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LWAY

Lifeway Foods, Inc.

LWAY

Lifeway Foods, Inc. • NASDAQ
$24.79 ▲ 1.41% (+0.34)
Market Cap $377.44 M
52w High $34.20
52w Low $19.50
Dividend Yield 0%
P/E 33.49
Volume 23.01K
Outstanding Shares 15.23M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $57.143M ▲ $12.282M ▲ $3.529M ▼ 6.176% ▼ $0.23 ▼ $6.162M ▼
Q2-2025 $53.901M ▲ $9.605M ▲ $4.249M ▲ 7.883% ▲ $0.28 ▲ $6.899M ▲
Q1-2025 $46.091M ▼ $9.461M ▼ $3.54M ▲ 7.68% ▲ $0.24 ▲ $5.917M ▲
Q4-2024 $46.934M ▲ $11.184M ▲ $-160K ▼ -0.341% ▼ $-0.011 ▼ $1.678M ▼
Q3-2024 $46.095M $7.678M $2.976M 6.456% $0.2 $5.185M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $22.99M ▲ $109.526M ▲ $26.762M ▲ $82.764M ▲
Q2-2025 $21.22M ▲ $98.267M ▲ $19.571M ▲ $78.696M ▲
Q1-2025 $19.446M ▲ $93.667M ▲ $19.499M ▲ $74.168M ▲
Q4-2024 $16.728M ▼ $90.547M ▼ $18.636M ▼ $71.911M ▲
Q3-2024 $20.558M $91.309M $19.786M $71.523M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $3.529M ▼ $6.919M ▲ $-5.149M ▼ $0 $1.77M ▼ $1.77M ▲
Q2-2025 $4.249M ▲ $3.912M ▲ $-2.138M ▼ $0 ▲ $1.774M ▼ $1.605M ▲
Q1-2025 $3.54M ▲ $-150K ▲ $2.933M ▲ $-65K ▼ $2.718M ▲ $-2.369M ▲
Q4-2024 $-160K ▼ $-2.579M ▼ $-1.251M ▲ $0 $-3.83M ▼ $-3.831M ▼
Q3-2024 $2.976M $7.451M $-1.526M $0 $5.925M $5.911M

Five-Year Company Overview

Income Statement

Income Statement Lifeway’s income statement shows a clear growth story with improving quality. Sales have climbed steadily over the last five years, and profits have moved from roughly breakeven to consistently positive. Gross margins have held up reasonably well even as the business has scaled, suggesting decent pricing power and cost control. Operating profit was especially strong recently and then eased a bit, which could reflect higher marketing, input costs, or investment in growth rather than a structural problem. Overall, this is now a solidly profitable niche food company, but with earnings that can still fluctuate from year to year.

Balance Sheet

Balance Sheet The balance sheet looks conservative and relatively clean. Total assets and shareholder equity have both grown over time, signaling gradual reinvestment and a stronger financial base. The company currently carries essentially no financial debt, after previously using and then reducing borrowings, which lowers financial risk. Cash on hand has improved from very thin levels to a more comfortable cushion, though it is still not large by big-company standards. In short, this is a small but sturdier balance sheet with limited leverage and growing underlying asset value.

Cash Flow

Cash Flow Cash generation has improved meaningfully. Operating cash flow is now consistently positive and comfortably covers the company’s typical investment needs in the business. Free cash flow has turned into a recurring source of funds in recent years, even after spending on equipment and facilities. The most recent period shows a heavier investment phase, likely tied to capacity expansion, but this has not pushed cash flow into obvious stress. The cash profile is that of a business moving from survival mode into a position where it can fund growth and still strengthen its finances.

Competitive Edge

Competitive Edge Lifeway holds a dominant position in the U.S. kefir market, effectively owning most of the category. Its brand is long-established, with an authentic story around probiotics and gut health that is hard for new entrants to copy quickly. The company’s proprietary kefir cultures and specialized fermentation processes create product differentiation that is not easily replicated. Wide distribution across major national retailers further raises the barrier to entry, because shelf space and established relationships are valuable in grocery. As a result, Lifeway enjoys a meaningful competitive moat, though it remains concentrated in a relatively narrow product category and exposed to broader dairy and wellness trends.

Innovation and R&D

Innovation and R&D Innovation is a central part of Lifeway’s strategy rather than a side activity. The company continually expands flavors, formats, and health-focused features—such as lactose-free options, collagen-added drinks, kid-oriented products, and a revitalized Farmer Cheese line. It is also pushing into adjacent areas like probiotic salad dressings and exploring plant-based probiotic beverages, signaling a plan to leverage its fermentation know-how beyond traditional kefir. Investments in facility expansion and specialized equipment support this pipeline by boosting capacity and efficiency. Overall, the R&D and product development approach is practical and market-driven, aimed at riding long-term trends in probiotics, functional foods, and better-for-you snacking.

Summary

Lifeway Foods has evolved from a niche kefir producer into a profitable, category-leading probiotic foods company with a measurable competitive moat. The income statement now reflects steady growth and consistent, if still modest, profitability. The balance sheet is conservative, with little to no debt and gradually rising equity, and cash flows have improved to the point where the business can fund expansion from internal resources. Strategically, its strongest advantages are brand strength, proprietary fermentation know-how, and broad distribution in major retailers. Key opportunities lie in extending its probiotic expertise into new products and formats, while main risks include reliance on a relatively narrow product category, changing consumer tastes in dairy, and execution challenges as it scales its “Lifeway 2.0” growth plan. Overall, it is a focused, innovation-driven player in the functional foods space with improving financial resilience.

NEWS

November 26, 2025 · 10:00 AM UTC

Edward Smolyansky Files Preliminary Proxy Statement toward Achieving Further Board Change and a New Beginning for Lifeway Foods, Inc. (NASDAQ: LWAY)

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November 21, 2025 · 3:05 PM UTC

Kefir-Leader Lifeway Foods Expands Farmer Cheese Distribution to 2,000 Walmart Stores Across the U.S.

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November 12, 2025 · 9:00 AM UTC

Lifeway Foods Delivers Record Q3 2025 Net Sales and Strong Net Income Growth Continuing Kefir Category Dominance

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November 11, 2025 · 9:00 AM UTC

Lifeway Foods and Drugstore Launch Limited-Edition Smoothie for November: Lifeway Probiotic Sunrise Smoothie

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November 10, 2025 · 10:05 AM UTC

Lifeway Foods to Host Ribbon Cutting for Phase Two of $45 Million Waukesha Expansion, Advancing Cooling System Upgrades to Support Global Kefir Demand

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