Revenue growth accelerated to 36.7% in 2026Q1, yet operating margins remain constrained at 10.0% due to persistent SG&A scaling and volatile gross margins that have fluctuated between 23.9% and 30.3% over the last ten quarters.
Lifeway Foods, Inc. (LWAY) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 242.41M | 212.5M | 186.82M | 160.12M | 141.57M | 119.06M | 102.03M | 93.66M | 103.35M | 118.89M | 123.88M | 118.59M | 118.96M | 97.52M | 81.35M | 69.97M | 58.5M | 58.12M | 44.46M | 38.73M | 27.72M | 20.13M | 16.32M | 14.88M | 12.21M | 10.68M | 9.18M | 7.9M | 6.8M | 6M | 5.3M |
| Revenue Growth % | 25.59% | 13.74% | 16.67% | 13.11% | 18.9% | 16.7% | 8.93% | -9.37% | -13.07% | -4.02% | 4.46% | -0.31% | 21.98% | 19.88% | 16.27% | 19.61% | 0.66% | 30.71% | 14.8% | 39.71% | 37.7% | 23.36% | 9.69% | 21.83% | 14.3% | 16.42% | 16.16% | 16.18% | 13.33% | 13.21% | 17.78% |
| Cost of Goods Sold | 179.35M | 154.29M | 138.25M | 117.68M | 114.78M | 90.36M | 75.09M | 71.51M | 77.49M | 88.2M | 88.85M | 86.99M | 90.1M | 69.92M | 53.93M | 47.42M | 38.32M | 37.22M | 31.7M | 26.31M | 17.08M | 11.66M | 9.03M | 7.84M | 6.74M | 6.45M | 4.7M | 4.3M | 3.3M | 3.1M | 2.7M |
| COGS % of Revenue | - | 72.61% | 74% | 73.49% | 81.08% | 75.89% | 73.6% | 76.35% | 74.98% | 74.18% | 71.72% | 73.35% | 75.74% | 71.69% | 66.29% | 67.77% | 65.51% | 64.04% | 71.31% | 67.93% | 61.62% | 57.94% | 55.36% | 52.7% | 55.22% | 60.36% | 51.2% | 54.43% | 48.53% | 51.67% | 50.94% |
| Gross Profit | 63.06M | 58.21M | 48.57M | 42.44M | 26.79M | 28.71M | 26.93M | 22.15M | 25.86M | 30.7M | 35.03M | 31.6M | 28.86M | 27.61M | 27.43M | 22.55M | 20.18M | 20.9M | 12.76M | 12.42M | 10.64M | 8.47M | 7.28M | 7.04M | 5.47M | 4.23M | 4.48M | 3.6M | 3.5M | 2.9M | 2.6M |
| Gross Margin % | 26.01% | 27.39% | 26% | 26.51% | 18.92% | 24.11% | 26.4% | 23.65% | 25.02% | 25.82% | 28.28% | 26.65% | 24.26% | 28.31% | 33.71% | 32.23% | 34.49% | 35.96% | 28.69% | 32.07% | 38.38% | 42.06% | 44.64% | 47.3% | 44.78% | 39.64% | 48.8% | 45.57% | 51.47% | 48.33% | 49.06% |
| Gross Profit Growth % | - | 19.83% | 14.45% | 58.44% | -6.7% | 6.6% | 21.6% | -14.34% | -15.76% | -12.38% | 10.86% | 9.49% | 4.55% | 0.66% | 21.62% | 11.75% | -3.44% | 63.81% | 2.72% | 16.74% | 25.64% | 16.25% | 3.51% | 28.69% | 29.12% | -5.44% | 24.4% | 2.86% | 20.69% | 11.54% | 4% |
| Operating Expenses | 47.33M | 42.03M | 34.72M | 25.45M | 24.44M | 22.83M | 22.01M | 24.08M | 27.72M | 31.22M | 28.95M | 27.2M | 24.44M | 19.59M | 18.58M | 17.47M | 13.9M | 11.96M | 8.57M | 21.87M | 6.41M | 5.07M | 4.33M | 3.56M | 2.89M | 2.8M | 3.32M | 2.6M | 2.2M | 1.8M | 1.6M |
