LifeVantage (LFVN) Q3 2026 Earnings Transcript

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Date

Wednesday, May 6, 2026 at 4:30 p.m. ET

Call participants

• Interim Chief Executive Officer — Michael Beindorff
• Chief Financial Officer — Carl Aure
• Chief Sales Officer — Kristen Cunningham

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Takeaways

• Net revenue -- $43.7 million, down 25.2%, primarily due to lower sales of the MINDBODY GLP-1 system, partially offset by LoveBiome contributions.
• Americas revenue -- $34.3 million, representing a 28.9% decrease, with consultant counts declining from 32,000 to 30,000 sequentially.
• Asia Pacific and Europe revenue -- $9.4 million, a 7.7% decline, with foreign exchange adding $100,000 positively.
• Gross profit margin -- 79%, down from 81%, with higher shipping, warehouse, and inventory obsolescence costs; adjusted non-GAAP gross margin was 79.4% excluding a $183,000 MINDBODY inventory allowance.
• Commissions and incentive expense -- 43.5% of revenue versus 44.8% prior year; management projects 42.5% for the full year.
• Selling, general, and administrative expenses -- $13.9 million (31.7% of revenue), up as a percentage from 29.2%, due to lower sales volume.
• GAAP operating income -- $1.7 million, compared to $4.1 million prior year; adjusted non-GAAP operating income was $1.8 million.
• GAAP net income -- $1.4 million, or $0.11 per diluted share; adjusted non-GAAP net income was $1.5 million, or $0.12 per diluted share, both lower than prior-year's $3.5 million and $0.26 per share.
• Adjusted EBITDA -- $3.2 million (7.3% of revenue), down from $6.4 million (11%).
• Cash position -- $12.5 million, with no debt at quarter-end.
• Cash from operations (YTD) -- $5.5 million for the first nine months, versus $10.8 million previous year; reductions attributed to timing of incentive payments and consultant trip expenses.
• Capital expenditures (YTD) -- $2.5 million, up from $1.2 million, reflecting ongoing Shopify integration and tech investments.
• Share repurchases -- 206,000 shares bought for $1.0 million in the quarter; $1.6 million deployed for 250,000 shares year to date, with $59 million remaining under the $60 million authorization.
• Dividend increase -- Quarterly dividend raised by 11% to $0.05 per share, payable June 15, 2026.
• Fiscal 2026 outlook -- Management expects revenue, adjusted EBITDA, and adjusted EPS near the low end of prior guidance due to current business trends and competition in the GLP-1 segment.
• Leadership transition -- Terrence Moorhead appointed incoming CEO, joining in August, following retirement of Steve Fife on April 30.
• Product and platform investments -- Shopify e-commerce rollout scheduled to begin later in the year, phased internationally; U.S. patent granted for Healthy Glow Essentials Stack.
• Consultant incentives -- VIP bonus program introduced as the first twelve-month volume growth program, aimed at incentivizing and identifying key leadership in the consultant base.
• Acquisition activity -- LoveBiome business acquired in October 2025 at a cash cost of $3.7 million YTD; further complementary products planned, but details not disclosed.

Summary

LifeVantage (NASDAQ:LFVN) reported significant revenue declines across key regions, with consultant attrition in its primary Americas market and profit margins pressured by cost increases. Management emphasized continued investment in technology infrastructure, including an ongoing Shopify e-commerce upgrade and higher capital expenditures. Dividend growth and buyback activity continued, supported by a debt-free balance sheet and positive, though lower, operational cash generation. Results reflect heightened competition in the GLP-1 market, prompting management to reduce 2026 performance targets to the lower end of guidance. The appointment of a new chief executive officer and the rollout of enhanced consultant incentives were framed as strategic levers for reviving growth momentum.

• Beindorff stated the company maintains a clean balance sheet, no debt, and cash reserves that reinforce financial stability despite earnings pressure.
• Share repurchases remain active, with Aure noting intention to "opportunistically buy over the next few quarters as market conditions permit," backed by a $59 million authorization buffer.
• Aure projected, "In the recent quarter, we generated about $5 million of cash from operations, and we anticipate doing a similar amount in Q4 as well," signaling expectations for ongoing positive cash flow.
• The VIP incentive program was highlighted as a tool to both "build a stronger leadership pipeline" and align field operations toward growth behaviors, according to Beindorff.
• Kristen Cunningham cited targeted engagement strategies in response to lower consultant numbers, focusing on reinforcing the consultant group with a foundational approach and simplicity in business-building for consultants.
• October’s upcoming product launch was confirmed, but Aure clarified it is not expected within the gut health segment, with P84 and LoveBiome remaining key elements of the broader portfolio.

