Carl Aure
Forward Guidance
Outlook analysis: LifeVantage reaffirmed FY2025 revenue guidance of $228â$235 million (midpoint â 16% year-over-year growth) and adjusted EBITDA of $21â$24 million, with adjusted non-GAAP EPS of $0.72â$0.88. The company expects ongoing margin improvements from product mix and scale across the MindBody ecosystem, while continuing to invest in LV360 and digital capabilities. Management notes currency as a potential volatility factor given the international footprint, and recognizes execution risk in completing the global MB rollout in remaining markets. Investors should monitor: (1) progression of MB system adoption in Japan and other markets; (2) rate of growth in Americas versus stabilizing or improving international performance; (3) conversion of new MB entrants into recurring subscriptions and cross-sell of Protandim Nrf2 and Liquid Collagen; (4) progression of LV360 incentives to sustain recruiter activity and retention; (5) macro factors affecting consumer spending and direct selling regulation in key geographies.