Filing Flows › Lifeway Foods (LWAY) › Q1 2025
Lifeway Foods (LWAY) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 13, 2025
Lifeway Foods (LWAY) reported revenue of $46.1M for the first quarter 2025 (Q1 2025), +3% from a year earlier and -2% from the quarter before. Operating margin was 3.4%, net earnings $3.5M (7.7% of revenue).
Lifeway Foods, Q1 2025: revenue $46.1M (+3% year over year), operating margin 3.4%, net earnings $3.5M, operating cash flow −$150K. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $46.1M | -2% | +3% |
| Gross profit | $11.0M | -7% | -4% |
| Operating profit | $1.6M | +121% | -56% |
| Net earnings | $3.5M | — | +46% |
| Operating cash flow | −$150K | — | — |
What changed
Revenue was $46.1M in Q1 2025, up 3% year over year and down 2% from the previous quarter. Drinkable Kefirotherthan Pro Bugs was the largest line at 83% of revenue. Drinkable Kefirotherthan Pro Bugs added $1.5M year over year (up 4%), 104% of the total change. Drinkable Yogurt declined 59%.
Gross margin was 23.9%, down 1.9 points from a year earlier. Operating profit was $1.6M, a 3.4% margin (down 4.6 points year over year). Operating profit fell $2.0M even though revenue rose $1.5M versus a year earlier, so costs grew faster than sales. Operating expenses grew 19% against revenue growth of 3%. The fastest-growing cost line was Sales & marketing (+27%). Net earnings were $3.5M, up 46% year over year. The effective tax rate was 28.7%. Non-operating items added $3.4M, 68% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$150K. Non-cash charges added back $937K of depreciation and amortization and $326K of share-based compensation. Working capital and other items used $5.0M. Capital expenditures of $2.9M exceeded it, leaving free cash flow of −$3.0M.
Questions
What was Lifeway Foods' revenue in the first quarter 2025?
Lifeway Foods (LWAY) reported revenue of $46.1M for the first quarter 2025 (Q1 2025), +3% from a year earlier and -2% from the quarter before.
Was Lifeway Foods profitable in the first quarter 2025?
Operating profit was $1.6M (3.4% of revenue) and net earnings $3.5M.
Source: Lifeway Foods 10-Q on SEC EDGAR.