Steve, the floor is yours.
Awesome. Thank you, Anthony. Thank you everyone for joining us today. I hope you've had a good conference. It's been quite busy. LifeVantage, just a quick overview of, you know, the size of the business. We are, as Anthony said, ticker symbol is LFVN. Our market cap is around $65 million. Revenue in the $200 million range and, you know, a profitable, debt-free company with cash. We are a pioneer really in a science referred to as nutrigenomics. It stands for, you know, it's wholly science-backed, natural ingredients supplements. We focus on health and wellness opportunities.
Our channel of distribution is through a direct selling channel, and we have consultants around the world. We do business in about 20 different countries. Our products are packaged in a way that lends themselves well to a subscription model. About 70% of our revenue is on a monthly subscription. Strong balance sheet with no debt. Revenue, like I said, in the $200 million range. We've got a very strong focus on returning value to our shareholders , both in terms of our growth and profitability, but also from a capital allocation structure that we'll go into more detail. We refer to ourselves as the activation company, again, in the health and wellness space.
When we talk about activate, it means both physical wellness, so inside and out, we'll talk a little bit about our tagline of take it to make it. We provide a financial opportunity for our consultants to earn income by selling our product and by attracting other consultants to our business. We operate in the direct selling space. The graph on the left shows, you know, where the product categories in that space are. Our products fall within those two top categories of wellness and personal care. Geographically, the darker items there, or colors there, are countries that we are in. We participate in the top two categories as well as six of the ten largest countries in this space.
Here's a view of our footprint, where almost 80% of our revenue comes from North America, 3% Europe, 18% in Asia. That pie chart on the right really shows the distribution of this industry. It's about a $170 billion industry , and where the geographic footprint for the industry is. You can see just the comparison. We are over-indexed in the US and significantly under-indexed in the rest of the world, which presents a very great growth opportunity for us. Most recently, we acquired a company back in the September to October timeframe , company by the name of LoveBiome. I'll talk a little bit more about the products that came with that company. First time LifeVantage has ever done an acquisition.
I'm happy to report that, as of November, the company is fully integrated. The consultant base that we acquired along with the products has been integrated and is operating under the LifeVantage compensation plan. We brought employees in that have been fully integrated and it's early days, but it's been a great acquisition for us so far. I mentioned briefly this activation approach and really what activation is to us, and it differs from supplementation. We activate our body's natural ability to do what it was originally, you know, we were born to do, and probably were doing back when we were in our teens and our twenties, before we started eating maybe less healthy, not exercising as much, and just being exposed to environmental factors.
These pictures capture our four hero products. I'm gonna talk a little bit about each one of these. This tagline of take it to make it really ties into our view of what activation is. You take our products to have your body make what it was, again, naturally did. Our flagship product is a product and the product that the company was founded on , Protandim Nrf2. So you take this product to make antioxidants. This is a product that combats oxidative stress. We have over 30 peer-reviewed studies on it. Some of them are listed on this slide.
Perhaps one of the most notable ones is the National Institutes of Health did a study a few years ago, and it was the only nutraceutical product to have proven to reduce oxidative stress by 40% in 30 days. Oxidative stress is tied to a number of inflammatory diseases, and our product has been clinically proven to increase our body's production of antioxidants. In fact, it might sound like an exaggeration, but it's a million times more powerful than any supplement that you can take. Take Protandim Nrf2 to make antioxidants. Another one of our hero products that we introduced maybe 3 or 4 years ago is a liquid collagen product.
Similarly to our Protandim product, you'd take our TrueScience Liquid Collagen to make collagen and clinically proven to increase our body's production of collagen by 100%. Well, I guess not our most recent, but a product that we launched about a year and a half ago, MindBody is a product focused on GLP-1 and weight management. You take our product to make GLP-1. This is a product that again is 100% natural. I'll go on to this next slide. Here are some of the results of the two studies that we've done, clinical studies where it's been proven to increase the production of GLP-1 in our bodies by over 200%.
Those studies also supported, you know, on average, an 11-pound weight loss over a 12-week period of time, 9% reduction in overall body fat, 24% reduction in visceral fat, which is really the bad fat. Perhaps that bullet point at the bottom of the first grouping, you know, 0% weight loss came from muscle loss, all from fat. Then there are also, you know, kind of qualitative type of benefits, reduced cravings. You know, we're thrilled with this product in terms of being able to provide an alternative to the synthetics that are out there in the market today.
