Lifevantage Corp Q2 FY2026 earnings call

• Faced challenges in GLP-1 market competition; MINDBODY GLP-1 system sales impacted by competitive dynamics, leading to inventory reserve and evaluation of responses. - LoveBiome acquisition integrated successfully, operational synergies realized, new products launched (Axila X and Phytopower B), and more LoveBiome products to be launched. - Shopify partnership推进, aiming to enhance e-commerce capabilities. - Focus on cost reduction to maintain profitability. - Have a comprehensive wellness ecosystem, strong balance sheet, announced new $60 million share repurchase authorization and quarterly dividend.

In 2026 Q2, LifeVantage delivered net revenue of $48.9 million, down 27.8% from $67.8 million in 2025 but up 2.9% sequentially from Q1. The revenue decline was mainly due to a $16.2 million drop in sales of the MINDBODY GLP-1 system, partially offset by $4.1 million revenue from the LoveBiome product line. The Americas region revenue decreased 32.6% to $38.5 million, while Asia Pacific and Europe region revenue decreased 2.1% to $10.4 million. Gross profit percentage was 74% in Q2, down from 80.5% in 2025, but non-GAAP adjusted gross profit percentage was 78.8% excluding a $2.4 million one-time inventory reserve. Commissions and incentive expense as a percentage of revenue was 40.7% in Q2. Selling, general, and administrative expenses were $15.8 million or 32.3% of revenue. GAAP operating income was $500,000, and adjusted non-GAAP operating income was $2.6 million. GAAP net income was $300,000 or $0.02 per diluted share, while adjusted non-GAAP net income was $1.9 million or $0.15 per diluted share. Adjusted EBITDA was $3.9 million or 7.9% of revenues. Cash position was strong with $10.2 million cash and no debt at end of Q2.

For fiscal 2026, expect revenue in the range of $185 million to $200 million, adjusted EBITDA of $15 million to $19 million, and adjusted earnings per share in the range of $0.60 to $0.80 per fully diluted share. This reflects current business trends including GLP-1 market competition, LoveBiome integration momentum, and impact of February product launches.

• GLP-1 market competitive dynamics pose risks to MINDBODY GLP-1 system sales. - Inventory obsolescence risk related to MINDBODY GLP-1 system. - Market adjustment risk as the GLP-1 market evolves.

Q: Doug Lane asked about the $3.7 million cash at closing related to LoveBiome and other factors impacting cash reduction.

A: Carl Aure said the $3.7 million was the actual cash transaction price for LoveBiome, and other factors included timing of accrued payables and stock-based compensation withholding tax.

Q: Ryan Myers asked about why MINDBODY can return to growth and win in the category, and about the inventory charge.

A: Steve Fife said because of the natural solution and science behind MINDBODY; Carl Aure explained the inventory charge was due to ramping up supply chain ahead of demand and conservative approach to inventory considering shelf life.