Lifecore Biomedical (LFCR) Q1 2026 earnings summary

Executive summary

• Revenue increased 26% year-over-year to $31.1 million, driven by strong HA manufacturing and CDMO growth.

• Gross profit rose 45% to $7.8 million, with gross margin improving to 25.0% from 21.8% year-over-year.

• Net loss narrowed to $10.0 million from $16.2 million in the prior year period.

• Operating expenses declined 36% due to lower SG&A and R&D costs, including reduced non-recurring legal and audit fees.

• The company changed its fiscal year to align with the calendar year, effective May 26, 2025.

Financial highlights

• CDMO revenue grew 8% to $21.7 million; HA manufacturing revenue more than doubled to $9.4 million.

• Cost of goods sold increased 21% to $23.3 million, reflecting higher volumes.

• Interest expense rose 19% to $6.4 million, mainly due to Alcon term loans.

• Cash and cash equivalents were $18.9 million at quarter-end, up from $8.3 million at the prior fiscal year-end.

• No borrowings outstanding under the revolving credit facility as of September 30, 2025.

Outlook and guidance

• Management expects operational improvements and the launch of a new ERP system in Q1 2026 to further enhance productivity and cost control.

• Current liquidity and available borrowing capacity are expected to be sufficient for at least the next twelve months.