Industry glossary

• GLP-1 system: A product line referencing glucagon-like peptide-1 pathways, commonly associated with metabolic and weight management supplements.
• P84: LifeVantage's comprehensive gut activator, part of the company's nutrigenomics product portfolio.

Full Conference Call Transcript

Michael Beindorff, Interim Chief Executive Officer; Carl Aure, Chief Financial Officer; and Kristen Cunningham, Chief Sales Officer. By now, everyone should have access to the earnings release, which went out this afternoon at approximately 4: 05 p.m. Eastern Time. If you have not received the release, it is available on the Investor Relations portion of LifeVantage Corporation's website at lifevantage.com. This call is being webcast, and a replay will be available on the company's website as well. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, and management may make additional forward-looking statements in response to your questions. These statements do not guarantee future performance, and therefore, undue reliance should not be placed upon them.

These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of LifeVantage Corporation's most recently filed Forms 10-K and 10-Q. Please note that during today's call, we will discuss non-GAAP financial measures, including results on an adjusted basis. Management believes these financial measures can facilitate a more complete analysis and greater transparency into LifeVantage Corporation's ongoing results of operations, particularly when comparing underlying operating results from period to period. We have included a reconciliation of these non-GAAP measures with today's release. This call also contains time-sensitive information that is accurate only as of the date of the live broadcast, 05/06/2026.

LifeVantage Corporation assumes no obligation to update any forward-looking projections that may be made in today's release or call. Now I will turn the call over to Michael Beindorff, Interim CEO of LifeVantage Corporation.

Michael Beindorff: Thank you, Reed. Good afternoon, and thank you all for joining us today. For those of you I have not had the opportunity to meet, let me briefly introduce myself. I have had the privilege of serving on the LifeVantage Corporation board of directors since 2012, which gives me over fourteen years of insight into this company's evolution, challenges, and the tremendous opportunities that we have in front of us. I have spent my career building consumer brands across a variety of business environments including The Coca-Cola Company, Visa, and Planned OutRx, among some others.

Before we dive into our quarterly results today, I want to take just a moment to recognize Steve Fife, who retired as our president and CEO on April 30. Steve's tenure at LifeVantage Corporation has been absolutely transformational. His strategic vision and his relentless focus on operational excellence have been instrumental in modernizing our business model, strengthening our financial position, and laying the foundation for the future. So on behalf of the entire board and the organization, I want to thank him for his leadership and I want to wish him the very best in his retirement.

Now, you might ask why a long-serving board member would step into an interim operating role, and the answer to that is pretty simple. I believe deeply in LifeVantage Corporation's products, its people, and its potential. My fourteen years of board service give me a unique perspective on what makes this company special. I am excited about our product portfolio. From our flagship Protandim family to innovation like TruScience Liquid Collagen, the MINDBODY GLP-1 system, and our comprehensive gut activator P84, these products represent genuine innovation in cellular health activation and are all backed by rigorous scientific validation. But what truly gets me excited is our passionate consultant community.

Having spent almost my entire career building consumer brands, I deeply appreciate the power of authentic advocacy. Our consultants understand the uniqueness of our products and the deep scientific validation behind them, and they deliver this information and these products to people every day. They share their personal health journeys, and they create genuine entrepreneurial opportunities. That is a combination that is both powerful and sustainable. Our most recent Momentum Academy in Las Vegas was a great example of this. It perfectly captured the energy and the potential of our consultant community.

It was centered around the theme of breakthrough, and this three-day immersive experience brought together our independent consultants from across the country for powerful leadership training, business-building strategies, and meaningful connection with each other. Among other things during the conference, the company announced the VIP bonus, our first-ever twelve-month volume growth incentive program for consultants. This program will handsomely reward consultants who meet their growth goals, and we believe the program can be a game changer not only as a catalyst for growth, but also in terms of leadership development. In addition to incentivizing growth, the program is designed to identify and elevate consultants who demonstrate the leadership behaviors associated with long-term success.

