#USA #Lifeway Foods #Morton Grove #Financial Growth #Kefir

Lifeway Foods Reports Record Q3 2025 Financials

Lifeway Foods, Inc. (Nasdaq: LWAY), renowned as the foremost supplier of kefir and other fermented probiotic foods in the U.S., has announced impressive financial results for the third quarter ending September 30, 2025. This period marks a significant milestone for the company, achieving a net sales figure of $57.1 million, reflecting a remarkable 29% increase in volume-led net sales compared to previous periods. This surge is driven predominantly by Lifeway’s flagship product, Lifeway Kefir, and further establishes the company’s leading status in the booming kefir market.

Sustaining Momentum and Growth

According to Julie Smolyansky, President and CEO, this latest success manifests over six consecutive years of quarterly sales growth. The 19% rise in net income, coupled with a 300 basis points expansion in gross margin, illustrates Lifeway's effective operational execution and adherence to its strategic growth initiatives. Smolyansky emphasized that the company's growth trajectory continues to align with evolving consumer dynamics, particularly with increased awareness surrounding gut health and the burgeoning demand for high-protein options in fermented foods.

Investment in Marketing and Production

To support this accelerating growth, Lifeway Foods is intensifying investments in marketing and enhancing manufacturing capabilities. The company recently completed the initial phase of its strategic expansion at the Waukesha plant, enhancing production capacity and operational efficiency. This expansion is pivotal as its demand within the sector surges, positioning the company favorably for sustained profitable growth.

Innovation at the Core

In addition to Lifeway Kefir, the company is venturing into new product categories, responding to customer appetites for innovative health-oriented beverages. Lifeway recently launched Muscle Mates™, a functional drink featuring 20 grams of protein and 5 grams of creatine, which targets the performance-driven market segment. Additionally, their probiotic smoothies infused with collagen have been gaining traction within the rapidly expanding collagen market.

Collaborative Efforts and Marketing

Lifeway Foods has also partnered with several health-centric brands, spotlighting kefir as a prime ingredient in various high-visibility products. Notable collaborations include the Love Your Gut Pumpkin Spice Smoothie with Erewhon and the Trust Your Gut Smoothie with Joe & The Juice. These partnerships aim to enhance product visibility and promote gut health awareness, addressing a critical consumer trend.

Key Financial Metrics for Q3 2025

• - Net Sales: $57.1 million, a year-over-year increase of 24%.
• - Gross Profit Margin: 28.7%, an improvement from 25.7% the previous year.
• - Net Income: $3.5 million, equivalent to $0.23 per share, up from $0.20 in 2024.
• - The selling expense was recorded at 8.8%, reflecting continued investments to bolster marketing and distribution strategies.

Looking Forward

With an optimistic outlook, Lifeway is on track to achieve a target range of $45–$50 million in Adjusted EBITDA by FY 2027. The company is equipped to surpass prior sales records for FY 2025 thanks to its solid foundation and responsive strategies tailored to meet changing consumer preferences. Smolyansky articulated confidence in Lifeway's ability to maintain this upward momentum, asserting, “We are stacking record quarters while executing at the highest level, positioning ourselves effectively for sustained success.”

Conclusion

The achievements displayed by Lifeway Foods not only highlight the company’s robust operational capabilities but also reflect a burgeoning interest in the health and wellness market. By continuing to innovate and expand, Lifeway Foods is set to maintain its leadership in the kefir category while responding adeptly to the evolving demands of consumers in this vibrant market landscape.