LifeVantage (LFVN) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue declined 6.2% year-over-year to $200.2 million, with Q4 revenue down 9.8% to $48.9 million, reflecting challenging macro conditions.

• Adjusted EBITDA rose 45% to $17 million for the year, with Q4 Adjusted EBITDA margin at 9.8%, up 90 bps year-over-year, despite flat Q4 performance.

• Net income per diluted share was $0.23 for the year, up from $0.20, and $0.10 for Q4, down from $0.15.

• Sequential improvement in Americas revenue and active accounts, with increased consultant productivity and retention.

• Continued focus on innovation, launching new products and optimizing loyalty and compensation programs.

Financial highlights

• Q4 revenue was $48.9 million, down 9.8% year-over-year; currency-adjusted revenue down 8%.

• Gross margin was 79.5% in Q4 and 79.3% for the year, nearly flat year-over-year.

• Adjusted non-GAAP operating income was $3.2 million in Q4; adjusted net income was $1.8 million ($0.14 per share).

• Adjusted earnings per diluted share increased to $0.59 from $0.24 year-over-year.

• Commissions and incentive expense was 44.9% of Q4 revenue, up 160 bps year-over-year.

Outlook and guidance

• Fiscal 2025 revenue expected between $200 million and $210 million.

• Adjusted EBITDA guidance of $18–$21 million; adjusted EPS of $0.70–$0.80; tax rate projected at 25% to 27%.

• Anticipates moderate improvement each quarter in FY2025, with momentum building in the second half due to new product launches.