• Urgent care for mental health.
• One Medical for mental wellness.
• The LensCrafters of psychiatry and therapy.

• Psychiatry and Medication Management: Provides psychiatric evaluations, diagnoses, and manages medication for a range of mental health conditions.
• Psychotherapy and Counseling: Offers individual, group, and family therapy sessions with licensed therapists and counselors to address mental health challenges.
• Transcranial Magnetic Stimulation (TMS): A non-invasive medical procedure used to stimulate nerve cells in the brain to improve symptoms of depression and other conditions.

LifeStance Health (symbol: LFST) primarily sells its mental health services directly to individuals.

The company serves the following categories of individual customers:

1. Individuals seeking outpatient mental health treatment for various conditions: This includes patients experiencing a wide range of mental health issues such as depression, anxiety disorders, bipolar disorder, PTSD, ADHD, eating disorders, and more, who are seeking professional psychiatric and therapeutic care.
2. Patients across different age groups: LifeStance Health provides services to children, adolescents, adults, and seniors, tailoring treatments to meet the specific developmental and psychological needs of each age demographic.
3. Individuals seeking both in-person and virtual care modalities: The company caters to customers who prefer traditional in-person office visits as well as those who benefit from the flexibility and accessibility of telehealth (virtual) appointments for their mental health needs.

David Bourdon, Chief Executive Officer

Dave Bourdon was appointed Chief Executive Officer of LifeStance Health effective March 3, 2025. He joined LifeStance Health in 2022 as Chief Financial Officer. Prior to his time at LifeStance, he served as CFO of Magellan Health, a leader in behavioral health and pharmacy management. Earlier, he held multiple roles at Cigna, including CFO of Cigna's U.S. and international healthcare business units. He began his career with the U.S. Coast Guard.

Ryan McGroarty, Chief Financial Officer

Ryan McGroarty was appointed Chief Financial Officer of LifeStance Health effective March 17, 2025. He brings over 25 years of healthcare experience, including 15 years in CFO roles. Previously, Mr. McGroarty served as CFO of Help at Home. Before that, he held multiple CFO positions at Cigna, most recently as Chief Financial Officer of Government Business.

Kenneth Burdick, Executive Chairman

Kenneth Burdick transitioned to Executive Chairman of LifeStance Health effective March 3, 2025, having previously served as CEO and Chairman since September 2022. His career in healthcare spans over 45 years, with significant executive and leadership roles. He served as Executive Vice President of Markets and Products at Centene Corporation and was CEO of WellCare Health Plans, Inc., which was acquired by Centene. He also held various positions at UnitedHealth Group, including CEO of UnitedHealthcare, and Cigna.

Felicia Gorcyca, Chief People Officer

Felicia Gorcyca joined LifeStance Health as its first Chief People Officer in March 2021. She has over 20 years of experience in human capital. Before LifeStance, she was an operations director at TPG Capital, a private equity firm that invests in LifeStance, where she collaborated with portfolio companies on leadership teams and boards. Her background also includes roles as Chief People Officer for Stack Sports and Global Head of People Operations for Solera Inc. She also worked as a consultant for Spencer Stuart, primarily focusing on healthcare services.

Vaughn Vance, Chief Technology Officer

As Chief Technology Officer at LifeStance Health, Vaughn Vance leads the organization's comprehensive technology strategy. He possesses over 25 years of experience in healthcare technology, specializing in digital transformation initiatives, enabling AI-powered insights, and streamlining digital tools to enhance care delivery.

LifeStance Health (LFST) faces several significant risks to its business operations and financial performance. The most prominent challenges revolve around its workforce, its relationships with payers, and its billing practices.

1. Clinician Recruitment and Retention

   LifeStance Health consistently grapples with the critical issue of attracting and retaining qualified mental health clinicians. Despite efforts to expand its clinician base, the company has struggled with retention rates, which have been reported to be lower than company claims. This challenge is exacerbated by a competitive mental health sector and directly impacts LifeStance's capacity to deliver services and achieve growth. Difficulties in maintaining workforce stability can limit operational momentum and growth expectations.

2. Reimbursement and Payer Relationship Challenges

   The company's revenue and profitability are significantly influenced by insurance reimbursement models and its relationships with third-party payers. There is a risk of reduced reimbursement rates and potential rate cuts, which can adversely affect revenue per visit and overall financial health. Complex and sometimes challenging relationships with insurance providers, along with evolving regulations around virtual healthcare delivery and a potential shift to value-based care models, present ongoing financial and operational uncertainties for LifeStance Health.

3. Billing Practices and Litigation

   LifeStance Health has faced numerous complaints and lawsuits concerning its billing practices. These allegations include overbilling, fraudulent billing, and unfair business practices such as scheduling unrequested appointments to incur cancellation fees, adding unearned billing codes, and charging for services not rendered. Such issues have led to class-action lawsuits, legal settlements, and potential damage to the company's reputation, posing significant financial and operational risks. Additionally, former employees have alleged that payment arrangements sometimes require clinicians to repay salary advances if productivity targets are not met, potentially violating labor laws.

