Lifecore Biomedical Reports Financial Results for the Second Quarter Ended June 30, 2026, and Provides Corporate Update
Rhea-AI Summary
Lifecore Biomedical (NASDAQ: LFCR) reported second quarter 2026 revenues of $34.2 million, down 6.2% from the comparable prior-year quarter, with gross profit of $12.1 million and a net loss of $6.2 million ($0.19 per diluted share). Adjusted EBITDA* was $8.6 million, compared to $9.1 million a year earlier.
For the first six months of 2026, revenues were $57.4 million, down 19.9% year over year, with gross profit of $16.5 million and a net loss of $21.1 million ($0.61 per diluted share). Adjusted EBITDA* was $9.6 million. Lifecore ended the quarter with about $38.8 million in liquidity, including $17.2 million of cash and $21.6 million of revolver availability, and reaffirmed 2026 guidance for revenues of $120–$125 million and Adjusted EBITDA* of $20.5–$25 million. The company signed six new programs in the quarter, bringing 12‑month additions to 13, including eight late‑stage programs, and advanced more than 40 cost and productivity initiatives.
Positive
- Reaffirmed 2026 guidance: revenue $120–$125 million and Adjusted EBITDA* $20.5–$25 million
- Adjusted EBITDA* of $8.6 million in Q2 2026 and $9.6 million year-to-date
- Operating expenses down 32% year-to-date to $18.6 million versus $27.5 million
- Positive cash generation: $2.5 million operating cash flow and $0.9 million free cash flow* in six months
- Liquidity of $38.8 million at quarter-end, including $17.2 million cash and $21.6 million revolver availability
- Business development momentum: 13 new programs added over 12 months, including eight late-stage, and six new programs signed in Q2
Negative
- Total revenue down 19.9% year-to-date to $57.4 million from $71.6 million
- CDMO revenue decline: down 29% year-to-date to $31.3 million
- Gross margin compression: year-to-date gross margin 28.8% vs. 33.3% prior year
- Net loss increased to $21.1 million year-to-date vs. $15.9 million prior year
- Stockholders’ deficit widened to $34.1 million at June 30, 2026
- High leverage: $148.5 million related-party debt and $30.9 million debt derivative liability outstanding
News Explained
At June 30, Lifecore reported $17,241 thousand cash, $148,508 thousand related-party debt, $50,187 thousand preferred redemption value, and 37.697 million common shares.
On
The Series A instrument is presented as both redeemable and convertible, so the balance sheet reports a redemption value separately from common stock rather than treating the preferred shares as common shares.
Compared with
A
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q1 earnings report | Negative | -3.9% | Revenue declined 34% year over year while the company reaffirmed full-year guidance. |
| Mar 16 | Q4 earnings report | Positive | -33.3% | Revenue increased 20% year over year and margins improved despite a sharply negative price reaction. |
| Nov 06 | Q3 earnings report | Negative | +3.5% | The company reported a net loss despite higher revenue and improved adjusted EBITDA. |
| Aug 07 | FY2025 earnings report | Positive | -6.7% | The company met revenue guidance and expanded its customer program pipeline. |
| Apr 03 | Q3 earnings report | Negative | -22.3% | Revenue, gross profit, and adjusted EBITDA declined while the company maintained guidance. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings events had an average move of -12.54%, with negative reactions following four of the five selected releases.
Key Terms
cdmo technical
adjusted ebitda financial
free cash flow financial
gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
-- Reaffirms 2026 Guidance --
-- Multiple New Business Wins, Adding Impactful Programs to Pipeline --
-- Cost Reduction and Productivity Enhancements Continue to Strengthen Organization --
Conference Call Today at 8:00am ET
CHASKA, Minn., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (NASDAQ: LFCR) (“Lifecore”), a fully integrated injectables contract development and manufacturing organization (“CDMO”), today announced results for the second quarter and six months ended June 30, 2026.
