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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<div><ul><li style="list-style-type: square;">LFVN reported 1QFY26 ongoing EPS of $0.18 versus $0.15 in 1QFY25, up 20.0% and above our $0.17 estimate but below FactSet consensus of $0.19. </li><li style="list-style-type: square;">However, the adjusted tax rate of 5.7% was unusually low due to the positive impact of some discreet items in the quarter. </li><li style="list-style-type: square;">The company still expects the full-year tax rate to be ~25%. At a 25% normalized tax rate, 1QFY26 ongoing EPS would be $0.14, below expectations.</li></ul></div>

LFVN reported 1QFY26 ongoing EPS of $0.18 versus $0.15 in 1QFY25, up 20.0% and above our $0.17 estimate but below FactSet consensus of $0.19. However, the adjusted tax rate of 5.7% was unusually low due to the positive impact of some discreet items in the quarter. The company still expects the full-year tax rate to be ~25%. At a 25% normalized tax rate, 1QFY26 ongoing EPS would be $0.14, below expectations.

LFVN: 1QFY26 Sales & EBITDA Trail Expectations; LoveBiome Expected to Drive F2H Acceleration

<div><ul><li style="list-style-type: square;">We recently attended LifeVantage’s Momentum Academy consultant convention in Dallas, TX.</li><li style="list-style-type: square;">Approximately 1,800-2,000 of the company’s leading consultants attended the event, including several hundred from recently acquired LoveBiome.</li><li style="list-style-type: square;">This was the first LifeVantage event following the close of the LoveBiome acquisition in early October, with integration of the two direct selling concepts and communities top of mind throughout the presentations there.</li></ul></div>

We recently attended LifeVantage’s Momentum Academy consultant convention in Dallas, TX.Approximately 1,800-2,000 of the company’s leading consultants attended the event, including several hundred from recently acquired LoveBiome.This was the first LifeVantage event following the close of the LoveBiome acquisition in early October, with integration of the two direct selling concepts and communities top of mind throughout the presentations there.

LFVN: Momentum Academy Recap; Love 'n' Life

<ul><li>The acquisition focuses on LoveBiome’s P84 product, an activation formula that stimulates the body’s natural gut peptide production to regulate, repair, and restore digestive health, which is a more robust, comprehensive approach that uplevels the probiotic supplementation discussion.</li><li>The gut microbiome market, estimated at $14 billion and projected to reach $32 billion over the next several years, represents a significant new growth category for LifeVantage, complementing its current focus on activation-based wellness.</li><li>P84 aligns with LifeVantage’s MindBody GLP-1 System, expanding the company’s reach into the fast-growing gut-brain connection market.</li></ul>

The acquisition focuses on LoveBiome’s P84 product, an activation formula that stimulates the body’s natural gut peptide production to regulate, repair, and restore digestive health, which is a more robust, comprehensive approach that uplevels the probiotic supplementation discussion.The gut microbiome market, estimated at $14 billion and projected to reach $32 billion over the next several years, represents a significant new growth category for LifeVantage, complementing its current focus on activation-based wellness.P84 aligns with LifeVantage’s MindBody GLP-1 System, expanding the company’s reach into the fast-growing gut-brain connection market.

LifeVantage Corporation: WTR Small-Cap Spotlight Recap

<ul><li>LFVN reported 4QFY25 adjusted EPS of $0.17 versus $0.14, up 21.4% and in line with our forecast. FactSet consensus was $0.18. All % changes are Y/Y.</li><li>Sales in the quarter increased 12.6% to $55.1MM, below our forecast for $59.0MM and FactSet consensus of $56.9MM.</li><li>Management’s implied 4QFY25 sales range was $54.6-61.6MM so it was at the lower end of management’s previous expectations as well. </li></ul>

LFVN reported 4QFY25 adjusted EPS of $0.17 versus $0.14, up 21.4% and in line with our forecast. FactSet consensus was $0.18. All % changes are Y/Y.Sales in the quarter increased 12.6% to $55.1MM, below our forecast for $59.0MM and FactSet consensus of $56.9MM.Management’s implied 4QFY25 sales range was $54.6-61.6MM so it was at the lower end of management’s previous expectations as well. 

LFVN: 4QFY25 Trails Expectations; Strategic Acquisition Announced

<ul><li>On the latest WTR Small-Cap Spotlight, we sat down with CEO Steve Fife and CMO Julie Boyster to drill down on the science of nutrigenomics.</li><li>Those interested can listen to this podcast on Apple Podcasts, Spotify, or on our website.</li><li>Nutrigenomics is the study of how nutrients affect our genes and how LifeVantage’s proprietary formulations of naturally found ingredients work together to activate genes and help improve overall health and wellbeing.</li></ul>

On the latest WTR Small-Cap Spotlight, we sat down with CEO Steve Fife and CMO Julie Boyster to drill down on the science of nutrigenomics.Those interested can listen to this podcast on Apple Podcasts, Spotify, or on our website.Nutrigenomics is the study of how nutrients affect our genes and how LifeVantage’s proprietary formulations of naturally found ingredients work together to activate genes and help improve overall health and wellbeing.

LifeVantage Corporation: The Science of Nutrigenomics: "Take It to Make It"

United States

Lifevantage Corporation is a health and nutrition company that develops dietary supplements. The Company produces nutritional products that are intended to combat oxidative stress to support brain, eye, and joint function, as well as skin canine products.

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Lifevantage (LFVN US)

LFVN: 1QFY26 Sales & EBITDA Trail Expectations; LoveBiome Expected to Drive F2H Acceleration

LFVN reported 1QFY26 ongoing EPS of $0.18 versus $0.15 in 1QFY25, up 20.0% and above our $0.17 estimate but below FactSet consensus of $0.19.

Water Tower Research

LFVN: Momentum Academy Recap; Love 'n' Life

We recently attended LifeVantage’s Momentum Academy consultant convention in Dallas, TX. Approximately 1,800-2,000 of the company’s leading...

Water Tower Research

LifeVantage Corporation: WTR Small-Cap Spotlight Recap

The acquisition focuses on LoveBiome’s P84 product, an activation formula that stimulates the body’s natural gut peptide production to regulate,...

Water Tower Research

LFVN: 4QFY25 Trails Expectations; Strategic Acquisition Announced

FVN reported 4QFY25 adjusted EPS of $0.17 versus $0.14, up 21.4% and in line with our forecast. FactSet consensus was $0.18. All % changes are Y/Y.

Water Tower Research

LifeVantage Corporation: The Science of Nutrigenomics: "Take It to Make It"

On the latest WTR Small-Cap Spotlight, we sat down with CEO Steve Fife and CMO Julie Boyster to drill down on the science of nutrigenomics.

Water Tower Research

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