With the business potentially at an important milestone, we thought we'd take a closer look at LifeStance Health Group, Inc.'s (NASDAQ:LFST) future prospects. LifeStance Health Group, Inc., through its subsidiaries, provides outpatient mental health services to children, adolescents, adults, and geriatrics in the United States. The US$2.6b market-cap company announced a latest loss of US$57m on 31 December 2024 for its most recent financial year result. Many investors are wondering about the rate at which LifeStance Health Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 6 of the American Healthcare analysts is that LifeStance Health Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$4.8m in 2026. Therefore, the company is expected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 99%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for LifeStance Health Group given that this is a high-level summary, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for LifeStance Health Group

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 20% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of LifeStance Health Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at LifeStance Health Group, take a look at LifeStance Health Group's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:

1. Valuation: What is LifeStance Health Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether LifeStance Health Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on LifeStance Health Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.