Lifecore Biomedical Reports Financial Results for the Third Quarter Ended September 30, 2026, and Provides Corporate Update
LIFECORE BIOMEDICAL, INC. \DE\ (LFCR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Lifecore Biomedical Reports Financial Results for the Third Quarter Ended September 30, 2026 , and Provides Corporate Update -- Multiple New Business Wins Continue to Strengthen Growing Pipeline -- CHASKA, Minn., November 4, 2026 -- Lifecore Biomedical, Inc. (NASDAQ:
How this was made
The 30-second read
Why it matters
The earnings miss and widened loss are likely to trigger short‑term sell pressure, though the announced pipeline projects may support future growth.
Market read
Primary disclosure of earnings for a micro‑cap biotech services firm; relevant for short‑term traders and sector analysts.
What to watch
Cash balance of $38 M and a $15 M revolving credit facility provide liquidity cushion.
Lifecore Biomedical Reports Financial Results for the Third Quarter Ended September 30, 2026, and Provides Corporate Update
Third-quarter revenue and net loss deteriorated versus the prior-year quarter, while gross profit percentage expanded, operating expenses declined, and adjusted EBITDA increased. The company also reported new technology transfer and development-phase program wins expected to contribute beginning in 2027.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $25.3M | – | decrease of $5.8 million, or 18.6% |
| CDMO revenue, three months ended September 30, 2026GAAP | $17.78M | – | (18) % |
| HA manufacturing revenue, three months ended September 30, 2026GAAP | $7.54M | – | (19) % |
| Revenues, three months ended September 30, 2026GAAP | $13.59M | – | – |
| Revenues, related party, three months ended September 30, 2026GAAP | $11.74M | – | – |
| Cost of sales, three months ended September 30, 2026GAAP | $18.50M | – | (21) % |
| Gross profit, three months ended September 30, 2026GAAP | $6.8M | – | decrease of $1.0 million |
| Gross profit percentage, three months ended September 30, 2026GAAP | 27.0 % | – | 2.0 % |
| Research and development expenses, three months ended September 30, 2026GAAP | $1.42M | – | (28) % |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $6.30M | – | (29) % |
| Total operating expenses, three months ended September 30, 2026GAAP | $7.7M | – | decrease of $3.1 million, or 28.9% |
| Operating loss, three months ended September 30, 2026GAAP | −$894K | – | – |
| Loss before income taxes, three months ended September 30, 2026GAAP | −$40.03M | – | – |
| Net loss, three months ended September 30, 2026GAAP | $40.1M | – | – |
| Loss per share, basic and diluted, three months ended September 30, 2026GAAP | $1.08 loss per diluted share | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $4M | – | increase of $1.0 million |
| Total revenues, nine months ended September 30, 2026GAAP | $82.7M | – | decrease of $23.0 million, or 21.8% |
| CDMO revenue, nine months ended September 30, 2026GAAP | $49.10M | – | (29) % |
| HA manufacturing revenue, nine months ended September 30, 2026GAAP | $33.58M | – | (8) % |
| Revenues, nine months ended September 30, 2026GAAP | $39.30M | – | – |
| Revenues, related party, nine months ended September 30, 2026GAAP | $43.38M | – | – |
| Cost of sales, nine months ended September 30, 2026GAAP | $59.32M | – | (16) % |
| Gross profit, nine months ended September 30, 2026GAAP | $23.4M | – | decrease of $11.3 million |
| Gross profit percentage, nine months ended September 30, 2026GAAP | 28.3 % | – | (4.5) % |
| Research and development expenses, nine months ended September 30, 2026GAAP | $4.17M | – | (31) % |
| Selling, general and administrative expenses, nine months ended September 30, 2026GAAP | $22.19M | – | (16) % |
| Restructuring recovery, nine months ended September 30, 2026GAAP | — | – | n/m |
| Loss on sale or disposal of assets, net of portion classified as cost of sales, nine months ended September 30, 2026GAAP | — | – | n/m |
| Total operating expenses, nine months ended September 30, 2026GAAP | $26.4M | – | decrease of $10.0 million, or 27.5% |
| Operating loss, nine months ended September 30, 2026GAAP | −$3.00M | – | – |
| Net loss, nine months ended September 30, 2026GAAP | $61.2M | – | – |
