Lifeway Foods Achieves 20% Q3 Growth Amid Strong Q2 Performance

Lifeway Foods reported record Q2 net sales of $53.9M, up 18% YoY, and a strong start to Q3 with estimated net sales of $26.4M, up 20% YoY. The company's leadership in the kefir category and innovation in the dairy industry have contributed to its success. Analysts rate LWAY stock as a Buy with a $28.00 price target.

Lifeway Foods Inc. (LWAY) has reported record net sales for the second quarter (Q2) of 2025, marking an impressive 18% year-over-year (YoY) growth. The company's earnings per share (EPS) also exceeded expectations, reaching $0.28, up from the forecasted $0.27. This positive performance led to a pre-market stock price increase of 4.96%, with the stock reaching $28.99 [1].

The company's strong Q2 performance was driven by several factors, including a record net sales figure of $53.9 million, an 18% volume-led growth adjusted for strategic portfolio changes, and a gross profit margin of 28.6%, an increase of 160 basis points year-over-year. Lifeway Foods also achieved a net income of $4.2 million, compared to $3.8 million in the same period last year [1].

Lifeway Foods' leadership in the kefir category and innovation in the dairy industry have been key contributors to its success. The company's strategic focus on expanding its product lines, particularly in kefir and farmer’s cheese, has helped it maintain a strong market position. The introduction of new probiotic smoothies with collagen has further enhanced its product offerings, tapping into emerging wellness trends [1].

Looking ahead, Lifeway Foods projects unaudited net sales of $26.4 million for Q3 2025, representing a 20% year-over-year increase. The company aims to achieve $45-50 million in adjusted EBITDA by fiscal year 2027, driven by strategic initiatives and product innovations [1].

Analysts rate LWAY stock as a Buy with a $28.00 price target, reflecting investor confidence in the company's performance and future prospects. The stock's current price of $28.99 is approaching its 52-week high of $29.7, indicating positive market sentiment [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-lifeway-foods-beats-q2-2025-earnings-expectations-93CH-4185777