LifeStance Health Group, Inc. (NASDAQ: LFST) shares surged 9.16% in pre-market trading on Wednesday following the release of its first-quarter 2025 financial results. The outpatient mental healthcare provider reported better-than-expected earnings and achieved positive net income for the first time since going public.

Key highlights from the Q1 2025 results include: - Revenue of $333.0 million, up 11% year-over-year and beating analyst estimates of $332.9 million - Net income of $0.7 million, compared to a net loss of $21.1 million in Q1 2024 - Adjusted EBITDA of $34.6 million, exceeding expectations of $30.2 million - Clinician base increased 10% to 7,535, with a net addition of 152 clinicians in Q1

Dave Bourdon, CEO of LifeStance, commented on the results: "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 company also reaffirmed its full-year 2025 guidance, projecting revenue between $1.40 billion and $1.44 billion, and Adjusted EBITDA between $130 million and $150 million. For Q2 2025, LifeStance expects total revenue of $332 million to $352 million and Adjusted EBITDA of $28 million to $34 million.

The strong quarterly performance and positive outlook have boosted investor confidence, driving the significant pre-market stock price increase. As LifeStance continues to expand its mental healthcare services and improve its financial performance, it remains well-positioned in the growing outpatient mental healthcare market.