LWAY Lifeway Foods, Inc.

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$21.72

Lifeway Foods® Reports Record High Quarterly Net Sales, Extends Kefir Category Leadership in Third Quarter 2026

Thursday, November 12, 2026 · 4:01 PM ET PR Newswire

28th consecutive quarter of year-over-year net sales growth; year-to-date 2026 net sales up 25.8%

MORTON GROVE, Ill., Nov. 12, 2026 /PRNewswire/ -- Lifeway Foods, Inc. (Nasdaq: LWAY) ("Lifeway" or "the Company"), the leading U.S. supplier of kefir and fermented probiotic foods, today announced financial results for the third quarter ended September 30, 2026.

Lifeway Foods

"Lifeway delivered another record breaking quarter with net sales of $67.8 million, extending our streak of topline growth to 28 consecutive quarters," said Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods. "The consistent, volume-led growth we are seeing for our authentic Lifeway Kefir and Lifeway Farmer Cheese is extraordinary, reflecting the deep trust we have established with our growing consumer base and the ongoing commitment of our retailer partners. Our performance also reflects the rising demand for fermented dairy, as consumers increasingly seek functional, high quality-protein offerings and retailers identify ways to dedicate more shelf space to products like ours. With 7 years of uninterrupted growth and decades spent building this category, Lifeway is uniquely positioned to meet the moment and capitalize on this demand."

Ms. Smolyansky continued, "Profitability this quarter continued to reflect an elevated input cost environment, and while we expect the cost pressure to persist in the fourth quarter, our outlook for 2027 has not changed. We expect the planned price increases across our portfolio to take effect with distributors and retailers on a rolling basis through the end of the year and into the first quarter of 2027. With our pricing actions and the productivity gains we anticipate from our capacity investments, we expect gross margin expansion and improved profitability in 2027. The scale-up of our Waukesha facility, scheduled for completion in early 2027, will eliminate capacity challenges we have encountered and allow us to serve the massive level of demand in front of us. We are well on pace to shatter our annual net sales record in 2026, and look forward to extending our category leadership and building on this momentum as we look ahead to 2027."

Third Quarter 2026 Highlights

  • Net Sales: $67.8 million, the highest quarterly net sales in Company history, up 18.6% year-over-year, primarily driven by higher volumes of the Company's branded drinkable kefir.
  • Gross Profit Margin: 18.0%, compared to 28.7% in the prior-year period, primarily reflecting elevated input costs including milk, resin-based packaging, ingredients, and transportation costs.
  • Selling, general and administrative expenses were 16.2% of net sales, compared to 19.6% last year, reflecting continued investment in marketing and brand awareness.
  • Net Income: $0.3 million, or $0.02 per basic and diluted common share, compared to net income of $3.5 million, or $0.23 per basic and diluted common share, in the prior-year period.

Year-to-Date 2026 Highlights

  • Net Sales: $197.7 million, up 25.8% year-over-year.
  • Gross Profit Margin: 21.5%, compared to 27.3% in the prior-year period.
  • Selling, general and administrative expenses were 17.2% of net sales, compared to 19.1% last year.
  • Net Income: $5.1 million, or $0.33 per basic and diluted common share, compared to net income of $11.3 million, or $0.75 per basic and $0.74 per diluted common share, in the prior-year period.

Historic Growth Record

  • 28 consecutive quarters of year-over-year net sales growth, reflecting seven years of uninterrupted quarterly growth.
  • Four consecutive years of record annual net sales from 2022 through 2025, increasing from $141.6 million to $212.5 million – a cumulative increase of 50.1%.
  • Year-to-date net sales equaled approximately 93% of full-year 2025 net sales, with the Company well on pace to set a record high in annual net sales in 2026, far exceeding the high-bar set in 2025.

Industry Recognition

In October, Lifeway was named to Fortune's 2026 list of the 100 Fastest-Growing Companies, ranking No. 45, reflecting the Company's sustained, volume-led growth and the strength of consumer demand for kefir and other cultured dairy products. This inclusion places Lifeway among an elite group of publicly traded companies that have delivered notably strong financial performance. This follows the induction of President and Chief Executive Officer Julie Smolyansky into the Specialty Food Association Hall of Fame this summer, in recognition of her leadership in transforming kefir from a niche product into a mainstream functional-food category.

