Hello everyone, and thank you all for joining us during the Lytham Partners Fall 2025 Investor Conference. My name is Ben Shamsian , Vice President of Lytham Partners, and today we welcome Steven Fife, President and CEO, and Carl Aure, CFO of LifeVantage. We'll be presenting LifeVantage, which trades under LFVN on the Nasdaq. If anyone would like to set up a meeting with the company, please email me at shamsian@lythampartners.com. That's S-H-A-M-S-I-A-N at lythampartners dot com. With that, let's get started. Steven and Carl, welcome, and the floor is yours.
Hey, thanks a lot, Ben. It's an honor to be with you here today and to share our story about LifeVantage. Get those perfunctory slides out of the way. Just at a glance, LifeVantage is the pioneer in activation and nutrigenomics. All of that, I'm going to go into more detail with that, but what it really means is we have science-based natural products that are very unique and help our biology and help our bodies do what they originally intended to do. We sell our products through a direct sales channel. We have about 50,000 independent consultants around the world, 132,000 customers. We sell our products in about 20 countries. About 70% of our revenue is on a subscription. Most of our products are packaged in a 30-day consumption pack. We have a very high variable cost structure with minimal capital requirements and have a very strong balance sheet.
In fiscal 2025, we're a June 30th year-end, so we just ended our fiscal year a couple of months ago. We did about $229 million in revenue, $22 million in EBITDA, or just under 10%. We've got a market cap of around $167 million, and I'm proud to communicate that we've returned over $19 million to shareholders over the last couple of years. I mentioned the word activation company, and activation is a word that we use to describe not only our products, and it's very different than a lot of companies out there that supplement with natural products. Our products are really intended to go and are very focused at a cellular level to restore, to replenish, to do things that your body naturally did.
I'll talk a little bit more about our products, but we also like to talk about the activation that we have from a financial standpoint. Our independent consultants, these are entrepreneurs, business people throughout the world that look at this as a business opportunity to share our amazing products. Just a little bit of background on the direct selling industry, if you're not aware, here's on the left side is the category breakdown. Our product lines fall under those first two categories, under wellness and personal care. On the right shows the overall market, the top 10 direct selling countries and shows where we have a presence in six out of those top 10 markets. This view is where our geographic footprint is. About 79% of our revenue is in North America. We have a small presence in Europe and then in Asia, Southeast Asia, we're about 18%.
That pie chart on the right shows you the distribution of this direct selling channel throughout the world. We're really, you know, underrepresented in Europe and in Asia, and I view that as a massive growth opportunity for us as we go forward. I want to jump in and share some exciting news that just a couple of weeks ago, we did announce the acquisition of a company by the name of LoveBiome. It's a small company in the direct- selling space, but a company that is very, very focused on microbiome health, gut health. They developed a product fairly recently that is just taking off, and we're fortunate to have entered into this partnership. We announced it on September 3rd. We expect that the transaction will close on October 1st and that we will be fully integrated as a combined company around November 1st.
Their footprint, they have a large global footprint with, you know, the majority of their revenue coming from the United States, followed by Taiwan and Europe. I'll talk a little bit more about their products here. This activation, here are, you know, we've got about 40 different individual products SKUs, but four of them are really, we consider our hero products. Protandim Nrf2, the product on the left here, it is our flagship product. It represents just under 50% of our revenue, the product that the company was founded on, and it activates the Nrf2 pathway in our bodies, which is responsible for the production of antioxidants. A few years ago, we launched a liquid collagen product. It's very unique in form. It comes in a little shot glass. You take it daily. It, again, has been clinically proven to enhance by 100% the production of collagen in our bodies.
Not just adding collagen, but, you know, actually helping to produce collagen. On the far right is our MindBody GLP-1 product that we launched a year ago. This is a natural alternative to the synthetics out there that I'll talk about in a little more detail. Finally, PhytoPower P84 is LoveBiome's hero product. This is a product focused on the gut microbiome. One of the simplest ways to think about our product is we've got a hashtag that we use in a lot of our material, but it's take it to make it. You take our products to make something that your body naturally does. Just a minute about Protandim Nrf2. I mentioned this is our flagship product. Over 30 peer- review studies have been done on this product over the last 20 years or so.
