LFCR · Lifecore Biomedical, Inc.

Lifecore Biomedical's first quarter 2026 results reflect a significant revenue decline of 34% year-over-year to $23.2 million, driven by a 24% drop in CDMO revenue and a 48% decline in HA manufacturing. Gross profit margin contracted to 19.2% from 28.0%, primarily due to lower volumes and product mix. Operating expenses decreased 52% to $9.1 million, largely due to a $6.9 million loss on asset sales in the prior year quarter and ongoing cost containment initiatives. Despite the revenue headwinds, the company generated positive cash from operations of $4.7 million and free cash flow of $3.6 million. Management reaffirmed full-year 2026 guidance of $120-$125 million in revenue and $20.5-$25 million in Adjusted EBITDA, signaling confidence in a recovery through the remainder of the year. The company signed three new commercial site transfer programs in Q1, which should contribute to future revenue growth. The investor presentation highlights a strategy to achieve a 12% revenue CAGR and >25% Adjusted EBITDA margins by 2029, supported by capacity utilization improvements and a late-stage development pipeline. The company ended the quarter with $38.1 million in liquidity, providing a cushion for operations and growth investments.