Conference Call and Webcast
A live conference call and Q&A session with management discussing these results with additional comments and details will be made available through the "Investor Relations" section of the Company's website at https://lifewaykefir.com/webinars-reports/ at 4:30 p.m. ET on November 12, 2026. Those interested in participating in the live call can dial 1-877-407-9716 or 1-201-493-6779. The webcast will be archived and available for replay.

About Lifeway Foods, Inc.
Lifeway Foods, Inc. is the brand that introduced kefir to generations of American consumers. For 40 years, Lifeway has defined authentic, real kefir in the U.S. market while building the expertise, consumer trust and scale that support its category leadership. The Company has been recognized as one of America's Growth Leaders by TIME, as Dairy Foods' Processor of the Year 2025, as one of Forbes' Best Small Companies and on Inc.'s 2025 Best in Business list in the Best Challenger Brands category. In addition to its drinkable kefir portfolio, Lifeway produces Farmer Cheese – a 40-year legacy line now expanding to mass retail – Kefir Butter, Muscle Mates™, a variety of cheeses and ProBugs® for kids. Lifeway products are sold across the United States, Mexico, the United Arab Emirates, Central America and the Caribbean. Learn more at lifewayfoods.com

Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, unaudited estimated net sales. These statements use words, and variations of words, such as "anticipate," "plan," "project," "estimate," "potential," "forecast," "will," "continue," "future," "increase," "believe," "outlook," "expect," and "predict." You are cautioned not to rely on these forward-looking statements. These forward-looking statements are made as of the date of this press release, are based on current expectations of future events and thus are inherently subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond Lifeway's control. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from Lifeway's expectations and projections. These risks, uncertainties, and other factors include: price competition; the decisions of customers or consumers; the actions of competitors; changes in the pricing of commodities; the effects of government regulation; possible delays in the introduction of new products; and customer acceptance of products and services. A further list and description of these risks, uncertainties, and other factors can be found in Lifeway's Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Copies of these filings are available online at https://www.sec.gov, http://lifewaykefir.com/investor-relations/, or on request from Lifeway. Lifeway expressly disclaims any obligation to update any forward-looking statements (including, without limitation, to reflect changed assumptions, the occurrence of anticipated or unanticipated events or new information), except as required by law.

Derek Miller
Vice President of Communications, Lifeway Foods
Email: derekm@lifeway.net 

General inquiries:
Lifeway Foods, Inc.
Phone: 847-967-1010
Email: info@lifeway.net

LIFEWAY FOODS, INC. AND SUBSIDIARIES

Unaudited Consolidated Balance Sheets

September 30, 2026 and December 31, 2025

(In thousands)



September 30,

December 31,


2026

2025


(Unaudited)



Current assets







Cash and cash equivalents

$

6,975

$

5,571

Accounts receivable, net of allowance for credit losses and discounts & allowances of
     $2,900 and $1,730 at September 30, 2026 and December 31, 2025, respectively

22,353


16,643

Inventories, net

13,594


11,890

Prepaid expenses and other current assets

2,470


2,627

Refundable income taxes

636


325

Total current assets

46,028


37,056









Property, plant and equipment, net

67,393


48,282

Operating lease right-of-use asset

504


465

Goodwill

11,704


11,704

Intangible assets, net

5,413


5,818

Other assets

1,629


2,285

Total assets

$

132,671

$

105,610









Current liabilities







Accounts payable

$

12,739

$

11,008

Accrued expenses

6,363


5,413

Accrued income taxes

716


218

Total current liabilities

19,818


16,639









Line of credit

11,950


–

Note payable

12,032


–

Operating lease liabilities

370


360

Deferred income taxes, net

2,792


2,792

Other long-term liabilities

251


–

Total liabilities

47,213


19,791









Commitments and contingencies (Note 9)

–


–









Stockholders' equity







Preferred stock, no par value; 2,500 shares authorized; none issued

–


–

Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 15,108
     and 15,232 outstanding at September 30, 2026 and December 31, 2025,
     respectively

