LifeStance Health, a healthcare provider, presented its growth strategy and financial targets at the Morgan Stanley 24th Annual Global Healthcare Conference on September 15, 2026. The company reported a robust 20.4% revenue growth over the last twelve months, surpassing its 20% full-year guidance. The revenue per visit increased by 6% in the second quarter, aligning with the company's mid-single digit target range. LifeStance Health aims for a four-year revenue compound annual growth rate (CAGR) of 19%, above its long-term mid-teens target.
The company operates a network of approximately 8,500 W2 clinicians across about 600 centers in 34 states. LifeStance Health plans to open 20 to 30 new centers each year, expanding its presence in about 50% of the 150 largest U.S. markets. The company's market share in these markets typically remains below 5%.
LifeStance Health's revenue is partially derived from Medicare-tied contracts, which account for about 25% of its revenue. These contracts are paid at rates ranging from 140% to 180% of Medicare rates. The company expects Medicare reimbursement to increase at a high single-digit rate for 2026 and a mid-single digit rate for 2027.
The company's specialty services revenue is projected to rise from about $50 million in the previous year to about $70 million this year, a 40% increase. LifeStance Health is expanding its specialty services by adding about five TMS chairs and five SPRAVATO rooms each quarter.
LifeStance Health's virtual visits account for about 70% of total visits, while in-person visits make up about 30%. The company's clinicians work an average of 30 hours a week on patient care, with a calendar utilization of about 70%. The company aims to improve productivity and utilization, with a focus on expanding its in-person footprint.
LifeStance Health's EBITDA for the last twelve months was $135 million, with adjusted EBITDA margins of about 13%. The company targets mid-teens margins by 2028 and a longer-term range of 15% to 20%. Center margins are expected to move toward the mid-30% range, while G&A is expected to fall from the low-20% area into the mid-teens.
The company has conducted about one to two acquisitions per quarter and has repurchased shares totaling about $125 million across three programs linked to secondary offerings. LifeStance Health's AI phone intake tools have improved the conversion of patients seeking care into booked appointments by about 5%, and productivity has improved about 7% year-over-year in the second quarter.
LifeStance Health is planning a transition to a new enterprise electronic health record (EHR) system next year, featuring industrial-strength medical vendor solutions and broader AI capabilities. The company's growth strategy includes expanding its clinician network and improving margins, with a focus on increasing clinician utilization and productivity.
