Earning Preview: LifeStance Health Group, Inc. this quarter’s revenue is expected to increase by 19.95%, and institutional views are bullish

Abstract

LifeStance Health Group, Inc. will report results on February 25, 2026 Pre-Market; this preview distills last quarter’s results, current-quarter forecasts, main business dynamics, and recent institutional viewpoints to frame what matters most for the print.

Market Forecast

Market expectations indicate revenue of 376.31 million for the current quarter, an increase of 19.95% year over year, with adjusted EPS essentially at breakeven around -0.00 and an anticipated 95.23% year-over-year improvement; EBIT is projected at 4.46 million, implying a 146.44% year-over-year rise. Margin guidance is not specified in the available estimates, but consensus embeds a gradual improvement in operating leverage alongside steady volume growth. Patient services, which account for nearly all company revenue, are projected to remain the core driver as visit volumes and clinician productivity underpin top-line expansion. The most promising revenue engine remains patient services itself, which contributed 361.42 million last quarter, aligning with a 16.34% year-over-year increase for total company revenue, and remains positioned to deliver the bulk of incremental growth.

Last Quarter Review

Last quarter, LifeStance Health Group, Inc. delivered revenue of 363.81 million, gross profit margin of 32.04%, GAAP net income attributable to shareholders of 1.08 million, a net profit margin of 0.30%, and adjusted EPS of 0.00, with revenue up 16.34% year over year and adjusted EPS up 100.00% year over year. A key financial highlight was the material improvement in operating results, reflected in EBIT of 7.41 million, signaling better cost control and throughput on a higher revenue base. Patient services remained the centerpiece with 361.42 million, representing 99.34% of total revenue, consistent with the company’s 16.34% year-over-year revenue growth momentum.

Current Quarter Outlook

Patient services trajectory and what to watch

Patient services dominate the company’s income statement and will again determine the direction of quarterly results. With patient services representing 361.42 million last quarter, the path to the revenue estimate of 376.31 million rests on sustained visit growth, stable clinician capacity, and continued execution on scheduling and patient retention. Given that margins improved alongside revenue last quarter, investors will look for evidence that gross margin can remain near the low-30% range while revenue advances. That bridge is most plausible if clinician productivity metrics hold or improve and if operating expenses rise slower than revenue, allowing incremental margin to drop through to EBIT. Operationally, the quarter’s outcome will likely hinge on utilization and cancellations relative to scheduling capacity. Consistency in payer reimbursement and steady patient demand for established services are key to preserving the revenue growth slope. The net profit margin last quarter was 0.30%, reflecting a narrow cushion; any efficiency gains in care delivery, technology-enabled scheduling, and administrative processes could widen this margin even if per-visit reimbursement is unchanged. The headline target of near-breakeven adjusted EPS around -0.00 is compatible with modest sequential expense control against a rising revenue base; signs that the company is turning this operating leverage into a sturdier bottom line would be meaningfully supportive for the equity narrative.

Largest growth potential within the portfolio

The company’s largest growth potential remains within the patient services franchise, given its scale and visibility, and its contribution of 361.42 million last quarter highlights where incremental upside is most likely. Because patient services represent 99.34% of revenue, even small improvements in volume and throughput can translate into noticeable revenue and EBIT changes, which aligns with the 19.95% year-over-year revenue growth expected for the quarter. From a modeling perspective, achieving the projected 4.46 million in EBIT depends on balancing clinician ramp efficiency with disciplined overhead growth so that the top-line gains are not offset by cost creep. In this structure, operating leverage is the principal lever: as utilization of existing capacity improves and the company optimizes scheduling density, the cost per unit of service delivered should fall, raising contribution margins. Within the patient services umbrella, revenue visibility should remain anchored in repeat visits and consistent payer relationships, which can temper volatility. If the company demonstrates a healthy run-rate of completed appointments and a stabilized mix across service modalities, it can provide the predictability embedded in the market’s revenue and EPS estimates. That predictability, paired with evidence of improved billing efficiency and clean receivables management, would add confidence to forward margin trajectories and support the notion of sustained year-over-year growth.

Key stock price drivers for this print

Three interlocking factors appear most important for the stock into the event: the durability of revenue growth, the trajectory of margins relative to last quarter, and the clarity of management’s outlook for the next quarter. Investors will parse whether the company is tracking toward the 376.31 million revenue estimate with balanced execution rather than relying on one-time events, and whether adjusted EPS around breakeven is a function of underlying operating leverage or temporary expense timing. The quality of margin progression will be judged against last quarter’s 32.04% gross margin and 0.30% net margin; incremental movement in either direction will influence perceptions of how quickly the business can compound earnings on top of revenue growth. On guidance, investors will look for a framework that supports the forecasted 19.95% year-over-year growth while acknowledging potential variability in operating costs. Commentary that links clinician productivity and scheduling efficiency to sustainable EBIT expansion will likely matter more than short-term cost fluctuations because the revenue base is relatively well telegraphed by the estimates. Finally, any signals that the company can maintain or improve cash generation as EBIT normalizes would add weight to the case for a more stable earnings path through the year, particularly given that last quarter’s improvement in operating results suggests room for further cost discipline and throughput gains.

Analyst Opinions

Across items available in the period from January 1, 2026 to February 18, 2026, the skew of institutional commentary is bullish, with no newly published bearish previews identified; as such, the ratio tilts 100% to the bullish side within the reviewed window. Coverage in February highlighted ongoing investor engagement around execution and operating leverage, and the tone of institutional interactions pointed to constructive expectations for revenue growth and gradual margin improvement. The majority view emphasizes the same core factors that this preview highlights: the centrality of patient services to the top line, the importance of utilization trends to translate revenue into EBIT, and the incremental steps required to sustain margin progression from last quarter’s baseline. Bullish commentators generally frame the quarter as a proof point on two axes: whether the company can validate the 19.95% year-over-year revenue growth embedded in estimates and whether it can hold or improve the profitability gains seen in the prior period. This lens implies that near-breakeven adjusted EPS is acceptable if accompanied by evident operating leverage, especially a cleaner drop-through from gross profit to EBIT. In their discussions with investors this month, institutions have focused on the cadence of throughput and cost control, indicating that modest improvements to margin metrics could reinforce confidence that the earnings trajectory is normalizing. In sum, the prevailing institutional stance going into February 25, 2026 is constructive, centering on stable revenue execution and incremental margin gains as the catalysts for sustained outperformance relative to expectations. Given the lack of newly recorded bearish previews in the period, this one-sided skew underscores that the market’s main debate is not about the direction of revenue but about the pace of margin expansion and the consistency of EPS delivery as the company advances through the year.