Revenue: As of FY2026 Q1, the actual value is USD 63.01 M, beating the estimate of USD 60.8 M.EPS: As of FY2026 Q1, the actual value is USD 0.3, meeting the estimate of USD 0.3.EBIT: As of FY2026 Q1, the actual value is USD 6.393 M.Lifeway Foods, Inc. operates as a single reportable segment, primarily focused on manufacturing and distributing cultured dairy products in North America, with less than 1% of revenue from outside the U.S. .<h4>Segment Revenue</h4>Net sales for the three months ended March 31, 2026, increased by $16,921 thousand, or 36.7%, to $63,012 thousand, up from $46,091 thousand in the prior year, primarily driven by higher volumes of branded drinkable kefir .Revenue by Product Category (Three Months Ended March 31): Drinkable Kefir other than ProBugs: $55,090 thousand (87% of net sales) in 2026, up from $38,050 thousand (83% of net sales) in 2025 . Cheese: $4,684 thousand (7% of net sales) in 2026, up from $3,812 thousand (8% of net sales) in 2025 . Cream and other: $2,049 thousand (3% of net sales) in 2026, down from $2,459 thousand (5% of net sales) in 2025 . Drinkable Yogurt: $584 thousand (1% of net sales) in 2026, down from $634 thousand (1% of net sales) in 2025 . ProBugs Kefir: $325 thousand (1% of net sales) in 2026, down from $746 thousand (2% of net sales) in 2025 . Other dairy: $280 thousand (1% of net sales) in 2026, down from $390 thousand (1% of net sales) in 2025 .Two major customers accounted for 26% and 24% of net sales for the three months ended March 31, 2026 and 2025, respectively .<h4>Operational Metrics</h4><ul><li>Net Income: Increased to $4,674 thousand in Q1 2026 from $3,540 thousand in Q1 2025 .</li><li>Gross Profit: Increased to $17,351 thousand (27.5% of net sales) in Q1 2026 from $11,035 thousand (24.0% of net sales) in Q1 2025, driven by favorable milk pricing and manufacturing efficiencies .</li><li>Income from Operations: Increased significantly to $6,325 thousand (10.0% of net sales) in Q1 2026 from $1,574 thousand (3.5% of net sales) in Q1 2025 .</li><li>Total Cost of Goods Sold: $45,661 thousand (72.5% of net sales) in Q1 2026, down from $35,056 thousand (76.0% of net sales) in Q1 2025 .</li><li>Selling Expenses: Increased by $1,490 thousand to $6,188 thousand (9.8% of net sales) in Q1 2026, from $4,698 thousand (10.2% of net sales) in Q1 2025, due to increased marketing investments .</li><li>General and Administrative Expenses: Increased by $75 thousand to $4,703 thousand (7.5% of net sales) in Q1 2026, from $4,628 thousand (10.0% of net sales) in Q1 2025, with the prior year including approximately $985 thousand in legal and professional fees .</li><li>Provision for Income Taxes: $1,583 thousand (2.5% of net sales) in Q1 2026, compared to $1,426 thousand (3.1% of net sales) in Q1 2025, with the effective tax rate changing from 28.7% in Q1 2025 to 25.3% in Q1 2026 .</li></ul><h4>Cash Flow</h4><ul><li>Net Cash Provided by Operating Activities: $4,378 thousand for Q1 2026, a significant increase from -$150 thousand (net cash used) in Q1 2025, primarily due to increased cash earnings .</li><li>Net Cash Used in Investing Activities: -$11,041 thousand for Q1 2026, compared to $2,933 thousand (net cash provided) in Q1 2025, driven by increased purchases of property and equipment for the Waukesha, Wisconsin facility expansion, while Q1 2025 included proceeds from the sale of the Simple Mills investment .</li><li>Net Cash Provided by Financing Activities: $6,696 thousand for Q1 2026, primarily from line of credit borrowings for the facility expansion, compared to -$65 thousand (net cash used) in Q1 2025 .</li></ul><h4>Future Outlook and Strategy</h4>Lifeway Foods, Inc. is expanding its Waukesha, Wisconsin facility to double manufacturing capacity and improve packaging efficiency, with an estimated cost of $48,500 thousand and $31,267 thousand invested as of March 31, 2026 . The project is expected to be completed in Q4 2026 and will be funded primarily through cash on-hand, cash flow from operations, and its revolving credit facility . The company believes its current liquidity and financing strategies will provide sufficient funds for working capital, capital requirements, and growth initiatives .

Lifeway Foods | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 63.01 M