LifeVantage's Q1 2026: Contradictions Emerge on Seasonality, LoveBiome Acquisition, and Product Alignment

Date of Call: November 4, 2025

Financials Results

• Revenue: $47.6M, up 0.7% YOY (vs $47.2M in Q1 FY2025)
• EPS: $0.18 per diluted share, adjusted non-GAAP (net income $2.3M), up from $0.15 ($1.9M) prior year
• Gross Margin: 79.5%, down 40 basis points YOY
• Operating Margin: Adjusted non-GAAP operating income $2.5M (~5.3% of revenue), down from $2.7M (~5.7% prior year)

Guidance:

• Full-year revenue expected to be $225M to $240M (includes LoveBiome contribution)
• Adjusted non-GAAP EBITDA expected $23M to $26M
• Adjusted non-GAAP EPS expected $1.00 to $1.15 per share
• Expect second-half revenue to be higher than first half due to MindBody seasonality and LoveBiome ramp
• Anticipated full-year effective tax rate approximately 25%

Business Commentary:

• Strategic Acquisition and Market Expansion:
• LifeVantage reported net revenue of $47.6 million for Q1 2026, essentially flat compared to the previous year.
• The acquisition of LoveBiome, closes on October 1, emphasizes LifeVantage's strategy to expand its addressable market within the rapidly growing gut microbiome health segment.

• Integration of LoveBiome into LifeVantage's systems and consultant support is progressing smoothly and expected to realize operational synergies throughout fiscal 2026.

• Product and Consultant Integration:

• The successful integration of the LoveBiome product line and consultant community has been completed, with cross-selling training initiatives underway.
• Attendees at the recent U.S. Momentum Academy event demonstrated high engagement and enthusiasm, with strong reception to the LoveBiome acquisition and integration.

• The combined presence of both consultant communities at the event was a culmination of strategic efforts to integrate the two companies.

• Financial Performance and Cash Management:

• LifeVantage reported an adjusted EBITDA of $3.9 million for Q1 2026, down $500,000 year-over-year, attributed to lower contribution margins partially offset by lower SG&A expenses.
• The company maintained a strong financial position with $13.1 million in cash and no debt, and continued to repurchase stock and announce a quarterly cash dividend.

• The focus on capital allocation and maintaining financial health enables LifeVantage to pursue strategic investments in technology, product development, and market expansion.

• Technological Modernization and Partnerships:

• LifeVantage announced a partnership with Shopify to enhance its technology infrastructure and e-commerce platform, expected to be piloted this fiscal year.
• The partnership aims to deliver increased conversion rates and brand advocacy for both LifeVantage and its consultants by improving customer experiences and confidence.
• Modernizing technology infrastructure is key for meeting the demands of today's consumers and positioning the company for growth.

  Sentiment Analysis:

  Overall Tone: Positive

  • Management emphasized the strategic value and successful integration of LoveBiome and said they are "optimistic about our positioning and growth trajectory." CFO reiterated full-year guidance and highlighted progress on synergies and improving profitability metrics, while noting Q1 softness was seasonal and expectations remain for H2 strength.

Q&A:

• Question from Douglas Lane (Water Tower Research LLC): Before we get to LoveBiome, can you give us a feel -- I know you don't put out quarterly guidance, you put out annual guidance. But can you give us just a some sort of feel on how you thought the September quarter came in versus your original expectations?
  Response: Q1 was seasonally weak and slightly softer than management expected due to typical summer consultant inactivity and a tough year-ago comp from the MindBody ramp, but they view it as not alarming.

• Question from Douglas Lane (Water Tower Research LLC): And this year, I guess you announced LoveBiome right in the third month, September. Was there any impact to your business? Did that have any impact on your business between September 3 and October 1.
  Response: No revenue impact from LoveBiome in Q1 as the acquisition closed Oct 1; management noted possible minor pause by some LifeVantage consultants awaiting the integration but zero LoveBiome revenue contribution pre-close.

• Question from Douglas Lane (Water Tower Research LLC): A lot of moving parts. Let's talk about the science a little bit. The P84 Nrf2 stack sort of a no-brainer right, the 2 flagship products from each company. But what I think interests me is how deep you're going on gut health. And what are the opportunities from a gut health standpoint with LoveBiome science combined with the work that you've done on MindBody?
  Response: P84's in vitro testing showed activation of 14 gut-regulating peptides; management says P84 fits their 'activator' strategy and anticipates synergistic benefits when combined with Protandim (the Healthy Edge stack), with further studies forthcoming.