It is 1 million times more powerful than any kind of supplement you can take to enhance the antioxidants in your bodies. You take Protandim Nrf2 to make antioxidants. With our collagen product, I mentioned it increases the production of collagen by 100%. One of the other things that we've done with our product line is we are really careful not just to look at individual ingredients, but we look at the entire end product when we do our clinical studies. We go beyond that and we look at the synergistic benefits of what happens when you take two products together. In this case, we are talking about our Protandim Nrf2 and collagen. You take our Healthy Glow stack, this bundle of the two products together, and it produces and it makes antioxidants and collagen. GLP-1, this is a 100% natural alternative to the synthetics that are out there.
It's a two-part system, two capsules that you take first thing in the morning, and then a powder that is rich in fiber that amplifies the production of those two capsules. We have done two clinical studies on this now, and in both cases, the average has proven to be that it increases the production of GLP-1. This is a hormone in your body by over 200%. There are a lot of quantitative results from this study, as well as qualitative results. This is some before and after pictures of a couple of our customers, what they experienced over a 30-day time period. This 200% increase in the production of GLP-1 was over a 12-week study. Average weight loss was 11 lbs over that 12 weeks.
Also, 9% decrease in overall body fat, 24% decrease in visceral fat, 6% increase in skeletal muscles, and 100% of the weight loss was from fat. No muscle loss was reported in either of the two studies that we've done, which is phenomenal, right? When you think about GLP-1, there are a number of side effects of the synthetics out there, and we are pleased that we can report the results from these studies that indicate zero muscle loss. There are also more qualitative results that the study participants reported, like decrease in sugar cravings, they ate less at meals and other things, all of which is to help with weight management and really a healthy weight protocol. GLP-1, if you don't know, is a hormone that our bodies naturally produce down in our gut. It's in the lower intestine.
One of the reasons why we're so excited about this acquisition with LoveBiome is the synergistic benefits that we know we're going to see by the enhancements with our GLP-1 with the P84 product that we just acquired. The weight loss market is obviously massive. Here are some stats that, in the U.S. a couple of years ago, it was a $19 billion industry, projected to be an $88 billion industry by 2032. Virtually the vast majority of adults throughout the world are either trying to lose weight or maintain their weight. It's a massive market. The same thing is true with LoveBiome’s P84 as it relates to gut health and the gut microbiome. This is a very unique formula that is a holistic approach. It's more than just a prebiotic or a probiotic, and you're having to change different strains at different times.
This is a holistic approach to actual gut health, getting it to the root source. It regulates, it repairs, and it restores your gut lining, that microbiome that is critical to health. This industry is also a massive industry and growing at over an 8% CAGR over the next several years, projected to be a $32 billion industry. I mentioned our bundling or stacking strategy. We love combining our products together because we know that there's a synergistic benefit. We'll be adding LoveBiome to that story. I mentioned at the very beginning that 80%, sorry, 70% of our revenue is on a monthly subscription. A few years ago, we invested heavily in a compensation plan. This is how we pay our consultants. We call it Evolve . I think of this as one of our amazing products, a hero product. It's these consultants that are our sales force.
We really enhanced our plan by making it much simpler to understand, much more attractive to people that have a social selling or affiliate background and want to simply sell product, but also enhance the aspect of those traditional entrepreneur business builders who want to build an organization, a team of people that are selling our products. The last several years, this chart, I love this chart because it really shows what we've been focusing on. In red, it shows various product launches that we've had. In the lighter blue, it really shows platform development. Some of these are country launches. Some of them are the comp plan change that I mentioned. Some of them are system or technology improvements. We've invested internally in the company over the last couple of years in order to be able to sustain and have growth opportunities organically and through acquisition.
In the darker blue, this is just a glimpse at our capital allocation. We have a quarterly dividend that we put in place back in 2022. We have an active share buyback program. The acquisition of LoveBiome just a few weeks ago is all part of this blended, balanced approach of how we invest in our business internally, as well as providing returns to our shareholders, not just through our business, but through buybacks and dividends. The last few years, we've called what we've been going through a transformation of the company, LV360. We looked at all aspects of our business very holistically. A lot of the progress that we've made is because of this real focus on core elements of our business. With that, I'm going to turn it over to Carl to go through our financials.
