LifeVantage (LFVN) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 revenue was $48.9 million, down 27.8% year-over-year, mainly due to lower MindBody GLP-1 System sales and a 21.2% drop in active accounts, but up 2.9% sequentially.

• Net income for the quarter was $0.3 million ($0.02 per share), down from $2.6 million ($0.19 per share) last year; adjusted net income was $1.9 million ($0.15 per share).

• Adjusted EBITDA was $3.9 million (7.9% of revenue), compared to $6.5 million (9.6%) a year ago.

• The company completed the acquisition of LoveBiome's assets in October 2025, expanding its product portfolio in gut health.

• Leadership transition announced, with the CEO planning to retire in April after nine years.

Financial highlights

• Gross profit margin was 74.0%, down from 80.5% last year, impacted by a $2.4 million inventory reserve; adjusted gross margin was 78.8%.

• Operating income was $0.5 million, down from $3.4 million; adjusted operating income was $2.6 million.

• Cash and cash equivalents at quarter-end were $10.2 million, down from $20.2 million at June 30, 2025, with no debt outstanding.

• Working capital stood at $19.5 million as of December 31, 2025.

• Commissions and incentive expense was 40.7% of revenue, down from 48% last year.

Outlook and guidance

• Fiscal 2026 revenue expected between $185 million and $200 million.

• Adjusted EBITDA guidance is $15 million–$19 million; adjusted EPS expected at $0.60–$0.80.

• Q4 anticipated to have a higher revenue proportion than Q3, with stabilization in MindBody trends and growth from LoveBiome products.

• Full-year tax rate anticipated at 22% to 24%; effective tax rate for Q2 was 41.6%.

• Plans to expand product offerings internationally, focusing on MindBody GLP-1 System and LoveBiome.