Lifevantage NASDAQ: LFVN reported fiscal third-quarter 2026 results that reflected a sharp year-over-year revenue decline, as management pointed to weaker demand for its MindBody GLP-1 System and fewer active accounts. On the call, the company also highlighted a leadership transition, ongoing technology investments, and new consultant incentive programs aimed at improving long-term growth.
Leadership transition and strategic focus
Interim CEO Michael Beindorff, a long-time board member who has served since 2012, opened the call by recognizing the retirement of former President and CEO Steve Fife, who stepped down April 30. Beindorff said Fife’s tenure was “transformational,” citing modernization efforts, improved financial positioning, and the groundwork laid for the company’s future.
Beindorff also reiterated the company’s focus on its portfolio, including the Protandim family and newer offerings such as TrueScience Liquid Collagen, the MindBody GLP-1 System, and its Gut Activator product P84, which came with the October 2025 LoveBiome acquisition. He emphasized the role of the company’s consultant community and described the recent Momentum Academy event in Las Vegas as a showcase of field engagement.
At the event, the company announced what Beindorff described as its “first-ever 12-month volume growth incentive program for consultants,” the VIP bonus. He said management believes it can support growth while also helping identify and develop leaders within the field organization.
Beindorff said the company continues to invest in digital capabilities, consultant tools, and product innovation. He highlighted a planned e-commerce platform upgrade, including a move to Shopify and a revamped back-office system, which he said is expected to “dramatically improve both our customers’ and our consultants’ e-commerce experience.” He said LifeVantage expects to start launching Shopify later this year and roll it through its markets.
Quarterly results: revenue down 25% as MindBody sales fell
CFO Carl Aure reported fiscal Q3 2026 net revenue of $43.7 million, down 25.2% from $58.4 million in the year-ago quarter. Aure said the decline was “primarily driven by a decline in sales of our MindBody GLP-1 System,” partially offset by LoveBiome sales following the October 2025 acquisition.
By region, revenue in the Americas declined 28.9% to $34.3 million, which Aure attributed to decreased MindBody GLP-1 System sales and a decrease in total active accounts. Revenue in Asia Pacific and Europe fell 7.7% to $9.4 million, driven primarily by fewer active accounts. Foreign currency had a negligible impact, increasing results by about $100,000 in the region during the quarter, according to Aure.
Gross profit margin was 79% versus 81% a year ago, reflecting increased shipping and warehouse expenses and higher inventory obsolescence-related costs. Aure noted that excluding a $183,000 allowance tied to MindBody inventory, adjusted gross profit margin would have been 79.4%.
Profitability and expenses
Commissions and incentive expense as a percentage of revenue was 43.5%, down from 44.8% in the prior-year period. Aure attributed the change primarily to “the timing and magnitude of our promotional incentive programs and changes to the mix of customers and independent consultants.” He said the company expects 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 with $17.1 million, or 29.2% of revenue, in the year-ago quarter. Aure said the increase as a percentage of revenue was primarily due to the overall decline in sales volume.
GAAP operating income was $1.7 million, down from $4.1 million a year earlier. Adjusted operating income was $1.8 million compared with $4.1 million in the prior-year period.
GAAP net income was $1.4 million, or $0.11 per diluted share, compared with $3.5 million, or $0.26 per diluted share, a year ago. Adjusted net income was $1.5 million, or $0.12 per diluted share, compared with $3.5 million, or $0.26 per diluted share, in the prior-year period.
The company recorded income tax expense of $300,000 in the quarter versus $700,000 in the prior-year period. Aure said LifeVantage expects its full-year effective tax rate to be approximately 18% to 20%.
Adjusted EBITDA was $3.2 million, or 7.3% of revenue, down from $6.4 million, or 11% of revenue, in the year-ago period.
