Salt Lake City, UT, February 2, 2023, LifeVantage Corporation (Nasdaq: LFVN) today reported financial results for its second fiscal quarter ended December 31, 2022.

•Revenue of $53.7 million, an increase of 2.8% from the prior year period. Excluding the negative impact of foreign currency fluctuations, second quarter revenue was up approximately 7.4%;

•Revenue in the Americas increased 14.4% including a 15.4% increase in the United States. Revenue in Asia/Pacific & Europe decreased 20.2% and was down approximately 7.0% excluding the negative impact of foreign currency fluctuations;

•Total active accounts declined 8.6% from the prior year period to 149,000, reflecting a decline of 7.1% in the Americas and a 12.0% decline in Asia/Pacific & Europe;

•Net loss per diluted share were $0.08, versus net income of $0.01 per diluted share a year ago;

•Adjusted loss per diluted share were $0.07, versus adjusted earnings per diluted share of $0.05 a year ago;

•Adjusted EBITDA of $0.8 million, compared to $1.9 million a year ago; and

•Strong balance sheet with $17.4 million of cash and no debt.

* All comparisons are on a year over year basis and compare the second quarter of fiscal 2023 to the second quarter of fiscal 2022, unless otherwise noted.

“We reached a positive inflection point in the second quarter, delivering year-over-year revenue growth of 7.4% on a constant currency basis including a 15.4% increase in the U.S.,” said Steve Fife, President and Chief Executive Officer of LifeVantage. “Our latest results reflect strong execution against our key priorities along with the continuation of robust sales from our innovative Liquid Collagen product that launched in June. LV360, the strategic transformation we recently announced, will help us build on this momentum by strengthening the alignment between Consultants and Customers with a new compensation plan and customer loyalty program that will go live on March 1st. Coupled with our strong innovation pipeline, including three new products launching concurrently, along with our expanding international distribution across core products and markets, our LV360 strategy solidifies our leadership as an Activation company and positions us for growth and improved profitability.”

For the second quarter of fiscal 2023, the Company reported revenue of $53.7 million, a 2.8% increase over the second quarter of fiscal 2022. Excluding the negative impact of foreign currency fluctuations, second quarter revenue was up 7.4%. Revenue in the Americas region for the second quarter of fiscal 2023 increased 14.4%, including a 15.4% increase in the United States. Revenue in the Asia/Pacific & Europe region decreased 20.2% and was negatively impacted by foreign currency fluctuations. On a constant currency basis, revenue in Asia/Pacific & Europe decreased approximately 7.0% for the three months ended December 31, 2022.

Gross profit for the second quarter of fiscal 2023 was $41.9 million, or 78.1% of revenue, compared to $42.5 million, or 81.5% of revenue, for the same period in fiscal 2022. The decline in gross profit margin was primarily driven by increased shipping expenses as well as shifts in geographic and product sales mix during the quarter.

Commissions and incentives expense for the second quarter of fiscal 2023 was $23.6 million, or 43.9% of revenue, compared to $25.4 million, or 48.8% of revenue, for the same period in fiscal 2022. The decrease in commissions and incentives expense as a percentage of revenue was due to price increases during the quarter as well as impacts related to the timing and magnitude of promotional and incentive programs.

Selling, general and administrative (SG&A) expense for the second quarter of fiscal 2023 was $19.6 million, or 36.5% of revenue, compared to $17.4 million, or 33.4% of revenue, for the same period in fiscal 2022. Adjusted for nonrecurring expenses, which are detailed in the GAAP to non-GAAP reconciliation tables included at the end of this press release, adjusted non-GAAP SG&A expenses for the second quarter of fiscal 2023 were $19.4 million, or 36.1% of revenue, compared to adjusted non-GAAP SG&A expenses for the second quarter of fiscal 2022 of $16.7 million, or 32.0% of revenue. The increase in adjusted non-GAAP SG&A expense was primarily attributable to increased event and travel expenses, higher employee compensation related expenses, and increases in outside professional services related to upcoming initiatives launching in the second half of fiscal 2023 partially offset by decreases in legal, accounting, and tax services.

Operating loss for the second quarter of fiscal 2023 was $1.2 million compared to $0.4 million for the second quarter of fiscal 2022. Accounting for non-GAAP adjustments noted previously, adjusted non-GAAP operating loss for the second quarter of fiscal 2023 was $0.9 million compared to adjusted non-GAAP operating income of $0.3 million for the second quarter of fiscal 2022.

Net loss for the second quarter of fiscal 2023 was $1.1 million, or $0.08 per diluted share, which compares to net income of $0.1 million, or $0.01 per diluted share for the second quarter of fiscal 2022. Accounting for non-GAAP adjustments noted previously, net of tax, adjusted non-GAAP net loss for the second quarter of fiscal 2023 was $0.8 million, or $0.07 per diluted share, compared to adjusted non-GAAP income of $0.6 million, or $0.05 per diluted share for the second quarter of fiscal 2022.

Adjusted EBITDA was $0.8 million for the second quarter of fiscal 2023, versus $1.9 million for the comparable period in fiscal 2022.

