LifeVantage Corporation (LFVN) Bundle
A Brief History of LifeVantage Corporation
Company Overview
LifeVantage Corporation (NASDAQ: LFVN) focuses on the development and distribution of dietary supplements and skincare products. The company operates through a direct selling model, leveraging independent consultants to market its products.
Recent Financial Performance
As of September 30, 2024, LifeVantage reported net revenue of $47.2 million, down from $51.4 million in the same quarter of the previous year, reflecting a decrease of 8.6% year-over-year. The revenue decline was attributed to a decrease in active accounts and adverse foreign currency fluctuations.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue | $47.2 million | $51.4 million | -8.6% |
| Gross Profit | $37.7 million | $41.2 million | -8.9% |
| Operating Income | $2.6 million | $0.7 million | +269.0% |
| Net Income | $1.8 million | $0.6 million | +200.3% |
Market Trends and Challenges
LifeVantage faced challenges with a decrease in total active accounts by 10.2%, from 137,000 in September 2023 to 123,000 in September 2024. The company’s performance in the Americas region accounted for $36.9 million of the total revenue, while the Asia/Pacific and Europe region contributed $10.3 million.
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Americas | $36.9 million | $38.5 million | -4.2% |
| Asia/Pacific & Europe | $10.3 million | $12.9 million | -19.7% |
Product Innovations and Launches
In October 2023, LifeVantage relaunched its TrueScience® skincare line and introduced new products aimed at enhancing its market position. The company also launched the MindBody GLP-1 System™ in October 2024, targeting weight management and healthy lifestyle habits.
Stock Performance and Shareholder Returns
As of September 30, 2024, LifeVantage had a share repurchase program with $19.3 million remaining under the program. The company declared a quarterly cash dividend of $0.04 per share in August 2024, with total cash dividends for the quarter amounting to $0.5 million, down from $5.5 million in Q3 2023.
| Dividend Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividend per Share | $0.04 | $0.435 |
| Total Dividends Paid | $0.5 million | $5.5 million |
Liquidity and Capital Resources
As of September 30, 2024, LifeVantage's liquidity was reported at $14.6 million, a decrease from $16.9 million at the end of June 2024. The company has a revolving line of credit of up to $5.0 million through its 2024 Credit Facility.
| Liquidity Metrics | September 30, 2024 | June 30, 2024 |
|---|---|---|
| Cash and Cash Equivalents | $14.6 million | $16.9 million |
| Working Capital | $16.7 million | $15.3 million |
Conclusion on Future Outlook
The company aims to enhance its market share through product innovation and improving its distribution channels, although it continues to contend with fluctuating revenues and active account metrics.
A Who Owns LifeVantage Corporation (LFVN)
Ownership Structure
As of 2024, LifeVantage Corporation (LFVN) has a diverse ownership structure encompassing institutional investors, individual shareholders, and company insiders. The total number of shares outstanding was approximately 12.484 million as of September 30, 2024.
Major Shareholders
The following table outlines the major shareholders of LifeVantage Corporation, including their respective shareholdings and percentage ownership as of the latest data available in 2024.
| Shareholder Name | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 9.62% |
| The Vanguard Group, Inc. | 1,050,000 | 8.42% |
| Dimensional Fund Advisors LP | 800,000 | 6.42% |
| Company Insiders | 1,500,000 | 12.03% |
| Other Institutional Investors | 2,000,000 | 16.06% |
Stock Performance
The stock performance of LifeVantage Corporation has shown fluctuations throughout 2024. The closing stock price was approximately $8.44 as of September 30, 2024, reflecting a year-to-date increase of around 14% from its closing price at the beginning of the year.
Dividends and Stock Buybacks
LifeVantage declared a quarterly cash dividend of $0.04 per share in August 2024, which was paid on September 17, 2024. The total cash dividends for the three months ended September 30, 2024, amounted to $0.5 million. Additionally, under its share repurchase program, the company repurchased approximately 139,880 shares at an average price of $8.44 during the three months ended September 30, 2024.
Recent Developments
On April 12, 2024, LifeVantage entered into a new credit facility agreement with Bank of America, providing a revolving line of credit of up to $5 million. This strategic move aims to enhance liquidity and support ongoing operational expenses and potential growth initiatives.
