Lifecore Biomedical (LFCR) investor relations material

Executive summary

• Revenue for the quarter ended March 31, 2026, was $23.2 million, down 34% compared to the three months ended February 23, 2025, primarily due to lower HA manufacturing and CDMO revenues.

• Net loss was $14.98 million, slightly higher than the $14.77 million loss in the prior period.

• Gross profit declined 55% to $4.5 million, with gross margin dropping from 28.0% to 19.2%.

• Operating expenses decreased 52% year-over-year, driven by lower R&D, SG&A, and the absence of prior period asset disposal losses.

• The company implemented a new ERP system in January 2026 and continued operational improvements and cost reductions.

Financial highlights

• CDMO revenue was $15.8 million (down 24%), and HA manufacturing revenue was $7.4 million (down 48%) year-over-year.

• Operating loss improved to $4.7 million from $9.0 million in the prior period.

• Interest expense increased to $7.2 million, mainly due to higher Alcon term loan balances.

• Cash flow from operations improved by $3.5 million to $4.7 million.

• Cash and cash equivalents were $20.8 million as of March 31, 2026.

Outlook and guidance

• Management expects further efficiency gains from the new ERP system and additional operational strategies.

• The company anticipates sufficient liquidity for at least the next twelve months but may need additional funding for significant preferred stock redemptions.