There are two clear emerging threats for LifeStance Health (LFST):

• Rapid Advancement and Adoption of Artificial Intelligence (AI) and Digital Therapeutics (DTx): The proliferation of AI-powered chatbots, virtual assistants, and FDA-approved digital therapeutics is creating alternative, often lower-cost and highly scalable, solutions for mental health support. These technologies can address lower-acuity conditions, provide interim support, or even augment traditional therapy, potentially reducing the demand for or frequency of in-person or telehealth sessions with human providers. This parallels the shift seen when Netflix offered a scalable, convenient alternative to Blockbuster's physical rentals, threatening their core business model.
• Vertical Integration by Health Payers and Large Healthcare Systems: Major health insurance companies and large integrated healthcare systems are increasingly acquiring or building their own mental health provider networks. By integrating mental health services directly into their ecosystem, these entities can steer their beneficiaries towards in-house providers, optimize care coordination with primary and specialty medical care, and leverage their existing patient base and negotiation power. This threatens standalone providers like LifeStance Health by controlling patient flow, potentially limiting access to covered lives, and creating a more closed ecosystem, similar to how YouTube (owned by Google) could leverage its platform and user base to challenge traditional cable content providers.

LifeStance Health (LFST) operates within the U.S. behavioral health market, providing a range of outpatient mental healthcare services. These services include in-person and telehealth options for therapy, psychiatry, psychological testing, and medication management, catering to children, adolescents, and adults.

The addressable market for LifeStance Health's main products and services is the U.S. behavioral health market.

• The U.S. behavioral health market size was valued at approximately $92.2 billion in 2024, and is projected to grow to $151.62 billion by 2034, exhibiting a Compound Annual Growth Rate (CAGR) of 5.1% from 2024 to 2034.
• Another estimate indicates the U.S. behavioral health market size was $94.82 billion in 2025 and is anticipated to reach around $165.38 billion by 2034, with a CAGR of 6.40% during the forecast period from 2025 to 2034.
• Additionally, the U.S. behavioral health market was valued at $87.82 billion in 2024 and is projected to grow to $132.46 billion by 2032, at a CAGR of 5.3%.

LifeStance Health (LFST) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Expansion of Clinician Base: LifeStance Health consistently identifies the growth in its network of mental health clinicians as a primary driver for increasing visit volumes and, consequently, revenue. The company added 285 net clinicians in the third quarter of 2024, bringing its total to 7,269, representing a 13% year-over-year growth. This expansion is expected to continue.
2. Increased Visit Volumes and Clinician Productivity: Beyond simply adding clinicians, LifeStance focuses on enhancing the productivity of its existing clinician base, leading to higher visit volumes. In Q3 2024, visit volumes increased by 15% year-over-year to 2.0 million, driven by clinician growth and improved productivity. The company expects to maintain elevated productivity levels.
3. Improvements in Revenue per Visit (Rate Improvements): LifeStance has seen improvements in its total revenue per visit, which contributes to overall revenue growth. The company anticipates low to mid-single-digit rate improvements as a driver for 2026 revenue growth.
4. Strategic Expansion through New Centers and Potential Acquisitions: The company plans to open 20-25 new centers in 2025 as part of its organic expansion strategy. Additionally, LifeStance is considering potential mergers and acquisitions (M&A) opportunities to facilitate market growth, although these are not currently factored into its existing guidance.
5. Leveraging Technology and AI Tools: LifeStance Health plans to invest in technology, digital, and AI tools to enhance operational efficiency, automate processes, improve accuracy, and support its clinicians. These advancements are expected to enable more efficient service delivery and facilitate continued margin expansion alongside sustainable growth.

Share Repurchases

• No significant share repurchases by LifeStance Health were identified in the provided period.

Share Issuance

• LifeStance Health completed its Initial Public Offering (IPO) on June 10, 2021, selling 32.8 million shares and raising net proceeds of $558 million.
• In May 2024, a secondary public offering of 20 million shares was priced at $6.25 per share, with all proceeds going to selling stockholders, not the company.
• The number of shares outstanding has generally increased, from approximately 373.65 million in June 2021 to 389.08 million as of June 30, 2025.

Inbound Investments

• In April 2020, private equity firm TPG acquired LifeStance for $1.2 billion in equity, joining existing investors Summit Partners and Silversmith Capital Partners.
• Post-IPO in 2021, private equity owners TPG, Summit Partners, and Silversmith Capital Partners collectively retained a significant ownership stake, approximately 64%-66% of the company.

Outbound Investments

• LifeStance's historical growth included nearly 100 acquisitions of behavioral health practices over the past six years (as of early 2024), completing its 50th acquisition in 2020.
• Following its 2021 IPO, the company shifted away from an aggressive merger and acquisition (M&A) strategy to focus on organic growth and optimizing its clinic footprint.
• The company anticipates a return to disciplined M&A in 2025 and 2026, targeting opportunities for geographic expansion and enhancing service offerings.

Capital Expenditures

• Year-to-date through Q3 2025, capital expenditures amounted to $25 million.
• Capital expenditures in the last 12 months (up to November 2025) were approximately $31.52 million.
• The primary focus of capital expenditures includes selective deployment for new centers to support clinician and market growth, as well as strategic investments in infrastructure, technology, and system upgrades to enhance operational efficiency, such as unifying electronic health records and developing digital tools.