Menu Search

Company Announcements

Lifeway Foods Inc

Lifeway Foods Delivers Record Q2 2025 Net Sales, Extends Kefir Category Leadership, and Estimates Over 20% Q3 Net Sales Growth to Date

Kefir market leader posts $53.9 million in net sales, an 18% volume-led net sales increase on a comparable basis, marking nearly six years of uninterrupted net sales growth

Company posts double-digit diluted EPS gains and strong gross margin expansion year-over-year

Momentum accelerates into Q3 with highest weekly sales ever recorded in July and unaudited estimate of $26.4 million in net sales for the third quarter-to-date through August 11, up over 20% year-over-year

MORTON GROVE, Ill. , Aug. 12, 2025 /PRNewswire/ -- Lifeway Foods, Inc. (Nasdaq: LWAY) ("Lifeway" or "the Company"), the leading U.S. supplier of kefir and fermented probiotic foods, today announced record financial results for the second quarter ended June 30, 2025 and reported that third quarter momentum is already outpacing last year's performance by more than 20%. Unaudited estimated net sales for Q3 to date through August 11, 2025, reached $26.4 million, powered by accelerating consumer demand for the Company's flagship Lifeway Kefir and high-protein Lifeway Farmer Cheese.

"This was another quarter that reinforces Lifeway's position as the undisputed leader in the kefir category," said Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods. "We delivered $53.9 million in net sales, our highest quarter ever, with strong, volume-led growth across our core portfolio. The consistency of our performance, even as we cycle past previous record highs, speaks to the strength of our brand, the loyalty of our customers, and the expanding reach of our platform."

Smolyansky continued, "Beyond topline growth, we expanded gross margin by 160 basis points year-over-year and more than 460 basis points sequentially, translating into double-digit net income and diluted EPS growth year-over-year. We are executing with discipline while capturing powerful consumer tailwinds – from the continued wellness boom to the surge in GLP-1 medication use – as more people seek nutrient-dense, protein-rich, probiotic foods that support digestion, satiety, and natural GLP-1 hormone production."

Recognized Industry Leadership

In July, Lifeway was named Processor of the Year by Dairy Foods magazine, the publication's highest annual honor, recognizing the Company's innovation, leadership, growth, and impact on the dairy industry. "Earning this award is a testament to our team's dedication and to the role Lifeway has played in pioneering kefir in the U.S. for nearly 40 years," Smolyansky said.

Capitalizing on Growth Trends

In addition to its flagship kefir and Farmer Cheese, Lifeway's Probiotic Smoothies with Collagen – the first in the category – are resonating strongly with consumers. Collagen, a rapidly growing $8 billion global market, is valued for its skin, joint, hair, and nail health benefits. Lifeway's innovative blend of probiotics and collagen supports both gut health and "beauty from within," with the Berry Blast flavor recently winning a 2025 Good Housekeeping Snack Award.

Third Quarter Momentum

Momentum has carried into the second half of the year. In July, Lifeway recorded the highest single week of gross sales in Company history, surpassing $5.5 million, representing a 66% increase over the same week in 2024. For Q3 to date through August 11, unaudited net sales were $26.4 million, an increase of more than 20% compared to the same period last year.

Second Quarter 2025 Highlights

  • Net Sales: $53.9 million, highest in Company history, up 9.7% year-over-year and approximately 18% on a comparable basis, adjusted for a customer relationship the Company strategically exited in the third quarter of 2024, and a distributor shifting from Lifeway delivered to customer pick-up in late 2024, resulting in lower net sales and lower freight expense.
  • Gross Profit Margin: 28.6%, up from 27.0% last year
  • SG&A: 17.6% of net sales, reflecting continued investment in marketing and distribution
  • Net Income: $4.2 million, or $0.28 per basic and diluted common share, compared to $3.8 million, or $0.26 per basic and $0.25 per diluted share in the prior year

Outlook

The Company reiterated its long-term target of $45–$50 million in Adjusted EBITDA1 for FY 2027 and expressed confidence in delivering the strongest annual sales in Company history in 2025.

"We are just getting started," Smolyansky concluded. "With record sales, expanding margins, category-leading innovation, and a production platform ready to scale, Lifeway is positioned for sustained, profitable growth. The best is yet to come."

