Revenue: As of FY2026 Q4, the actual value is USD 23.19 M.EPS: As of FY2026 Q4, the actual value is USD -0.43.EBIT: As of FY2026 Q4, the actual value is USD 2.548 M.<h4>Segment Revenue and Gross Profit</h4>Total revenues for Lifecore Biomedical, Inc. decreased to $23,193 thousand for the three months ended March 31, 2026, from $35,154 thousand for the three months ended February 23, 2025, representing a 34% decline.<ul><li>CDMO Revenue: Decreased by $5,014 thousand (-24%) to $15,775 thousand for the three months ended March 31, 2026, from $20,789 thousand in the prior comparable period, primarily due to $2.9 million of lower sales volumes, $1.3 million of lower development revenue from project completion, and a $0.9 million contractual take-or-pay arrangement in the prior period.</li><li>HA Manufacturing Revenue: Decreased by $6,947 thousand (-48%) to $7,418 thousand for the three months ended March 31, 2026, from $14,365 thousand in the prior comparable period, mainly due to the absence of increased demand from a customer’s supply chain initiatives in the prior period.</li></ul>Cost of goods sold decreased by $6,578 thousand (-26%) to $18,731 thousand for the three months ended March 31, 2026, from $25,309 thousand in the prior comparable period.Gross profit decreased by $5,383 thousand (-55%) to $4,462 thousand for the three months ended March 31, 2026, from $9,845 thousand in the prior comparable period. The gross profit percentage was 19.2% for the three months ended March 31, 2026, down from 28.0% in the prior comparable period. This decrease was primarily attributed to a $5.7 million decrease in HA manufacturing gross profit due to decreased sales volume and manufacturing absorption, partially offset by a $0.2 million increase in CDMO gross profit due to mix and costing.<h4>Operational Metrics</h4>Research and Development (R&amp;D) expenses declined by $828 thousand (-40%) to $1,217 thousand for the three months ended March 31, 2026, from $2,045 thousand in the prior comparable period, mainly due to lower cost of sales allocations and reduced stock-based compensation.Selling, General, and Administrative (SG&amp;A) expenses decreased by $2,061 thousand (-21%) to $7,917 thousand for the three months ended March 31, 2026, from $9,978 thousand in the prior comparable period. This reduction included $1.6 million from lower recurring legal and accounting expenses, lower compensation, and lower credit losses, alongside a $0.5 million net reduction in non-recurring expenses related to legacy legal matters. The prior period included a $6,851 thousand loss on sale or disposal of assets, primarily from a $6.4 million loss on the sale of excess equipment, which was absent in the current period.Interest expense, net, increased by -$1,739 thousand (32%) to -$7,220 thousand for the three months ended March 31, 2026, from -$5,481 thousand in the prior comparable period, mainly due to a $1.4 million increase related to Alcon term loans. The change in fair value of debt derivative liability, related party, increased by -$2,555 thousand to -$3,155 thousand for the three months ended March 31, 2026, from -$600 thousand in the prior comparable period, due to changes in key valuation inputs including a higher discount rate and the passage of time.Net loss for the three months ended March 31, 2026, was -$14,980 thousand, compared to -$14,769 thousand for the three months ended February 23, 2025.<h4>Cash Flow</h4>Net cash provided by operating activities improved by $3,501 thousand, reaching $4,700 thousand for the three months ended March 31, 2026, compared to $1,199 thousand in the prior comparable period. This improvement was driven by $5.5 million in working capital changes, primarily from receivable collections in the 2026 period.Net cash used in investing activities was -$1,118 thousand for the three months ended March 31, 2026, compared to $1,544 thousand provided by investing activities in the prior comparable period. This change was primarily due to the absence of $7.0 million cash from equipment sales in the prior period, partially offset by lower capital spending.Net cash used in financing activities decreased by $6,527 thousand to -$256 thousand for the three months ended March 31, 2026, from -$6,783 thousand in the prior comparable period, mainly due to the absence of a net $6.0 million of repayments under the revolving credit facility in the prior period.As of March 31, 2026, Lifecore Biomedical, Inc. had cash of $20,795 thousand and $17,300 thousand available under its Revolving Credit Facility, totaling $38,095 thousand in consolidated liquidity. The company was in compliance with all financial covenants under its Term Loan Credit Facility and Revolving Credit Facility.<h4>Future Outlook and Strategy</h4>Lifecore Biomedical, Inc. expects to further improve efficiencies and productivity through additional procurement and operational strategies, leveraging its new Enterprise Resource Planning (ERP) system to strengthen inventory control, support financial management, and reduce costs as the company grows. The company has hired a head of business transformation to champion efforts to improve its cost structure, drive productivity, and gain efficiencies. The company’s principal sources of liquidity are expected to be sufficient to finance its current operational and capital requirements for at least the next twelve months, though internally generated cash is not expected to be sufficient to fund all or any significant redemptions of the Redeemable Convertible Preferred Stock, which may require additional financing.

Lifecore Biomedical | 10-Q: FY2026 Q4 Revenue: USD 23.19 M