third quarter and nine months ended September 30, 2026
Filed Nov 4, 2026Lifecore 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.