LifeStance Health Group, Inc. (LFST) shares plummeted 7.63% in pre-market trading on Wednesday, despite reporting better-than-expected first-quarter results. The mental healthcare provider's weak second-quarter guidance appears to have overshadowed its positive Q1 performance.

For the first quarter of 2025, LifeStance reported revenue of $333 million, slightly beating the IBES estimate of $332.9 million. The company also surprised investors with a net income of $700,000, compared to the expected loss of $14.5 million. Adjusted EBITDA came in at $34.6 million, surpassing the estimated $30.2 million.

However, LifeStance's outlook for the second quarter fell short of expectations. The company forecasts Q2 revenue between $332 million and $352 million, with the midpoint below the IBES estimate of $352.8 million. Additionally, LifeStance reiterated its full-year 2025 revenue guidance of $1.40 billion to $1.44 billion, which may have disappointed investors hoping for an upgrade following the strong Q1 results. This conservative outlook, coupled with the lower-than-expected Q2 guidance, likely triggered the sell-off in pre-market trading, despite the company's solid Q1 performance.