The Company used $0.4 million of cash from operations during the first six months of fiscal 2023 compared to generating $4.5 million in the same period in fiscal 2022. Cash and cash equivalents at December 31, 2022 were $17.4 million, compared to $20.2 million at June 30, 2022, and there was no debt outstanding.

Today the Company announced the declaration of a cash dividend of $0.03 per common share. The dividend will be paid on March 15, 2023 to all stockholders of record at the close of business on March 1, 2023.

The Company expects to generate revenue in the range of $202 million to $212 million in fiscal year 2023 and adjusted EBITDA of $11 million to $13 million, with adjusted earnings per share in the range of $0.22 to $0.28, which assumes a full year tax rate of approximately 31%. This guidance reflects the current trends in the business. The Company's guidance for adjusted non-GAAP EBITDA and adjusted non-GAAP earnings per diluted share excludes any non-operating or non-recurring expenses that may materialize during fiscal 2023. The Company is not providing guidance for GAAP earnings per diluted share for fiscal 2023 due to the potential occurrence of one or more non-operating, one-time expenses, which the Company does not believe it can reliably predict.

The Company will hold an investor conference call today at 2:30 p.m. MST (4:30 p.m. EST). Investors interested in participating in the live call can dial (877) 704-4453 from the U.S. International callers can dial (201) 389-0920. A telephone replay will be available approximately two hours after the call concludes and will be available through Thursday, February 9, 2023, by dialing (844) 512-2921 from the U.S. and entering confirmation code 13735667, or (412) 317-6671 from international locations, and entering confirmation code 13735667.

There will also be a simultaneous, live webcast available on the Investor Relations section of the Company's web site at http://investor.lifevantage.com/events-and-presentations or directly at https://viavid.webcasts.com/starthere.jsp?ei=1594115&tp_key=921deb41f0.The webcast will be archived for approximately 30 days.

LifeVantage Corporation (Nasdaq: LFVN) is a pioneer in nutrigenomics, the study of how nutrition and naturally occurring compounds affect human genes to support good health. The Company engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath & body, and targeted relief products. The Company’s line of scientifically-validated dietary supplements includes its flagship Protandim® family of products, LifeVantage® Omega+™, ProBio™, IC Bright®, and Daily Wellness™ dietary supplements, the TrueScience® line of skin, hair, bath & body, and targeted relief products. The Company also markets and sells Petandim®, its companion pet supplement formulated to combat oxidative stress in dogs, Axio® its nootropic energy drink mixes, and PhysIQ™, its smart weight management system. LifeVantage was founded in 2003 and is headquartered in Lehi, Utah. For more information, visit www.lifevantage.com.

This document contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as "believe," "will," "hopes," "intends," "estimates," "expects," "projects," "plans," "anticipates," "look forward to," "goal," “may be,” and variations thereof, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. The declaration and/or payment of a dividend during any quarter provides no assurance as to future dividends, and the timing and amount of future dividends, if any, could vary significantly in comparison both to past dividends and to current expectations. Examples of forward-looking statements include, but are not limited to, statements we make regarding executing against and the benefits of our key initiatives, future growth, including geographic and product expansion, the impact of COVID-19 on our business, expected financial performance, and expected dividend payments in future quarters. Such forward-looking statements are not guarantees of performance and the Company's actual results could differ materially from those contained in such statements. These forward-looking statements are based on the Company's current expectations and beliefs concerning future events affecting the Company and involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties include, among others, further deterioration to the global economic and operating environments as a result of future COVID-19 developments, as well as those discussed in greater detail in the Company's Annual Report on Form 10-K and the Company's Quarterly Report on Form 10-Q under the caption "Risk Factors," and in other documents filed by the Company from time to time with the Securities and Exchange Commission. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document. All forward-looking statements are based on information currently available to the Company on the date hereof, and the Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this document, except as required by law.

We define Non-GAAP EBITDA as earnings before interest expense, income taxes, depreciation and amortization and Non-GAAP Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, stock compensation expense, other income, net, and certain other adjustments. Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We define Non-GAAP Net Income as GAAP net income less certain tax adjusted non-recurring one-time expenses incurred during the period and Non-GAAP Earnings per Share as Non-GAAP Net Income divided by weighted-average shares outstanding.

We are presenting Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per Share because management believes that they provide additional ways to view our operations when considered with both our GAAP results and the reconciliation to net income, which we believe provides a more complete understanding of our business than could be obtained absent this disclosure.

Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per Share are presented solely as supplemental disclosure because: (i) we believe these measures are a useful tool for investors to assess the operating performance of the business without the effect of these items; (ii) we believe that investors will find this data useful in assessing shareholder value; and (iii) we use Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per Share internally as benchmarks to evaluate our operating performance or compare our performance to that of our competitors. The use of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings per Share has limitations and you should not consider these measures in isolation from or as an alternative to the relevant GAAP measure of net income prepared in accordance with GAAP, or as a measure of profitability or liquidity.

The tables set forth below present reconciliations of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings per Share, which are non-GAAP financial measures to Net Income and Earnings per Share, our most directly comparable financial measures presented in accordance with GAAP.

Reed Anderson, ICR

(646) 277-1260

reed.anderson@icrinc.com