LifeVantage's Q4 2025: Contradictions Emerge on LoveBiome Impact, Active Accounts, and Revenue Growth Expectations

The above is the analysis of the conflicting points in this earnings call

Date of Call: September 4, 2025

Financials Results

• Revenue: $55.1M, up 12.6% YOY (up ~11.6% ex-FX)
• EPS: $0.17 per diluted share (adjusted), up from $0.14 in the prior year
• Gross Margin: 79.9%, compared to 79.5% in the prior year (+40 bps)

Guidance:

• FY26 revenue expected to be $225M–$240M.
• Adjusted EBITDA expected to be $23M–$26M.
• Adjusted EPS expected to be $1.00–$1.15.
• Second half FY26 revenue expected to exceed first half due to MindBody seasonality and LoveBiome contribution.
• LoveBiome asset acquisition expected to close mid-October; integration targeted by end of Q2 FY26.
• Management remains focused on improving adjusted EBITDA margins toward long-term targets.

Business Commentary:

* Revenue Growth and Product Success: - LifeVantage reported revenue of $55.1 million for Q4, up 13% year-over-year. - The growth was driven by the success of the MindBody GLP-1 System and a return to growth in international business, particularly in Asia-Pacific and Europe after 12 quarters of decline.

• International Expansion and MindBody Impact:
• Revenue in the Asia-Pacific/Europe regions increased by 8%, with active accounts increasing 3% sequentially.

• This was attributed to the rollout of the MindBody product to Japan, Australia, Europe, and Thailand, which started mid-March.

• Strategic Acquisition and Growth Strategy:

• LifeVantage announced a definitive agreement to acquire critical assets of LoveBiome, expected to close by mid-October, aiming to cross-sell products and realize operational leverage.

• The acquisition is focused on LoveBiome's expertise in microbiome health and its innovative P84 product, which aligns with LifeVantage's focus on activating optimal health processes.

• Profitability and Margin Expansion:

• Adjusted EBITDA for Q4 was $4.8 million, with gross margin expanding by 40 basis points year-over-year.

• The expansion was driven by lower shipping costs, favorable product mix, and lower inventory obsolescence, highlighting operational efficiency improvements.

• Financial Strength and Capital Allocation:

• The company ended the fiscal year with $20.2 million in cash and no debt, maintaining access to a $5 million revolving line of credit.
• LifeVantage has returned approximately $18.6 million to stockholders through share repurchases and dividends since the beginning of fiscal 2024.

Sentiment Analysis:

• “Revenues increased approximately 13% year over year to $55.1 million… international business returning to growth for the first time in 12 quarters.” “Gross margin was 79.9%… compared to 79.5% in the prior year period.” “Our financial position remains strong, with $20.2 million of cash and no debt.” FY26 outlook guides to $225–$240M revenue and $23–$26M adjusted EBITDA, with H2 stronger than H1, and added growth from LoveBiome.

Q&A:

• Question from Doug Lane (Water Tower Research): Q4 revenue landed at the low end vs guidance midpoint (~$58M). Where did the softness occur?
  Response: U.S. demand softened due to MindBody seasonality late in Q4; international remained strong.

• Question from Doug Lane (Water Tower Research): For FY26 guidance, how much growth is organic vs from the LoveBiome acquisition?
  Response: Guidance includes a modest LoveBiome contribution; most growth is organic off Q4 run-rate, with timing uncertain until close and integration by end of Q2.

• Question from Doug Lane (Water Tower Research): Can you disclose LoveBiome’s current sales or consultant count and what it brings to LifeVantage?
  Response: They will not disclose current revenue or consultant metrics yet.

• Question from Doug Lane (Water Tower Research): How mature is LoveBiome and where are its key markets?
  Response: Founded in 2022; largest market U.S., followed by Taiwan, with presence in Europe; P84 launch in March accelerated momentum and aligns with LifeVantage for cross-sell and operational leverage.

• Question from Doug Lane (Water Tower Research): What differentiates P84 versus your MindBody and pre/probiotics?
  Response: P84 comprehensively targets the microbiome (regulate/repair/restore), goes beyond pre/probiotics, and is expected to be synergistic—not cannibalistic—with MindBody GLP-1.