Thanks, Steve. Yeah, I wanted to start off here looking a little closer at our business model from a financial perspective. We've got a highly efficient model from a business perspective here. You look at historically, we've had very high gross margins over the last several years. We're pleased with the progress we saw on FY 2025, with an improvement in our overall gross margin, getting back above our long-term target there of 80%. On the commissions and incentive side that Steve referenced earlier, we have a very highly variable cost structure. This commissions and incentive line is primarily variable and is the compensation that we ultimately pay out to our third-party sales force. On the profitability side, I think that the key highlight or what we're really most proud of is just the continued progression in our improved profitability metrics.
You can see in FY 2023, we had an operating EBITDA margin around 5.5%, a 300 basis point improvement as we move forward to FY 2024. In FY 2025 that we just recently reported a couple of weeks ago, another 120 basis point improvement in our profitability. This is something that we're focused on as a company, and we believe that we continue to improve that EBITDA margin to get to our long-term target there of 12%. From a revenue perspective, also, as I just mentioned, just with the completion of FY 2025, we experienced some really good growth over the prior year. We were up over 14% versus FY 2024, and it was really driven by the success of the MindBody product that Steve talked about earlier in the presentation. We launched that in the U.S. in October of last year and really saw very phenomenal success.
As you look forward to our guidance in next year, we are anticipating moderate growth in our core business going forward into FY 2026. From a geographical perspective, we've talked about that the U.S. is our largest market there, representing almost 80% of the total revenue. The U.S. has had a very large increase over the last couple of years. You see more than $20 million increase, up over 20% year- over- year on the U.S. side. Internationally, as we've talked about, Japan is our next largest market at 11%. We have products that we're selling in 20 markets worldwide. From a balance sheet perspective, we've got a very clean and flexible balance sheet. We ended the year with just over $20 million in cash, working capital of just under $24 million. We have a very clean equity. We only have one class of shares outstanding.
We also have access to a $5 million revolving credit facility. We also have a $75 million shelf registration statement that's out there in place. Overall, I think that the strength of our balance sheet really gives us the flexibility to do what we need to do to grow, whether that's investing internally or facilitating the acquisition that we talked about with LoveBiome. We have a very strong balance sheet that really sets us up for success on a going forward basis. A little bit more on capital allocation. We touched on this briefly, but we've spent a lot of time internally developing our capital allocation strategy. We really believe in this balanced approach that we've been following over the last couple of years.
Number one, we want to invest internally in growth and investing in LV360 and new product development with the launch of MindBody product , some of these LV360 initiatives, and IT-related investments. These are all areas that we've invested internally that really have supported our growth here in the current fiscal year. Outside of that, we also talked about the dividend program. About a little over three years ago, we implemented a quarterly dividend. On each of the last three, on the anniversary date of that initiation, we've increased that dividend rate in each of the last three years. We're committed to the dividend going forward. In September of 2023, we also declared and paid a special one-time dividend of around $0.40 a share.
During that time, we had just accumulated some excess cash, and we determined internally that that was the best approach to return some additional funds to our shareholders. On the share repurchase front, we currently have a $60 million share repurchase authorization, of which we've purchased almost over $43 million in total share repurchases over the last six years or so. We have about $17 million remaining under that authorization and will continue to be active from a stock buyback perspective as the market conditions permit. Overall, I think that just our investment internally, along with our balanced capital allocation strategy, has really contributed to our stock performance, particularly over the last year and over the last three-year period.
You can see our one-year TSR is at 72%, which is far in excess of our peer group and the Russell 2000, as well as our three-year TSR, really strong, almost 300% total TSR, and again, far in excess of our, in relation to our peer group and to the Russell 2000. Overall, I just think where we stand, we believe that we're very well positioned for growth going forward. Our focus on the scientific-backed products, when we've talked about the recent launch of MindBody , as well as this new acquisition of LoveBiome and the impact of that P84 product line, we really believe that our products are on trend and really have the potential to grow going forward. Also, international, we talked a little bit about international, but we believe international has some very outsized growth opportunities for us if we can execute properly international.
The predictability of our subscription-based business model, we talked about 70% of our total revenues are on this subscription-based model, really helps from a strong cash flow. Overall, we continue to generate substantial free cash flow. Overall, we just believe that we're very well positioned here with not only our consultant base and our overall customer base. We really believe that we're well positioned for continued growth going forward. With that, I turn it back over to Ben.
All right. Thank you, Steve and Carl. Thanks for taking the time, and thank you everyone for watching. Again, if you have questions or would like to schedule a meeting with LifeVantage, please send me an email at shamstein.