We think that by rewarding these behaviors, we will build a stronger leadership pipeline and align our field organization around what is required to improve the company's long-term growth trajectory. The passion, the clarity, and the commitment that I witnessed in Las Vegas reinforced my confidence in our community's strength and our company's future. Now before Carl details our Q3 results, I want to provide a brief high-level perspective on where we stand today and where this enterprise is headed in the future. The direct selling business continues to evolve, and LifeVantage Corporation has been proactive in adapting our business model to meet changing consumer preferences and market dynamics.

We have invested in digital capabilities, upgraded our consultant compensation plan, enhanced our consultant tools and support systems, and continued to innovate our product offerings to address emerging health and wellness trends. And these investments in our future are continuing. As we told you in February, we are making a significant investment in upgrading our e-commerce platform. The launch of Shopify along with a totally revamped and upgraded back-office system will dramatically improve both our customers' and our consultants' e-commerce experience with LifeVantage Corporation from end to end. We plan to start launching Shopify later this year, and we are excited about the prospects as we roll the Shopify launch through our markets. In addition, our business fundamentals are solid.

We have a clean balance sheet, no debt, and cash reserves that give us flexibility. Looking ahead, we see significant opportunities. The health and wellness market continues to expand, and our unique positioning in nutrigenomics gives us credibility and we think differentiates us in a crowded marketplace. We remain committed to operational excellence, strategic execution, and delivering value for all stakeholders. With that, let me turn it over to Carl to take you through our financial results.

Carl Aure: Thank you, Michael, and good afternoon, everyone. Let me walk you through our third quarter financial results. Please note that I will be discussing our non-GAAP adjusted results where applicable. You can refer to the GAAP to non-GAAP reconciliations in today's press release for additional details. For 2026, we delivered net revenue of $43.7 million, which was down 25.2% compared to $58.4 million in 2025. The decrease was primarily driven by a decline in sales of our MINDBODY GLP-1 system, partially offset by sales of LoveBiome, which we acquired in October 2025. Revenue in the Americas region decreased 28.9% to $34.3 million, reflecting decreased sales of our MINDBODY GLP-1 system and a decrease in total active accounts.

Revenue in the Asia Pacific and Europe region decreased 7.7% to $9.4 million, primarily driven by a decrease in total active accounts. Foreign currency had a negligible impact on Asia Pacific and Europe during the quarter, positively impacting results by $100 thousand. Our gross profit percentage for the third quarter was 79%, down from 81% in the prior-year period, reflecting increases in shipping and warehouse expenses along with higher inventory obsolescence-related expenses. Excluding a $183 thousand allowance related to MINDBODY inventory, our non-GAAP adjusted gross profit percentage was 79.4%. Commissions and incentive expense as a percentage of revenue was 43.5% in the third quarter compared to 44.8% in the prior-year period.

The decrease as a percentage of revenue was primarily due to the timing and magnitude of our promotional incentive programs and changes to the mix of customers and independent consultants. We anticipate full-year fiscal 2026 commissions and incentive expense to be approximately 42.5% of revenue. Selling, general, and administrative expenses were $13.9 million, or 31.7% of revenue, compared to $17.1 million, or 29.2% of revenue, in the prior-year period. The increase as a percentage of revenue was primarily due to the overall decrease in sales volume. GAAP operating income was $1.7 million compared to $4.1 million in the prior-year period. Adjusted non-GAAP operating income was $1.8 million compared to $4.1 million in the prior-year period.

GAAP net income was $1.4 million, or $0.11 per diluted share, compared to $3.5 million, or $0.26 per diluted share, in the prior-year period. Adjusted non-GAAP net income was $1.5 million, or $0.12 per diluted share, compared to $3.5 million, or $0.26 per diluted share, in the prior-year period. We recorded income tax expense of $300 thousand in the third quarter compared to $700 thousand in the prior-year period. We expect our full-year effective tax rate for fiscal 2026 to be approximately 18% to 20%. Adjusted EBITDA for the third quarter was $3.2 million, or 7.3% of revenues, compared to $6.4 million and 11% in the same period a year ago.

Our financial position remains solid with $12.5 million of cash and no debt at the end of the third quarter. We generated $5.5 million of cash from operations during the first nine months of fiscal 2026 compared to $10.8 million in the same period in fiscal 2025, primarily due to the payment of accrued employee-related incentive compensation and consultant incentive trip expenses. Capital expenditures totaled $2.5 million for the first nine months of fiscal 2026 compared to $1.2 million in the prior-year period, reflecting our continued investment in technology infrastructure, including the Shopify integration. We also utilized $3.7 million in cash during the first nine months of fiscal 2026 relating to the closing of the LoveBiome transaction.

