Lifeway Foods 2025 Net Sales Rise to $212.5M with 54% Profit Surge
Lifeway Foods achieved record 2025 net sales of $212.5 million, up 13.7% year-over-year (19% on a comparable basis), and net income rose 54% to $13.9 million as gross margin expanded 140 basis points. In the fourth quarter, net sales climbed 18% to $55.4 million and net income swung to $2.5 million on 250 basis points of margin expansion.
1. Full Year 2025 Record Sales and Margin Expansion
Lifeway Foods posted full year 2025 net sales of $212.5 million, marking a 13.7% increase year-over-year (19% on a comparable basis) and six years of uninterrupted volume-led growth. Gross profit margin expanded by 140 basis points to 27.4%, boosting net income by 54% to $13.9 million.
2. Fourth Quarter 2025 Turnaround and Profit Growth
In Q4 2025, Lifeway delivered net sales of $55.4 million, up 18% year-over-year, and gross margin widened by 250 basis points to 27.8%. The company swung from a prior-year net loss to net income of $2.5 million, or $0.17 per basic share, reflecting disciplined operational execution.
3. Marketing Efforts and Product Innovation
Lifeway’s marketing investments include social campaigns with professional athletes and a Barry’s Fuel Bar partnership to boost kefir consumption. The company also launched Muscle Mates™ and Lifeway Kefir Butter™ to expand its functional dairy portfolio, leveraging new U.S. dietary guidelines naming kefir as a recommended fermented food.
4. Outlook and Long-Term Targets
Management reaffirmed a long-term Adjusted EBITDA target of $45–$50 million for fiscal 2027 and expects fiscal 2026 to deliver the strongest annual sales in company history. Investments in capacity, marketing and innovation are positioned to drive continued profitable growth and capitalize on rising demand for protein-rich, probiotic foods.