Lifeway Foods reported record third‑quarter 2025 sales of $57.1 million, a 24% year‑over‑year increase and a 29% rise on a comparable basis, driven by robust demand for its flagship kefir and farmer’s cheese lines. Net income rose to $3.5 million, up 17% from $3.0 million in Q3 2024, while earnings per share of $0.23 fell $0.01 short of the $0.24 consensus estimate, reflecting a modest margin compression in the period.
Gross margin expanded to 28.7% from 25.7% a year earlier, a 300‑basis‑point lift that reflects both volume‑driven cost efficiencies and favorable conventional milk pricing. The Waukesha plant expansion, now in its first stage, has begun to deliver operational leverage, allowing Lifeway to spread fixed costs over a larger production base and to maintain pricing power in a competitive probiotic‑food market.
Segment analysis shows that kefir sales grew 30% in volume, while farmer’s cheese increased 22%, underscoring the company’s ability to capture consumer interest in gut‑health products. Management highlighted the growing GLP‑1 medication trend as a tailwind for probiotic consumption, suggesting that broader health‑and‑wellness narratives are reinforcing Lifeway’s core product demand.
The company reiterated its long‑term target of $45–$50 million in adjusted EBITDA by fiscal year 2027, signaling confidence in continued scale and margin improvement. No new quarterly guidance was issued, but the management team emphasized that the current trajectory supports the long‑term outlook.
Investors responded positively to the earnings release, with the market citing the revenue beat and margin expansion as key drivers. The EPS miss was viewed as a small deviation in an otherwise strong performance, and analysts noted that the company’s operational efficiencies and capacity expansion position it well for future growth.
Management commentary from CEO Julie Smolyansky underscored the company’s focus on cost discipline, marketing investment, and the strategic importance of the Waukesha expansion. She emphasized confidence in sustaining profitable growth amid a health‑trend‑driven market.
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