Earnings Update: LifeStance Health Group, Inc. (NASDAQ:LFST) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

It's been a pretty great week for LifeStance Health Group, Inc. (NASDAQ:LFST) shareholders, with its shares surging 15% to US$4.37 in the week since its latest quarterly results. Revenues of US$345m arrived in line with expectations, although statutory losses per share were US$0.01, an impressive 62% smaller than what broker models predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for LifeStance Health Group from eight analysts is for revenues of US$1.41b in 2025. If met, it would imply a reasonable 7.4% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 43% to US$0.024. Before this latest report, the consensus had been expecting revenues of US$1.41b and US$0.047 per share in losses. Although the revenue estimates have not really changed LifeStance Health Group'sfuture looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

Check out our latest analysis for LifeStance Health Group

The average price target held steady at US$8.43, seeming to indicate that business is performing in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on LifeStance Health Group, with the most bullish analyst valuing it at US$10.00 and the most bearish at US$6.50 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 18% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.0% annually. So although LifeStance Health Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$8.43, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple LifeStance Health Group analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether LifeStance Health Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.