| OpEx % of Revenue | - | 19.78% | 18.59% | 15.89% | 17.26% | 19.17% | 21.57% | 25.71% | 26.83% | 26.26% | 23.37% | 22.94% | 20.54% | 20.09% | 22.84% | 24.97% | 23.77% | 20.58% | 19.27% | 56.48% | 23.12% | 25.17% | 26.56% | 23.92% | 23.67% | 26.19% | 36.14% | 32.91% | 32.35% | 30% | 30.19% |
| Selling, General & Admin | 45.88M | 41.49M | 34.18M | 24.91M | 23.9M | 22.71M | 21.86M | 23.89M | 27.09M | 30.55M | 28.25M | 26.48M | 23.72M | 18.88M | 17.83M | 16.69M | 13.18M | 11.28M | 8.25M | 7.66M | 6.41M | 5.07M | 4.33M | 3.56M | 2.89M | 2.8M | 2.71M | 2.2M | 1.8M | 1.5M | 1.4M |
| SG&A % of Revenue | - | 19.53% | 18.3% | 15.55% | 16.88% | 19.07% | 21.42% | 25.51% | 26.21% | 25.7% | 22.8% | 22.33% | 19.94% | 19.36% | 21.91% | 23.85% | 22.53% | 19.41% | 18.55% | 19.78% | 23.12% | 25.17% | 26.56% | 23.92% | 23.67% | 26.19% | 29.5% | 27.85% | 26.47% | 25% | 26.42% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.4M | 540K | 540K | 540K | 540K | 122K | 152K | 192K | 16K | 2K | 71K | 7K | 12.49K | 22.3K | 1.12K | 7.15K | 11.79K | 676.79K | 319.45K | 14.21M | 0 | 0 | 0 | 0 | 0 | 0 | 609.52K | 400K | 400K | 300K | 200K |
| Operating Income | 15.73M | 16.17M | 13.85M | 17M | 2.35M | 5.88M | 4.92M | -1.93M | -3.11M | -526K | 6.08M | 4.4M | 4.42M | 8.02M | 8.84M | 5.08M | 6.27M | 8.94M | 4.19M | -9.45M | 4.23M | 3.4M | 2.95M | 3.48M | 2.58M | 1.44M | 1.16M | 1M | 1.3M | 1.1M | 1M |
| Operating Margin % | 6.49% | 7.61% | 7.41% | 10.61% | 1.66% | 4.94% | 4.83% | -2.06% | -3.01% | -0.44% | 4.91% | 3.71% | 3.72% | 8.22% | 10.87% | 7.26% | 10.73% | 15.38% | 9.43% | -24.41% | 15.26% | 16.9% | 18.08% | 23.38% | 21.11% | 13.45% | 12.66% | 12.66% | 19.12% | 18.33% | 18.87% |
| Operating Income Growth % | - | 16.75% | -18.49% | 623.5% | -60.05% | 19.44% | 354.68% | 37.85% | -491.25% | -108.64% | 38.2% | -0.44% | -44.83% | -9.37% | 74.23% | -19.1% | -29.8% | 113.28% | 144.33% | -323.47% | 24.37% | 15.28% | -15.18% | 34.95% | 79.35% | 23.68% | 16.21% | -23.08% | 18.18% | 10% | 42.86% |
| EBITDA | 20M | 20.15M | 17.24M | 20.16M | 5.32M | 8.75M | 8.16M | 1.41M | 367K | 2.59M | 9.11M | 7.53M | 7.67M | 8.73M | 11.23M | 7.41M | 8.39M | 10.75M | 5.28M | -8.4M | 4.99M | 4.05M | 3.62M | 4.17M | 3.39M | 2.21M | 1.77M | 1.4M | 1.7M | 1.4M | 1.2M |
| EBITDA Margin % | 8.25% | 9.48% | 9.23% | 12.59% | 3.76% | 7.35% | 8% | 1.5% | 0.36% | 2.18% | 7.35% | 6.35% | 6.45% | 8.95% | 13.8% | 10.59% | 14.35% | 18.5% | 11.88% | -21.7% | 18% | 20.13% | 22.19% | 28.01% | 27.72% | 20.73% | 19.31% | 17.72% | 25% | 23.33% | 22.64% |
| EBITDA Growth % | 25.57% | 16.9% | -14.48% | 278.82% | -39.21% | 7.24% | 480.93% | 282.83% | -85.81% | -71.6% | 20.88% | -1.85% | -12.08% | -22.27% | 51.47% | -11.67% | -21.93% | 103.44% | 162.88% | -268.44% | 23.11% | 11.93% | -13.12% | 23.09% | 52.86% | 25% | 26.54% | -17.65% | 21.43% | 16.67% | 33.33% |
