Lifecore Biomedical, Inc. reported strong improvement for the seven‑month transition period ended December 31, 2025, with revenue of $75.5 million, up 20% from $63.0 million in the comparable 2024 period. Gross margin rose to 31% from 26%, while operating expenses fell to $24.4 million, a 31% reduction from $35.6 million. Net loss narrowed to $18.0 million from $30.6 million, and Adjusted EBITDA increased to $13.1 million from $2.6 million, with free cash flow of $3.6 million versus a prior use of $11.8 million. Lifecore ended the quarter with $38.9 million of liquidity, including $17.5 million of cash and $21.4 million of revolver availability.
For 2026, the company guides to revenue of $120–$125 million and a GAAP net loss of $(33.4)–$(28.9) million, compared with pro forma 2025 revenue of $141.4 million and a net loss of $(26.0) million. 2026 Adjusted EBITDA is projected at $20.5–$25.0 million versus pro forma 2025 Adjusted EBITDA of $30.1 million. The balance sheet shows total assets of $232.2 million and total liabilities of $198.1 million, with stockholders’ equity at $(14.2) million.
The capital structure includes Series A Redeemable Convertible Preferred Stock with an aggregate liquidation preference of $50.2 million as of June 29, 2026; holders may demand redemption from that date, and unpaid amounts accrue interest at 1.0% per month. Under Lifecore’s term loan with Alcon Research, LLC, interest is currently payable‑in‑kind, but starting in May 2026, 3% per year becomes payable in cash through maturity in May 2029, with the remaining 7% continuing as payable‑in‑kind. Management targets a 12% revenue CAGR from 2025–2029 and EBITDA margins above 25% over the mid‑term, supported by expanded capacity, new customer programs, and an ERP system launched in January 2026 intended to improve efficiency.
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