Lifecore Biomedical, Inc.

For Q2 2026, Lifecore reported revenue of $34.2 million, down $2.3 million or 6.2% from $36.4 million in the prior-year quarter. Gross profit was $12.1 million versus $14 million, SG&A was $8 million versus $9 million, net loss was $6.2 million, or $0.19 per diluted share, versus a net loss of $1.1 million, or $0.06 per diluted share, and adjusted EBITDA was $8.6 million versus $9.1 million. For the 6 months ended June 30, 2026, revenue was $57.4 million, down 19.9% from $71.6 million, gross profit was $16.5 million versus $23.8 million, SG&A was $15.9 million versus $19.1 million, net loss was $21.1 million, or $0.61 per diluted share, versus $15.9 million, or $0.48 per diluted share, and adjusted EBITDA was $9.6 million versus $14.8 million. Management reaffirmed 2026 guidance for revenue of $120 million to $125 million and adjusted EBITDA of $20.5 million to $25 million, and said it expects a stronger back half with higher aseptic and development revenue, with Q4 more weighted due to order timing.

Paul Josephs emphasized that Lifecore is executing on three pillars: maximizing its existing commercial business, advancing the development pipeline, and adding new programs through business development. He highlighted the successful PMDA inspection, 7 audits/inspections completed with no material issues, 6 new programs added in the quarter, and the expectation that fill/finish demand from the largest customer will inflect sharply in 2027 and 2028. His tone was confident and upbeat, repeatedly pointing to momentum, favorable industry tailwinds, and a path toward 12% revenue CAGR by 2029 and more than 25% adjusted EBITDA margins by 2029.

Ryan Lake focused on financial performance, saying the quarter was in line with full-year expectations despite lower revenue and gross profit. He pointed to reduced SG&A, which fell to $8 million in the quarter and has declined for five straight quarters, with cumulative reductions of $16.2 million since late 2024, and said SG&A excluding one-time items should be in the $6 million per quarter range in the second half. He also noted improved liquidity of approximately $38.8 million, including $17.2 million of cash, and said the company began paying a portion of debt service in cash instead of payment-in-kind; he also guided free cash flow for 2026 to be in the $7 million to $10 million range.

Analysts pressed on the timing and shape of the Alcon ramp, and management said the increase starts early in 2027 with a slightly heavier weighting toward the back end of the year. Questions also focused on why new wins are accelerating; management pointed to regionalization/onshoring, stronger FDA enforcement, and demand for high-quality sterile injectable suppliers, noting warning letters are up approximately 50% year over year. On capital allocation and the preferred, Ryan said any payment would not be due until December 28, would likely require credit-agreement approval, and unpaid amounts would accrue interest at 1% per month; he also said the company will keep enough cash to stay within debt covenants and fund growth.