LifeVantage Announces Financial Results for the Second Quarter of Fiscal 2025
Rhea-AI Summary
LifeVantage (LFVN) reported strong financial results for Q2 fiscal 2025, with revenue reaching $67.8 million, up 31.3% year-over-year. The company's performance was driven by the successful launch of MindBody GLP-1 System™ in October. Key highlights include:
- Americas revenue increased 46.3%, with US revenue up 48.8%
- Asia/Pacific & Europe revenue decreased 15.5%
- Net income per diluted share was $0.19, compared to a loss of $0.05 year ago
- Adjusted EBITDA reached $6.5 million vs $3.1 million last year
- Gross profit margin improved to 80.5%
The company raised its fiscal 2025 guidance, now expecting revenue between $235-245 million, adjusted EBITDA of $21-24 million, and adjusted EPS of $0.72-0.88. A quarterly dividend of $0.04 per share was declared, payable March 17, 2025.
Positive
- Revenue increased 31.3% to record $67.8 million
- Net income improved from -$0.05 to $0.19 per diluted share
- Gross profit margin expanded to 80.5% from 78.6%
- US revenue grew 48.8%
- Active Accounts up 25% sequentially in Americas
- Raised full-year guidance significantly
- Cash position improved to $21.6 million from $16.9 million
Negative
- Asia/Pacific & Europe revenue declined 15.5%
- Commissions and incentives expense increased to 48.0% of revenue from 42.1%
News Market Reaction
On the day this news was published, LFVN declined 16.49%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SALT LAKE CITY, Feb. 05, 2025 (GLOBE NEWSWIRE) -- LifeVantage Corporation (Nasdaq: LFVN), a leading health and wellness company with products designed to activate optimal health processes at the cellular level, today reported financial results for its second fiscal quarter ended December 31, 2024.
Second Quarter Fiscal 2025 Summary*:
- Revenue of
$67.8 million , an increase of31.3% from the prior year period. Excluding the negative impact of foreign currency fluctuations, second quarter revenue was up approximately31.9% ; - Revenue in the Americas increased
46.3% , and revenue in Asia/Pacific & Europe decreased15.5% . Excluding the negative impact of foreign currency fluctuations, second quarter revenue in Asia/Pacific & Europe decreased approximately13.7% ; - Net income per diluted share was
$0.19 , versus a loss of$0.05 per diluted share a year ago; - Adjusted earnings per diluted share was
$0.22 , compared to$0.10 a year ago; and - Adjusted EBITDA was
$6.5 million compared to$3.1 million a year ago.
* All comparisons are on a year over year basis and compare the second quarter of fiscal 2025 to the second quarter of fiscal 2024, unless otherwise noted.
“Second quarter results were outstanding with year-over-year revenue growth exceeding
Second Quarter Fiscal 2025 Results
For the second quarter ended December 31, 2024, the Company reported revenue of
Gross profit for the second quarter of fiscal 2025 was
Commissions and incentives expense for the second quarter of fiscal 2025 was
Selling, general and administrative (SG&A) expense for the second quarter of fiscal 2025 was
Operating income for the second quarter of fiscal 2025 was
Net income for the second quarter of fiscal 2025 was
Adjusted EBITDA was
Balance Sheet & Liquidity
The Company generated
Share Repurchase
During the second quarter, the Company did not repurchase any shares of its common stock. Through the first six months of fiscal 2025, 0.1 million shares have been repurchased for an aggregate price of
Dividend Announcement
Today the Company announced the declaration of a cash dividend of
Fiscal Year 2025 Guidance
The Company expects revenue in the range of
Conference Call Information
The Company will hold an investor conference call today at 2:30 p.m. MST (4:30 p.m. EST). Investors interested in participating in the live call can dial (877) 704-4453 from the U.S. or international callers can dial (201) 389-0920. A telephone replay will be available approximately two hours after the call concludes and will be available through Wednesday, February 19, 2025, by dialing (844) 512-2921 from the U.S. and entering confirmation code 13750382, or (412) 317-6671 from international locations, and entering confirmation code 13750382.
There will also be a simultaneous, live webcast available on the Investor Relations section of the Company's web site at https://investor.lifevantage.com/events-and-presentations or directly at https://viavid.webcasts.com/starthere.jsp?ei=1699720&tp_key=7be42f23a0. The webcast will be archived for approximately 30 days.
