Lifecore Biomedical, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenues of $34.2 million, down 6% from $36.4 million in the same period last year. The decrease was primarily driven by a significant drop in revenues from its Contract Development and Manufacturing Organization (CDMO) segment, which fell by 34% to $15.6 million, attributed to lower sales volumes and the completion of discrete development projects. In contrast, revenues from Hyaluronic Acid (HA) manufacturing increased by 44% to $18.6 million, reflecting improved demand and timing of sales. The company's gross profit also decreased to $12.1 million, a 14% decline compared to the prior year, resulting in a gross profit margin of 35.3%.
For the first half of 2026, Lifecore's total revenues were $57.4 million, down 20% from $71.6 million in the same period of 2025. The CDMO segment saw a 29% decrease in revenues, while HA manufacturing revenues fell by 5%. The company's gross profit for the six months ended June 30, 2026, was $16.5 million, down 31% from $23.8 million in the previous year. The decline in gross profit was attributed to lower sales volumes, unfavorable adjustments for net realizable value, and manufacturing variances.
In terms of operational developments, Lifecore has made strategic investments to enhance its manufacturing capabilities, including the installation of a fully automated high-speed aseptic isolator filler in September 2024 and the implementation of a new enterprise resource planning (ERP) system in January 2026. These initiatives are expected to improve operational efficiency and support the company's growth objectives. Lifecore's customer base remains concentrated, with two customers accounting for 66% of revenues in the latest quarter.
The company reported a net loss of $6.2 million for the second quarter of 2026, compared to a loss of $1.1 million in the same quarter of the previous year. For the first half of 2026, the net loss was $21.1 million, significantly higher than the $15.9 million loss reported in the first half of 2025. The increase in losses was primarily due to higher interest expenses related to the company's term loans and changes in the fair value of its debt derivative liability. Lifecore's total liabilities increased to $213.4 million as of June 30, 2026, up from $198.1 million at the end of 2025, largely due to rising debt levels.
Looking ahead, Lifecore aims to improve its financial performance through ongoing operational enhancements and strategic initiatives. The company is focused on expanding its market presence and increasing sales, particularly in the HA manufacturing segment. Lifecore's management remains committed to addressing its liquidity needs and exploring options for funding, including potential equity or debt financing, to support its growth and operational requirements.
About LIFECORE BIOMEDICAL, INC. \DE\
Lifecore Biomedical is a contract development and manufacturing organization (CDMO) specializing in sterile injectable pharmaceuticals and medical devices. It produces hyaluronic acid and viscous non-HA products, offering formulation, aseptic filling, and supply chain services across global markets. The company leverages proprietary fermentation, advanced manufacturing, and regulatory expertise to serve biopharmaceutical and biotech clients with high-quality, complex injectable solutions.
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