Lifecore Biomedical (LFCR) investor relations material

Executive summary

• Achieved key milestones across all three pillars of growth, including maximizing commercial business, advancing the development pipeline, and adding 13 new programs in the past 12 months, with eight late-stage and two commercial-stage programs.

• Focused on building a high-performing, growth-oriented sterile injectable CDMO, with significant investments in capacity, technology, and talent to support long-term growth.

• Implemented over 40 cost reduction and productivity projects, including operational improvements such as a new ERP system and expanded aseptic filling capabilities.

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

• 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).

• Ended Q2 with $38.8M in liquidity, including $17.2M cash and $21.6M revolving credit availability.

• Free cash flow for the six months was $0.9M.

Outlook and guidance

• 2026 revenue guidance reaffirmed at $120M–$125M; adjusted EBITDA guidance at $20.5M–$25M, with projected adjusted EBITDA margin of 17–20%.

• Long-term targets include 12% revenue CAGR and adjusted EBITDA margin exceeding 25% by 2029.

• Capacity utilization expected to rise from ~20% in FY2025 to ~60% by 2029, supporting revenue growth to $212–$225M.

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