Lifecore Biomedical's Q4 2025: Unpacking Key Contradictions on Tariffs, Demand, and Market Growth

Tariff impact and manufacturing shift, customer demand and supply chain initiatives, GLP-1 market growth projections, late-stage projects, and adjusting for calendar year change are the key contradictions discussed in Lifecore Biomedical's latest 2025Q4 earnings call.



Financial Performance:
- Lifecore reported revenue of $128.9 million for fiscal year 2025, representing a 0.5% increase compared to the previous year.
- The increase was primarily due to a $7.1 million increase in hyaluronic acid (HA) manufacturing demand, primarily from a large customer's supply chain initiatives. However, this was partially offset by a $6.5 million decline in CDMO revenues.
- The decrease in CDMO revenues was mainly due to the completion of a discrete development project in the prior comparable period and timing of customer project life cycles.

Operational Efficiency:
- Lifecore's adjusted EBITDA for fiscal year 2025 was $19.5 million, a $0.7 million decrease from the previous year.
- This decrease was primarily due to a decline in gross profit, which was impacted by lower development revenue and aseptic manufacturing volumes. However, it was partially offset by favorable recurring selling, general, and administrative expenses.

Product Pipeline and Business Development:
- Lifecore added 9 new programs during fiscal year 2025, ranging from early-stage to late-stage development.
- This growth was driven by strategic business development efforts, including the signing of multiple development agreements with new and existing customers, as well as the advancement of programs within the late-stage development pipeline.

Quality and Regulatory Compliance:
- The company successfully passed a two-week FDA audit of its quality systems and processes during the fourth quarter.
- The favorable outcome underscored Lifecore's commitment to maintaining quality and compliance standards, which are crucial for customer trust and future growth.