  1. Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is defined as Operating Income, as reported, plus Depreciation and Amortization, plus Stock-Based Compensation.

Conference Call and Webcast
A webcast with Lifeway's President and Chief Executive Officer discussing these results with additional comments and details is available through the "Investor Relations" section of the Company's website at https://lifewaykefir.com/webinars-reports/.

About Lifeway Foods, Inc.
Lifeway Foods, Inc., which has been recognized as one of Forbes' Best Small Companies, is America's leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the Company also produces a variety of cheeses and a ProBugs line for kids. Lifeway's tart and tangy fermented dairy products are now sold across the United States, Mexico, Ireland, South Africa, United Arab Emirates, and France. Learn how Lifeway is good for more than just you at lifewayfoods.com.

Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, the drivers of demand for Lifeway's products, consumer trends, the anticipated effects of scheduled upgrades at the Waukesha plant, expected operating efficiencies and expectations regarding future operating and financial performance. These statements use words, and variations of words, such as "will," "continue," "future," "increase," "believe," "outlook," "expect," and "predict." You are cautioned not to rely on these forward-looking statements. These forward-looking statements are made as of the date of this press release, are based on current expectations of future events and thus are inherently subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond Lifeway's control. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from Lifeway's expectations and projections. These risks, uncertainties, and other factors include: price competition; the decisions of customers or consumers; the actions of competitors; changes in the pricing of commodities; the effects of government regulation; possible delays in the introduction of new products; customer acceptance of products and services; and uncertainty regarding proposals or other actions taken by shareholders related to the unsolicited proposal made by Danone North America PBC ("Danone") to acquire all of the shares of Lifeway stock that Danone does not already own. A further list and description of these risks, uncertainties, and other factors can be found in Lifeway's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Copies of these filings are available online at https://www.sec.gov, http://lifewaykefir.com/investor-relations/, or on request from Lifeway. Lifeway expressly disclaims any obligation to update any forward-looking statements (including, without limitation, to reflect changed assumptions, the occurrence of anticipated or unanticipated events or new information), except as required by law.

Non-GAAP Financial Measures
This press release refers to Adjusted EBITDA, which is a financial measure that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), and may exclude items that are significant to understanding and assessing financial results. This non-GAAP measure is provided to enhance investors' overall understanding of the Company's financial performance. Non-GAAP financial measures should be considered as supplements to GAAP measures reported, should not be considered replacements for, or superior to, GAAP measures reported and may not be comparable to similarly named measures used by other companies. The Company's calculation of non-GAAP financial measures may differ from methods used by other companies.

We are unable to reconcile our target fiscal year 2027 Adjusted EBITDA to projected net income, the most directly comparable projected GAAP financial measure, because certain information necessary to calculate such measures on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Due to this uncertainty, the Company cannot reconcile target fiscal year 2027 Adjusted EBITDA to the nearest GAAP financial measure without unreasonable effort.

Derek Miller 
Vice President of Communications, Lifeway Foods
Email: derekm@lifeway.net 

Perceptual Advisors
Dan Tarman
Email: dtarman@perceptualadvisors.com

General inquiries:
Lifeway Foods, Inc.
Phone: 847-967-1010
Email: info@lifeway.net 

LIFEWAY FOODS, INC. AND SUBSIDIARIES
 Consolidated Balance Sheets
 June 30, 2025 and December 31, 2024
 (In thousands)




June 30, 2025



December 31,




(Unaudited)



2024


Current assets









Cash and cash equivalents


$

21,220



$

16,728


Accounts receivable, net of allowance for credit losses and discounts & allowances of 
$1,760 and $1,590 at June 30, 2025 and December 31, 2024, respectively



16,065




15,424


Inventories, net



10,224




8,678


Prepaid expenses and other current assets



1,822




2,144


Refundable income taxes



–




631


Total current assets



49,331




43,605











Property, plant and equipment, net



30,731




26,862


Operating lease right-of-use asset



278




118


Goodwill



11,704




11,704


Intangible assets, net



6,088




6,358


Other assets



135




1,900


Total assets


$

98,267



$

90,547











Current liabilities









Accounts payable


$

11,880



$

10,401


Accrued expenses



4,409




5,103


Total current liabilities



16,289




15,504


Operating lease liabilities



220




70


Deferred income taxes, net



3,062




3,062


Total liabilities



19,571




18,636











Stockholders' equity









Preferred stock, no par value; 2,500 shares authorized; none issued



–




–


Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 15,221
and 15,100 outstanding at June 30, 2025 and December 31, 2024, respectively