A lot has happened in this space over the last 18 months, and we're proud to be able to offer consumers an alternative to the drugs that are there. This is just an overview of the size of this market. It's massive. It's projected to continue to grow over the next several years, and we feel like we have a very compelling product to participate in this space. I mentioned the acquisition of LoveBiome. Their primary product, their hero product was a product referred to as P84. LoveBiome and their products were all focused around the gut and specifically the gut microbiome. This product has been proven to increase the production of 14 different peptides in our guts. So take P84 to make gut peptides.
Like I said, this acquisition was just completed in the November timeframe, and we're seeing really some great results from this acquisition. Here's just an overview. The gut health market is also growing tremendously as people, researchers understand more and more the importance around having a gut, a healthy gut as it relates to our overall health and wellness. Not only do we study individual products, but we also look at bundling our products together. We've done research on kind of the synergistic benefits of taking Protandim and liquid collagen together, and we see an amplification of those two products when taken together.
We do have a fairly robust, what we refer to as stacking, philosophy, where the science lends itself to be amplified through the production or through the use, the consumption of two or three of our products taken together. it obviously, from a financial standpoint, helps the average ARPA, the average revenue per account, increases as we bundle these products together. I mentioned about 70% of our revenue comes from subscriptions. We also have invested heavily over the last few years on how we compensate our independent contractors, our consultants. We developed or enhanced our compensation plan.
We call it Evolve, and it gives people an opportunity to earn an income as they both build teams and sell our products. In terms of, you know, accelerating growth and what we're doing as we look forward, this is a timeline of what we've been doing over the last few years. You might not be able to read this, but you know, the ones in red are product launches that we have introduced over the last few years. Those product launches are critical as we expand the white space of our customer base. Someone that is interested in antioxidants and healthy aging is probably different than someone that is looking for a weight management opportunity.
We continue to expand our portfolio, all anchored in the activation story, but with new products and new categories. The light blue descriptors here are expansions into new markets, new comp plan investments and new tools that we've provided for our consultants. We also in the darker blue have a capital allocation process or program that is both consists of dividends as well as a share buyback. To continue to kind of make sure that foundationally we're grounded, we in our growth opportunities, we've invested significantly over the last few years internally in areas that are kind of core business functions. I've mentioned the compensation plan, I've mentioned the products, but we've also invested in our community of people.
We've invested in our digital platform, our consumer experience, as well as in our social platforms. Digitally, we announced a few quarters ago that we have entered into an agreement with Shopify, and we're in the process of developing and implementing Shopify as kind of our new e-commerce platform that is going to help both internally and to our consultants and our consumers, and be kind of best in class from that standpoint. As well as we're continuing to invest in digital tools to help our consultants build their business. With that, I'm gonna turn it over to Carl to go through some financials.
Great. Thanks, Steve. Just wanted to start off just with a quick overview of our business model. We've got a highly efficient model from a financial perspective. You can see some of the historical percentages of how we've been operating historically have been very high levels of gross margin. Gross margins are typically been around that 80% level, and a big portion of our expenses are really primarily variable in the commissions and incentive side, which provides obviously good flexibility for us. One of the things we've been really working on over the last few years, you can see we've really put a lot of energy and strategy into improving our overall adjusted EBITDA margin. Back in FY 2023, we're around 5.5%.
Over the last couple of years, we've continually increased that operating margin per percentage. Long-term, last year, we finished up just below 10%, and we believe in the near future, we can get to that 12%, which is our long-term EBITDA margin target. From a revenue perspective, we are a June 30 fiscal year-end. In our most recent fiscal year, we did see some pretty good growth, about a 14% growth over fiscal 2024. Based off of our current guidance that's out there, and as Steve mentioned earlier in the presentation, we're around that $200 million level from a total revenue perspective. When you look at revenues by geography, we looked a little bit earlier at just the map of where we are.
The U.S. is really our largest market and continues to be a very strong and performing market. You can see the growth that's happened, especially over the last year. We believe that there's still continued growth opportunities in the U.S., but we really believe internationally that there's really disproportionate growth opportunities. Japan is our next largest market at 11%, and then we've got 18 or so other countries that really make up the balance of the revenue. We view that as really open white space and areas where we really believe we can grow long term. When you look at our balance sheet, we've got a very clean balance sheet. Historically, we've carried pretty high levels of cash, generally in that $15-$20 million range.
