LifeStance Health Group, Inc. (NASDAQ: LFST) shares surged 9.16% in pre-market trading on Wednesday following the release of its impressive first-quarter 2025 financial results. The outpatient mental healthcare provider reported its first-ever positive net income as a public company, marking a significant milestone in its financial performance.

For the first quarter ended March 31, 2025, LifeStance reported revenue of $333 million, representing an 11% increase from the prior year and slightly beating analyst estimates of $332.9 million. The company achieved a net income of $700,000, a remarkable turnaround from a net loss of $21.1 million in the same quarter last year. This marks the first time LifeStance has posted positive net income since going public.

LifeStance's Adjusted EBITDA for Q1 2025 came in at $34.6 million, significantly exceeding the IBES estimate of $30.2 million. The company attributed its solid performance to higher visit volumes from net clinician growth and improvements in total revenue per visit. LifeStance also reiterated its full-year 2025 guidance, projecting revenue between $1.40 billion to $1.44 billion and Adjusted EBITDA of $130 million to $150 million.

Dave Bourdon, CEO of LifeStance, commented on the results, stating, "We delivered a solid quarter to kick off 2025, thanks to the commitment and dedication of our employees, including over 7,500 clinicians. We exceeded our financial expectations with double-digit margins as well as positive net income in the quarter for the first time in our history as a public company."

The strong quarterly performance and positive outlook have bolstered investor confidence in LifeStance's growth trajectory and its ability to capitalize on the increasing demand for mental healthcare services. As the company continues to expand its clinician base and optimize operations, it appears well-positioned to maintain its growth momentum in the outpatient mental healthcare sector.