Lifecore Biomedical, Inc. Q4 FY2025 earnings call

• 2025 was productive with strengthened pipeline, sustained growth strategy, and strong financial performance. - Commercial business expansion: Qualified five - head isolator filler for European and Asian markets and hyaluronic acid for Japanese market. - Business development: Added new high - value programs including two commercial site transfers, with expected commercial revenue in 24 - 30 months. - Cost improvement initiatives: ERP system launched in Jan 2026 to strengthen inventory control and reduce costs. - Capacity utilization: Aseptic fill finish capacity 45 million units, expected utilization to reach 60% by 2029.

Fourth quarter of 2025: Revenues of $35.7 million, 10% increase vs prior year quarter; gross margin and adjusted EBITDA improved. Seven - month transition period from May 26, 2025 - Dec 31, 2025: Revenues of $75.5 million, 20% increase vs prior year comparable period; gross margin improved to 31% vs 26% prior year. HA manufacturing contributed to revenue growth in both periods. CDMO revenues also had changes with volume and take - or - pay factors.

• 2026 total revenue expected in range of $120 - $125 million, net loss in range of $28.9 - $33.4 million, adjusted EBITDA in range of $20.5 - $25 million. - 2027 expected modest revenue growth, with significant revenue growth continuing into 2028 driven by expansion of existing customer relationships, development programs, and commercialization of late - stage pipeline. - Targeted 12% revenue CAGR 2025 - 2029 and EBITDA margins >25% mid - term.

Q: Strategy for targeting customers in Asia; A: Majority of inquiries from Asia are inbound, taking advantage of regionalization of manufacturing.

Q: Incremental revenue impact of delayed commercial launch and confidence in program not being canceled; A: Program is already commercialized in other markets, moved to 2028, more granularity expected in summer.

Q: Operational side lifting for margin expansion; A: Expenses still first mover, further opportunities in procurement, strategic investments, etc.

Q: Color on commercial tech transfers timeframe; A: 24 - 30 months due to pre - approval inspection and regulatory process.

Q: Sales force changes and fill finish capacity; A: Sales force team in place, fill finish capacity has adequate capacity for traditional vials but dearth for pre - filled syringes and cartridges.

Q: 2026 guidance and revenue margin cadence; A: Revenue split mid - 40% first half, mid - 50% second half; margins 30% range; SG&A expected $28 million; EBITDA margin split 40% first half, 60% second half.

Q: Impact of site transfers and modest revenue growth in 27; A: Site transfers have opportunity for eight - figure commercial revenue; modest revenue growth in 27 affected by customer loss and HA inventory factors; cash flow expected to improve, CapEx in $8 million range