6,509




6,509


Treasury stock, at cost



(13,268)




(14,052)


Paid-in capital



2,844




4,632


Retained earnings



82,611




74,822


Total stockholders' equity



78,696




71,911











Total liabilities and stockholders' equity


$

98,267



$

90,547


 

LIFEWAY FOODS, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 For the three and six months ended June 30, 2025 and 2024
 (Unaudited)
 (In thousands, except per share data)




Three Months Ended

June 30,



Six Months Ended

June 30,




2025



2024



2025



2024















Net sales


$

53,901



$

49,157



$

99,992



$

93,791



















Cost of goods sold



37,669




35,181




71,923




67,619


Depreciation expense



832




701




1,634




1,362


Total cost of goods sold



38,501




35,882




73,557




68,981



















Gross profit



15,400




13,275




26,435




24,810



















Selling expense



4,718




3,577




9,416




7,277


General and administrative expense



4,752




4,177




9,380




8,313


Amortization expense



135




135




270




270


Total operating expenses



9,605




7,889




19,066




15,860



















Income from operations



5,795




5,386




7,369




8,950



















Other income (expense):

















Interest expense



(21)




(47)




(35)




(98)


Fair Value Loss on investments



–




–




(20)




–


Gain on sale of investments



55




–




3,407




–


Other income (expense), net



82




20




156




15


Total other income (expense)



116




(27)




3,508




(83)



















Income before provision for income taxes



5,911




5,359




10,877




8,867



















Provision for income taxes



1,662




1,576




3,088




2,658



















Net income


$

4,249



$

3,783



$

7,789



$

6,209



















Net earnings per common share:

















Basic


$

0.28



$

0.26



$

0.51



$

0.42


Diluted


$

0.28



$

0.25



$

0.51



$

0.41



















Weighted average common shares outstanding:

















Basic



15,206




14,727




15,170




14,709


Diluted



15,390




15,197




15,359




15,176


 

LIFEWAY FOODS, INC. AND SUBSIDIARIES
 Consolidated Statements of Cash Flows
 (Unaudited)
 (In thousands)




Six months ended June 30,




2025



2024


Cash flows from operating activities:









Net income


$

7,789



$

6,209


Adjustments to reconcile net income to operating cash flow:









Depreciation and amortization



1,904




1,632


Stock-based compensation



927




1,296


Non-cash interest expense



9




17


Gain on sale of equipment



(115)




–


Gain on sale of investments



(3,407)




–


Fair value loss on investment



20




–


(Increase) decrease in operating assets:









Accounts receivable



(640)




(651)


Inventories



(1,546)




650


Prepaid expenses and other current assets



322




531


Refundable income taxes



631




(180)


Increase (decrease) in operating liabilities:









Accounts payable



500




(574)


Accrued expenses



(2,632)




(366)


Accrued income taxes



–




(474)


Net cash provided by operating activities



3,762




8,090











Cash flows from investing activities:









Purchases of property and equipment



(4,526)




(3,905)


Proceeds from sale of equipment



115




–


Proceeds from sale of investments



5,206




–


Net cash provided by (used in) investing activities



795




(3,905)











Cash flows from financing activities:









Repayment of note payable



–




(2,750)


Payment of deferred financing costs



(65)




–


Net cash used in financing activities



(65)




(2,750)











Net increase in cash and cash equivalents



4,492




1,435











Cash and cash equivalents at the beginning of the period



16,728




13,198











Cash and cash equivalents at the end of the period


$

21,220



$

14,633











Supplemental cash flow information:









Cash paid for income taxes, net of (refunds)


$

2,457



$

3,312


Cash paid for interest


$

26



$

89











Non-cash investing activities









Accrued purchase of property and equipment


$

1,083



$

106


Right-of-use assets obtained in exchange for lease obligations


$

196



$

–


 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lifeway-foods-delivers-record-q2-2025-net-sales-extends-kefir-category-leadership-and-estimates-over-20-q3-net-sales-growth-to-date-302527755.html

SOURCE Lifeway Foods, Inc.