Contradiction Point 1

Seasonality Impact on Revenue

It highlights inconsistencies in how the company attributes the impact of seasonality on revenue, which affects investor expectations and financial forecasting.

How did the September quarter perform compared to your original expectations? - Douglas Lane(Water Tower Research LLC)

2026Q1: Q1 is historically our low quarter. We have a lot of our consultant base that isn't as active during the summer months. - Steven Fife(CEO)

What caused the $55 million gap below Q4 revenue guidance midpoint? - Douglas Lane(Water Tower Research LLC)

2025Q4: The revenue came in softer than projected mostly due to U.S. seasonality, particularly with the MindBody product (MB) experiencing slower sales. - Carl Aure(CFO)

Contradiction Point 2

Impact of LoveBiome Acquisition

It involves differing explanations of the expected impact of the LoveBiome acquisition on revenue growth, which is crucial for investor expectations.

Did your business experience any impact between September 3 and October 1? - Douglas Lane(Water Tower Research LLC)

2026Q1: There was 0 revenue contribution from LoveBiome. We didn't close the transaction until October 1. So there were 0 revenue impact from the LoveBiome group. - Steven Fife(CEO)

What portion of fiscal 2026 growth is attributed to LoveBiome versus organic growth? - Douglas Lane(Water Tower Research LLC)

2025Q4: Fiscal 2026 growth will be a combination of moderate LoveBiome revenue and organic growth from the current baseline. The specifics of LoveBiome's contribution are not yet determined due to uncertainties surrounding the acquisition's closure and integration. - Carl Aure(CFO)

Contradiction Point 3

Scientific Alignment of P84 and LifeVantage Products

It involves differing descriptions of the scientific alignment between P84 and LifeVantage's existing products, which impacts the strategic fit and potential synergies of the acquisition.

Are there opportunities combining LoveBiome science with MindBody research for gut health? - Douglas Lane(Water Tower Research LLC)

2026Q1: Right before our Dallas Momentum Academy just a few weeks ago, we announced results from an in vitro test of P84, where I mentioned that we identified 14 peptides in our body that are responsible for regulating, repairing and restoring overall gut health that were activated. - Steven Fife(CEO)

What is the nature of P84 and how does it compare to LifeVantage's products? - Douglas Lane(Water Tower Research LLC)

2025Q4: P84 is a comprehensive microbiome product, offering benefits beyond prebiotics and probiotics by regulating, repairing, and restoring the gut microbiome. - Steven Fife(CEO)

Contradiction Point 4

MindBody Sales Strategy and Subscription Impact

The discussion revolves around the sales strategy and subscription impact of the MindBody product, which can have implications for revenue consistency and customer retention.

Was there any impact on your business between September 3 and October 1? - Douglas Lane (Water Tower Research LLC)

2026Q1: Our consultant base of the LifeVantage consultant base may have kind of taken their foot off the gas a little bit to wait and see the anticipation and to understand what all of that meant. - Steven Fife(CEO)

Are you seeing more purchases in Stacks compared to standalone products this quarter versus last quarter? - Brooks O'Neil (Lake Street Capital Markets)

2025Q3: I think that that's also positive and true. When we look specifically at MindBody, about 55% or so of the revenue during the quarter was MindBody standalone, and the remaining 45% on the purchases were occurring with another product. - Steve Fife(CEO)

Contradiction Point 5

Revenue Impact of LoveBiome Acquisition

It highlights differing perspectives on the immediate financial impact of the LoveBiome acquisition, which could affect expectations regarding revenue growth and strategic partnerships.

Was there any impact on your business between September 3 and October 1? - Douglas Lane (Water Tower Research LLC)

2026Q1: No. There was 0 revenue contribution from LoveBiome. We didn't close the transaction until October 1. So there were 0 revenue impact from the LoveBiome group. - Steven Fife(CEO)

How did MindBody System subscription performance compare to expectations? - Douglas Lane (Water Tower Research)

2025Q2: Excluding the Double Diamond sales, the revenue for our top 100 [inaudible] was up 10% year-over-year to $11.1 million. This is particularly impressive considering that the prior year period includes our legacy product Protoje and subsequent product launches - Steve Fife(CEO)