Lifecore Biomedical, Inc. Q1 FY2026 earnings call

• Growth strategy pillars: Executed on maximizing existing commercial business, advancing development pipeline, and adding high - quality new programs. Transformed business development strategy and team, signed three new commercial site transfer programs in Q1. Made progress with commercial site transfers and CDMO manufacturing services agreements. Advanced development pipeline with work with Indomo and having 13 late - stage programs including 5 commercial site transfers. - Key areas: Made progress in SG&A with cost reduction opportunities, successfully launched ERP system in January, completed positive inspections with new business prospects and existing customers, and had meaningful engagement at DCAT Association meeting.

For the first quarter ended March 31st, 2026, revenues were $23.2 million, a decrease of $12 million or 34% compared to $35.2 million in the comparable prior year quarter. Gross profit was $4.5 million, a decrease of $5.4 million. SG&A expenses were $7.9 million, a decrease of $2.1 million. Net loss was $15 million and 43 cents per diluted share compared to $14.8 million and 42 cents per diluted share in the prior year quarter. Adjusted EBITDA was $1 million, a decrease of $4.7 million. Revenue contribution details weren't explicitly broken down by product segment beyond the overall financials.

• Reaffirmed 2026 guidance. Expect revenue to be in the range of $120 to $125 million, net loss in the range of $35.4 to $30.9 million, and adjusted EBITDA in the range of $20.5 to $25 million. - Expect revenue to be roughly mid - 40% range in first half of 2026 and mid - 50% range in second half. Adjusted EBITDA expected to be roughly 40% range in first half and 60% range in second half. - Sixth consecutive quarter of period - over - period declines in SG&A and R&D expenses, with cumulative reduction of almost $8 million since late 2024.

Q: Michael Patusky asked about connecting Q1 numbers to full - year guide, sequential revenue growth.

A: Ryan said revenue expected mid - 40% range in first half and mid - 50% range in second half, EBITDA roughly 40% range in first half and 60% range in second half, with 50% of headwinds from year - end in Q1 and 80% in first half.

Q: Michael Patusky asked about potential customer traffic in Chaska.

A: Paul said they're seeing significant increase in audits from prospective customers, with CEO of large multinational coming this week.

Q: Matt Hewitt asked about pipeline in relation to reshoring and FDA enforcement.

A: Paul said reshoring is a meaningful part (low double digits), and FDA enforcement increase creates opportunity for LifeCorps.

Q: Hannah (for Mac Eatuck) asked about HA performance and industry capacity for injectable fill finish.

A: No specific production inefficiencies for HA in Q1, and for injectable fill finish, pre - filled syringes and cartridges have demand exceeding capacity while traditional vials have excess capacity.

Q: Christine Rains (for Max Muck) asked about Q2 revenue uptake and 2027 guidance.

A: Ryan said they have good visibility to Q2 revenue, and for 2027, key milestones in development programs will help inform outlooks.

Q: Paul Knight asked about most successful auto - injector, pen, or pre - filled syringe and capacity.

A: Pre - filled syringe is most successful due to healthcare trend, and 45 million capacity is not gating for all customers, but they have optionality to grow with site three.