| D&A (Non-Cash Add-back) | 4.27M | 3.98M | 3.39M | 3.16M | 2.97M | 2.87M | 3.24M | 3.34M | 3.48M | 3.11M | 3.02M | 3.13M | 3.25M | 712.8K | 2.38M | 2.34M | 2.12M | 1.81M | 1.09M | 1.05M | 758.75K | 650.95K | 669.99K | 688.31K | 807.68K | 777.35K | 609.52K | 400K | 400K | 300K | 200K |
| EBIT | 15.62M | 19.76M | 14.07M | 17.03M | 2.11M | 5.73M | 4.95M | 1.48M | -3.04M | -562K | 5.86M | 4.23M | 4.48M | 8.06M | 9M | 5.08M | 6.8M | 8.89M | 2.89M | -9.45M | 4.23M | 3.4M | 2.95M | 3.48M | 2.58M | 1.44M | 1.16M | 1.01M | 1.3M | 1.1M | 1M |
| Net Interest Income | -189K | -77K | -105K | -384K | -267K | -116K | -118K | -249K | -271K | -242K | -220K | -124K | -155K | -87K | -92.24K | -176.73K | -90.44K | -243.66K | 44.71K | 350.29K | 388.34K | 323.37K | 185.57K | 96.85K | 187.36K | 0 | 368.99K | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 112K | 122K | 116.38K | 85.38K | 70.61K | 260.55K | 199.05K | 343.33K | 350.29K | 388.34K | 323.37K | 185.57K | 96.85K | 187.36K | 0 | 368.99K | 0 | 0 | 0 | 0 |
| Interest Expense | 189K | 77K | 105K | 384K | 267K | 116K | 118K | 249K | 271K | 242K | 220K | 236K | 277K | 203.37K | 177.62K | 247.34K | 351K | 442.7K | 298.62K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -255K | 3.51M | 117K | -346K | -508K | -264K | -95K | 3.17M | -201K | -278K | -448K | -411K | -37K | -158.97K | -19.84K | -243.23K | 171.82K | -489.72K | -1.6M | 14.42M | 410.77K | 681.7K | 491.77K | 97.84K | -105.62K | 374.27K | 291.29K | 100K | 0 | 100K | 0 |
| Pretax Income | 15.47M | 19.69M | 13.97M | 16.65M | 1.84M | 5.62M | 4.83M | 1.24M | -3.31M | -804K | 5.64M | 3.99M | 4.4M | 7.84M | 8.82M | 4.83M | 6.45M | 8.45M | 2.59M | 4.97M | 4.64M | 4.08M | 3.44M | 3.58M | 2.47M | 1.81M | 1.45M | 1.1M | 1.3M | 1.2M | 1M |
| Pretax Margin % | 6.38% | 9.26% | 7.48% | 10.4% | 1.3% | 4.72% | 4.73% | 1.32% | -3.2% | -0.68% | 4.55% | 3.37% | 3.7% | 8.04% | 10.85% | 6.91% | 11.02% | 14.54% | 5.83% | 12.82% | 16.74% | 20.28% | 21.09% | 24.04% | 20.24% | 16.96% | 15.84% | 13.92% | 19.12% | 20% | 18.87% |
| Income Tax | 4.6M | 5.83M | 4.94M | 5.28M | 917K | 2.31M | 1.6M | 782K | -225K | -458K | 2.16M | 2.02M | 1.56M | 2.87M | 3.21M | 1.98M | 2.82M | 2.88M | 679.79K | 1.81M | 1.75M | 1.53M | 1.39M | 1.35M | 943.34K | 590.59K | 526.29K | 400K | 500K | 500K | 400K |
| Effective Tax Rate % | 29.74% | 29.6% | 35.39% | 31.73% | 49.81% | 41.04% | 33.06% | 63.32% | 6.8% | 56.97% | 38.28% | 50.6% | 35.4% | 36.56% | 36.32% | 40.92% | 43.81% | 34.08% | 26.23% | 36.5% | 37.6% | 37.58% | 40.39% | 37.87% | 38.16% | 32.6% | 36.21% | 36.36% | 38.46% | 41.67% | 40% |
