Lifevantage NASDAQ: LFVN reported lower fourth-quarter and fiscal 2026 results as the health and wellness company faced fewer orders, lower average order sizes and a difficult comparison against prior-year sales of its MindBody GLP-1 System.
For the fourth quarter ended June 30, net revenue declined 23.1% to $42.4 million from $55.1 million in the prior-year period. Revenue fell 3.1% sequentially from the fiscal third quarter. The Americas region posted a 24.8% decline in revenue to $32.7 million, while Asia-Pacific and Europe revenue decreased 16.9% to $9.7 million.
Chief Financial Officer Carl Aure said the revenue decline primarily reflected pressure on order volumes from the active account base and lower average order size. The results also reflected lower MindBody GLP-1 System sales against a stronger prior-year comparison, partly offset by contributions from LoveBiome, which LifeVantage acquired in October 2025.
More than 75% of fourth-quarter revenue came from subscriptions, Aure said, while customer retention metrics improved from a year earlier. He added that some loyal customers continued purchasing but may have paused a subscription for a month before resuming it, affecting reported metrics.
Profitability Declines Alongside Sales
Fourth-quarter gross profit margin was 78.0%, compared with 79.9% a year earlier. Aure attributed the decrease to product mix, higher inventory obsolescence expense, and increased shipping and warehouse-related costs.
Commissions and incentive expense represented 41.3% of revenue, down from 42.1% in the prior-year quarter, due to the timing and magnitude of promotional incentive programs and changes in the sales mix between customers and independent consultants. Selling, general and administrative expenses were 32.7% of revenue, versus 33.9% a year ago. Adjusted SG&A was 32.3% of revenue, compared with 33.3%.
GAAP operating income was $1.7 million, down from $2.1 million in the prior-year quarter. Adjusted operating income declined to $1.8 million from $2.5 million. GAAP net income was $1.3 million, or $0.10 per diluted share, compared with $2.0 million, or $0.15 per diluted share, a year earlier.
On an adjusted basis, net income was $1.4 million, or $0.11 per diluted share, compared with $2.3 million, or $0.17 per diluted share, in the fourth quarter of fiscal 2025. Adjusted EBITDA declined to $2.7 million, or 6.5% of revenue, from $4.8 million, or 8.7% of revenue.
New CEO Outlines Initial Priorities
Terrence Moorehead, who recently joined LifeVantage as president and chief executive officer, said his early review of the business reinforced his conviction in its differentiated science, balance sheet and potential for growth. He thanked Michael Beindorff for his stewardship during the leadership transition.
Moorehead said the company’s initial priorities will center on strengthening the LifeVantage brand, building a more relevant consumer proposition and improving operational excellence and profitability. He said the company needs to communicate its scientific and product story more clearly and in a more consumer-friendly manner, while providing the sales force with stronger tools and improving the consumer experience.
“We have compelling science, differentiated products, strong margins, and are targeting a passionate group of consumers that are looking for new ways to improve their health every single day,” Moorehead said.
Management did not provide formal fiscal 2027 guidance because of the CEO transition. Aure said the company still faces difficult comparisons in the first and second fiscal quarters, but management expects strategies being developed to potentially contribute to improving momentum in the fiscal third and fourth quarters.
Moorehead said consumers are facing price pressure from the broader economy. He said LifeVantage intends to strengthen its value proposition without necessarily lowering prices, including through better communication about its products.
Digital, International and Capital Spending Plans
Moorehead said international markets represent an opportunity, though the company’s immediate focus is expected to be increasing penetration in existing markets rather than rapidly expanding its geographic footprint. He described a potential hub-and-spoke approach that would build penetration in anchor markets before expanding further, while also emphasizing the remaining opportunity in North America.
Digital capabilities will be a key part of the company’s strategy, according to Moorehead. LifeVantage is working on upgrades to its website and consumer access points, alongside digital tools and assets intended to help its sales force operate more effectively.
Capital expenditures totaled $3.6 million in fiscal 2026, compared with $1.4 million in fiscal 2025, driven primarily by technology infrastructure investment, including the Shopify integration. Aure said he expects fiscal 2027 capital spending to be slightly below fiscal 2026 levels, in a range of roughly $3 million to $3.5 million, as the company completes the final stages of the Shopify project. He said normal capital spending could return to a historical range of $2 million to $2.5 million once the project is completed.
Cash Position and Shareholder Returns
LifeVantage ended fiscal 2026 with $14.9 million in cash and no debt, compared with $20.2 million in cash a year earlier. It generated $10.2 million in cash from operations during the year, versus $11.9 million in fiscal 2025, and retained access to a $5 million revolving credit line.
The company used $3.7 million of cash for the LoveBiome transaction during fiscal 2026. It also repurchased about 336,000 shares for $2 million during the year, including 85,700 shares for approximately $459,000 in the fourth quarter. As of June 30, $58.5 million remained under the company’s $60 million share repurchase authorization approved in January.
LifeVantage also declared a quarterly cash dividend of $0.05 per common share, payable Sept. 15 to shareholders of record as of Sept. 1.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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