Lifeway Foods Q3 net income falls on higher input and transportation costs
LWAY•Lifeway Foods' third-quarter net sales rose 18.6% year over year to $67.8 million, beating the $66.47 million consensus, while net income fell to $260,000. The company expects input cost pressures in Q4 2026 and anticipates margin expansion and improved profitability in 2027.
1. Sales grow, income falls
Lifeway Foods reported third-quarter net sales of $67.8 million, up 18.6% year over year and above the $66.47 million consensus estimate. Net income was $260,000, while gross profit was $12.16 million and income from operations was $1.09 million.
2. Costs and outlook
The company said higher volumes of branded drinkable kefir and Farmer Cheese drove sales growth. Gross margin declined as costs rose for milk, packaging, ingredients and transportation. Lifeway expects input cost pressures to persist in Q4 2026, with price increases taking effect through the end of 2026 and into Q1 2027; it anticipates gross margin expansion and improved profitability in 2027.