| Net Income | 10.87M | 13.86M | 9.03M | 11.37M | 924K | 3.31M | 3.23M | 453K | -3.09M | -346K | 3.48M | 1.97M | 2.84M | 4.97M | 5.62M | 2.86M | 3.62M | 5.57M | 1.91M | 3.15M | 2.9M | 2.55M | 2.05M | 2.22M | 1.53M | 1.22M | 927.1K | 700K | 800K | 700K | 600K |
| Net Margin % | 4.48% | 6.52% | 4.83% | 7.1% | 0.65% | 2.78% | 3.17% | 0.48% | -2.99% | -0.29% | 2.81% | 1.66% | 2.39% | 5.1% | 6.91% | 4.08% | 6.19% | 9.58% | 4.3% | 8.14% | 10.45% | 12.66% | 12.57% | 14.93% | 12.52% | 11.43% | 10.1% | 8.86% | 11.76% | 11.67% | 11.32% |
| Net Income Growth % | 2.51% | 53.56% | -20.6% | 1130.19% | -72.09% | 2.44% | 613.47% | 114.68% | -791.91% | -109.95% | 76.42% | -30.57% | -42.91% | -11.47% | 96.81% | -21.17% | -34.96% | 191.26% | -39.34% | 8.87% | 13.63% | 24.19% | -7.65% | 45.35% | 25.21% | 31.69% | 32.44% | -12.5% | 14.29% | 16.67% | 50% |
| Net Income (Continuing) | 10.87M | 13.86M | 9.03M | 11.37M | 924K | 3.31M | 3.23M | 453K | -3.09M | -346K | 3.48M | 1.97M | 1.96M | 4.99M | 5.62M | 2.86M | 3.62M | 5.57M | 1.91M | 3.15M | 2.9M | 2.55M | 2.05M | 2.22M | 1.53M | 1.22M | 927.1K | 700K | 800K | 700K | 600K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.71 | 0.89 | 0.59 | 0.75 | 0.06 | 0.21 | 0.21 | 0.03 | -0.19 | -0.02 | 0.22 | 0.12 | 0.17 | 0.30 | 0.34 | 0.17 | 0.22 | 0.33 | 0.11 | 0.19 | 0.17 | 0.15 | 0.12 | 0.13 | 0.09 | 0.07 | 0.05 | 0.04 | 0.05 | 0.05 | 0.04 |
| EPS Growth % | -1.54% | 50.85% | -21.33% | 1175.51% | -72% | 0% | 631.71% | 115.11% | -783.72% | -109.77% | 83.33% | -29.41% | -43.33% | -11.76% | 100% | -22.73% | -33.33% | 200% | -42.11% | 11.76% | 13.33% | 25% | -7.69% | 44.44% | 28.57% | 33.33% | 23.53% | -15% | 5.26% | 18.75% | 33.33% |
| EPS (Basic) | - | 0.91 | 0.61 | 0.78 | 0.06 | 0.21 | 0.21 | 0.03 | -0.19 | -0.02 | 0.22 | 0.12 | 0.17 | 0.30 | 0.34 | 0.17 | 0.22 | 0.33 | 0.11 | 0.19 | 0.17 | 0.15 | 0.12 | 0.13 | 0.09 | 0.07 | 0.05 | 0.04 | 0.05 | 0.05 | 0.04 |
| Diluted Shares Outstanding | 15.29M | 15.54M | 15.27M | 15.1M | 15.72M | 15.77M | 15.77M | 15.8M | 16.32M | 16.11M | 16.16M | 16.33M | 16.35M | 16.35M | 16.37M | 16.44M | 16.66M | 16.8M | 16.77M | 16.86M | 16.83M | 16.81M | 16.88M | 16.87M | 17.06M | 17.27M | 17.27M | 16.47M | 15.13M | 14.74M | 15.11M |
| Basic Shares Outstanding | 15.16M | 15.2M | 14.77M | 14.67M | 15.4M | 15.54M | 15.6M | 15.75M | 15.87M | 16.11M | 16.16M | 16.33M | 16.35M | 16.35M | 16.37M | 16.44M | 16.66M | 16.8M | 16.77M | 16.86M | 16.83M | 16.81M | 16.88M | 16.87M | 17.06M | 17.27M | 17.27M | 16.47M | 15.13M | 14.74M | 15.11M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | 26.29% | 20.4% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying LWAY stock.
