Lifeway Foods Q2 FY26 net income turns to USD 0.1 million; net sales rise 24.1% to USD 66.9 million

CEO Julie Smolyansky said margin pressure looks temporary, expecting profitability to recover in 2027 as pricing and operational efficiencies take hold.

Lifeway Foods posted Q2 net sales of $66.9 million, up 24.1% year-over-year, marking a 27th straight quarter of growth.

Net income fell to $0.1 million, or $0.01 per share, from $4.3 million, or $0.28 per share, a year earlier.

Gross margin narrowed 9.1 percentage points to 19.5% due to elevated milk prices, higher resin packaging costs, and oil-related transportation costs.

First-half net sales rose 29.9% year-over-year to $129.9 million; first-half net income eased to $4.8 million, or $0.32 per basic share.