| Loss per share, basic and diluted, nine months ended September 30, 2026GAAP | $1.70 loss per diluted share | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $13.6M | – | decrease of $7.4 million |
| Operating cash flows, nine months ended September 30, 2026GAAP | $9.46M | – | – |
| Capital expenditures, nine months ended September 30, 2026other | −$2.54M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $6.91M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CDMO, three months ended September 30, 2026No segment-specific revenue driver was provided. | $17.78M | – | (18) % |
| HA manufacturing, three months ended September 30, 2026No segment-specific revenue driver was provided. | $7.54M | – | (19) % |
| CDMO, nine months ended September 30, 2026No segment-specific revenue driver was provided. | $49.10M | – | (29) % |
| HA manufacturing, nine months ended September 30, 2026No segment-specific revenue driver was provided. | $33.58M | – | (8) % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
What drove it
- During the third quarter, Lifecore secured two new technology transfer projects, including one supporting process performance qualification batches for a biotech company’s new drug application for a new chemical entity and one supporting a currently marketed product for a large pharmaceutical company.
- Early in the fourth quarter, Lifecore secured three new development-phase programs, including one Phase 2 product with a top-20 global pharmaceutical company and two Phase 3 products with two biotech companies.
- Third-quarter gross profit percentage was 27.0 %, compared with 25.0 % for the prior-year quarter.
- Third-quarter total operating expenses declined 28.9% compared with the prior-year quarter.
Concerns
- Third-quarter total revenues decreased 18.6% compared to the prior-year quarter.
- Nine-month total revenues decreased 21.8% compared to the prior-year period.
- Nine-month gross profit percentage was 28.3 %, compared with 32.8 % for the prior-year period.
- Third-quarter net loss was $40.1 million, compared with net loss of $10.0 million for the prior-year quarter.
- Change in fair value of debt derivative liability, related party was $(31,270) (in thousands) for the three months ended September 30, 2026.
- Related-party debt derivative liability was $62,192 (in thousands) as of September 30, 2026.
- The filing identifies risks relating to the previously announced proposed merger pursuant to an Agreement and Plan of Merger dated September 27, 2026.
What to watch
- Contribution of the two new technology transfer projects to long-term revenue growth objectives, which the company expects to begin in 2027.
- Progression of the three development-phase programs secured early in the fourth quarter.
- CDMO revenue, which was $17,777 (in thousands) in the third quarter and $49,104 (in thousands) in the nine-month period.
- Gross profit percentage following the third-quarter increase to 27.0 % and nine-month decline to 28.3 %.
- Liquidity, related-party debt, debt derivative liability, and the proposed merger process.
Balance sheet and cash flow
- Ended the third quarter of 2026 with approximately $38.0 million in liquidity, including cash of $23.0 million and revolving credit availability of $15.0 million.
- Cash and cash equivalents were $23,035 (in thousands) as of September 30, 2026, compared with $17,469 (in thousands) as of December 31, 2025.
- Debt, net of current portion was $5,535 (in thousands) as of September 30, 2026, compared with $5,694 (in thousands) as of December 31, 2025.
- Debt, net of current portion, related party was $154,452 (in thousands) as of September 30, 2026, compared with $135,588 (in thousands) as of December 31, 2025.
- Debt derivative liability, related party was $62,192 (in thousands) as of September 30, 2026, compared with $26,564 (in thousands) as of December 31, 2025.
- Total liabilities were $250,579 (in thousands) as of September 30, 2026, compared with $198,117 (in thousands) as of December 31, 2025.
- Total stockholders’ deficit was $(73,404) (in thousands) as of September 30, 2026, compared with $(14,202) (in thousands) as of December 31, 2025.
- Cash from operations was $9.5 million and free cash flow was $6.9 million for the nine months ended September 30, 2026.
