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LC

Lifevantage Corp (LFVN)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 revenue was $47.6M (+0.7% YoY) and GAAP diluted EPS $0.17; adjusted EPS $0.18. Gross margin compressed 40 bps to 79.5% on higher shipping and warehouse expenses; adjusted EBITDA was $3.9M versus $4.4M last year .
  • Versus consensus, revenue missed ($54.7M estimate*) and EPS was slightly below ($0.19 estimate*), while EBITDA was below ($4.3M estimate*) as commissions/incentives rose to 43.5% on sales mix and promotions . Values retrieved from S&P Global.
  • Management reiterated FY26 guidance: revenue $225–$240M, adjusted EBITDA $23–$26M, adjusted EPS $1.00–$1.15; full-year tax rate ~24–26%. H2 expected to be stronger on MindBody seasonality and LoveBiome contribution .
  • Strategic catalyst: closed LoveBiome on Oct 1 and fully integrated systems Nov 1; early momentum in consultant community and cross-selling into “Healthy Edge” (Protandim + P84) stack, positioning LFVN in microbiome and GLP‑1 activation growth vectors .

What Went Well and What Went Wrong

What Went Well

  • LoveBiome acquisition closed and fully integrated by Nov 1, adding microbiome leadership and the P84 flagship product; systems, e‑commerce, and compensation plan cutover completed swiftly . “We have really integrated all aspects of our business… now we can focus more on optimizing the combined consultant base and customer base” — Steve Fife .
  • Japan showed growth (+2.6% constant currency) driven by MindBody launch; adjusted EPS improved YoY to $0.18 despite lower gross margin .
  • Capital returns continued: repurchased 44,000 shares (~$0.6M), dividend declared $0.045/share payable Dec 15, 2025; $16.7M remains on authorization .

What Went Wrong

  • Revenue and EPS missed consensus (revenue $47.6M vs $54.7M estimate*; EPS $0.17 vs $0.19 estimate*) amid seasonally soft Q1 and consultant activity pause ahead of LoveBiome close . Values retrieved from S&P Global.
  • Gross margin contracted to 79.5% (−40 bps YoY) on higher shipping and warehouse expenses; commissions/incentives rose to 43.5% of revenue on mix and promotions, pressuring EBITDA .
  • Active Customers fell YoY (total 73k vs 76k) and total Active Accounts decreased (121k vs 123k), indicating near‑term demand normalization despite consultant count growth .

Financial Results

MetricQ3 2025Q4 2025Q1 2026
Revenue ($USD Millions)$58.4 $55.1 $47.6
GAAP Diluted EPS ($USD)$0.26 $0.17 $0.17
Adjusted Diluted EPS ($USD)$0.26 $0.17 $0.18
Gross Margin (%)81.0% 79.9% 79.5%
Adjusted EBITDA ($USD Millions)$6.4 $4.8 $3.9
Commissions & Incentives (% of Revenue)44.8% 42.1% 43.5%
Adjusted SG&A ($USD Millions)$17.0 $18.3 $14.6
Region Revenue ($USD Millions)Q3 2025Q4 2025Q1 2026
Americas$48.2 $43.5 $37.2
Asia/Pacific & Europe$10.2 $11.6 $10.4
Total$58.4 $55.1 $47.6
KPIsQ3 2025Q4 2025Q1 2026
Active Independent Consultants (Total)52,000 —48,000
Active Customers (Total)88,000 —73,000
Total Active Accounts140,000 —121,000
Actual vs ConsensusQ3 2025Q4 2025Q1 2026
Revenue ($USD) Actual$58.44M $55.11M $47.56M
Revenue Consensus Mean ($USD)$60.96M*$57.93M*$54.74M*
EPS (GAAP Diluted) Actual$0.26 $0.17 $0.17
Primary EPS Consensus Mean ($USD)$0.145*$0.195*$0.19*
EBITDA Actual ($USD)$4.86M*$2.898M*$2.878M*
EBITDA Consensus Mean ($USD)$4.304M*$4.686M*$4.300M*

Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2026$225M–$240M $225M–$240M Maintained
Adjusted EBITDAFY 2026$23M–$26M $23M–$26M Maintained
Adjusted EPSFY 2026$1.00–$1.15 $1.00–$1.15 Maintained
Tax RateFY 2026~25% (implied by CFO outlook) ~24%–26% Clarified range
DividendQ1 FY26 payout$0.04/share (Q4 declaration) $0.045/share (Dec 15, 2025) Raised sequentially
Capital ReturnAuthorization$17.3M remaining (as of 6/30/25) $16.7M remaining (as of 9/30/25) Reduced by buybacks

