Filing Flows › Lifeway Foods (LWAY) › Q2 2025
Lifeway Foods (LWAY) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 12, 2025
Lifeway Foods (LWAY) reported revenue of $53.9M for the second quarter 2025 (Q2 2025), +10% from a year earlier and +17% from the quarter before. Operating margin was 10.8%, net earnings $4.2M (7.9% of revenue).
Lifeway Foods, Q2 2025: revenue $53.9M (+10% year over year), operating margin 10.8%, net earnings $4.2M, operating cash flow $3.9M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $53.9M | +17% | +10% |
| Gross profit | $15.4M | +40% | +16% |
| Operating profit | $5.8M | +268% | +8% |
| Net earnings | $4.2M | +20% | +12% |
| Operating cash flow | $3.9M | — | -40% |
| Free cash flow | $1.6M | — | -69% |
What changed
Revenue was $53.9M in Q2 2025, up 10% year over year and up 17% from the previous quarter. Drinkable Kefir Other Than Pro Bugs was the largest line at 85% of revenue. Drinkable Kefir Other Than Pro Bugs added $5.0M year over year (up 12%), 105% of the total change. Drinkable Yogurt declined 68%.
Gross margin was 28.6%, up 1.6 points from a year earlier. Operating profit was $5.8M, a 10.8% margin (down 0.2 points year over year). Of the extra revenue versus a year earlier, 9% reached operating profit, below the 11% margin then. Operating expenses grew 22% against revenue growth of 10%. The fastest-growing cost line was Sales & marketing (+32%). Net earnings were $4.2M, up 12% year over year. The effective tax rate was 28.1%.
Operating cash flow was $3.9M (down 40% year over year), 92% of net earnings. Non-cash charges added back $1.0M of depreciation and amortization and $601K of share-based compensation. Working capital and other items used $1.9M. Capital expenditures of $2.3M left free cash flow of $1.6M.
Questions
What was Lifeway Foods' revenue in the second quarter 2025?
Lifeway Foods (LWAY) reported revenue of $53.9M for the second quarter 2025 (Q2 2025), +10% from a year earlier and +17% from the quarter before.
Was Lifeway Foods profitable in the second quarter 2025?
Operating profit was $5.8M (10.8% of revenue) and net earnings $4.2M.
Source: Lifeway Foods 10-Q on SEC EDGAR.