| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 63.01 | 36.7% |
| Total Income | 63.01 | 36.7% |
| Expenditure | 56.69 | 27.3% |
| PBT | 6.26 | 26.0% |
| Net Profit | 4.67 | 31.9% |
| OPM | 10.04% | 6.62pp |
| NPM | 7.42% | 0.26pp |
| EPS | 0.31 | 34.8% |
Lifeway Foods Reports Record Q1 2026 Net Sales of $63.0 Million, Up 37%
14 May 2026 · 14 May, 3:42 pm
Summary
Lifeway Foods, Inc. announced record-breaking results for the first quarter ended March 31, 2026. Net sales reached $63.0 million, a 37% increase year-over-year, driven by the company's flagship Lifeway Kefir. Gross profit margin expanded by 360 basis points, and net income grew by 32%. The company is investing in core products and sees impressive velocity acceleration, leveraging SG&A by 300 basis points this quarter. Lifeway reiterated its long-term target of $45–$50 million in Adjusted EBITDA for FY 2027 and believes it is well positioned to deliver the strongest annual sales in Company history in FY 2026.
Key Highlights
- 1
Lifeway Foods achieved net sales of $63.0 million in Q1 2026, representing a 37% increase year-over-year.
- 2
The company's gross profit margin expanded by 360 basis points to 27.5% in the first quarter.
- 3
Net income for Q1 2026 grew by 32% to $4.7 million, or $0.31 per basic share.
- 4
Selling, general and administrative expenses increased by 16.8% to $10.9 million, reflecting continued investment in marketing and brand awareness.
- 5
Lifeway reiterated its long-term target of $45–$50 million in Adjusted EBITDA for FY 2027.
- 6
The company believes it is well positioned to deliver the strongest annual sales in Company history in FY 2026.
Management Comments
Julie Smolyansky
We kicked off 2026 with a blowout quarter that demonstrates the extraordinary momentum we’ve built across our business,” said Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods. “We far exceeded our previous record with net sales of $63.0 million, up 37% year-over-year, surpassing sixty million in quarterly net sales for the first time and marking our 26th consecutive quarter of year-over-year growth. This exceptional top-line performance was accompanied by sizeable gross margin expansion of 360 basis points year-over-year, and equally strong net income growth of 32% that reflects a clean flow-through from our significant sales growth down to the bottom line. We are investing meaningfully behind our core products to support our rapid growth, and we continue to see impressive velocity acceleration. We also leveraged our SG&A by 300 basis points this quarter, demonstrating the increasing return and effectiveness of our investments.” Ms. Smolyansky continued, “We believe Lifeway is uniquely positioned at the intersection of numerous consumer tailwinds with our on-trend, functional product offerings. The consumer focus on health and wellness continues to increase, gut-health awareness is spreading and demand from GLP-1 users seeking nutrient-dense, probiotic foods is particularly strong. We address each of these trends with our flagship Lifeway Kefir and high-protein Lifeway Farmer Cheese, while continuing to build a pipeline of innovative products, including Muscle Mates™ with creatine and probiotic Kefir Butter™. Together, these offerings bring new excitement to the category and expand our reach across the cultured dairy landscape. We are very excited about our trajectory and confident in our ability to execute throughout 2026 as we further capitalize on the growing consumer demand in our space.” “Our momentum continues to build as we drive sustainable, profitable growth across the business,” Smolyansky concluded. “We have laid a foundation for durable, long-term value creation, and believe the investments we are making today in manufacturing capacity, marketing and innovation position us exceptionally well to capitalize on the tremendous opportunities ahead.”
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