Turning to capital allocation, we repurchased 206 thousand shares for an aggregate purchase price of $1.0 million during the quarter. During the first nine months of fiscal 2026, we have repurchased approximately 250 thousand shares for an aggregate purchase price of $1.6 million. As of March 31, there was $59 million remaining under the new $60 million share repurchase authorization approved by our Board of Directors in January. Today, we also announced a quarterly cash dividend of $0.05 per share of common stock, which represents an 11% increase to the previous dividend amount. This dividend will be paid on 06/15/2026 to shareholders of record as of 06/01/2026.

We remain committed to our balanced capital allocation strategy in order to maximize shareholder value. Turning to our outlook for fiscal 2026, we now expect to end fiscal 2026 with revenue, adjusted EBITDA, and adjusted earnings per share close to the lower end of our previously issued guidance range. This updated guidance reflects the current trends in the business, including the competitive dynamics in the GLP-1 market and our commitment to managing costs while investing in strategic growth initiatives. We remain focused on improving our profitability metrics and driving long-term value for our stockholders. And with that, let me turn the call back over to Michael.

Michael Beindorff: Thanks, Carl. Before we get into the Q&A, I have just a couple more comments. We recently made a couple of very important announcements. First, we have been granted a U.S. patent for our Healthy Glow Essentials Stack, which features Protandim NRF2 Synergizer and TruScience Liquid Collagen, further validation of our leadership in scientific innovation. Second, and perhaps more importantly, on April 16, the Board of Directors announced the appointment of Terrence Moorhead as our next Chief Executive Officer. Terrence will join us in August, bringing over thirty years of leadership experience, revitalizing brands, and accelerating growth, particularly in direct selling.

During our extensive search, we talked to nearly every CEO, president, and general manager in the direct selling space, and interestingly enough, almost every one of those candidates that we spoke with wanted the job. I think they all saw the potential and the opportunity that LifeVantage Corporation presents. But when we met Terrence, we recognized instantly that he was different. He is a deeply experienced, transformative leader with an outstanding track record that speaks for itself. I am excited about the expertise and the vision that he will bring to LifeVantage Corporation. During the transition period, I am working closely with our executive team, including Kristen Cunningham, our Chief Sales Officer, and Carl, our Chief Financial Officer.

This team knows the business inside and out, and I have complete confidence in their ability to execute. Looking forward, our dedication to optimizing health remains absolutely unwavering, as does our commitment to equipping our independent consultants with the resources and the products necessary to build thriving businesses so they can deliver exceptional value to our customers. I want to express my gratitude to our employees, our independent consultants, our shareholders, and most of all, our loyal customers. Finally, to be very clear, we recognize that our performance over the last few quarters has not been up to our standards.

On my desk, I keep a plaque that simply reads, “The world belongs to the discontented.” Well, let me assure you that we are not content, and I pledge to work tirelessly with this team on behalf of all of our stakeholders to improve the results. There is much to do. I am certain that the solid groundwork we have laid and the talented team we have will pay dividends in the quarters and the years ahead. Thank you for your confidence and your support of our mission. We will now open the call for questions.

Operator: We will now be conducting a question-and-answer session. If you would like to ask a question, please press the appropriate key. Our first question is from Doug Lane from Water Tower Research. Please go ahead.

Doug Lane: Yes. Thanks. Good afternoon, everybody. Carl, looking at the cash flow, you mentioned $5.5 million cash from operations generated this year, but the $5 million came in the March quarter despite the shortfall versus what we were looking for. I do not know. You do not really talk to this in your guidance, but there is nothing going on in the fourth quarter that would not make you think you could be positive in cash from operations, is there?

Carl Aure: No, that is right, Doug. In the recent quarter, we generated about $5 million of cash from operations, and we anticipate doing a similar amount in Q4 as well. We anticipate continuing to build cash. I think we talked at the last call about some unusual timing differences in the first quarter that led to some of those declines or unusual quarter comparisons we saw earlier in the year. So going forward, we anticipate continuing to generate cash based off of the current model.

Doug Lane: Okay. That is helpful. And then, looking at your CapEx, about $1 million in the March quarter. I know you talked about investments, Shopify, what have you. But is that $1 million-per-quarter run rate kind of steady state here? Is there something coming down the pipe that might divert that up or down?