About LifeVantage Corporation
LifeVantage Corporation (Nasdaq: LFVN), the Activation company, is a pioneer in nutrigenomics—the study of how nutrition and naturally occurring compounds can unlock your genes and the health coded within. Our products work with your unique biology and help your body make what it needs for health. The line of scientifically validated activators includes the flagship Protandim® family of products, TrueScience® Liquid Collagen, the newest MindBody GLP-1 System™, Activation-supporting nutrients such as Omega, D3+, and the Rise AM & Reset PM System®, as well as AXIO® nootropic energy drink mixes, the full TrueScience® line of skin and hair care products, and Petandim®, a pet supplement formulated to combat oxidative stress in dogs. Our independent Consultants sell our products to Customers and share the business opportunity with entrepreneurs seeking to begin their own business. LifeVantage was founded in 2003 and is headquartered in Lehi, Utah. For more information, visit www.lifevantage.com.
Cautionary Note Regarding Forward Looking Statements
This document contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as "believe," "will," "hopes," "intends," "estimates," "expects," "projects," "plans," "anticipates," "look forward to," "goal," “may be,” and variations thereof, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. The declaration and/or payment of a dividend during any quarter provides no assurance as to future dividends, and the timing and amount of future dividends, if any, could vary significantly in comparison both to past dividends and to current expectations. Examples of forward-looking statements include, but are not limited to, expected financial performance, including revenue and margins, statements we make regarding executing against and the benefits of our key initiatives, future growth, including geographic and product expansion, and expected dividend payments in future quarters. Such forward-looking statements are not guarantees of performance and the Company's actual results could differ materially from those contained in such statements. These forward-looking statements are based on the Company's current expectations and beliefs concerning future events affecting the Company and involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties include, among others, further deterioration to the global economic and operating environments, as well as those discussed in greater detail in the Company's Annual Report on Form 10-K and the Company's Quarterly Report on Form 10-Q under the caption "Risk Factors," and in other documents filed by the Company from time to time with the Securities and Exchange Commission (the “SEC”). The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document. All forward-looking statements are based on information currently available to the Company on the date hereof, and the Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this document, except as required by law.
About Non-GAAP Financial Measures
We define Non-GAAP EBITDA as earnings before interest expense, income taxes, depreciation and amortization and Non-GAAP Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, stock compensation expense, other income, net, and certain other adjustments. Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We define Non-GAAP Net Income as GAAP net income less certain tax adjusted non-recurring one-time expenses incurred during the period and Non-GAAP Earnings per Share as Non-GAAP Net Income divided by weighted-average shares outstanding.
We are presenting Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per Share because management believes that they provide additional ways to view our operations when considered with both our GAAP results and the reconciliation to net income, which we believe provides a more complete understanding of our business than could be obtained absent this disclosure. Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per Share are presented solely as supplemental disclosure because: (i) we believe these measures are a useful tool for investors to assess the operating performance of the business without the effect of these items; (ii) we believe that investors will find this data useful in assessing shareholder value; and (iii) we use Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per Share internally as benchmarks to evaluate our operating performance or compare our performance to that of our competitors. The use of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings per Share has limitations and you should not consider these measures in isolation from or as an alternative to the relevant GAAP measure of net income prepared in accordance with GAAP, or as a measure of profitability or liquidity.
The tables set forth below present reconciliations of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings per Share, which are non-GAAP financial measures to Net Income and Earnings per Share, our most directly comparable financial measures presented in accordance with GAAP.
