LifeVantage — Fourth Quarter and Full Fiscal Year 2026 Earnings Summary

Financial Performance

• Q4 2026 revenue was $42.4 million, a 23.1% decrease from $55.1 million in Q4 2025; Full Year 2026 revenue was $182.6 million, a 20.1% decrease from $228.5 million in 2025.
• Q4 2026 net income was $1.3 million ($0.10 per diluted share) compared to $2.0 million ($0.15 per diluted share) in Q4 2025; Full Year 2026 net income was $5.1 million ($0.40 per diluted share) compared to $9.8 million ($0.75 per diluted share) in 2025.
• Q4 2026 adjusted earnings per diluted share were $0.11 versus $0.17 in Q4 2025; Full Year 2026 adjusted earnings per diluted share were $0.56 versus $0.82 in 2025.
• Q4 2026 Adjusted EBITDA was $2.7 million compared to $4.8 million in Q4 2025; Full Year 2026 Adjusted EBITDA was $13.7 million compared to $22.1 million in 2025.
• Q4 2026 gross profit was $33.0 million (78.0% of revenue) versus $44.0 million (79.9% of revenue) in Q4 2025; Full Year 2026 gross profit was $141.6 million (77.6% of revenue) versus $183.7 million (80.4% of revenue) in 2025.
• Q4 2026 operating income was $1.7 million compared to $2.1 million in Q4 2025; Full Year 2026 operating income was $6.1 million compared to $12.2 million in 2025.
• Cash generated from operations was $10.2 million in 2026 versus $11.9 million in 2025.
• Cash and cash equivalents were $14.9 million as of June 30, 2026, down from $20.2 million as of June 30, 2025; there was no debt outstanding.
• Commissions and incentives expense as a percentage of revenue was 41.3% in Q4 2026 (down from 42.1% in Q4 2025) and 42.2% for Full Year 2026 (down from 44.7% in 2025).
• SG&A expense as a percentage of revenue was 32.7% in Q4 2026 (down from 33.9% in Q4 2025) and 32.0% for Full Year 2026 (up from 30.3% in 2025).

Business Segments and Product Lines

• Americas revenue decreased 24.8% in Q4 2026 and 23.2% for Full Year 2026.
• Asia/Pacific & Europe revenue decreased 16.9% in Q4 2026 and 6.9% for Full Year 2026.
• Revenue declines were driven by downward pressure on orders from the active account base, lower average order sizes, and lower sales of the MindBody GLP-1 System, partially offset by sales of LoveBiome acquired in October 2025.
• Gross profit percentage decline was attributed to a shift in product mix, inventory obsolescence expenses, and increased shipping costs.
• Full Year 2026 included a $2.5 million allowance for inventory obsolescence related to the MindBody GLP-1 System.

Market and Competitive Landscape

• Active Independent Consultants decreased to 43,000 as of June 30, 2026, from 51,000 in 2025 (a 15.7% decline).
• Active Customers decreased to 61,000 as of June 30, 2026, from 81,000 in 2025 (a 24.7% decline).
• Total Active Accounts decreased to 104,000 as of June 30, 2026, from 132,000 in 2025 (a 21.2% decline).
• The company cites the broader macro-economic environment as a factor impacting order volumes and average order sizes.

Risks and Challenges

• The company faces challenges related to the broader macro-economic environment affecting order numbers and average order sizes.
• Product mix shifts and inventory obsolescence (specifically regarding the MindBody GLP-1 System) negatively impacted gross profit margins.
• Significant declines in the active account base (consultants, customers, and total accounts) present a challenge to revenue growth.

Management Commentary and Tone

• CEO Terrence Moorehead stated his conviction in the company is stronger than when he accepted the role, citing a differentiated platform, strong gross margins, and a debt-free balance sheet as competitive advantages.
• Management identified early focus areas as strengthening the LifeVantage brand, building a more relevant consumer proposition, and driving operational excellence.
• Despite recent results, management expressed optimism about the future and intends to move forward with urgency.

Other Key Points

• The company repurchased approximately 336,000 common shares for an aggregate price of $2.0 million during fiscal 2026.
• As of June 30, 2026, $58.5 million remained under the $60 million share repurchase program approved in January 2026.
• The company acquired LoveBiome in October 2025, contributing to sales in the latter part of the fiscal year.
• Due to the recent transition in the Chief Executive Officer role, the company is not issuing formal guidance for fiscal 2027.
• The company holds a portfolio of products including Protandim, TrueScience, MindBody GLP-1 System, LoveBiome P84, AXIO, and Petandim.