| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 66.89 | 6.2% | 24.1% |
| Total Income | 66.89 | 6.2% | 24.1% |
| Expenditure | 66.29 | 16.9% | 37.8% |
| PBT | 0.41 | 93.5% | 93.1% |
| Net Profit | 0.13 | 97.2% | 96.9% |
| OPM | 0.90% | 9.14pp | 9.85pp |
| NPM | 0.19% | 7.23pp | 7.69pp |
| EPS | 0.01 | 96.8% | 96.4% |
Lifeway Foods Reports Record Q2 2026 Net Sales of $66.9 Million
13 Aug 2026 · 13 Aug, 6:33 pm
Summary
Lifeway Foods announced record-breaking net sales of $66.9 million for the second quarter of 2026, marking a 24.1% increase year-over-year and extending its streak of consecutive quarterly growth to 27 periods. Despite elevated milk prices impacting the gross profit margin to 19.5% from 28.6% in the prior year, the company reported first-half net sales of $129.9 million, up 29.9%. Management anticipates margin recovery in 2027 due to pricing actions, operational efficiencies, and normalizing milk costs, while also highlighting significant new distribution and the upcoming completion of its Waukesha expansion.
Key Highlights
- 1
Lifeway Foods delivered the highest quarterly net sales in Company history, reaching $66.9 million, up 24.1% year-over-year.
- 2
The company achieved its 27th consecutive quarter of year-over-year net sales growth.
- 3
First-half 2026 net sales reached $129.9 million, representing a 29.9% increase compared to the prior year period.
- 4
Gross profit margin for the second quarter was 19.5%, compared to 28.6% in the prior-year period, impacted by elevated milk prices.
- 5
Net income for the second quarter was $0.1 million, or $0.01 per diluted common share, compared to $4.3 million, or $0.28 per diluted common share, in the prior-year period.
- 6
The company is investing in marketing and brand awareness, with selling, general, and administrative expenses at 18.4% of net sales for the quarter.
Management Comments
Julie Smolyansky
Lifeway delivered the highest quarterly net sales in Company history, reaching $66.9 million and exceeding our prior record by $3.9 million. Net sales increased 24% year-over-year, on top of a record second quarter in 2025, and marked our 27th consecutive quarter of year-over-year growth. As America’s original authentic kefir brand, Lifeway has spent 40 years building the trust, expertise, nationwide distribution and retailer relationships that underpin our category leadership. This sustained, volume-led performance demonstrates the strength of our brands and the repeatability of the consumer-growth platform we have built over nearly seven years. Demand remained robust even as elevated milk prices created the primary margin headwind. We view the current margin pressure as temporary and expect these pressures to subside as conditions normalize. Given the Company’s pricing power and the positive conventional milk cost outlook for 2027, coupled with the operational efficiencies from our ongoing investments, we expect gross margin and profitability to fully recover in 2027, with the opportunity to exceed the improvement achieved in the first quarter of 2026 as pricing actions layer in and operational improvements take effect. We enter the second half of 2026 with record first-half net sales of $129.9 million, significant new retail and foodservice distribution, and the planned completion of our transformative Waukesha expansion in early 2027. Together, these investments position Lifeway to reinforce its category leadership, serve growing demand and build long-term shareholder value.
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