Lifecore Biomedical Reports Financial Results for the First Quarter Ended March 31, 2026, and Provides Corporate Update
Rhea-AI Summary
Lifecore Biomedical (NASDAQ: LFCR) reported Q1 2026 results and reaffirmed full-year guidance. Revenues were $23.2M (-34% YoY), gross margin 19.2%, adjusted EBITDA $1.0M, and net loss $15.0M (loss per share $0.43). Liquidity was approximately $38.1M. Company expects 2026 revenue of $120–125M and Adjusted EBITDA of $20.5–25M. Signed three new commercial site transfer programs and completed a January ERP launch to improve controls and costs.
Positive
- Reaffirmed 2026 revenue guidance of $120–125M
- Adjusted EBITDA guidance of $20.5–25M for 2026
- Signed three new commercial site transfer programs in Q1 2026
- Ended Q1 with $38.1M liquidity including $20.8M cash
Negative
- Q1 2026 revenue declined 34% to $23.2M
- Gross profit fell 55% YoY; gross margin down to 19.2%
- Net loss of $15.0M and loss per diluted share of $0.43
- Adjusted EBITDA declined to $1.0M in Q1 from $5.7M prior year
News Market Reaction – LFCR
In the May 6 session, LFCR declined 3.88%, reflecting a moderate negative market reaction. Argus tracked a trough of -6.7% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 16 | Transition-period earnings | Positive | -24.4% | Reported 20% revenue growth, margin expansion, stronger Adjusted EBITDA and 2026 guidance. |
| Nov 06 | Quarterly earnings | Positive | +3.5% | Reported 26% revenue growth, positive Adjusted EBITDA swing, and affirmed guidance. |
| Aug 07 | FY2025 results | Neutral | -6.7% | Met FY2025 revenue guidance, added nine programs, but Q4 revenue dipped and loss persisted. |
| Apr 03 | Q3 fiscal earnings | Negative | -22.3% | Revenue slightly down, net loss replaced prior-year profit, and gross profit declined. |
| Jan 02 | Q2 fiscal earnings | Positive | +14.4% | Revenue and Adjusted EBITDA grew, capacity expanded, and balance sheet strengthened. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often been fundamentally positive but met with volatile and sometimes sharply negative price reactions, especially when results included mixed growth and profitability trends.
Over the past year, Lifecore’s earnings updates have featured revenue growth, margin improvement initiatives, and expanding CDMO programs, but price reactions have been volatile. The Q2 FY2025 report on Jan 2, 2025 delivered revenue growth and higher Adjusted EBITDA, producing a 14.41% gain. Later updates on Apr 3, 2025 and Mar 16, 2026 showed guidance and margin progress yet saw declines of 22.32% and 24.39%. Today’s Q1 2026 results, with lower revenue but reaffirmed 2026 guidance, fit into this pattern of operational reshaping and choppy market responses.
Key Terms
adjusted EBITDA financial
free cash flow financial
non-GAAP financial measures financial
enterprise resource planning technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
-- Reaffirms 2026 Guidance --
-- Signed Three New Commercial Site Transfer Programs in First Quarter 2026 --
-- Cost Containment Initiatives Continue to Drive Down Expenses --
Conference Call Today at 8:00am ET
CHASKA, Minn., May 06, 2026 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (NASDAQ: LFCR) (“Lifecore”), a fully integrated injectables contract development and manufacturing organization (“CDMO”), today announced results for the first quarter ended March 31, 2026.
CEO Commentary
“During the first quarter, Lifecore continued to successfully execute the three pillars of its growth strategy – maximizing our existing commercial business, advancing our development pipeline toward commercialization, and adding high-quality, new programs to our pipeline through business development. We believe our continued execution across these pillars positions Lifecore for sustained growth, including our goal of achieving a
“Concurrently, we continue to optimize our organization through cost reductions, improved efficiencies, and elevated quality. I am energized by our achievements during the quarter and remain highly optimistic and committed to building on this momentum throughout the year,” stated Paul Josephs, President and Chief Executive Officer of Lifecore.
