Lifeway Foods Q1 Sales Jump 36.7% to $63M with 32% Profit Gain
Lifeway Foods delivered Q1 net sales of $63.0 million, up 36.7% year-over-year, while gross margin rose 360 basis points to 27.5% and net income climbed 32% to $4.7 million. The company cut SG&A by 300 basis points, reiterated a $45–50 million FY2027 Adjusted EBITDA target and forecasts record FY2026 sales.
1. Record First Quarter Performance
Lifeway Foods achieved $63.0 million in net sales for Q1 2026, representing a 36.7% year-over-year increase and extending its streak to 26 consecutive quarters of growth. Volume gains in Lifeway Kefir and Farmer Cheese drove the top-line momentum as consumer demand for protein-rich probiotic foods accelerated.
2. Margin Expansion and Profit Increase
Gross profit margin widened by 360 basis points to 27.5%, reflecting improved costing and product mix, while net income rose 32% to $4.7 million, or $0.31 per share, underscoring disciplined operational execution and strong flow-through on rising sales.
3. Operational Efficiency and SG&A Control
Selling, general and administrative expenses totaled $10.9 million, up 16.8%, yet narrowed by 300 basis points as a percentage of sales due to greater marketing ROI and disciplined spending behind core products. This efficiency gain highlights the company’s ability to invest in growth while managing overhead.
4. Outlook and Guidance
Lifeway Foods reiterated its long-term target of $45–$50 million in Adjusted EBITDA for FY2027 and expects to deliver its strongest annual sales in company history in FY2026, driven by ongoing consumer tailwinds and a pipeline of innovative functional dairy offerings.