Conclusion on Ownership Dynamics
LifeVantage Corporation’s ownership landscape is characterized by a blend of institutional and individual investors, with a notable proportion held by company insiders. The ongoing stock performance and strategic financial decisions such as dividends and stock buybacks reflect the company’s commitment to shareholder value.
LifeVantage Corporation (LFVN) Mission Statement
Mission Statement Overview
The mission of LifeVantage Corporation is to empower individuals to achieve optimal health and wellness through innovative products that enhance cellular function and promote a healthy lifestyle. The company focuses on providing high-quality nutritional supplements and skincare products that support healthy aging and overall well-being.
Core Values
- Integrity: Upholding the highest standards of honesty and fairness in all business dealings.
- Innovation: Continuously seeking new ways to improve products and services to meet consumer needs.
- Customer Focus: Prioritizing customer satisfaction and engagement through quality products and services.
- Community: Building a supportive community among independent consultants and customers.
Financial Performance
As of the three months ended September 30, 2024, LifeVantage reported the following key financial figures:
| Financial Metric | Amount (in thousands) |
|---|---|
| Net Revenue | $47,214 |
| Cost of Sales | $9,491 |
| Gross Profit | $37,723 |
| Operating Income | $2,570 |
| Net Income | $1,826 |
| Basic EPS | $0.15 |
| Diluted EPS | $0.14 |
Revenue Breakdown by Region
LifeVantage's revenue for the three months ended September 30, 2024, is categorized by geographic region as follows:
| Region | Revenue (in thousands) | Change (%) |
|---|---|---|
| Americas | $36,892 | (4.2) |
| Asia/Pacific & Europe | $10,322 | (19.7) |
| Total Revenue | $47,214 | (8.0) |
Active Accounts Statistics
As of September 30, 2024, LifeVantage reported the following statistics regarding its active accounts:
| Account Type | Count | Change (%) |
|---|---|---|
| Active Independent Consultants | 47,000 | (9.6) |
| Active Customers | 76,000 | (10.6) |
| Total Active Accounts | 123,000 | (10.2) |
Product Highlights
LifeVantage continues to innovate its product offerings, including:
- TrueScience® Liquid Collagen: Revenue was approximately $9.7 million for the three months ended September 30, 2024.
- TrueScience® Activated Skin Care Collection: Relaunched in October 2023 with new branding and formulas.
- MindBody GLP-1 System™: Launched in October 2024, aimed at helping individuals manage weight.
Dividend Information
In August 2024, the Board of Directors declared a quarterly cash dividend of $0.04 per share of common stock, totaling $0.5 million for the three months ended September 30, 2024.
Liquidity Position
As of September 30, 2024, LifeVantage had:
- Available Liquidity: $14.6 million in cash and cash equivalents.
- Working Capital: $16.7 million.
Future Outlook
LifeVantage aims to continue its growth trajectory by expanding its product offerings and enhancing its marketing strategies to attract new customers and consultants.
How LifeVantage Corporation (LFVN) Works
Business Model
LifeVantage Corporation operates mainly through a direct selling model, leveraging an international network of independent consultants to market and sell its products. The company focuses on health and wellness products, primarily featuring its flagship offerings such as the TrueScience® skincare line and dietary supplements.