Cash, capital spending, buybacks, and dividend
Aure said LifeVantage ended the quarter with $12.5 million in cash and no debt. The company generated $5.5 million of cash from operations during the first nine months of fiscal 2026, compared with $10.8 million in the same period of fiscal 2025. He attributed the change primarily to payment of accrued employee-related incentive compensation and consultant incentive trip expenses.
Capital expenditures were $2.5 million for the first nine months of fiscal 2026, up from $1.2 million a year earlier, reflecting ongoing investments in technology infrastructure including Shopify integration. The company also used $3.7 million of cash during the first nine months of fiscal 2026 related to closing the LoveBiome transaction.
On capital allocation, Aure said the company repurchased 206,000 shares for an aggregate purchase price of $1 million during the quarter. For the first nine months of fiscal 2026, it repurchased approximately 250,000 shares for $1.6 million. As of March 31, Aure said $59 million remained under the company’s $60 million share repurchase authorization approved in January.
LifeVantage also announced a quarterly cash dividend of $0.05 per share, which Aure said represents an 11% increase from the previous dividend. The dividend will be paid June 15, 2026, to shareholders of record as of June 1, 2026.
Guidance update, CEO appointment, and product pipeline comments
Aure said the company now expects to end fiscal 2026 with revenue, adjusted EBITDA, and adjusted EPS “close to the lower end” of its previously issued guidance range, citing current business trends including “the competitive dynamics in the GLP-1 market” and a continued focus on managing costs while investing in strategic initiatives.
Beindorff also provided updates on corporate developments, saying the company was granted a U.S. patent for its Healthy Glow Essentials Stack, which features Protandim Nrf2 Synergizer and TrueScience Liquid Collagen.
Additionally, Beindorff said the board appointed Terrence Moorehead as the company’s next CEO, with Moorehead expected to join in August. Beindorff described Moorehead as a “deeply experienced, transformative leader” and said he brings more than 30 years of leadership experience, including in direct selling. Beindorff said he is working closely with the executive team during the transition.
During the Q&A, management addressed cash flow expectations, capital spending, buybacks, consultant trends, and product cadence. Aure said the company generated about $5 million of cash from operations in the recent quarter and expects “a similar amount in Q4,” adding the company anticipates continuing to build cash. On capital expenditures, he said the roughly $1 million per quarter level should be “consistent” for the next quarter or two as Shopify implementation progresses, with development costs expected to start to decline after rollout begins in the next fiscal year.
Asked about the lower consultant count in the Americas, Chief Sales Officer Kristen Cunningham said the company was not pleased with the figure but said she was encouraged by improving engagement and activity. She said the company is emphasizing a “foundational approach” rather than a short-term sales spike, and pointed to consultant enthusiasm around “stickier products” such as Protandim, collagen, and Healthy Glow, as well as simplified incentive programs and the VIP bonus structure aimed at leadership development.
On new products, Aure said the company’s next major event is its annual convention in October and that management has previously discussed launching a product at that event. He reiterated that LifeVantage typically launches a “hero product” every 18 months to two years and said the company has something in the works, though he did not specify the category. In a follow-up question about gut health, Aure said the next category is “not necessarily in gut health itself,” but he added the company remains committed to P84 and expects to introduce complementary products to support it.
In closing remarks, Beindorff acknowledged recent performance has fallen short of the company’s standards and said management is focused on improving results, with plans to update investors on progress in August.
About Lifevantage NASDAQ: LFVN
LifeVantage Corporation is a publicly traded company that develops, markets and distributes nutritional supplements, skincare products and weight-management solutions through a direct-selling business model. The company's flagship offering, Protandim®, is formulated to activate the Nrf2 pathway, which is associated with cellular defense processes. LifeVantage also markets the PhysIQ® line for metabolism and body composition support and the TrueScience® skincare regimen, targeting a range of health and wellness needs.
Founded in 1999 and headquartered in Sandy, Utah, LifeVantage combines research in nutrigenomics with a network of independent distributors to bring its products to market.
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