$LWAY

Lifeway Foods, Inc.

CIK:0000814586|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 66,893	$ 53,901	$ 129,905	$ 99,992
Cost of goods sold	52,859	37,669	97,600	71,923
Depreciation expense	1,008	832	1,928	1,634
Total cost of goods sold	53,867	38,501	99,528	73,557
Gross profit	13,026	15,400	30,377	26,435
Selling expense	7,634	4,718	13,822	9,416
General and administrative expense	4,657	4,752	9,360	9,380
Amortization expense	135	135	270	270
Total operating expenses	12,426	9,605	23,452	19,066
Income from operations	600	5,795	6,925	7,369
Other income (expense):
Interest expense	(215)	(21)	(283)	(35)
Fair Value Loss on investments	0	0	0	(20)
Gain on sale of investments	0	55	0	3,407
Other income (expense), net	22	82	22	156
Total other income (expense)	(193)	116	(261)	3,508
Income before provision for income taxes	407	5,911	6,664	10,877
Provision for income taxes	280	1,662	1,863	3,088
Net income	$ 127	$ 4,249	$ 4,801	$ 7,789
Net earnings per common share:
Basic	$ 0.01	$ 0.28	$ 0.32	$ 0.51
Diluted	$ 0.01	$ 0.28	$ 0.31	$ 0.51
Weighted average common shares outstanding:
Basic	15,161	15,206	15,209	15,170
Diluted	15,289	15,390	15,334	15,359

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 4,801	$ 7,789
Adjustments to reconcile net income to operating cash flow:
Depreciation and amortization	2,198	1,904
Stock-based compensation	1,083	927
Non-cash interest expense	11	9
Bad debt expense	87	0
Gain on sale of equipment	(19)	(115)
Gain on sale of investments	0	(3,407)
Fair value loss on investment	0	20
(Increase) decrease in operating assets:
Accounts receivable	(6,305)	(640)
Inventories	(2,097)	(1,546)
Prepaid expenses and other current assets	297	322
Refundable income taxes	(404)	631
Increase (decrease) in operating liabilities:
Accounts payable	6,739	500
Accrued expenses	(2,601)	(2,632)
Accrued income taxes	86	0
Other long-term liabilities	163	0
Net cash provided by operating activities	4,039	3,762
Cash flows from investing activities:
Purchases of property and equipment	(19,505)	(4,526)
Proceeds from sale of equipment	223	115
Proceeds from sale of investments	0	5,206
Net cash (used in) provided by investing activities	(19,282)	795
Cash flows from financing activities:
Purchase of treasury stock	(4,937)	0
Borrowings under line of credit	23,000	0
Repayments under line of credit	(1,000)	0
Payment of deferred financing costs	(21)	(65)
Equity award settled in cash	(283)	0
Net cash provided by (used in) financing activities	16,759	(65)
Net increase in cash and cash equivalents	1,516	4,492
Cash and cash equivalents at the beginning of the period	5,571	16,728
Cash and cash equivalents at the end of the period	7,087	21,220
Supplemental cash flow information:
Cash paid for income taxes, net of (refunds)	2,180	2,457
Cash paid for interest	200	26
Non-cash investing activities
Accrued purchase of property and equipment	512	1,083
Right-of-use assets obtained in exchange for lease obligations	$ 119	$ 196

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 7,087	$ 5,571
Accounts receivable, net of allowance for credit losses and discounts & allowances of $2,800 and $1,730 at June 30, 2026 and December 31, 2025, respectively	22,861	16,643
Inventories, net	13,987	11,890
Prepaid expenses and other current assets	2,526	2,627
Refundable income taxes	728	325
Total current assets	47,189	37,056
Property, plant and equipment, net	65,596	48,282
Operating lease right-of-use asset	521	465
Goodwill	11,704	11,704
Intangible assets, net	5,548	5,818
Other assets	1,841	2,285
Total assets	132,399	105,610
Current liabilities
Accounts payable	17,483	11,008
Accrued expenses	4,745	5,413
Accrued income taxes	304	218
Total current liabilities	22,532	16,639
Line of credit	21,945	0
Operating lease liabilities	393	360
Deferred income taxes, net	2,792	2,792
Other long-term liabilities	163	0
Total liabilities	47,825	19,791
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock, no par value; 2,500 shares authorized; none issued	0	0
Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 15,105 and 15,232 outstanding at June 30, 2026 and December 31, 2025, respectively	6,509	6,509
Treasury stock, at cost	(17,217)	(13,214)
Paid-in capital	1,800	3,843
Retained earnings	93,482	88,681
Total stockholders’ equity	84,574	85,819
Total liabilities and stockholders’ equity	$ 132,399	$ 105,610