Financial Performance
For the three months ended September 30, 2024, LifeVantage reported the following financial metrics:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Revenue, net | $47,214 | $51,364 | (8.6)% |
| Cost of sales | $9,491 | $10,180 | (6.8)% |
| Gross profit | $37,723 | $41,184 | (8.4)% |
| Operating income | $2,570 | $749 | 243.1% |
| Net income | $1,826 | $629 | 189.5% |
| Basic earnings per share | $0.15 | $0.05 | 200.0% |
| Diluted earnings per share | $0.14 | $0.05 | 180.0% |
Revenue Breakdown by Region
LifeVantage's revenue is categorized into two primary regions: the Americas and Asia/Pacific & Europe. The following table summarizes the revenue for the three months ended September 30, 2024:
| Region | Revenue (in thousands) | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|---|
| Americas | $36,892 | $38,514 | (4.2)% | |
| Asia/Pacific & Europe | $10,322 | $12,850 | (19.7)% |
Active Accounts
As of September 30, 2024, LifeVantage reported the following active accounts:
| Region | Active Accounts | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|---|
| Americas | 92,000 | 98,000 | (6.1)% | |
| Asia/Pacific & Europe | 31,000 | 39,000 | (20.5)% | |
| Total Active Accounts | 123,000 | 137,000 | (10.2)% |
Operational Costs
LifeVantage's operational costs for the three months ended September 30, 2024, include:
- Commissions and incentives: $20,305,000 (43.0% of revenue)
- Selling, general and administrative expenses: $14,848,000 (31.4% of revenue)
- Total operating expenses: $35,153,000 (74.4% of revenue)
Liquidity and Capital Resources
As of September 30, 2024, LifeVantage had:
- Cash and cash equivalents: $14,596,000
- Working capital: $16,700,000
- Available liquidity: $14,600,000
The company has a revolving line of credit of up to $5 million under its 2024 Credit Facility with Bank of America, bearing interest at an effective rate of 6.96%.
Recent Developments
LifeVantage has recently launched new products, including:
- TrueScience® Activated Skin Care Collection
- TrueScience® TrueProtect Daily Mineral Sunstick
- MindBody GLP-1 SystemTM
These initiatives aim to enhance product offerings and drive revenue growth.
How LifeVantage Corporation (LFVN) Makes Money
Revenue Streams
LifeVantage Corporation primarily generates its revenue through the sale of health and wellness products. The key products include:
- Protandim® line of dietary supplements
- TrueScience® skin and hair care products
- Liquid Collagen
- AXIO® nootropic energy drink mixes
- Petandim® for pets
As of the three months ended September 30, 2024, LifeVantage reported total revenue of $47.2 million, compared to $51.4 million for the same period in 2023, reflecting a decrease of 8.7% year-over-year.
Geographic Revenue Breakdown
The revenue is segmented into two primary regions: the Americas, and Asia/Pacific & Europe. Below is a detailed breakdown:
| Region | Revenue (Q3 2024) | Revenue (Q3 2023) | % Change |
|---|---|---|---|
| Americas | $36.9 million | $38.5 million | -4.2% |
| Asia/Pacific & Europe | $10.3 million | $12.9 million | -19.7% |
| Total | $47.2 million | $51.4 million | -8.7% |
Cost of Goods Sold (COGS)
For the three months ended September 30, 2024, LifeVantage reported a COGS of $9.5 million, resulting in a gross profit of $37.7 million and a gross margin of 79.9%.
Operating Expenses
Operating expenses include commissions and incentives, as well as selling, general and administrative (SG&A) expenses. For Q3 2024, these expenses were as follows:
| Expense Type | Amount (Q3 2024) | Amount (Q3 2023) | % of Revenue |
|---|---|---|---|
| Commissions and Incentives | $20.3 million | $22.5 million | 43.0% |
| SG&A Expenses | $14.8 million | $18.0 million | 31.4% |
| Total Operating Expenses | $35.2 million | $40.4 million | 74.6% |
Net Income
LifeVantage reported a net income of $1.8 million for the three months ended September 30, 2024, compared to $0.6 million in the prior year. This translates to a net income per share of $0.15 (basic) and $0.14 (diluted).
Active Accounts and Customers
As of September 30, 2024, LifeVantage had:
| Category | Active Accounts | Active Customers |
|---|---|---|
| Americas | 92,000 | 61,000 |
| Asia/Pacific & Europe | 31,000 | 15,000 |
| Total | 123,000 | 76,000 |
This represents a decline in total active accounts by 10.2% year-over-year.
Liquidity and Capital Resources
As of September 30, 2024, LifeVantage reported available liquidity of $14.6 million. The company also has a revolving credit facility of up to $5 million.
Research and Development Expenses
Research and development expenses for the three months ended September 30, 2024, were $0.3 million, compared to $0.2 million in the same period of 2023.
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Article updated on 8 Nov 2024
Resources:
- LifeVantage Corporation (LFVN) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of LifeVantage Corporation (LFVN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View LifeVantage Corporation (LFVN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.