LifeStance Health falls as PE backers offload in $285 mln secondary offering

TPG

08/05/2026 12:28

** Mental healthcare provider LifeStance Health's LFST.O shares down 11.2% before the bell to $7.86 after pricing of secondary offering

** Scottsdale, Arizona-based co late Thurs announced 35 mln shares sold by certain stockholders at $8.15 for deal size of ~$285.25 mln

** Offering price represents 7.9% discount to stock's last close of $8.85

** In addition, LFST to repurchase 6 mln offering shares from the underwriter, JP Morgan

** Bulk of the selling came from private equity firms TPG Capital TPG.O (~28.3 mln shares) and Summit Partners (~5.9 mln shares), taking their respective stakes to about 29% and 6%, per the prospectus

** LFST has ~387.8 mln shares outstanding

** TPG TPG.O and Summit Partners cut their stakes in a Feb secondary offering of 25 mln shares

** LFST shares on Thurs surged ~20% to over 2-yr high after co reported Q1 rev grew 21% yr/yr to $403.5 mln, topping LSEG consensus, driven by higher visit volumes and net clinician growth. It also hiked 2026 rev guidance to $1.64-$1.68 bln

** Stock up 26% YTD as of Thurs

** 9 of 11 analysts rate the stock "strong buy" or "buy", 2 "hold"; median PT $10.50

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))