LifeStance (Nasdaq: LFST) has tapped Dave Bourdon, its chief financial officer, to lead the company as CEO. The leadership change comes as the outpatient mental health provider signals plans to accelerate its merger and acquisition strategy and achieve profitability by 2026.

The company’s outgoing CEO, Ken Burdick, will now move to the role of executive chairman of the LifeStance board. Meanwhile, Cigna vet Ryan McGroarty will join the company as CFO.

In LifeStance’s Q4 earnings call, Bourdon noted that he would continue the path set out by Burdick, who has been with LifeStance since 2022.

“I share the same vision for LifeStance as Ken, and you should not expect to see any major pivots in our strategy,” Bourdon said on the call.” I believe wholeheartedly in the potential of our hybrid commercially insured business model, and look forward to leading LifeStance as we continue on our path toward unifying mental and physical healthcare.”

While the company is set to follow the course laid out by Burdick, there may be some changes underway as LifeStance evaluates its future. Over the last few years, the provider has focused primarily on organic growth, which could be changing.

“Our focus on operational and financial discipline over the last two years has contributed to the positive trajectory of the company with a more standardized operating model, as well as an improved capital position and positive free cash flow generation. We are now at a stage, both operationally and financially, where we are ready to return to acquisitions as early as this year,” Burdick said on the Q4 earnings call. “Going forward, our approach to M&A will be very disciplined. We will be selective in pursuing acquisitions that are focused on expanding capabilities, services, or customer segments. We will continue to be primarily dependent on organic growth and will be strategic in pursuing deals that meet more stringent criteria.” 

Not only is the provider looking to continue its M&A, it’s looking at larger deals.

“The history of building LifeStance, in part, was the history of tuck-in acquisitions,” Burdick said. “What we were trying to signal on the call is that while there may be tuck-ins, we will have a more expansive view of ways in which we can strengthen and enhance our value proposition to all stakeholders. So it could be a business that provides a particular service that’s going to strengthen the way we do business. It could be a new customer segment. “

Overall, LifeStance posted $1.2 billion in revenue for the full 2024 year, a 19% year-over-year increase. Its Q4 revenue was $325 million, representing a 16% year-over-year growth. Meanwhile, its positive cash flow is $86 million.

While it hasn’t always been smooth sailing for LifeStance since going public in 2021, its leadership is optimistic about its financial performance in the next few years.

“Furthermore, we believe that in 2026 we will achieve positive net income and earnings per share for the full year,” Bourdon said. “This is a key milestone in our journey as a public company.”