Lifecore Biomedical NASDAQ: LFCR executives highlighted new commercial site transfer wins, continued cost reductions, and improving liquidity during the company’s first-quarter 2026 earnings call, while acknowledging a year-over-year revenue decline tied to previously discussed headwinds.
Management reiterates long-term targets and reaffirms 2026 outlook
President and CEO Paul Josephs said the company continued executing on “each of the three pillars” of its growth strategy: expanding existing commercial business, advancing development programs toward commercialization, and adding new programs through business development. Josephs said the company believes consistent execution supports its longer-term goal of a 12% revenue compound annual growth rate and EBITDA margins above 25% by the end of 2029.
Chief Financial Officer Ryan Lake reaffirmed full-year 2026 guidance, calling out the company’s expectations for:
- Total revenue: $120 million to $125 million
- Net loss: $35.4 million to $30.9 million
- Adjusted EBITDA: $20.5 million to $25 million
Three new commercial site transfer programs added in the quarter
Josephs emphasized business development momentum in early 2026, noting that Lifecore signed three new commercial site transfer programs in the first quarter.
In March, the company announced a manufacturing services agreement with a new aesthetics customer for the commercial site transfer of a marketed, approved product currently manufactured outside the U.S. Josephs said the customer’s goal is to establish U.S.-based manufacturing for products sold domestically, adding that Lifecore believes the product “may generate commercial revenue in 2028.”
The company also signed two CDMO manufacturing services agreements with an existing U.S. biopharmaceutical customer. One agreement covers a commercial site transfer for a currently marketed product produced by another CDMO, with Lifecore performing technical transfer services to support regulatory approval at its site before commercial manufacturing begins. The second agreement expands an existing relationship for a commercial ophthalmic product Lifecore already manufactures in one delivery format; the company will now manufacture it in a second delivery system currently made in Europe. Josephs said the second delivery system is expected to be additive to existing commercial revenue for that product.
During the Q&A, management said the three commercial tech transfers are expected to generate commercial revenue in the 2028 timeframe, describing them as “mid 7-figure opportunities” for Lifecore.
Development pipeline updates, including Indomo expansion and late-stage programs
On development programs, Josephs highlighted an expanded relationship with Indomo, a clinical-stage therapeutics company. He said Lifecore signed a second agreement in January after previously being selected for formulation and process optimization work supporting Indomo’s DT-001 program. Under the new agreement, Lifecore will produce and supply clinical batches of DT-001 for studies intended to prepare the product to advance into Phase II clinical trials in 2026.
Josephs said Lifecore’s late-stage development pipeline includes 13 late-stage programs, and that the three programs announced during the quarter were added to that group. He also said five late-stage programs are commercial site transfers, which he characterized as having existing market demand and being “significantly de-risked” compared with development programs because they do not require additional clinical trials and instead require qualification at Lifecore.
Depending on regulatory timing, Josephs said the company expects these transfers to generate commercial revenue at Lifecore’s site in 2028. He also noted that two late-stage customers “nearing commercialization” achieved milestones: one ophthalmic customer announced positive top-line Phase III results, and another customer, after securing funding, has an “actionable path towards commercialization,” potentially in 2028.
Operations and market commentary: ERP go-live, quality inspections, and demand pockets
Josephs said Lifecore launched its enterprise resource planning system in January and described the implementation as smooth to date. He said the company expects the system to improve efficiencies across financial management, cost containment, productivity, and inventory control.
He also said the company completed multiple inspections during the quarter with new prospects and existing customers, and that each inspection had a positive outcome. In response to an analyst question about customer traffic, Josephs said Lifecore has seen a “significant increase” in the number of audits from prospective customers, adding that the audit schedule was booked “into mid-June” for new customer audits.
Asked about what is driving site transfers and pipeline activity, Josephs said reshoring is “meaningful” but “certainly not the majority,” estimating “maybe low double digits.” He also pointed to increased FDA enforcement activity in the industry, saying it has created opportunity for a provider with a strong quality track record.
On fill-finish capacity dynamics, Josephs said demand continues to exceed available capacity for prefilled syringes and cartridges, while traditional vials have more capacity industrywide due to the drop in COVID-related demand. In another exchange, management said Lifecore is seeing most success in prefilled syringes, attributing the trend to healthcare moving more toward home-based treatment rather than hospital or clinic administration.
Quarterly financial results: revenue down, SG&A reductions continue, liquidity improves
For the first quarter ended March 31, 2026, Lake reported revenue of $23.2 million, down $12.0 million, or 34%, from $35.2 million in the comparable prior-year quarter ended Feb. 23, 2025. He said the decline was primarily due to factors described during the company’s fourth-quarter earnings announcement and stated the company remains on track to deliver full-year guidance.
Gross profit was $4.5 million, down $5.4 million from $9.8 million a year earlier, which Lake attributed primarily to lower revenue.
Selling, general and administrative expense was $7.9 million, down $2.1 million, or 21%, from $10.0 million in the prior-year comparable quarter. Lake said the decrease was driven by $1.6 million of lower recurring legal and accounting costs, lower compensation and lower credit losses, plus $0.5 million of lower non-recurring expenses primarily related to legacy legal matters.
The company posted a net loss of $15.0 million, or $0.43 per diluted share, compared with a net loss of $14.8 million, or $0.42 per diluted share, a year earlier. Adjusted EBITDA was $1.0 million, down from $5.7 million in the comparable quarter, primarily due to lower revenue and partially offset by favorable operating expenses.
Lake said the quarter marked the sixth consecutive quarter of period-over-period declines in SG&A and R&D expenses, and that since late 2024, cumulative reductions in SG&A and R&D were “almost $8 million,” including reductions in accounting, consulting, and legal expenses.
Liquidity also improved, Lake said. Lifecore ended the quarter with approximately $38 million in overall liquidity, including about $21 million in cash and cash equivalents and about $17 million available under its revolver. He added that the quarter was the fifth consecutive quarter of positive cash flow from operations, and that Lifecore generated $4.7 million in cash from operations and $3.6 million of free cash flow in the quarter.
In response to questions about the revenue cadence for the remainder of the year, Lake reiterated prior commentary that the company expects revenue to be in the “mid-40% range” in the first half of 2026 and in the “mid-50% range” in the second half, and said that split “hasn’t changed.” He also said the impacts from a customer supply chain initiative and a contract termination are front-loaded, with roughly 50% in the first quarter and about 80% expected to flow through the first half.
About Lifecore Biomedical NASDAQ: LFCR
Lifecore Biomedical, Inc is a publicly traded specialty biopharmaceutical company headquartered in Chaska, Minnesota. The company focuses on the development, manufacture and commercialization of hyaluronic acid (HA)–based products that address medical and aesthetic needs. Lifecore’s proprietary HA formulations are designed to meet strict regulatory standards for purity, consistency and performance in highly regulated markets.
The company’s product portfolio spans multiple therapeutic areas, including ophthalmology, orthopedics, dermatology and wound care.
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