Lifeway Foods (LWAY) investor relations material

Executive summary

• Achieved record full year net sales of $212.5 million, up 13.7% year-over-year and 19% on a comparable basis, marking six consecutive years of volume-led growth driven by core Lifeway-branded products and Farmer Cheese.

• Net income grew 54% year-over-year to $13.9 million, with Q4 net income of $2.5 million compared to a net loss in the prior year, reflecting strong operational execution.

• Expanded distribution, launched new products, and entered new categories, including a licensing deal for pet nutrition and partnerships with fitness brands.

• Continued investment in marketing, innovation, and retail expansion to boost brand visibility and growth.

• Recognized with multiple industry awards and honors, including Dairy Foods' Processor of the Year 2025, Forbes' Best Small Companies, and Inc.'s Best in Business.

Financial highlights

• Full year net sales reached $212.5 million, up 13.7% year-over-year; Q4 net sales were $55.4 million, up 18%.

• Gross profit margin for the year was 27.4%, up 140 basis points; Q4 gross margin was 27.8%, up 250 basis points.

• Net income for the year was $13.9 million ($0.91 per basic share), up from $9 million ($0.61 per basic share) last year.

• Operating income for 2025 was $16.2 million, up from $13.9 million in 2024.

• Net cash provided by operating activities was $10.9 million, down from $13.0 million in 2024; cash and cash equivalents at year-end were $5.6 million, down from $16.7 million.

Outlook and guidance

• Reiterated long-term target of $45–$50 million in Adjusted EBITDA for fiscal year 2027.

• Poised to deliver record-breaking sales in fiscal year 2026, with strong momentum entering the year.

• Continued investment in capacity, marketing, and innovation to sustain growth.