Lifevantage Corp Q1 FY2026 earnings call

• Successfully closed the LoveBiome acquisition, positioning in the fast-growing gut microbiome health segment. The acquisition aligns with product differentiation through naturally derived ingredients. - Integration of LoveBiome is essentially complete with systems and website cutover, and positive early indicators from consultant community integration. - U.S. Momentum Academy event in Dallas brought together LifeVantage and LoveBiome consultants, with cross-selling training underway. - Progress on Shopify partnership for modernizing e-commerce platform towards pilot and full rollout.

Net revenue for the first quarter of fiscal 2026 was $47.6 million, which was up fractionally from the prior year. Adjusted EBITDA was $3.9 million, down $500,000 versus the prior year due to lower contribution margin, partially offset by lower SG&A. The LoveBiome acquisition positions LifeVantage in the gut microbiome health segment, with its flagship P84 product aligning with the company's product differentiation approach. The gut health supplement market is projected to grow significantly, and LoveBiome's products are integrated into LifeVantage's portfolio, with revenue from LoveBiome not contributing in the first quarter as the acquisition closed on October 1.

• Full year fiscal 2026 revenue expected in the range of $225 million to $240 million, including LoveBiome contribution. - Reiterates profitability guidance with adjusted non-GAAP EBITDA expected in the range of $23 million to $26 million and adjusted non-GAAP earnings per share in the range of $1 to $1.15 per share. - Anticipates second half of fiscal 2026 revenue will be higher than the first half due to MindBody product seasonality and LoveBiome acquisition impact.

Q: Before we get to LoveBiome, can you give us a feel on how the September quarter came in versus original expectations?

A: Q1 is historically a low quarter for LifeVantage due to summer inactivity of consultant base. Also, prior year had a strong ramp-up to MindBody launch and incentives, making year-over-year comparison tough but seasonally low overall, so a bit softer than expected but not alarming.

Q: Was there any impact to business between September 3 and October 1 due to LoveBiome closing?

A: No revenue contribution from LoveBiome as the transaction closed on October 1. There might have been a pause with LifeVantage consultants waiting to see the acquisition implications, but no LoveBiome revenue impact.

Q: Talk about the science and gut health opportunities with LoveBiome science combined with MindBody work?

A: P84 testing showed activation of 14 peptides in gut responsible for regulating, repairing, and restoring gut health. Gut health market is projected to grow significantly, and coupling P84 with Protandim Nrf2 has synergistic benefits, with studies underway on the Healthy Edge stack.