LifeVantage's Q4 2025 Earnings Call: Contradictions Emerge on Seasonality, LoveBiome Acquisition Impact, and Growth Strategies

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: Adjusted non-GAAP $0.17 per diluted share, up from $0.14 in the prior-year quarter
• Gross Margin: 79.9%, compared to 79.5% in the prior year

Guidance:

• FY2026 revenue expected at $225M–$240M.
• FY2026 adjusted non-GAAP EBITDA expected at $23M–$26M.
• FY2026 adjusted non-GAAP EPS expected at $1.00–$1.15.
• 2H FY2026 revenue expected to exceed 1H due to MindBody seasonality and LoveBiome contribution.
• LoveBiome asset acquisition expected to close mid-October; integration targeted by end of FY2026 Q2.
• Management focused on improving adjusted EBITDA margins toward long-term target.

Business Commentary:

* Revenue Growth and Segment Performance: - LifeVantage Corporation reported revenue of $55.1 million for Q4 2025, up 13% year-over-year. - This growth was largely driven by the success of the MindBody GLP-1 system, with the Americas region contributing a solid 14% increase in revenue and the Asia Pacific and Europe regions experiencing an 8% increase due to the international rollout of MindBody.

• International Sales and Active Account Metrics:
• LifeVantage's international business returned to growth after 12 quarters, with revenues in the Asia Pacific and Europe regions increasing by 8%.

• The rollout of MindBody to multiple regions, including Japan, Australia, and Europe, significantly impacted international sales, leading to a sequential increase of 3% in active accounts.

• Strategic Acquisition and Growth Potential:

• LifeVantage announced a definitive agreement to acquire the critical assets of LoveBiome, aiming to accelerate growth by cross-selling products and realizing operational leverage.

• The acquisition aligns with LifeVantage's focus on activating optimal health processes and expands its portfolio with innovative microbiome health products, particularly the P84 product.

• Dividends and Share Repurchase:

• LifeVantage declared a quarterly cash dividend of $0.045 per share of common stock, reflecting its commitment to returning value to stockholders.
• The company also repurchased approximately 160,000 shares during the fourth quarter, contributing to a total of $18.6 million in shareholder returns since fiscal year 2024.

Sentiment Analysis:

• Revenue up 12.6% YOY to $55.1M; gross margin expanded to 79.9% from 79.5%. International returned to YOY and sequential growth. Adjusted EPS rose to $0.17 vs $0.14. FY2026 outlook guides higher revenue ($225–$240M), EBITDA ($23–$26M), and EPS ($1.00–$1.15). Management highlighted momentum from MindBody, the LoveBiome acquisition, and a Shopify partnership. Softness noted in late Q4 U.S. due to seasonality.

Q&A:

• Question from Douglas Lane (Water Tower Research LLC): Q4 revenue landed at ~$55M, below the ~$58M midpoint of guidance; where did the softness emerge?
  Response: U.S. demand softened late in Q4 due to seasonality of MindBody; international remained strong.

• Question from Douglas Lane (Water Tower Research LLC): For FY2026, how much growth is organic versus from the LoveBiome acquisition?
  Response: Guidance includes a modest LoveBiome contribution with the balance from organic growth; timing and integration add uncertainty.

• Question from Douglas Lane (Water Tower Research LLC): Can you disclose LoveBiome’s current sales or consultant count?
  Response: Management is not disclosing LoveBiome revenue or consultant metrics at this time.

• Question from Douglas Lane (Water Tower Research LLC): How old is LoveBiome and what does it add geographically and strategically?
  Response: Founded ~2022; strongest in the U.S. then Taiwan with Europe presence; P84 has accelerated its growth and fits LifeVantage’s activation strategy with cross-sell synergies.

• Question from Douglas Lane (Water Tower Research LLC): How does LoveBiome’s P84 compare to your MindBody and pre/probiotics; any cannibalization risk?
  Response: P84 targets the microbiome comprehensively (regulate/repair/restore) and is expected to be synergistic with MindBody and existing pre/probiotics, not cannibalizing.