Lifecore Biomedical (LFCR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $23.2 million, down 34% year-over-year, driven by lower HA manufacturing and CDMO sales volumes and project completions, with a net loss of $15.0 million and Adjusted EBITDA of $1.0 million.

• Operating expenses declined 52% year-over-year, marking the sixth consecutive quarter of sequential improvement, with SG&A and R&D reductions totaling nearly $8 million since late 2024.

• Three new commercial site transfer programs were signed in Q1, including a manufacturing agreement with a new aesthetics customer and two CDMO agreements with an existing U.S. biopharma customer.

• A new ERP system was launched in January 2026 to improve operational efficiency, address prior material weaknesses in internal controls, and support business transformation.

• Liquidity at quarter-end was $38.1 million, including $20.8 million in cash and $17.3 million in revolver availability.

Financial highlights

• Gross profit was $4.5 million, down from $9.8 million year-over-year, with gross margin dropping to 19.2% from 28.0% year-over-year.

• Adjusted EBITDA was $1.0 million, down from $5.7 million year-over-year.

• Free cash flow was $3.6 million, a turnaround from negative $4.3 million in the prior year period.

• Cash from operations was $4.7 million in Q1 2026.

• Net loss per diluted share was $0.43 (vs. $0.42 prior year).

Outlook and guidance

• 2026 revenue guidance reaffirmed at $120–$125 million, with net loss of $35.4–$30.9 million and Adjusted EBITDA of $20.5–$25 million.

• Expects revenue and EBITDA to be weighted toward the second half of 2026, with 40–45% in H1 and 55–60% in H2.

• Three new commercial site transfers expected to generate mid seven-figure annual revenue each starting in 2028.

• Targeting 12% revenue CAGR and Adjusted EBITDA margins above 25% by 2029.

• Margin improvement initiatives and ERP implementation expected to support mid-term goals.