Earnings Releases·Nov 12, 2026, 4:03 PM ET

Lifeway Foods — Third Quarter 2026 Earnings Summary

Net sales reached a record $67.8 million for the quarter (up 18.6% YoY) and $197.7 million year-to-date (up 25.8% YoY), though net income declined to $0.3 million ($0.02/share) from $3.5 million ($0.23/share) in the prior-year quarter due to gross margin compression.
Gross profit margin fell to 18.0% for the quarter (down from 28.7% YoY) and 21.5% year-to-date (down from 27.3%) primarily due to elevated input costs for milk, packaging, and transportation, with management expecting these pressures to persist into Q4.
The company anticipates gross margin expansion and improved profitability in 2027 driven by planned price increases rolling through end-2026/Q1 2027 and the completion of the Waukesha facility scale-up in early 2027.
Capital allocation included $22.8 million in property and equipment purchases (up from $9.7 million) and $4.9 million in treasury stock repurchases, while total liabilities rose to $47.2 million driven by new debt instruments and a line of credit balance of $11.95 million.