Investor Relations Contacts:
Reed Anderson, ICR
(646) 277-1260
reed.anderson@icrinc.com
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| (In thousands, except per share data) | December 31, 2024 | June 30, 2024 | |||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 21,595 | $ | 16,886 | |||
| Accounts receivable | 2,087 | 2,949 | |||||
| Income tax receivable | — | 313 | |||||
| Inventory, net | 17,467 | 15,055 | |||||
| Prepaid expenses and other | 4,641 | 2,443 | |||||
| Total current assets | 45,790 | 37,646 | |||||
| Property and equipment, net | 7,136 | 7,813 | |||||
| Right-of-use assets | 8,915 | 9,569 | |||||
| Intangible assets, net | 257 | 323 | |||||
| Deferred income tax asset | 5,784 | 4,268 | |||||
| Other long-term assets | 645 | 680 | |||||
| TOTAL ASSETS | $ | 68,527 | $ | 60,299 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 5,757 | $ | 5,853 | |||
| Commissions payable | 7,944 | 6,569 | |||||
| Income tax payable | 660 | 202 | |||||
| Lease liabilities | 1,886 | 1,811 | |||||
| Other accrued expenses | 11,302 | 7,874 | |||||
| Total current liabilities | 27,549 | 22,309 | |||||
| Long-term lease liabilities | 10,883 | 11,801 | |||||
| Other long-term liabilities | 206 | 198 | |||||
| Total liabilities | 38,638 | 34,308 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity | |||||||
| Preferred stock — par value | — | — | |||||
| Common stock — par value | 1 | 1 | |||||
| Additional paid-in capital | 138,171 | 136,644 | |||||
| Accumulated deficit | (106,478 | ) | (108,738 | ) | |||
| Accumulated other comprehensive loss | (1,805 | ) | (1,916 | ) | |||
| Total stockholders’ equity | 29,889 | 25,991 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 68,527 | $ | 60,299 | |||
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue, net | $ | 67,762 | $ | 51,624 | $ | 114,976 | $ | 102,988 | |||||||
| Cost of sales | 13,195 | 11,066 | 22,686 | 21,246 | |||||||||||
| Gross profit | 54,567 | 40,558 | 92,290 | 81,742 | |||||||||||
| Operating expenses: | |||||||||||||||
| Commissions and incentives | 32,525 | 21,754 | 52,830 | 44,227 | |||||||||||
| Selling, general and administrative | 18,614 | 20,065 | 33,462 | 38,027 | |||||||||||
| Total operating expenses | 51,139 | 41,819 | 86,292 | 82,254 | |||||||||||
| Operating income (loss) | 3,428 | (1,261 | ) | 5,998 | (512 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Interest income, net | 130 | 108 | 189 | 276 | |||||||||||
| Other income (expense), net | (469 | ) | 41 | (520 | ) | (47 | ) | ||||||||
| Total other income (expense) | (339 | ) | 149 | (331 | ) | 229 | |||||||||
| Income (loss) before income taxes | 3,089 | (1,112 | ) | 5,667 | (283 | ) | |||||||||
| Income tax benefit (expense) | (539 | ) | 456 | (1,291 | ) | 256 | |||||||||
| Net income (loss) | $ | 2,550 | $ | (656 | ) | $ | 4,376 | $ | (27 | ) | |||||
| Net income (loss) per share: | |||||||||||||||
| Basic | $ | 0.21 | $ | (0.05 | ) | $ | 0.36 | $ | — | ||||||
| Diluted | $ | 0.19 | $ | (0.05 | ) | $ | 0.34 | $ | — | ||||||
| Weighted-average shares outstanding: | |||||||||||||||
| Basic | 12,211 | 12,612 | 12,166 | 12,574 | |||||||||||
| Diluted | 13,177 | 12,612 | 12,903 | 12,574 | |||||||||||
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||||||||||
| Revenue by Region | |||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||
| Americas | $ | 57,154 | 84 | % | $ | 39,065 | 76 | % | $ | 94,046 | 82 | % | $ | 77,580 | 75 | % | |||||||||||||||
| Asia/Pacific & Europe | 10,608 | 16 | % | 12,559 | 24 | % | 20,930 | 18 | % | 25,408 | 25 | % | |||||||||||||||||||
| Total | $ | 67,762 | 100 | % | $ | 51,624 | 100 | % | $ | 114,976 | 100 | % | $ | 102,988 | 100 | % | |||||||||||||||
| Active Accounts | |||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||
| As of December 31, | |||||||||||||||||||||||||||||||
| 2024 | 2023 | Change from Prior Year | Percent Change | ||||||||||||||||||||||||||||
| Active Independent Consultants(1) | |||||||||||||||||||||||||||||||
| Americas | 35,000 | 67 | % | 32,000 | 63 | % | 3,000 | 9.4 | % | ||||||||||||||||||||||
| Asia/Pacific & Europe | 17,000 | 33 | % | 19,000 | 37 | % | (2,000 | ) | (10.5 | )% | |||||||||||||||||||||