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY25)Previous Mentions (Q4 FY25)Current Period (Q1 FY26)Trend
LoveBiome acquisition & microbiome focusNot discussedAgreement announced; category growth to $32.4B by 2035; integration plan by end of Q2 FY26 Closed Oct 1; full systems integration Nov 1; early consultant momentum; Healthy Edge stack (Protandim + P84) Accelerating execution
MindBody GLP‑1 System performance & seasonalityDriver of 21% YoY revenue growth Strong Americas; noted U.S. seasonality softness late in Q4 Seasonally low Q1; H2 expected stronger (Jan and spring demand) Seasonal normalization; H2 weighting
Technology modernization (Shopify)Not discussedShopify partnership announced to modernize e‑commerce stack Progress on design and development; pilot then rollout planned On track
Regional trends (Japan)APAC/Europe down YoY; expanded comp plan and MB launch in March International returned to growth (+8%) Japan +2.6% cc; slight YoY growth overall internationally Improving
Capital allocationNo repurchases in Q3; dividend $0.045 Buybacks ~160k shares; dividend $0.04 Buybacks 44k shares; dividend $0.045 Consistent returns
TaxFY25 tax ~20% FY26 tax ~25% expected Q1 effective tax ~4% on discrete benefits; FY26 ~25% One‑time discrete items; stable full‑year outlook

Management Commentary

  • “The first quarter marked a pivotal milestone… closing our strategic acquisition of LoveBiome… positioning us as a leader at the intersection of natural GLP‑1 activation and microbiome health.” — Steve Fife .
  • “The integration of LoveBiome… is already exceeding expectations… momentum is building across our business.” — Steve Fife .
  • “Our gross margin… 79.5%, down 40 bps… primarily due to increases in shipping and warehouse-related expenses… commissions and incentives… 43.5% due to sales mix and the timing/magnitude of promotional programs.” — Carl Aure .
  • “We have really integrated all aspects of our business [with LoveBiome]… now… focus on optimizing the combined consultant base and customer base.” — Steve Fife .
  • “Adjusted EBITDA… $3.9M, or 8.2% of revenues… compared to $4.4M… reflecting lower gross margins and higher commission and incentive-related expenses.” — Carl Aure .

Q&A Highlights

  • Seasonal softness: Q1 historically low; tougher YoY comparison due to prior year ramp into MindBody with promotions; softness consistent with summer consultant activity .
  • LoveBiome impact: zero Q1 revenue contribution (closed Oct 1). Some consultants paused ahead of integration; full systems cutover by Nov 1 unlocks cross‑selling and comp plan benefits .
  • H2 weighting: Expect stronger H2 from MindBody seasonality (Jan and spring) plus LoveBiome ramp post-integration and training .
  • Science synergy: In‑vitro study on P84 showed activation of 14 gut peptides; ongoing studies on Protandim + P84 synergies underpin Healthy Edge stack .

Estimates Context

  • Q1 FY26: Revenue $47.56M vs $54.74M consensus* (miss); EPS $0.17 vs $0.19 consensus* (miss); EBITDA $2.88M vs $4.30M consensus* (miss). Values retrieved from S&P Global.
  • Q4 FY25: Revenue $55.11M vs $57.93M consensus* (miss); EPS $0.17 vs $0.195 consensus* (miss); EBITDA $2.90M vs $4.69M consensus* (miss). Values retrieved from S&P Global.
  • Q3 FY25: Revenue $58.44M vs $60.96M consensus* (miss); EPS $0.26 vs $0.145 consensus* (beat). Values retrieved from S&P Global.
  • Implications: Consensus likely needs to reflect seasonality and integration timing; H2 uplift expected per management, but near‑term margin pressures (shipping, incentives) warrant caution .

Key Takeaways for Investors

  • Near‑term normalization: Q1 softness tied to seasonality and consultant pause ahead of LoveBiome close; expect H2 strength as integration, training, and seasonality kick in .
  • Margin watch: Gross margin down 40 bps and commissions/incentives elevated; monitor shipping costs, promo cadence, and product mix as drivers of EBITDA trajectory .
  • Integration catalyst: Full systems cutover completed Nov 1; cross‑sell of Healthy Edge stack and Evolve comp plan adoption are key volume and productivity drivers .
  • International rebuild: Japan constant‑currency progress (+2.6%), with broader APAC/Europe stability versus Q3/Q4 narratives—execution internationally is a lever for upside .
  • Capital return continuity: Ongoing buybacks, $16.7M authorization remaining, and dividend increased sequentially to $0.045 provide downside support .
  • Guidance intact: FY26 revenue/EBITDA/EPS ranges maintained; H2‑weighted outlook reiterated—consider positioning ahead of expected seasonal uplift .
  • Risk factors: Consensus misses in Q1, gross margin pressure, and declining active customers highlight execution risk; track Shopify rollout timing and LoveBiome consultant productivity ramp .
Note: Consensus estimates marked with * are Values retrieved from S&P Global.