Financial Snapshot and Recent Developments
- Revenues for the first quarter of 2026 were
$23.2 million , a decrease of$12.0 million , or34% , compared to$35.2 million for the comparable prior year quarter ended February 23, 2025. - Gross profit margin for the first quarter of 2026 was
19% ,9% below28% for the comparable prior year quarter ended February 23, 2025. - Operating expenses for the first quarter of 2026 were
$9.1 million , a decrease of$9.7 million , or52% , compared to$18.9 million for the comparable prior year quarter ended February 23, 2025. - Cash from operations was
$4.7 million and free cash flow* was$3.6 million for the first quarter of 2026. - Net loss for the first quarter of 2026 was
$15.0 million and$0.43 of loss per diluted share, as compared to a net loss of$14.8 million and$0.42 of loss per diluted share, for the comparable prior year quarter ended February 23, 2025. - Adjusted EBITDA* for the first quarter of 2026 was
$1.0 million , a decrease of$4.7 million compared to$5.7 million for the comparable prior year quarter ended February 23, 2025. - Ended the first quarter of 2026 with approximately
$38.1 million in liquidity, including cash of$20.8 million and revolving credit availability of$17.3 million . - Signed three new commercial site transfer programs in the first quarter of 2026, including two with an existing customer and one with leading medical aesthetics company.
- Implemented key initiatives throughout the organization that we expect will continue to drive margin improvement toward the goal of >
25% in the mid-term. - Successfully launched a new enterprise resource planning (“ERP”) system in January 2026, which we expect will strengthen inventory control, support financial management, and help reduce costs as the company grows.
- Completed multiple audits spanning new business prospects, existing customer expansions and international regulatory bodies. Each audit concluded positively, which we believe further validates Lifecore’s growing reputation as a partner-of-choice for customers seeking exceptional quality standards.
| * | Adjusted EBITDA and free cash flow are non-GAAP financial measures and exclude certain items from net income or loss and operating cash flows, respectively, the nearest comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Please see “Non-GAAP Financial Information” below for more information, including definitions of Adjusted EBITDA and free cash flow and reconciliations to net loss and operating cash flows, respectively, for the periods noted in this press release. |
Supplemental Financial Data
To provide meaningful period-over-period comparisons, Lifecore has compared the first quarter ended March 31, 2026, to the comparable prior year quarter ended February 23, 2025. This presentation is intended to comply with Securities and Exchange Commission (“SEC”) requirements applicable to fiscal year changes and is intended to assist investors with understanding the changes in the company’s operating results and financial condition.
Supplemental Revenue and Gross Profit Data
| Three months ended | Change | |||||||||||||
| March 31, 2026 | February 23, 2025 | Amount | % | |||||||||||
| (dollars in thousands) | ||||||||||||||
| Revenues: | ||||||||||||||
| CDMO | $ | 15,775 | $ | 20,789 | $ | (5,014 | ) | (24)% | ||||||
| HA manufacturing | 7,418 | 14,365 | (6,947 | ) | (48)% | |||||||||
| Total revenues | 23,193 | 35,154 | (11,961 | ) | (34)% | |||||||||
| Cost of sales | 18,731 | 25,309 | (6,578 | ) | (26)% | |||||||||
| Gross profit | 4,462 | 9,845 | (5,383 | ) | (55)% | |||||||||
| Gross profit percentage | 19.2 | % | 28.0 | % | (8.8 | ) | % | |||||||
Supplemental Operating Expense Data
| Three months ended | Change | ||||||||||
| March 31, 2026 | February 23, 2025 | Amount | % | ||||||||
| (dollars in thousands) | |||||||||||
| Research and development | $ | 1,217 | $ | 2,045 | $ | (828 | ) | (40)% | |||
| Selling, general and administrative | 7,917 | 9,978 | (2,061 | ) | (21)% | ||||||
| Loss on sale or disposal of assets, net of portion classified as cost of sales | — | 6,851 | (6,851 | ) | (100)% | ||||||
| Total operating expenses | $ | 9,134 | $ | 18,874 | $ | (9,740 | ) | (52)% | |||
Financial Guidance for Calendar Year 2026
The company is reaffirming its revenue and Adjusted EBITDA guidance for calendar year 2026. The company is not providing forward-looking guidance for U.S. GAAP net loss or a quantitative reconciliation of its 2026 Adjusted EBITDA to the most directly comparable U.S. GAAP measure, U.S. GAAP net loss, because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items, including restructuring expenses, reorganization expenses, asset impairments, litigation settlements and other contingencies, changes to the fair value of the debt derivative liability, certain other gains or losses, and income tax accounting, as certain of these items have not occurred, are out of the company's control and/or cannot be reasonably predicted without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period.
The company expects revenue to be in the range of
This guidance is based on the expectation that Lifecore would adjust for items similar to its historic definition of Adjusted EBITDA. This guidance takes into consideration existing market forces, contracts, and customer order timing, as well as the company’s current beliefs and estimations with respect to success and timing related to growing and diversifying the company’s new business development revenue.