CEO Commentary
“The second quarter was highly productive. The effectiveness of our new business development strategy has helped us grow the value of our pipeline with consistent wins that point to our manufacturing expertise as well as our exceptional track record in quality and compliance. In addition, Lifecore continues to transition our development pipeline toward commercialization and invest in the talent, processes, and improvements that we believe will support our growing pipeline in the mid-term and allow us to achieve sustainable, long-term profitability in the future. In the past 12 months, we have added 13 new programs to our pipeline, eight of which are late stage. We expect these programs and their financial contributions to play a significant role in Lifecore’s success in achieving our long-term growth objectives of a
Financial Snapshot and Recent Developments
- Revenues for the second quarter of 2026 were
$34.2 million , a decrease of$2.3 million , or6.2% compared to$36.4 million for the comparable prior year quarter ended May 25, 2025. Revenues for the six months ended June 30, 2026, were$57.4 million , a decrease of$14.2 million , or19.9% compared to$71.6 million for the six-month comparable prior year period ended May 25, 2025. - Gross profit for the quarter was
$12.1 million , a decrease of$1.9 million compared to$14.0 million for the comparable prior year quarter ended May 25, 2025. Gross profit for the six months ended June 30, 2026, was$16.5 million , a decrease of$7.3 million compared to$23.8 million for the six-month comparable prior year period ended May 25, 2025. - Operating expenses for the second quarter were
$9.5 million , an increase of$0.9 million , or9.9% , compared to$8.7 million for the comparable prior year quarter ended May 25, 2025. Operating expenses for the six months ended June 30, 2026, were$18.6 million , a decrease of$8.9 million , or32.3% , compared to$27.5 million for the six-month comparable prior year period ended May 25, 2025. - Cash from operations was
$2.5 million and free cash flow* was$0.9 million for the six months ended June 30, 2026. - Net loss for the second quarter of 2026 was
$6.2 million and$0.19 of loss per diluted share, as compared to net loss of$1.1 million and$0.06 of loss per diluted share, for the comparable prior year quarter ended May 25, 2025. Net loss for the six months ended June 30, 2026, was$21.1 million and$0.61 of loss per diluted share, as compared to net loss of$15.9 million and$0.48 of loss per diluted share, for the six-month comparable prior year period ended May 25, 2025. - Adjusted EBITDA* for the second quarter was
$8.6 million , a decrease of$0.5 million compared to$9.1 million for the comparable prior year quarter ended May 25, 2025. Adjusted EBITDA* for the six months ended June 30, 2026, was$9.6 million , a decrease of$5.1 million compared to$14.8 million for the comparable six-month prior year period ended May 25, 2025. - Ended the second quarter of 2026 with approximately
$38.8 million in liquidity, including cash of$17.2 million and revolving credit availability of$21.6 million . - Signed six new programs in the second quarter of 2026, including two commercial stage programs. Signed a total of 13 programs over the last 12 months, including eight late-stage programs.
- Progressed more than 40 projects intended to promote cost reductions or productivity improvements that are expected to positively impact margins in the near term and contribute to the achievement of
25% Adjusted EBITDA* margin targets by the end of 2029. - Completed five customer audits and two regulatory inspections during the second quarter of 2026, representing one of the highest numbers of audits performed in a single quarter for Lifecore. The company successfully completed each of the audits, which we believe validates the company’s growing reputation as a partner-of-choice for customers seeking exceptional quality and compliance.
* 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 three and six months ended June 30, 2026, to the comparable prior year periods ended May 25, 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 | |||||||||||||
