LifeStance Health Group, Inc. reported significant financial developments for the three and nine months ended September 30, 2024, reflecting a strategic focus on enhancing its outpatient mental health services. The company achieved total revenue of $312.7 million for Q3 2024, a 19% increase from $262.9 million in Q3 2023. For the nine-month period, revenue rose to $925.5 million, up 19% from $775.1 million in the same period last year. This growth was primarily driven by a net increase of 851 clinicians, resulting in a 15% rise in patient visits.
Operating expenses for Q3 2024 decreased to $312.7 million from $337.3 million in Q3 2023, while total operating expenses for the nine months increased to $958.2 million from $931.9 million. The company reported a modest income from operations of $47,000 for Q3 2024, a significant improvement from a loss of $74.4 million in Q3 2023. However, for the nine months, the company recorded an operating loss of $32.7 million, an improvement from a loss of $156.9 million in the prior year.
Net loss for Q3 2024 was $6.0 million, a substantial reduction from a net loss of $61.6 million in Q3 2023. For the nine months, the net loss was $50.3 million, compared to $141.3 million in the same period last year. Adjusted EBITDA also showed improvement, reaching $30.7 million for Q3 2024, up from $14.6 million in Q3 2023, and $87.0 million for the nine months, compared to $38.8 million in the prior year.
The company’s cash and cash equivalents increased to $102.6 million as of September 30, 2024, from $78.8 million at the end of 2023, indicating improved liquidity. LifeStance continues to focus on optimizing its real estate footprint, having closed underoccupied centers in response to a shift towards virtual visits post-COVID-19. The company did not complete any acquisitions during the reported periods, following the acquisition of three outpatient mental health practices in 2023.
LifeStance's operational strategy includes enhancing clinician productivity and expanding its clinician base through a national recruiting model. The company emphasizes a hybrid care model, integrating virtual and in-person services to improve patient access and outcomes. As of September 30, 2024, LifeStance employed 7,269 licensed mental health clinicians and treated patients through 2.0 million visits in Q3 2024.
Despite these positive developments, the company reported material weaknesses in its internal control over financial reporting, which it is actively working to address through ongoing remediation efforts.
About LifeStance Health Group, Inc.
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