At the end of the most recent quarter, we were down around $10 million, but we utilized a fair amount of cash, about $4 million in cash during that second quarter to close on the LoveBiome transaction. We fully anticipate to build cash levels back up to their normal, where we've been historically over the last couple of years. Overall, just really clean balance sheet, only one class of shares outstanding. We do have access to a $5 million revolving line of credit, and we also have a $75 million shelf registration that we actually just renewed and was declared effective by the SEC a couple of days ago.
Overall, really strong financial foundation, which really gives us the flexibility that we need to be able to invest properly and return value to shareholders at the end of the day. From a capital allocation perspective, we've given a lot of internal discussion at the board level and really spent a lot of energy on developing the appropriate capital allocation strategy. We really have developed this balanced approach of where we wanna invest and return to our shareholders at the end of the day.
Number one priority is always to invest internally, where we believe that that's gonna provide the highest level of return, and that's been through the compensation plan redevelopment that Steve talked about, some of the IT investment that we're currently working on with Shopify, and then continued product development on from the product side. To the extent that we don't need to, that we've got more cash flow than what's needed to reinvest in the business, we do have an active dividend program in place. We initiated dividend back in 2022, and on each of the last the anniversary date of the initiation, we've increased the dividend level in each of the last three years.
It is something that I think the board and management is still committed to on the dividend right now based off of our current stock price. The dividend yield is just under 4%. It's like 3.9%, so pretty healthy yield from that perspective. Then also we've been very active from a share repurchase standpoint. We recently announced the initiation of a new $60 million share repurchase authorization that replaced the previous authorization. Overall, we've been very active on the previous authorization over the last seven years. We've repurchased $43 million in share repurchases during that time. Overall, I think as we've talked through a lot, we believe that we're very well positioned for growth going forward.
We've got a very strong financial foundation with our product portfolio, with all the new products that we're developing and the robust roadmap we have. The introduction of the gut microbiome health product, you know, the weight loss products, we believe that is really gonna help us continue to grow. From an international standpoint we talked about the international opportunities that we believe we have, as well as just the model itself being primarily a subscription-based business model that generates high levels of cash flow and provides really high incremental margins from a financial standpoint, really strong and gives us a good foundation to grow.
Then finally, just with our network of individual consultants that we have and the large customer base that we have, we believe that there's a good balanced long-term opportunity for both our consultants and customers to continue to engage with LifeVantage as we move forward into the future. With that, maybe I'll turn it back to Anthony if there's any Q&A that came through.
Thank you very much, Steve and Carl, for sharing the LifeVantage story. As a quick reminder to those in the audience, if you do have a question, please type that into the Q&A box at the bottom of your Zoom screen, and I'll read the questions. We have a couple of questions already here. The first one is here, in regards to the GLP-1 business. You talked a little bit about it before. Obviously, it's become more competitive. Maybe just to expand on the details as far as efforts to stabilize that part of your business, and how do you see that going forward?
Yeah. No, it's a great question, and whoever asked it, you know, it is clearly that world has, you know, changed in the last 18 months. When we launched our product, it was with a lot of fanfare. At the time, the alternatives to our product were, you know, expensive drugs. People who were taking them, I think were fully aware of both the benefits and the side effects. Since then, over the last 18 months, there's just been, I think, a reinforcement of benefits and side effects or issues, but the price has come down significantly. We have looked at our pricing and, you know, evaluate that in terms of value from a competitiveness standpoint. We'll, you know, make changes there as appropriate.
We will continue to position our product as an alternative, a natural alternative to those drugs that are there. Our primary consumer group tends to be more health-conscious and proactive with their health rather than reactive to, you know, the issues that they might be experiencing. They like our products because of the natural alternative. I also think that there is a tremendous opportunity for us to be an alternative for those individuals who maybe have been on some of the drugs. Perhaps they've lost the weight that they wanted but are uncomfortable with the side effects and we're, I think, a very likely alternative from a maintenance standpoint after, you know, they choose to get off the drugs.
I think we're still very well-positioned. Our revenue has stabilized, and as we-
You know, continue to work with our consultants and with our marketing team to get our differentiators out there. I think that the future there is also positive for us.
