Lifecore Biomedical (LFCR) investor relations material

Executive summary

• Executed a three-pillar growth strategy: expanding commercial business, advancing the development pipeline, and adding new programs through business development.

• Q1 2026 revenue was $23.2 million, down 34% year-over-year, with a net loss of $15 million and Adjusted EBITDA of $1 million.

• Signed three new commercial site transfer programs, including a manufacturing agreement with a new aesthetics customer and two CDMO agreements with an existing U.S. biopharma customer.

• Launched a new ERP system in January 2026 to improve operational efficiency and financial management.

• Liquidity at quarter-end was $38.1 million, including $20.8 million in cash and $17.3 million in revolver availability.

Financial highlights

• Gross profit was $4.5 million, with a gross margin of 19%, down from 28% year-over-year.

• SG&A expenses decreased 21% to $7.9 million, and operating expenses declined 52% year-over-year.

• Adjusted EBITDA was $1 million, down from $5.7 million year-over-year, with an Adjusted EBITDA margin of ~4%.

• Free cash flow was $3.6 million, a turnaround from negative $4.3 million in the prior year period.

• Net loss per diluted share was $0.43, compared to $0.42 in the prior year.

Outlook and guidance

• Reaffirmed 2026 guidance: revenue of $120–$125 million, net loss of $35.4–$30.9 million, and adjusted EBITDA of $20.5–$25 million.

• Expects revenue and EBITDA to be weighted toward the second half of 2026, with 40–45% in H1 and 55–60% in H2.

• Targeting 12% revenue CAGR and Adjusted EBITDA margins above 25% by 2029.

• Margin improvement initiatives and ERP implementation expected to support mid-term goals.

• Three new commercial site transfers expected to generate mid seven-figure annual revenue each starting in 2028.