Lifecore Restores Sequential Revenue After a 34% First-Quarter Drop

The Tip Desk · October 27, 2026 · 3 min read

Second-quarter revenue was $34.2 million as HA manufacturing rose 44% and CDMO fell 34%, and the company reaffirmed 2026 revenue of $120 million to $125 million.

Lifecore Biomedical, Inc. (LFCR), a fully integrated injectables contract development and manufacturing organization, posted second-quarter revenue of $34.2 million, a 6.2% decline from $36.4 million in the year-ago quarter ended May 25, 2025.

The sequential recovery was the quarter’s defining turn. First-quarter revenue had been $23.2 million, down 34% from the comparable prior-year quarter. Second-quarter sales were $11.0 million higher than that first-quarter level, and Adjusted EBITDA rose to $8.6 million from $1.0 million. Net loss narrowed to $6.2 million, or $0.19 a share, from $15.0 million, or $0.43 a share, in the first quarter.

The mix inside the $34.2 million showed a year-over-year CDMO contraction. CDMO revenue was $15.6 million, down 34% from $23.5 million a year earlier. HA manufacturing revenue was $18.6 million, up 44% from $12.9 million. Gross profit was $12.1 million, and the gross-profit margin was 35.3%, versus 19% in the first quarter.

Operating expenses were $9.5 million. The company said it progressed more than 40 projects intended to promote cost reductions or productivity improvements that are expected to positively impact margins in the near term and contribute to 25% Adjusted EBITDA margin targets by the end of 2029. President and chief executive officer Paul Josephs said the company continues to transition its development pipeline toward commercialization and to invest in talent and processes it believes will support a growing pipeline and sustainable, long-term profitability.

Business development remained the other thread. Lifecore signed six new programs in the second quarter, including two commercial-stage programs. Over the past 12 months it has added 13 programs, eight of them late stage. Josephs said those programs and their financial contributions are expected to play a significant role in the company’s long-term objectives of a 12% revenue CAGR and Adjusted EBITDA margins exceeding 25% by the end of 2029. The company completed five customer audits and two regulatory inspections in the quarter, which it said represented one of the highest numbers of audits performed in a single quarter.

The company is reaffirming calendar-year 2026 guidance of revenue in the range of $120 million to $125 million and Adjusted EBITDA of $20.5 million to $25 million. It is not providing forward-looking guidance for U.S. GAAP net loss, citing items it said it cannot predict with reasonable certainty, including restructuring and reorganization expenses, asset impairments, litigation settlements, changes in the fair value of the debt derivative liability, and income tax accounting.

Liquidity ended June 30, 2026, at approximately $38.8 million, including cash of $17.2 million and revolving credit availability of $21.6 million. Cash of $17.2 million was down from $20.8 million at the end of the first quarter, while revolving credit availability was $21.6 million versus $17.3 million. Stockholders’ deficit was $34.1 million at June 30, 2026, versus $14.2 million at Dec. 31, 2025. Related-party debt, net of current portion, was $148.5 million, and the related-party debt derivative liability was $30.9 million. Interest expense, related party, was $7.3 million in the second quarter.

Josephs framed the quarter as highly productive, pointing to consistent wins that he said reflected manufacturing expertise and a track record in quality and compliance. The company’s stated path remains the same as in the first quarter: hold 2026 guidance, convert late-stage pipeline work into commercial programs, and keep cost projects aimed at the 2029 margin target.