Lifeway Foods, Inc.

Lifeway Foods reported a significant increase in net sales for the second quarter and first half of 2026, with Q2 net sales rising 24.1% to $66.9 million and H1 net sales up 29.9% to $129.9 million. However, net income for Q2 plummeted 97% to $0.1 million, and H1 net income decreased 38.4% to $4.8 million, primarily due to higher cost of goods sold, increased selling expenses, and interest expense. The company also increased its debt with $22 million outstanding on its revolving credit facility and repurchased $4.9 million in treasury stock, while investing heavily in property and equipment.

Lifeway Foods, Inc. announced record net sales for the second quarter and first half of 2026, with Q2 net sales reaching $66.9 million, a 24.1% increase year-over-year. This marks the 27th consecutive quarter of year-over-year net sales growth. However, net income significantly declined to $0.1 million, or $0.01 per diluted share, primarily due to elevated milk prices and higher operating costs. The company anticipates a full recovery in gross margin and profitability by 2027, supported by pricing actions and operational efficiencies, including the upcoming Waukesha expansion.

Lifeway Foods, Inc. has entered into a Master Security Agreement and an Interim Funding Agreement with CIBC Bank USA. This agreement provides for loan advances totaling up to $22,000,000 to finance or refinance the acquisition of equipment. The interim funding period extends until June 30, 2027, with interest payable monthly at the 1-month Term SOFR plus 1.65%. Upon conclusion of the interim period, the advances will convert into an Equipment Guidance Line Note, maturing five years after the conversion date.

Lifeway Foods, Inc. held its 2026 Annual Meeting of Shareholders where key proposals were voted upon. Shareholders elected seven directors to the Board of Directors and ratified the appointment of Grant Thornton LLP as the independent registered public accountants for 2026. Executive compensation was also approved on a nonbinding advisory basis. The meeting saw strong participation with over 13.9 million shares represented, ensuring a quorum.

Lifeway Foods, Inc. announced that its Board of Directors authorized the redemption of all outstanding preferred share purchase rights. This action effectively terminates the previously disclosed Shareholder Rights Agreement, which was initially dated November 4, 2024, and amended on October 29, 2025. The redemption and termination are effective as of June 5, 2026, with a redemption price of $0.001 per Right.

Lifeway Foods, Inc. initially filed a proxy statement on April 30, 2026, for its annual meeting on June 17, 2026, proposing the election of seven directors and a reduction in board size from eight to seven, excluding Jason Scher. The Board subsequently decided to re-nominate Mr. Scher due to his historical knowledge and continuity, opting to maintain an eight-member Board. A supplement to the proxy statement was filed on June 3, 2026, to include Mr. Scher as a director nominee, with his election to be considered as a separate voting matter.

Lifeway Foods, Inc. announced the pricing of a secondary underwritten public offering of 3,454,756 shares of its common stock by Danone USA Public Benefit Corporation, the Selling Stockholder, at $19.50 per share. The company will not receive any proceeds from this offering. Concurrently, Lifeway Foods has agreed to repurchase approximately $5.0 million of the shares in the offering at the same per share price, with the repurchase conditioned upon the completion of the offering. The offering is expected to close on May 19, 2026.

Lifeway Foods, Inc. reported strong financial results for the first quarter of 2026, with significant increases in net sales, net income, and earnings per share compared to the prior year. The company also saw a substantial increase in property, plant, and equipment, driven by construction in process, and utilized its revolving credit facility. Additionally, the Shareholder Rights Agreement was extended to October 2026, and the company continued its organic milk supply initiative.

Lifeway Foods announced record-breaking financial results for the first quarter ended March 31, 2026, with net sales reaching $63.0 million, a 36.7% increase year-over-year. The company achieved significant gross profit margin expansion of 360 basis points to 27.5% and a 32% rise in net income to $4.7 million. These results were driven by strong growth in its flagship Lifeway Kefir and Farmer Cheese, supported by increasing consumer focus on protein-rich, probiotic foods. Lifeway also introduced new products like Muscle Mates™ and Kefir Butter™, and partnered with Erewhon for a new smoothie. The company reiterated its long-term Adjusted EBITDA target for FY 2027 and expects record annual sales in FY 2026.

Lifeway Foods, Inc. filed its definitive proxy statement for the 2026 Annual Meeting of Shareholders, scheduled for June 17, 2026. Shareholders will vote on the election of seven directors, the ratification of Grant Thornton LLP as the independent auditor, and a non-binding advisory vote on executive compensation. The filing also details the impact of a Cooperation Agreement with Danone on board refreshment and executive compensation practices, particularly regarding equity awards.