Analysis
Lifecore reported a lower revenue period. Third-quarter revenue was $25.3 million, down $5.8 million, or 18.6%, from the prior-year quarter, while nine-month revenue was $82.7 million, down $23.0 million, or 21.8%. Both reported revenue categories declined in the quarter: CDMO revenue was $17,777 (in thousands), down (18) %, and HA manufacturing revenue was $7,545 (in thousands), down (19) %.
Profitability showed a mixed pattern. Third-quarter gross profit was $6.8 million versus $7.8 million, but gross profit percentage increased to 27.0 % from 25.0 %. For the nine-month period, gross profit was $23.4 million versus $34.7 million and gross profit percentage declined to 28.3 % from 32.8 %. Operating expenses fell to $7.7 million in the quarter and $26.4 million for the nine-month period, while third-quarter adjusted EBITDA increased to $4.0 million from $3.1 million. Nine-month adjusted EBITDA declined to $13.6 million from $21.1 million.
The GAAP loss expanded substantially in the quarter. Net loss was $40.1 million, or $1.08 loss per diluted share, compared with $10.0 million, or $0.29 loss per diluted share. The consolidated statement of operations reports a $(31,270) (in thousands) change in fair value of debt derivative liability, related party for the third quarter. The company ended the quarter with approximately $38.0 million in liquidity, including cash of $23.0 million and revolving credit availability of $15.0 million. Related-party debt was $154,452 (in thousands) and the related-party debt derivative liability was $62,192 (in thousands) at September 30, 2026.
Cash generation remained positive over the nine-month period, with operating cash flows of $9,457 (in thousands) and free cash flow of $6,914 (in thousands). Management highlighted two third-quarter technology transfer projects and three development-phase programs secured early in the fourth quarter. The company expects the two technology transfer programs to contribute to long-term revenue growth objectives beginning in 2027. The filing did not provide financial guidance, leaving execution on the new pipeline, revenue recovery, gross-profit percentage, liquidity, and merger-related developments as key disclosed watch items.
Management, verbatim
During the third quarter, Lifecore secured two new technology transfer projects. One will support process performance qualification (PPQ) batches for a biotech company’s new drug application (NDA) for a new chemical entity, and the other will support a currently marketed product for a large pharmaceutical company. We believe these programs will add to Lifecore’s high-value pipeline, and we expect each to contribute to the company’s long-term revenue growth objectives, beginning in 2027.
Paul Josephs, president and chief executive officer of Lifecore
In addition, early in the fourth quarter, we secured three new development-phase programs. These include one Phase 2 product with a top-20 global pharmaceutical company and two Phase 3 products with two biotech companies.
Paul Josephs, president and chief executive officer of Lifecore
Not in the filing
stated, not guessed- Forward financial guidance for revenue, gross margin, operating expenses, tax rate, adjusted EBITDA, cash flow, or capital expenditures was not provided.
- Previous-period outlook was not provided.
- Quarterly operating cash flow and quarterly free cash flow were not provided.
- Share repurchases, common dividends, and other capital-return activity were not provided.
- Prior-quarter comparisons were not provided for the reported metrics.
- Segment-specific revenue drivers were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Lifecore Biomedical (NASDAQ:LFCR) is a CDMO specializing in injectable drug manufacturing. The 8‑K filing reports its Q3 2026 financials and recent contract wins.
Ticker impact
Lifecore Biomedical disclosed Q3 2026 results showing 18.6% revenue decline and a net loss of $40.1 M, plus new technology‑transfer and development‑phase contracts for 2027.
likely pressure as the market prices in weaker revenue and higher loss.
The 8‑K filing is the first public release of these numbers; the revenue drop and expanded net loss are material for a micro‑cap CDMO.
Market effects
Signals pressure on the broader contract‑development‑manufacturing sector as clients may delay spend.
Limited to U.S. biotech/CDMO niche; no broader regional effect.
Minimal global impact; primarily relevant to investors in small‑cap biotech services.
Counterpoint
The new pipeline contracts could offset the revenue decline in 2027, offering a longer‑term upside.
Key entities
- companyLifecore Biomedical
NASDAQ‑listed CDMO reporting Q3 2026 results.