| June 30, 2026 | May 25, 2025 | Amount | % | |||||||||||
| (dollars in thousands) | ||||||||||||||
| Revenues: | ||||||||||||||
| CDMO | $ | 15,552 | $ | 23,516 | $ | (7,964 | ) | (34)% | ||||||
| HA manufacturing | 18,615 | 12,928 | 5,687 | 44 | % | |||||||||
| Total revenues | 34,167 | 36,444 | (2,277 | ) | (6)% | |||||||||
| Cost of sales | 22,092 | 22,462 | (370 | ) | (2)% | |||||||||
| Gross profit | 12,075 | 13,982 | (1,907 | ) | (14)% | |||||||||
| Gross profit percentage | 35.3 | % | 38.4 | % | (3.1)% | |||||||||
| Six months ended | Change | |||||||||||||
| (dollars in thousands) | June 30, 2026 | May 25, 2025 | Amount | % | ||||||||||
| Revenues: | ||||||||||||||
| CDMO | $ | 31,327 | $ | 44,305 | $ | (12,978 | ) | (29)% | ||||||
| HA manufacturing | 26,033 | 27,293 | (1,260 | ) | (5)% | |||||||||
| Total revenues | 57,360 | 71,598 | (14,238 | ) | (20)% | |||||||||
| Cost of sales | 40,823 | 47,771 | (6,948 | ) | (15)% | |||||||||
| Gross profit | 16,537 | 23,827 | (7,290 | ) | (31)% | |||||||||
| Gross profit percentage | 28.8 | % | 33.3 | % | (4.5)% | |||||||||
Supplemental Operating Expense Data
| Three months ended | Change | |||||||||||||
| June 30, 2026 | May 25, 2025 | Amount | % | |||||||||||
| (dollars in thousands) | ||||||||||||||
| Research and development | $ | 1,537 | $ | 2,103 | $ | (566 | ) | (27)% | ||||||
| Selling, general and administrative | 7,971 | 8,980 | (1,009 | ) | (11)% | |||||||||
| Restructuring recovery | — | (2,519 | ) | 2,519 | n/m | |||||||||
| Loss on sale or disposal of assets, net of portion classified as cost of sales | — | 91 | (91 | ) | n/m | |||||||||
| Total operating expenses | $ | 9,508 | $ | 8,655 | $ | 853 | 10 | % | ||||||
| Six months ended | Change | |||||||||||||
| (dollars in thousands) | June 30, 2026 | May 25, 2025 | Amount | % | ||||||||||
| Research and development | $ | 2,754 | $ | 4,148 | $ | (1,394 | ) | (34)% | ||||||
| Selling, general and administrative | 15,888 | 19,073 | (3,185 | ) | (17)% | |||||||||
| Restructuring recovery | — | (2,634 | ) | 2,634 | n/m | |||||||||
| Loss on sale or disposal of assets, net of portion classified as cost of sales | — | 6,942 | (6,942 | ) | n/m | |||||||||
| Total operating expenses | $ | 18,642 | $ | 27,529 | $ | (8,887 | ) | (32)% | ||||||
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, August 5, 2026, at 8:00 a.m. ET to discuss the company’s financial results for the second quarter ended June 30, 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 for the three and six months ended June 30, 2026, and free cash flows for the six months ended June 30, 2026, and the comparable prior year periods ended May 25, 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 reaffirmation of our 2026 guidance; the transition of our development pipeline toward commercialization; our growing pipeline and expectation for sustainable, long-term profitability in the future; our long-term growth objectives of 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) | June 30, 2026 | December 31, 2025 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 17,241 | $ | 17,469 | |||
| Accounts receivable, net | 13,728 | 13,233 | |||||
| Accounts receivable, related party | 16,727 | 12,929 | |||||
| Contract assets | 7,568 | 7,655 | |||||
| Inventory | 25,475 | 29,085 | |||||
| Prepaid expenses and other current assets | 2,952 | 1,921 | |||||
| Total current assets | 83,691 | 82,292 | |||||
| Property, plant and equipment, net | 123,714 | 127,304 | |||||
| Goodwill | 13,881 | 13,881 | |||||
| Other assets | 8,214 | 8,700 | |||||
| Total assets | $ | 229,500 | $ | 232,177 | |||
| LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 7,534 | $ | 6,211 | |||
| Accrued expenses and other current liabilities | 14,107 | 17,362 | |||||
| Total current liabilities | 21,641 | 23,573 | |||||
| Debt, net of current portion | 5,590 | 5,694 | |||||
| Debt, net of current portion, related party | 148,508 | 135,588 | |||||
| Debt derivative liability, related party | 30,922 | 26,564 | |||||
