Lifecore Biomedical (LFCR) investor relations material

Executive summary

• Achieved key milestones across growth pillars, including maximizing commercial business, advancing the development pipeline, and adding 13 new programs in the past year, with eight late-stage and two commercial-stage programs.

• Implemented operational improvements such as a new ERP system and expanded aseptic filling capabilities, supporting long-term growth.

• Completed seven audits and inspections, including a critical Japanese PMDA inspection, with no material issues.

• Progressed over 40 cost reduction and productivity projects, resulting in five consecutive quarters of declining SG&A and R&D expenses.

• Reaffirmed full-year 2026 guidance and expressed confidence in long-term growth targets.

Financial highlights

• Q2 2026 revenue was $34.2M, down 6.2% year-over-year; six-month revenue was $57.4M, down 19.9%.

• Q2 gross profit was $12.1M, down from $14M year-over-year; six-month gross profit was $16.5M, down from $23.8M.

• Q2 net loss was $6.2M ($0.19/share) vs. $1.1M ($0.06/share) prior year; six-month net loss was $21.1M ($0.61/share) vs. $15.9M ($0.48/share).

• Adjusted EBITDA for Q2 was $8.6M (down $0.5M); six-month adjusted EBITDA was $9.6M (down $5.1M).

• Liquidity at quarter-end was $38.8M, including $17.2M cash and $21.6M revolving credit.

Outlook and guidance

• 2026 revenue guidance reaffirmed at $120M-$125M; adjusted EBITDA guidance at $20.5M-$25M.

• Expect step-up in CDMO revenues in H2 2026, with higher aseptic and development revenues, and Q4 weighted performance.

• Projected 12% revenue CAGR and >25% adjusted EBITDA margin by 2029.

• Capacity utilization expected at 60% by 2029, with current infrastructure sufficient for midterm growth.

• Management expects operational and cost efficiencies from the new ERP system and ongoing business transformation initiatives.