Q2 net income and EPS fell sharply due to higher input and transport costs.
Gross margin fell due to elevated milk prices, temporary increases in resin costs for packaging and higher oil-related transportation costs.
Selling, general and administrative expenses rose as the company continued investment in marketing and brand awareness.
Outlook calls for recovery in 2027
The company expects gross margin and profitability to fully recover in 2027.
Lifeway said current margin pressure is temporary, citing a positive milk cost outlook for 2027.
The company expects completion of the Waukesha expansion in early 2027 to support growth.
Key financial details and analyst view
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$66.89 mln
$61.40 mln (2 Analysts)
Q2 EPS
$0.01
Q2 Net Income
$127,000
Q2 Gross Profit
$13.03 mln
Q2 Income From Operations
$600,000
Q2 Operating Expenses
$12.43 mln
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell".
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