| Total Active Independent Consultants | 52,000 | 100 | % | 51,000 | 100 | % | 1,000 | 2.0 | % | ||||||||||||||||||||||
| Active Customers(2) | |||||||||||||||||||||||||||||||
| Americas | 80,000 | 85 | % | 63,000 | 79 | % | 17,000 | 27.0 | % | ||||||||||||||||||||||
| Asia/Pacific & Europe | 14,000 | 15 | % | 17,000 | 21 | % | (3,000 | ) | (17.6 | )% | |||||||||||||||||||||
| Total Active Customers | 94,000 | 100 | % | 80,000 | 100 | % | 14,000 | 17.5 | % | ||||||||||||||||||||||
| Active Accounts(3) | |||||||||||||||||||||||||||||||
| Americas | 115,000 | 79 | % | 95,000 | 73 | % | 20,000 | 21.1 | % | ||||||||||||||||||||||
| Asia/Pacific & Europe | 31,000 | 21 | % | 36,000 | 27 | % | (5,000 | ) | (13.9 | )% | |||||||||||||||||||||
| Total Active Accounts | 146,000 | 100 | % | 131,000 | 100 | % | 15,000 | 11.5 | % | ||||||||||||||||||||||
| (1) Active Independent Consultants have purchased product in the prior three months for retail or personal consumption. | |||||||||||||||||||||||||||||||
| (2) Active Customers have purchased product in the prior three months for personal consumption only. | |||||||||||||||||||||||||||||||
| (3) Total Active Accounts is the sum of Active Independent Consultant accounts and Active Customer accounts. | |||||||||||||||||||||||||||||||
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | |||||||||||||||
| Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| GAAP Net income | $ | 2,550 | $ | (656 | ) | $ | 4,376 | $ | (27 | ) | |||||
| Interest income, net | (130 | ) | (108 | ) | (189 | ) | (276 | ) | |||||||
| Provision for income taxes | 539 | (456 | ) | 1,291 | (256 | ) | |||||||||
| Depreciation and amortization | 806 | 960 | 1,603 | 1,880 | |||||||||||
| Non-GAAP EBITDA: | 3,765 | (260 | ) | 7,081 | 1,321 | ||||||||||
| Adjustments: | |||||||||||||||
| Stock compensation expense | 1,722 | 750 | 2,639 | 1,728 | |||||||||||
| Other expense, net | 469 | (41 | ) | 520 | 47 | ||||||||||
| Other adjustments(1) | 518 | 2,640 | 662 | 3,986 | |||||||||||
| Total adjustments | 2,709 | 3,349 | 3,821 | 5,761 | |||||||||||
| Non-GAAP Adjusted EBITDA | $ | 6,474 | $ | 3,089 | $ | 10,902 | $ | 7,082 | |||||||
| (1) Other adjustments breakout: | |||||||||||||||
| Nonrecurring proxy contest related expenses | $ | — | $ | 2,640 | $ | — | $ | 3,886 | |||||||
| Key management severance expenses | 150 | — | 188 | 100 | |||||||||||
| Executive team recruiting and transition expenses | 368 | — | 474 | — | |||||||||||
| Total adjustments | $ | 518 | $ | 2,640 | $ | 662 | $ | 3,986 | |||||||
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | |||||||||||||||
| Reconciliation of GAAP Net Income to Non-GAAP Net Income and Non-GAAP Adjusted EPS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| GAAP Net income | $ | 2,550 | $ | (656 | ) | $ | 4,376 | $ | (27 | ) | |||||
| Adjustments: | |||||||||||||||
| Nonrecurring proxy contest related expenses | — | 2,640 | — | 3,886 | |||||||||||
| Key management severance expenses | 150 | — | 188 | 100 | |||||||||||
| Executive team recruiting and transition expenses | 368 | — | 474 | — | |||||||||||
| Tax impact of adjustments(1) | (116 | ) | (614 | ) | (153 | ) | (917 | ) | |||||||
| Total adjustments, net of tax | 402 | 2,026 | 509 | 3,069 | |||||||||||
| Non-GAAP Net income: | $ | 2,952 | $ | 1,370 | $ | 4,885 | $ | 3,042 | |||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Diluted earnings per share, as reported | $ | 0.19 | $ | (0.05 | ) | $ | 0.34 | $ | — | ||||||
| Total adjustments, net of tax(2) | 0.03 | 0.15 | 0.04 | 0.23 | |||||||||||
| Non-GAAP adjusted diluted earnings per share(3) | $ | 0.22 | $ | 0.10 | $ | 0.38 | $ | 0.23 | |||||||
| (1) Tax impact is based on the estimated annual tax rate for the years ended June 30, 2024 and 2023, respectively. | |||||||||||||||
| (2) Non-GAAP Net income for the three and six months ended December 31, 2023 resulted in weighted average diluted shares outstanding of 13,221 and 13,082, respectively. | |||||||||||||||
| (3) May not add due to rounding. | |||||||||||||||
FAQ
What was LifeVantage's (LFVN) revenue growth in Q2 2025?
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What is LFVN's updated revenue guidance for fiscal 2025?
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