Right. Just to quickly follow up on that, are you looking to change your messaging around that marketing as far as how your go-to market strategy, so to speak, as far as how you know to get this to spread the word about the benefits of your product?
Yeah, not currently. You know, I think we've always taken. You know, we've never positioned the product as a magic pill, you know? It's still, you still need to couple it with, you know, healthy lifestyle, perhaps changes, you know.
Mm-hmm
in terms of eating healthy and exercise, and it's all part of a wellness journey. That's been our message from the very beginning. It is part of an overall system, and that system also including lifestyle changes.
Mm-hmm. Right. Shifting gears to the LoveBiome acquisition, so it is contributing to revenue. You know, how quickly can that platform become a meaningful growth driver for the overall business?
We are, you know. There's been some natural integration challenges, you know, that come with any kind of people business. We have fully rationalized the products that came in to LifeVantage through that acquisition. You know, not only P84 I spoke about in the prepared remarks, but also there's two or three or four other products that were in their portfolio that we are launching now back out to the consumer base. From a product standpoint, we're integrated. I mentioned, you know, compensation plan, we're integrated. You know, the leaders that came, both the consultants and the corporate leaders, you know, it's kind of go time for them.
The challenges of any integration I think are behind us, and we're ready to go.
That, that's good to hear. Okay. In terms of your outlook for other acquisitions, are you open to that, or you wanna put that on hold until you fully digest this one? Just curious to get your thoughts on potential future acquisitions.
No, I think this is. You know, Carl and I, we've over the years looked at a lot of opportunities. It's always been, you know, on our radar. We just haven't found the right one. We've both had a lot of experience with M&A work in prior lives, and you know, when the right opportunity comes, you know which LoveBiome was from a culture standpoint, from a product, from a consultant-based standpoint, it checked all of our boxes, and we will continue to look at those. It's great. This is a relatively small acquisition, but it was great for, I'd say, our internal team to get an acquisition under their belt, you know, kinda cut their teeth on a smaller opportunity.
you know, we will continue to look at this as a growth strategy.
Gotcha. All right. We also have a question here just overall as far as the active independent consultants and your active customers. Can you just share with us what the trend lines have been for those, and do you need to meaningfully grow these accounts to have a healthy top line?
Carl, you wanna take that?
Yeah, sure. No, I'm happy to take that. Yeah, so when we look. That is a key metric for us when we look at our total active account base, and that's comprised of active consultants and then just our customer base. We have approximately 50,000 active consultants worldwide and almost another 70,000 or so just active customers, so around that 115,000, 120,000 rate. What we've seen with the decline and the kind of ramp-up of MindBody and then some of the decline that we've seen recently just on the MindBody product, that's primarily been on the customer side of the business, just some of these new customers that came in and then had worked their way through the product.
I think the positive news for us is that the consultant base has been relatively stable, and that really is the engine for us that it's really gonna continue to provide growth for us long term. Overall, yeah, that active account number generally correlates with revenue and is a key metric that we watch.
Mm-hmm. Got it. We also have a question here about the fact that, Steve, you are looking to retire in April, so we have a question here from the audience basically asking whether we can get an update on the CEO succession plan, if you could fill us in on that.
Yeah. Yeah, no, it's been a journey for me at LifeVantage, you know. I've been here for nine years, started as the CFO. I've been the CEO for the last five years, and I'm reminded frequently that when I started, I committed to three years with the company. I've loved my time, and I'm proud of the accomplishments that we've had here. The board has been actively engaged in a search. This has been going on for some while, and continue to make progress. As of right now, we have not named a successor, but you know, they are working towards that end.
Got it. Okay. Understood. Will we be on the lookout for an update here?
Stay tuned.
Stay tuned, exactly. All right. We're pretty much out of time. Is there anything else that you may want to add before we wrap it up? Just anything that we missed that we should have covered?
No. I you know just appreciate your interest in LifeVantage. You know we think that you know we're a company that has continued to we've got an amazing business model and an opportunity to grow here and leverage amazing products and the business opportunity that we offer to people. Stay tuned. We're gonna be doing great things.
All right. Well, sounds terrific. Well, thank you very much, Steve and Carl, for sharing the LifeVantage story. Also thank you also everyone participating and listening in, and asking thoughtful questions as well. We'll wrap it up, and, enjoy the rest of your day. Thank you again.
Awesome. Thank you.
Thanks everyone.
Take care. Thank you.