Carl Aure: I think that will be consistent for the next quarter or two. We are getting closer on the implementation of Shopify. We are targeting to get things in place probably not by the end of Q4, but rolling into Q1, and there will be a staggered approach as we roll it out internationally. We will continue to see some of those development costs, particularly in Q4, and probably start to reduce once we get into Q1 of next fiscal year, and after that, they should really start to eliminate.

Unknown Speaker: Pardon me?

Doug Lane: With the December quarter release, you announced the $60 million share buyback, and I just wanted to see if you could update us on what your thought is there. It looks like you did not buy back much in March, but what should we look for share buybacks for the next few quarters?

Carl Aure: We are still very committed to the share buyback. I think that was evidenced by the board's approval of the new $60 million authorization. During the quarter, we repurchased about $1 million worth—just a little over 200 thousand shares that we repurchased in the quarter. And I still think, where current valuations are at, we are still committed to this and will be looking to opportunistically buy over the next few quarters as market conditions permit.

Doug Lane: Okay. And getting back to the lower sales, the consultant count was a little bit below what I was looking for. In the Americas in particular, it dropped a couple thousand sequentially from 32,000 to 30,000. So what do you think is driving the shortfall in consultants in the Americas, which is your biggest market? And what are you doing to try to get that number going the other way?

Kristen Cunningham: Hi, Doug. It is Kristen. Definitely not a number we are excited about, but what has us all really excited, myself included, is the engagement that we are starting to see and the activity that we are starting to see. For us, it is how do we reinforce that consultant group with a foundational approach versus creating just a pop-and-drop to drive sales. We are seeing a lot of simplification around the business, which, as you know, is harder to do than anything. But we are seeing consultants going back to the foundation of their own business. They are excited about Protandim, about Collagen, about Healthy Glow, about our recent announcement that we made about it.

Those are our stickiest products, so we are feeling good about that. Our incentive programs—oftentimes when you launch an incentive program, it can be complicated—but we have really tried to create a program that is simplified and complements what we are doing strategically. The message, as you heard us talk about, is about how do we get more storytellers—more consultants talking about LifeVantage Corporation—and our intent is to complement that. Plus, when we layer that with our VIP program, which is about identifying the right leaders, you can have the right everything in a business, but with the wrong leadership and the wrong sentiment in the field, it is really challenging to turn that.

We are confident in our leadership right now, and we are addressing that through this VIP program where we are incentivizing growth, but we also asked it to be an opt-in. We did not just say this is available to everybody in the U.S.; they had to raise their hand and say, “We are part of the leadership team committed to growth.” We are seeing so much activity because of those three things combined. We are really encouraged about what we saw coming out of Vegas and staying consistent with that over the past couple weeks, and we will continue to drive it day in and day out.

Doug Lane: Those are helpful. The VIP bonus sounds very exciting. I guess the last thing is really new product. You have had the P84 that you acquired from LoveBiome, and you had the HealthyEdge stack. What do you have on tap for new product news for the remainder of the calendar year?

Carl Aure: I can speak to that a little bit, Doug. We have our next big event—our annual convention—slated for October of this year. In some of the previous calls and investor-related discussions we have had, we talked about a product launch at that event. Our typical cadence for launching a hero product is every eighteen months to two years, and as you know, the last major launch we had was MINDBODY, which was about two years ago. We did add the LoveBiome line that you mentioned. We do have something in the works.

We have not talked a lot about exactly what category that falls into, but it will be in line with the typical LifeVantage Corporation science-backed product, and it is something we are really excited about going forward.

Doug Lane: Most of your recent news has really been around gut health between MINDBODY and P84. Are we going deeper in gut health, or is there something new on the horizon?

Carl Aure: I think this category is not necessarily in gut health itself. We still believe in that P84 product and the LoveBiome business that we acquired in October, so gut health is still an important part of our product portfolio. Looking forward, we have some other complementary products that we will be introducing to support P84, but P84 is still one of our four hero product lines and something that we will continue to lean into.

Doug Lane: Okay. Thanks, Carl.

Carl Aure: Yep. Thanks, Doug.

Operator: This concludes the question-and-answer session. I would like to turn the floor back over to Michael Beindorff for closing comments.

Michael Beindorff: I want to thank all of you again for joining us today. We know that we have a lot of work to do. That said, we are optimistic. I believe we have the people and the products, and we are absolutely focused on delivering improved results for our shareholders. I look forward to reporting our progress on all of these initiatives in August, and I thank you for joining us today.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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