| Other liabilities | 6,746 | 6,698 | |||||
| Total liabilities | 213,407 | 198,117 | |||||
| Commitments and contingencies | |||||||
| Series A Redeemable Convertible Preferred Stock, | 50,187 | 48,262 | |||||
| Stockholders’ (deficit) equity: | |||||||
| Common Stock, | 38 | 37 | |||||
| Additional paid-in capital | 210,205 | 208,962 | |||||
| Accumulated deficit | (244,337 | ) | (223,201 | ) | |||
| Total stockholders’ deficit | (34,094 | ) | (14,202 | ) | |||
| Total liabilities, convertible preferred stock and stockholders’ deficit | $ | 229,500 | $ | 232,177 | |||
| LIFECORE BIOMEDICAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||
| (in thousands, except share and per share amounts) | June 30, 2026 | May 25, 2025 | June 30, 2026 | May 25, 2025 | |||||||||||
| Revenues | $ | 11,480 | $ | 19,768 | $ | 25,716 | $ | 36,001 | |||||||
| Revenues, related party | 22,687 | 16,676 | 31,644 | 35,597 | |||||||||||
| Total revenues | 34,167 | 36,444 | 57,360 | 71,598 | |||||||||||
| Cost of sales | 22,092 | 22,462 | 40,823 | 47,771 | |||||||||||
| Gross profit | 12,075 | 13,982 | 16,537 | 23,827 | |||||||||||
| Research and development expenses | 1,537 | 2,103 | 2,754 | 4,148 | |||||||||||
| Selling, general, and administrative expenses | 7,971 | 8,980 | 15,888 | 19,073 | |||||||||||
| Restructuring recovery | — | (2,519 | ) | — | (2,634 | ) | |||||||||
| Loss on sale or disposal of assets, net of portion classified as cost of sales | — | 91 | — | 6,942 | |||||||||||
| Operating income (loss) | 2,567 | 5,327 | (2,105 | ) | (3,702 | ) | |||||||||
| Interest income | 144 | 206 | 272 | 314 | |||||||||||
| Interest expense | (480 | ) | (604 | ) | (934 | ) | (1,460 | ) | |||||||
| Interest expense, related party | (7,271 | ) | (5,123 | ) | (14,165 | ) | (9,856 | ) | |||||||
| Change in fair value of debt derivative liability, related party | (1,203 | ) | (1,091 | ) | (4,358 | ) | (1,691 | ) | |||||||
| Other income, net | 110 | 171 | 220 | 504 | |||||||||||
| Loss before income taxes | (6,133 | ) | (1,114 | ) | (21,070 | ) | (15,891 | ) | |||||||
| Income tax expense | (23 | ) | (33 | ) | (66 | ) | (25 | ) | |||||||
| Net loss | (6,156 | ) | (1,147 | ) | (21,136 | ) | (15,916 | ) | |||||||
| Preferred stock dividends | (924 | ) | (852 | ) | (1,831 | ) | (1,689 | ) | |||||||
| Accretion of preferred stock to redemption value | (47 | ) | (48 | ) | (94 | ) | (96 | ) | |||||||
| Loss available to common stockholders | $ | (7,127 | ) | $ | (2,047 | ) | $ | (23,061 | ) | $ | (17,701 | ) | |||
| Loss per share, basic and diluted | $ | (0.19 | ) | $ | (0.06 | ) | $ | (0.61 | ) | $ | (0.48 | ) | |||
| Weighted average shares outstanding, basic and diluted | 37,574,538 | 37,007,838 | 37,526,230 | 37,014,204 | |||||||||||
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 | Six months ended | ||||||||||||||
| (in thousands) (unaudited) | June 30, 2026 | May 25, 2025 | June 30, 2026 | May 25, 2025 | |||||||||||
| Net loss (GAAP) | $ | (6,156 | ) | $ | (1,147 | ) | $ | (21,136 | ) | $ | (15,916 | ) | |||
| Interest expense, net | 7,607 | 5,521 | 14,827 | 11,002 | |||||||||||
| Income tax expense | 23 | 33 | 66 | 25 | |||||||||||
| Depreciation | 2,515 | 1,913 | 4,825 | 3,990 | |||||||||||
| Stock-based compensation | 2,085 | 1,815 | 3,783 | 4,367 | |||||||||||
| Change in fair value of debt derivatives | 1,203 | 1,091 | 4,358 | 1,691 | |||||||||||
| Franchise tax | 50 | 75 | 100 | 78 | |||||||||||
| Reorganization costs | 1,247 | 2,179 | 2,789 | 4,426 | |||||||||||
| Restructuring recovery | — | (2,519 | ) | — | (2,634 | ) | |||||||||
| Loss on sale or disposal of equipment | — | 91 | — | 7,727 | |||||||||||
| Adjusted EBITDA | $ | 8,574 | $ | 9,052 | $ | 9,612 | $ | 14,756 | |||||||
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.
| Six months ended | |||||||
| (in thousands) (unaudited) | June 30, 2026 | May 25, 2025 | |||||
| Operating cash flows (GAAP) | $ | 2,511 | $ | 6,548 | |||
| Less: capital expenditures | (1,631 | ) | (7,553 | ) | |||
| Free cash flow | $ | 880 | $ | (1,005 | ) | ||