Please see “Non-GAAP Financial Information” below for more information.
Earnings Webcast
Lifecore Biomedical will host a conference call today, May 6, 2026, at 8:00 a.m. ET to discuss the company’s financial results for the first quarter ended March 31, 2026. The webcast can be accessed via Lifecore’s Investor Events & Presentations page at: https://ir.lifecore.com/events-presentations. An archived version of the webcast will be available on the website for 30 days.
About Lifecore Biomedical
Lifecore Biomedical, Inc. (Nasdaq: LFCR) is a fully integrated contract development and manufacturing organization (CDMO) that offers highly differentiated capabilities in the development, fill and finish of sterile injectable pharmaceutical products in syringes, vials, and cartridges, including complex formulations. As a leading manufacturer of premium, injectable-grade hyaluronic acid, Lifecore brings more than 40 years of expertise as a partner for global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories to bring their innovations to market. For more information about the company, visit Lifecore’s website at www.lifecore.com.
Non-GAAP Financial Information
In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), this press release contains non-GAAP financial information. Adjusted EBITDA and free cash flow are non-GAAP measures and exclude certain items from net income or loss and operating cash flows, respectively, which are the most directly comparable financial measures calculated in accordance with GAAP. See the section entitled “Non-GAAP Financial Reconciliations” below for the company’s definitions of Adjusted EBITDA and free cash flows for the first quarter ended March 31, 2026, and the comparable prior year quarter ended February 23, 2025, and reconciliations thereof to net income or loss and operating cash flows for the relevant periods.
The company has disclosed these non-GAAP financial measures to supplement its consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude/include certain items that are included in the company’s results reported in accordance with GAAP because we believe they are not reflective of our core operations or indicative of our ongoing operations. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the company’s operations and are useful for period-over-period comparisons. Management uses Adjusted EBITDA and free cash flow, in addition to GAAP financial measures, to monitor trends in the company’s operations, understand and compare operating results, and monitor cash flows across accounting periods, for financial and operational decision making, for planning and forecasting purposes, and with respect to Adjusted EBITDA as a measure of performance for compensation decisions.
These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be the same as similar measures provided by other companies due to the potential differences in methods of calculation and items being excluded/included. These non-GAAP financial measures should be read in conjunction with the company’s consolidated financial statements presented in accordance with GAAP.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as “anticipate”, “estimate”, “expect”, “project”, “aim,” “designed to,” “plan”, “intend”, “believe”, “may”, “might”, “will”, “should”, “can have”, “likely” and similar expressions are used to identify forward-looking statements. In addition, all statements regarding our future financial and operating performance and strategy, including the three pillars of our growth strategy; our positioning for sustained growth, including our goal of achieving a
Lifecore Biomedical, Inc. Contact Information:
Stephanie Diaz (Investors)
Vida Strategic Partners
415-675-7401
sdiaz@vidasp.com
Jennifer Arcure (Media)
Vida Strategic Partners
917-603-0681
jarcure@vidasp.com
Ryan D. Lake (CFO)
Lifecore Biomedical
952-368-6244
ryan.lake@lifecore.com
| LIFECORE BIOMEDICAL, INC. CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
| (in thousands, except share and per share amounts) | March 31, 2026 | December 31, 2025 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 20,795 | $ | 17,469 | |||
| Accounts receivable, net | 10,674 | 13,233 | |||||
| Accounts receivable, related party | 8,763 | 12,929 | |||||
| Contract assets | 7,449 | 7,655 | |||||
| Inventory | 28,155 | 29,085 | |||||
| Prepaid expenses and other current assets | 1,803 | 1,921 | |||||
| Total current assets | 77,639 | 82,292 | |||||
| Property, plant and equipment, net | 125,513 | 127,304 | |||||
| Goodwill | 13,881 | 13,881 | |||||
| Other assets | 8,466 | 8,700 | |||||
