LifeStance Health GroupLFST +2.22%57 Gross Margin % is 33.69% as of Mar. 2026, which is 13% above its 10-year median of 29.78. GuruFocus rates LFST with a GF Score™ of 57/100 and a GF Value™ of $8.22 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 631 Healthcare Providers & Services companies, LifeStance Health Group ranks worse than 60.86% on this metric.
LFST's Gross Margin % is ranked worse than 60.86% of 631
companies
in the Healthcare Providers & Services industry
Industry Median: 40.09
vs LFST: 32.60
LifeStance Health Group had a gross margin of 33.69% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for LifeStance Health Group was 0.00% per year.
LifeStance Health Group (NAS:LFST) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
LifeStance Health Group had a gross margin of 33.69% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
LifeStance Health Group Gross Margin % Related Terms
LifeStance Health Group Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Care Facilities subindustry, LifeStance Health Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LifeStance Health Group Gross Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, LifeStance Health Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LifeStance Health Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
LifeStance Health Group (LFST) has a Gross Margin % of 33.69% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LifeStance Health Group and its competitors. This is 13% above median its historical median of 29.78. Over the past decade, LifeStance Health Group's Gross Margin % has ranged from 27.57 to 32.60. According to the industry distribution chart, LifeStance Health Group ranks #384 out of 631 companies in the Healthcare Providers & Services industry, placing it in the top 60.9%.
Is LifeStance Health Group's Gross Margin % too high?
LifeStance Health Group's current Gross Margin % of 33.69% is 13% above median its 10-year median of 29.78. Over the past 10 years, this metric has ranged from a low of 27.57 to a high of 32.60. The Healthcare Providers & Services industry median Gross Margin % is 40.09. LifeStance Health Group's value of 33.69% is 16% below this industry median. Based on the distribution chart, LifeStance Health Group ranks #384 out of 631 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, LifeStance Health Group has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LifeStance Health Group's Gross Margin % compare to NHC and BKD?
According to the Healthcare Providers & Services industry distribution chart, LifeStance Health Group ranks #384 out of 631 companies for Gross Margin %. This places LifeStance Health Group in the lower half of its industry. The industry median Gross Margin % is 40.09. LifeStance Health Group's value of 33.69% is 16% below this benchmark. Historically, LifeStance Health Group's own Gross Margin % has ranged from 27.57 to 32.60 over the past decade. While the company's 10-year median is 29.78 vs. the industry median of 40.09, LifeStance Health Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Healthcare Providers & Services company?
The median Gross Margin % among Healthcare Providers & Services companies is 40.09, based on 631 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LifeStance Health Group's current Gross Margin % of 33.69% is 16% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on LifeStance Health Group and its competitors. For the Healthcare Providers & Services industry, the median Gross Margin % is 40.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LifeStance Health Group's current Gross Margin % is 33.69%, which is 13% above median its own 10-year median of 29.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LifeStance Health Group stock overvalued right now?
Based on GuruFocus' analysis, LifeStance Health Group (LFST) is currently considered Modestly Overvalued. The stock's GF Value™ is $8.22, compared to a current price of $9.65 — trading 17.4% above its estimated fair value. The current Gross Margin % is 33.69%, which is 13% above median its 10-year median of 29.78 and 16% below the Healthcare Providers & Services industry median of 40.09. LifeStance Health Group's overall GF Score™ is 57/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For LifeStance Health Group (LFST), the current Gross Margin % is 33.69% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LifeStance Health Group (LFST) Overvalued in 2026?
Based on GuruFocus' analysis, LifeStance Health Group stock appears to be overvalued.
The current stock price of $9.65 is trading 17.4% above its estimated GF Value™ of $8.22.
GuruFocus considers LifeStance Health Group to be Modestly Overvalued.
Key valuation signals for LFST:
Gross Margin %: 33.69% (13% above median its 10-year median of 29.78)
GF Value™: $8.22 vs. price of $9.65 (17.4% above fair value)
Industry Position: 16% below the Healthcare Providers & Services median (#384 of 631)
No single metric tells the full story. See the LFST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LifeStance Health Group Inc is a mental healthcare company that operates as a provider of outpatient mental health services, spanning psychiatric evaluations and treatment, psychological and neuropsychological testing, and individual, family, and group therapy. It treats a broad range of mental health conditions, including anxiety, depression, bipolar disorder, eating disorders, psychotic disorders, and post-traumatic stress disorder, using evidence-based approaches to ensure effective treatment. The group has a single operating and reportable segment of mental health services.
57GF Score
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