10-Q · May 6, 2026
Lifecore Biomedical reported Q1 2026 earnings with revenues of $23.2 million, significantly below the estimate of $26.3 million, and an EPS of -$0.43, missing the consensus estimate of -$0.28. The firm has reaffirmed…
Earnings analysis · 10-Q
LFCR earnings analysis
Filed August 5, 2026 · Our reading of the company's report
The latest report
Lifecore generated $34.167 million of quarterly revenue, down $2.277 million (6%) from the comparable prior-year period, as a 34% CDMO decline outweighed 44% HA manufacturing growth. Gross margin contracted 3.1…
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Lifecore generated $34.167 million of quarterly revenue, down $2.277 million (6%) from the comparable prior-year period, as a 34% CDMO decline outweighed 44% HA manufacturing growth. Gross margin contracted 3.1 percentage points to 35.3%, although the company posted operating income of $2.567 million and six-month operating cash flow of $2.511 million. The principal overhang is capital structure risk: approximately $198.1 million of Alcon indebtedness and $50.2 million of preferred stock submitted for redemption, versus $38.8 million of consolidated liquidity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.19
What stood out
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HA manufacturing grew 44%
Quarterly HA manufacturing revenue increased 44% to $18.615 million, partially offsetting a $7.964 million (34%) CDMO revenue decline.
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Operations remained profitable
Gross margin was 35.3%, down 3.1 percentage points from 38.4%, while operating income was $2.567 million, or a 7.5% operating margin, despite a 6% revenue decline.
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Positive operating cash generation
Operating cash flow was positive at $2.511 million for the six months ended June 30, 2026; investing outflows were $1.631 million.
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Revolver capacity supports liquidity
Liquidity totaled $38.8 million at June 30, comprising $17.2 million of cash and $21.6 million of revolver availability; the $40.0 million revolver had no borrowings outstanding.
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Efficiency program is advancing
Management reported more than 40 cost-reduction or productivity projects progressed through June 30, 2026, following implementation of a new ERP system in January 2026.
What to watch
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Large preferred-stock redemption obligation
All 49,263 preferred shares have submitted redemption notices, representing a $50.2 million aggregate liquidation preference as of June 30, 2026. Redemptions are due December 28, 2026, and any unpaid balance incurs 1% monthly interest in addition to 7.5% annual PIK dividends.
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High debt burden and rising interest cost
Total Alcon indebtedness was approximately $198.1 million, including $192.7 million under the term loan at a 20.9% effective annual interest rate. Net interest expense rose 38% to $7.607 million in the quarter.
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CDMO demand and project-timing pressure
CDMO revenue fell 34% to $15.552 million, driven by $5.9 million of lower sales volume, $1.2 million less development revenue, and a $0.9 million prior-year take-or-pay arrangement.
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Material weakness remains unremediated
Disclosure controls and procedures remained ineffective at June 30, 2026 because the prior material weakness in ERP-related IT general controls had not been fully remediated.
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No formal risk-factor updates
The filing reports no material changes to risk factors from the 2025 Transition Report, but six-month revenue declined 20% to $57.360 million and gross margin contracted 4.5 percentage points to 28.8%.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states that existing cash, operating cash generation, and revolver availability are expected to fund operational and capital requirements for at least the next 12 months.
Earlier filings 3
10-Q · November 6, 2025
Lifecore Biomedical reported significant revenue growth in Q1 2026, totaling $31.1 million, a 26% increase compared to $24.7 million in the same period last year. Despite the growth, the company faces challenges with…
10-K · August 7, 2025
Lifecore Biomedical's fiscal 2025 results show stable revenue performance driven by growth in HA manufacturing, which increased by 23% to $38.8 million, albeit offset by a 7% decline in CDMO revenues. The Company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.