For fiscal year 2025, Lifeway Foods, Inc. (LWAY) reported total revenue of $212.5M. This represents a 3909.4% increase compared to $5.3M in 1996.
Lifeway Foods, Inc. (LWAY) is profitable, generating $13.9M in net income for the fiscal year ending 2025 with a net profit margin of 6.5%.
Lifeway Foods, Inc. (LWAY) reported an operating income of $16.2M, resulting in an operating profit margin of 7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Lifeway Foods, Inc. (LWAY) generated $58.2M in gross profit for the year, representing a gross profit margin of 27.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Commodity cost volatility exposure
Metrics are mathematically derived from official filings.
Revenue Growth Momentum Accelerates Sharply
As indicated by the most recent quarterly financial data, LWAY achieved a significant revenue expansion of 36.7% year-over-year in 2026Q1, marking a notable departure from the more modest growth rates observed throughout the 2024 fiscal year and suggesting a potential inflection in consumer demand for probiotic products.
The acceleration to $63.0 million in quarterly revenue suggests that the company's core kefir offerings are successfully capturing broader market share or benefiting from increased household penetration. Investors should monitor whether this growth is sustainable or if it reflects temporary promotional activity that may pressure future margins.
Gross Margin Sensitivity to Inputs
Based on reported income statements, Lifeway's gross margin has fluctuated between 23.9% and 30.3% over the last ten quarters, reflecting the company's inherent exposure to volatile Class II dairy commodity prices and the ongoing challenge of maintaining pricing power in a competitive packaged foods environment.
While the 27.5% margin reported in 2026Q1 shows recovery from earlier lows, the lack of consistent expansion suggests that raw material costs remain a primary constraint on profitability. The company appears to be navigating these cycles by balancing price increases with volume, though structural margin expansion remains elusive.
Operating Leverage Remains Under Pressure
According to the provided financial statements, SG&A expenses have scaled alongside revenue growth, with 2026Q1 operating income of $6.3 million representing a 10.0% margin, which indicates that the company has yet to achieve significant operating leverage despite the recent surge in top-line performance.
The tendency for SG&A to rise in tandem with revenue suggests that the company is reinvesting heavily in marketing or distribution to defend its category leadership. This strategy may be necessary to fend off private label competition, but it limits the potential for rapid bottom-line expansion.
Earnings Quality Impacted by Volatility
As reported in recent filings, net income has exhibited significant volatility, ranging from a net loss in 2024Q4 to a $4.7 million profit in 2026Q1, a trend that appears influenced by non-operating items and periodic fluctuations in stock-based compensation and legal-related expenses.
The inconsistency in net income suggests that investors should focus on core operating performance rather than headline EPS, which may be distorted by one-time charges. The presence of stock-based compensation and potential litigation-related costs warrants further investigation into the true recurring earnings power of the business.
Sustainability of Recent Growth Trends
While the 36.7% revenue growth in 2026Q1 is impressive, a critical analysis of the income statement suggests that the company's reliance on a single product category may create a ceiling for long-term growth if market saturation or private label encroachment accelerates in the coming quarters.
Short-term growth spikes may be masking underlying competitive pressures that could lead to margin compression if the company is forced to increase trade promotions to maintain shelf space. Investors should be cautious about extrapolating recent growth rates without evidence of successful diversification beyond the core kefir line.