LWAY · Lifeway Foods, Inc.

Lifeway Foods delivered exceptional Q1 2026 results, with net sales surging 36.7% year-over-year to a record $63.0 million, driven by 37% volume-led growth in flagship Lifeway Kefir and Farmer Cheese amid rising demand for protein-rich, probiotic foods. Gross profit reached $17.4 million, expanding margins by 360 basis points to 27.5%, reflecting disciplined operational execution and scale benefits. Operating expenses increased to $11.0 million, with SG&A leveraged by 300 basis points despite 16.8% growth to $10.9 million from marketing investments supporting brand velocity. Net income rose 32% to $4.7 million, or $0.30 diluted EPS, with strong flow-through from top-line gains. CEO Julie Smolyansky highlighted extraordinary momentum, 26 consecutive quarters of growth, and positioning at consumer tailwinds like gut health and GLP-1 demand, bolstered by innovations such as Muscle Mates™ and Kefir Butter™. Strategic visibility efforts included Erewhon smoothie partnership, Wellness House event, and Expo West launches. Balance sheet strengthened with total assets at $120.5 million, equity at $90.3 million, though capex of $11.0 million and line of credit draw to $6.9 million fund capacity expansion. Operating cash flow of $4.4 million supported growth. The company reiterated FY2027 Adjusted EBITDA target of $45-50 million and anticipates record FY2026 sales, signaling confidence in sustained profitable expansion.