| Total assets | $ | 225,499 | $ | 232,177 | |||
| LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 7,014 | $ | 6,211 | |||
| Accrued expenses and other current liabilities | 13,483 | 17,362 | |||||
| Total current liabilities | 20,497 | 23,573 | |||||
| Debt, net of current portion | 5,642 | 5,694 | |||||
| Debt, net of current portion, related party | 142,137 | 135,588 | |||||
| Debt derivative liability, related party | 29,719 | 26,564 | |||||
| Other liabilities | 6,726 | 6,698 | |||||
| Total liabilities | 204,721 | 198,117 | |||||
| Commitments and contingencies | |||||||
| Series A Redeemable Convertible Preferred Stock, 2,000,000 shares authorized; 48,356 and 47,466 shares issued and outstanding, redemption value | 49,216 | 48,262 | |||||
| Stockholders’ (deficit) equity: | |||||||
| Common Stock, 37,477,386 shares issued and outstanding | 37 | 37 | |||||
| Additional paid-in capital | 209,706 | 208,962 | |||||
| Accumulated deficit | (238,181 | ) | (223,201 | ) | |||
| Total stockholders’ deficit | (28,438 | ) | (14,202 | ) | |||
| Total liabilities, convertible preferred stock and stockholders’ deficit | $ | 225,499 | $ | 232,177 | |||
| LIFECORE BIOMEDICAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||
| Three months ended | |||||||
| (in thousands, except share and per share amounts) | March 31, 2026 | February 23, 2025 | |||||
| Revenues | $ | 14,236 | $ | 16,233 | |||
| Revenues, related party | 8,957 | 18,921 | |||||
| Total revenues | 23,193 | 35,154 | |||||
| Cost of sales | 18,731 | 25,309 | |||||
| Gross profit | 4,462 | 9,845 | |||||
| Research and development expenses | 1,217 | 2,045 | |||||
| Selling, general, and administrative expenses | 7,917 | 9,978 | |||||
| Loss on sale or disposal of assets, net of portion classified as cost of sales | — | 6,851 | |||||
| Operating loss | (4,672 | ) | (9,029 | ) | |||
| Interest income | 128 | 108 | |||||
| Interest expense | (454 | ) | (749 | ) | |||
| Interest expense, related party | (6,894 | ) | (4,840 | ) | |||
| Change in fair value of debt derivative liability, related party | (3,155 | ) | (600 | ) | |||
| Other income, net | 110 | 333 | |||||
| Loss before income taxes | (14,937 | ) | (14,777 | ) | |||
| Income tax (expense) benefit | (43 | ) | 8 | ||||
| Net loss | (14,980 | ) | (14,769 | ) | |||
| Preferred stock dividends | (907 | ) | (837 | ) | |||
| Accretion of preferred stock to redemption value | (47 | ) | (48 | ) | |||
| Loss available to common stockholders | $ | (15,934 | ) | $ | (15,654 | ) | |
| Loss per share, basic and diluted | $ | (0.43 | ) | $ | (0.42 | ) | |
| Weighted average shares outstanding, basic and diluted | 37,477,386 | 37,020,570 | |||||
Non-GAAP Financial Reconciliations
Adjusted EBITDA is a non-GAAP financial measure and excludes certain items from net income or loss, the most directly comparable financial measure calculated in accordance with GAAP. For the periods presented herein, we defined Adjusted EBITDA as net income or loss before (i) interest expense, net of interest income, (ii) income tax expense or benefit, (iii) depreciation, (iv) stock-based compensation, (v) change in fair value of debt derivatives, (vi) franchise tax, (vii) reorganization costs, (viii) restructuring costs or recovery, and (ix) loss on sale or disposal of equipment. See “Non-GAAP Financial Information” above for further information regarding the company’s use of non-GAAP financial measures.
| Three months ended | |||||||
| (in thousands) (unaudited) | March 31, 2026 | February 23, 2025 | |||||
| Net loss (GAAP) | $ | (14,980 | ) | $ | (14,769 | ) | |
| Interest expense, net | 7,220 | 5,481 | |||||
| Income tax expense (benefit) | 43 | (8 | ) | ||||
| Depreciation | 2,310 | 2,076 | |||||
| Stock-based compensation | 1,698 | 2,552 | |||||
| Change in fair value of debt derivatives | 3,155 | 600 | |||||
| Franchise tax | 50 | 3 | |||||
| Reorganization costs | 1,543 | 2,246 | |||||
| Restructuring recovery | — | (115 | ) | ||||
| Loss on sale or disposal of equipment | — | 7,638 | |||||
| Adjusted EBITDA | $ | 1,039 | $ | 5,704 | |||
Free cash flow is a non-GAAP financial measure that reduces operating cash flows, the most directly comparable financial measure calculated in accordance with GAAP, by capital expenditures. See “Non-GAAP Financial Information” above for further information regarding the company’s use of non-GAAP financial measures.
| (in thousands) (unaudited) | March 31, 2026 | February 23, 2025 | |||||
| Operating cash flows (GAAP) | $ | 4,700 | $ | 1,199 | |||
| Less: capital expenditures | (1,118 | ) | (5,456 | ) | |||
| Free cash flow | $ | 3,582 | $ | (4,257 | ) | ||
