Lifeway Foods (LWAY) Q1 2026 earnings summary

Executive summary

• Achieved record net sales of $63.0 million for Q1 2026, a 36.7% year-over-year increase, marking 26 consecutive quarters of growth.

• Net income rose 32% year-over-year to $4.7 million, with EPS of $0.31 basic and $0.30 diluted.

• Growth driven by flagship kefir and Farmer Cheese products, supported by consumer trends toward protein-rich, probiotic foods and successful marketing initiatives.

• Expanded brand visibility through strategic partnerships, experiential marketing, and new product launches.

• Remains the largest U.S. producer of kefir, focusing on health and wellness trends.

Financial highlights

• Net sales reached $63.0 million, up from $46.1 million year-over-year.

• Gross profit margin expanded by 360 basis points to 27.5% year-over-year.

• Net income was $4.7 million, up from $3.5 million last year.

• Operating income reached $6.3 million, up from $1.6 million in Q1 2025.

• SG&A expenses rose 16.8% to $10.9 million, but improved as a percentage of revenue by 300 basis points.

Outlook and guidance

• Waukesha facility expansion on track, expected to double capacity by Q4 2026 and boost efficiency in Q1 2027.

• Expects FY 2026 to deliver the strongest annual sales in company history.

• Reiterated long-term target of $45–$50 million in Adjusted EBITDA for FY 2027.

• Management expects continued strong liquidity from operations, credit facility, and cash reserves.

• Anticipates continued growth fueled by health-conscious consumer trends and increased demand for probiotic foods.