6,509


6,509

Treasury stock, at cost

(17,194)


(13,214)

Paid-in capital

2,401


3,843

Retained earnings

93,742


88,681

Total stockholders' equity

85,458


85,819









Total liabilities and stockholders' equity

$

132,671

$

105,610

 

LIFEWAY FOODS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

For the three and nine months ended September 30, 2026 and 2025

(Unaudited)

(In thousands, except per share data)



Three Months Ended

September 30,

Nine Months Ended

September 30,


2026

2025

2026

2025













Net sales

$

67,797

$

57,143

$

197,702

$

157,135

















Cost of goods sold

54,599


39,821


152,199


111,744

Depreciation expense

1,034


914


2,962


2,548

Total cost of goods sold

55,633


40,735


155,161


114,292

















Gross profit

12,164


16,408


42,541


42,843

















Selling expense

6,434


5,047


20,256


14,463

General and administrative expense

4,510


6,186


13,870


15,566

Amortization expense

135


135


405


405

Total operating expenses

11,079


11,368


34,531


30,434

















Income from operations

1,085


5,040


8,010


12,409

















Other income (expense):















Interest expense

(340)


(21)


(623)


(56)

Fair Value Loss on investments

–


–


–


(20)

Gain on sale of investments

–


–


–


3,407

Other income (expense), net

20


73


42


229

Total other income (expense)

(320)


52


(581)


3,560

















Income before provision for income taxes

765


5,092


7,429


15,969

















Provision for income taxes

505


1,563


2,368


4,651

















Net income

$

260

$

3,529

$

5,061

$

11,318

















Net earnings per common share:















Basic

$

0.02

$

0.23

$

0.33

$

0.75

Diluted

$

0.02

$

0.23

$

0.33

$

0.74

















Weighted average common shares outstanding:















Basic

15,107


15,229


15,174


15,190

Diluted

15,253


15,422


15,314


15,381

 

LIFEWAY FOODS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)



Nine months ended September 30,


2026

2025

Cash flows from operating activities:







Net income

$

5,061

$

11,318

Adjustments to reconcile net income to operating cash flow:







Depreciation and amortization

3,367


2,953

Stock-based compensation

1,708


1,466

Non-cash interest expense

16


14

Bad debt expense

87


–

Gain on sale of equipment

(17)


(115)

Gain on sale of investments

–


(3,407)

Fair value loss on investment

–


20

(Increase) decrease in operating assets:







Accounts receivable

(5,797)


(1,997)

Inventories

(1,704)


(2,378)

Prepaid expenses and other current assets

354


123

Refundable income taxes

(311)


497

Increase (decrease) in operating liabilities:







Accounts payable

2,413


3,330

Accrued expenses

(988)


(1,143)

Accrued income taxes

497


–

Other long-term liabilities

251


–

Net cash provided by operating activities

4,937


10,681









Cash flows from investing activities:







Purchases of property and equipment

(22,757)


(9,675)

Proceeds from sale of equipment

433


115

Proceeds from sale of investments

–


5,206

Net cash (used in) provided by investing activities

(22,324)


(4,354)









Cash flows from financing activities:







Purchase of treasury stock

(4,937)


–

Borrowings under line of credit

25,000


–

Repayments under line of credit

(13,000)


–

Proceeds from note payable

12,032


–

Payment of deferred financing costs

(21)


(65)

Equity award settled in cash

(283)


–

Net cash provided by (used in) financing activities

18,791


(65)









Net increase in cash and cash equivalents

1,404


6,262









Cash and cash equivalents at the beginning of the period

5,571


16,728









Cash and cash equivalents at the end of the period

$

6,975

$

22,990









Supplemental cash flow information:







Cash paid for income taxes, net of (refunds)

$

2,181

$

4,154

Cash paid for interest

$

511

$

42









Non-cash investing activities







Accrued purchase of property and equipment

$

93

$

3,875

Right-of-use assets obtained in exchange for lease obligations

$

135

$

293

 

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SOURCE Lifeway Foods, Inc.

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