Filing Flows › Lifeway Foods (LWAY) › Q1 2026
Lifeway Foods (LWAY) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 14, 2026
Lifeway Foods (LWAY) reported revenue of $63.0M for the first quarter 2026 (Q1 2026), +37% from a year earlier and +14% from the quarter before. Operating margin was 10.0%, net earnings $4.7M (7.4% of revenue).
Lifeway Foods, Q1 2026: revenue $63.0M (+37% year over year), operating margin 10.0%, net earnings $4.7M, operating cash flow $4.4M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $63.0M | +14% | +37% |
| Gross profit | $17.4M | +13% | +57% |
| Operating profit | $6.3M | +68% | +302% |
| Net earnings | $4.7M | +84% | +32% |
| Operating cash flow | $4.4M | 16× | — |
What changed
Revenue was $63.0M in Q1 2026, up 37% year over year and up 14% from the previous quarter. Drinkable Kefirotherthan Pro Bugs was the largest line at 87% of revenue. Drinkable Kefirotherthan Pro Bugs added $17.0M year over year (up 45%), 101% of the total change. Pro Bugs Kefir declined 56%.
Gross margin was 27.5%, up 3.6 points from Q1 2025. Operating profit was $6.3M, a 10.0% margin (up 6.6 points year over year). Of the extra revenue versus Q1 2025, 28% reached operating profit, above the 3% margin then. Operating expenses grew 17% against revenue growth of 37%. The fastest-growing cost line was Sales & marketing (+32%). Net earnings were $4.7M, up 32% year over year. The effective tax rate was 25.3%.
Operating cash flow was $4.4M, 94% of net earnings. Non-cash charges added back $1.1M of depreciation and amortization and $548K of share-based compensation. Working capital and other items used $1.9M. Capital expenditures of $11.0M exceeded it, leaving free cash flow of −$6.7M.
Questions
What was Lifeway Foods' revenue in the first quarter 2026?
Lifeway Foods (LWAY) reported revenue of $63.0M for the first quarter 2026 (Q1 2026), +37% from a year earlier and +14% from the quarter before.
Was Lifeway Foods profitable in the first quarter 2026?
Operating profit was $6.3M (10.0% of revenue) and net earnings $4.7M.
Source: Lifeway Foods 10-Q on SEC EDGAR.