Lifeway Foods 2025 Q3 Earnings Record Net Income Surges 18.6% as Revenue Hits $57.1M

Lifeway Foods (LWAY) reported Q3 2025 earnings that exceeded revenue expectations but slightly underperformed on EPS. The company reiterated its FY 2027 adjusted EBITDA target of $45–$50 million and maintained guidance for FY 2025 revenue growth above 8%.

Revenue

Lifeway’s total revenue surged 24.0% to $57.14 million in Q3 2025, driven by robust demand for its core products. Drinkable Kefir (excluding ProBugs) led the charge with $49.60 million, while Cheese and Cream segments contributed $4.06 million and $2.17 million, respectively. Smaller segments, including Drinkable Yogurt ($668,000), ProBugs Kefir ($343,000), and Other dairy ($308,000), rounded out the total net sales. The results reflect strategic customer relationship adjustments in 2024 that prioritized high-value brand growth.

Earnings/Net Income

Earnings per share (EPS) rose 15.0% to $0.23 in Q3 2025, with net income reaching $3.53 million—a 18.6% increase from $2.98 million in the prior year. This marks the company’s strongest Q3 net income in over two decades. The EPS growth, though slightly below the $0.24 forecast, underscores Lifeway’s ability to convert top-line gains into profitability.

Post-Earnings Price Action Review

The stock experienced a 4.86% decline during the latest trading day, with a 10.68% weekly drop and a 19.42% monthly slump. However, premarket trading saw a 11.49% surge to $26.01 following the earnings release, driven by strong revenue performance and strategic momentum. Despite an EPS miss, the revenue beat and long-term growth initiatives fueled investor optimism. The stock remains within its 52-week range of $19.50–$34.20.

CEO Commentary

CEO Julie Smolyansky highlighted Lifeway’s “position of strength” in the kefir category, emphasizing strategic investments in product innovation and operational expansion. She noted the company’s 24th consecutive quarter of year-over-year sales growth and its alignment with consumer trends like GLP-1 medication adoption and gut health awareness.

Guidance

Lifeway reaffirmed its full-year 2025 revenue growth target above 8% and mid-single-digit EPS expansion. The company also reiterated its $45–$50 million adjusted EBITDA goal for FY 2027, supported by ongoing manufacturing upgrades and market expansion.

Additional News

1. Benchmark Upgrade: Benchmark initiated coverage with a “Buy” rating and $35 price target, citing Lifeway’s kefir dominance and growth potential.

2. Waukesha Expansion: The company launched Phase Two of its $45 million Wisconsin facility expansion, aiming to double production capacity by 2026.

3. Product Innovation: Lifeway launched Muscle Mates, a ready-to-drink beverage with 20g of protein and 12 live probiotics, targeting the functional nutrition market.

Lifeway Foods’ Q3 results highlight its leadership in the kefir category and strategic focus on health trends. While short-term stock volatility persists, long-term growth initiatives and operational efficiency gains position the company to capitalize on rising demand for functional dairy products.