Lifeway Foods (LWAY)
NASDAQ:LWAY
Top Page
Lifeway Foods
(NASDAQ:LWAY)
Select Model
Select Model
Rating:64Neutral
Price Target:
$20.50
▼(-24.47% Downside)
Action:ReiteratedDate:03/18/26
The score is driven primarily by strong balance-sheet quality and solid longer-term operating performance, supported by a positive earnings-call outlook and expansion strategy. Offsetting these strengths are the sharp deterioration in reported 2025 cash flow (a major quality-of-earnings risk) and weak technical momentum with the stock trading below key moving averages.
Positive Factors
Conservative balance sheet / very low debt
Extremely low reported debt and a growing equity base meaningfully reduce financial risk and preserve flexibility. Over the next 2–6 months this supports the company’s ability to fund expansion, absorb cost shocks, and negotiate supplier/credit terms without material leverage-related constraints.
Negative Factors
Abrupt cash-flow deterioration
A sudden drop to zero reported operating and free cash flow creates earnings-to-cash conversion risk and questions about cash quality. Over several months this raises concerns about working-capital management and the company’s ability to self-fund growth or absorb unexpected costs without drawing on external liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / very low debt
Extremely low reported debt and a growing equity base meaningfully reduce financial risk and preserve flexibility. Over the next 2–6 months this supports the company’s ability to fund expansion, absorb cost shocks, and negotiate supplier/credit terms without material leverage-related constraints.
Read all positive factors
Lifeway Foods (LWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$277.24M
Dividend YieldN/A
Average Volume (3M)91.81K
Price to Earnings (P/E)26.6
Beta (1Y)0.72
Revenue Growth12.14%
EPS Growth-17.80%
CountryUS
Employees291
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.16
Shares Outstanding15,149,600
10 Day Avg. Volume70,180
30 Day Avg. Volume91,809
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)4.29
Price to Sales (P/S)1.73
P/FCF Ratio-22.35
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.29
Enterprise Value/Gross Profit4.70
Enterprise Value/Ebitda13.58
Forecast
1Y Price Target
$35.00Price Target Upside28.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.23
Revenue Forecast (FY)$241.00M
Lifeway Foods Business Overview & Revenue Model
Company Description
Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types, including lo...
How the Company Makes Money
Lifeway Foods primarily makes money by manufacturing and selling fermented cultured dairy products—most notably Lifeway-branded drinkable kefir—through wholesale distribution to retailers and other customers. Revenue is generated mainly from produ...
Lifeway Foods Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Positive
The earnings call highlighted LifeWay Foods' strong performance with record-breaking sales, profitability, and strategic recognition. The company is expanding its manufacturing capacity and product line to meet growing demand, despite some increased selling expenses.Positive Updates
Record-Breaking Net Sales
LifeWay Foods delivered record net sales of $57.1 million, a 24% increase year over year, and a 29% increase on a comparable basis. This marks the 24th consecutive quarter of year-over-year net sales growth.
Negative Updates
Increased Selling Expenses
Selling expenses increased to $5 million as LifeWay Foods continues to invest in marketing, sales activations, and retail expansions. While this supports growth, it is a cost pressure.
Read all updates
Q3-2025 Updates
Positive
Negative
Record-Breaking Net Sales
LifeWay Foods delivered record net sales of $57.1 million, a 24% increase year over year, and a 29% increase on a comparable basis. This marks the 24th consecutive quarter of year-over-year net sales growth.
Read all positive updates
Company Guidance
In the recent third-quarter conference call for 2025, LifeWay Foods shared several impressive metrics and strategic updates highlighting their robust growth trajectory. The company reported record net sales of $57.1 million, representing a 24% increase year-over-year and a 29% increase on a comparable basis, marking the 24th consecutive quarter of year-over-year net sales growth. Year-to-date, net sales reached $157.1 million, showcasing a remarkable 123% increase since 2019. LifeWay's gross profit margin improved to 28.7%, up 300 basis points from the previous year, driven by strong volume growth, operational efficiencies, and favorable milk pricing. Net income was reported at $3.5 million, or 23 cents per share, reflecting strong double-digit growth. The company is also investing significantly in expanding its manufacturing capabilities, with over $9 million invested so far in 2025, aiming to double manufacturing capacity by 2026 and eventually investing approximately $45 million in capital expenditures. Furthermore, LifeWay introduced new products like MuscleMase, a functional beverage with 20 grams of protein, and continued strategic partnerships and marketing initiatives to enhance brand reach and consumer engagement. The company reaffirmed its target to achieve $45-$50 million in adjusted EBITDA by fiscal year 2027, underscoring a commitment to maintaining its leadership in the functional dairy space.Lifeway Foods Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
92
Very Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 212.50M | 186.82M | 160.12M | 141.57M | 119.06M |
| Gross Profit | 58.21M | 48.57M | 42.44M | 26.79M | 28.71M |
| EBITDA | 20.15M | 17.46M | 20.20M | 5.08M | 8.61M |
| Net Income | 13.86M | 9.03M | 11.37M | 924.00K | 3.31M |
Balance Sheet | |||||
| Total Assets | 105.61M | 90.55M | 82.64M | 69.00M | 71.55M |
| Cash, Cash Equivalents and Short-Term Investments | 5.57M | 16.73M | 13.20M | 4.44M | 9.23M |
| Total Debt | 466.00K | 117.00K | 2.92M | 6.68M | 7.46M |
| Total Liabilities | 19.79M | 18.64M | 22.20M | 21.43M | 22.42M |
| Stockholders Equity | 85.82M | 71.91M | 60.44M | 47.57M | 49.13M |
Cash Flow | |||||
| Free Cash Flow | -16.48M | 6.26M | 12.59M | 538.00K | 3.64M |
| Operating Cash Flow | 10.88M | 12.96M | 16.94M | 3.99M | 5.56M |
| Investing Cash Flow | -22.04M | -6.68M | -4.41M | -4.03M | -7.14M |
| Financing Cash Flow | -65.00K | -2.75M | -3.78M | -4.75M | 2.88M |
Lifeway Foods Technical Analysis
Negative
27.14
Price Trends
21.24
Negative
22.33
Negative
24.79
Negative
Market Momentum
-0.96
Positive
34.35
Neutral
29.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LWAY, the sentiment is Negative. The current price of 27.14 is above the 20-day moving average (MA) of 20.21, above the 50-day MA of 21.24, and above the 200-day MA of 24.79, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 34.35 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LWAY.
Lifeway Foods Risk Analysis
Lifeway Foods disclosed 21 risk factors in its most recent earnings report. Lifeway Foods reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lifeway Foods Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $615.08M | 194.30 | 14.26% | ― | 29.92% | 30.02% | |
64 Neutral | $277.24M | 26.57 | 17.25% | ― | 12.14% | -17.80% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $416.33M | 19.90 | 12.18% | ― | 6.62% | -7.85% | |
53 Neutral | $312.29M | 33.56 | 2.03% | ― | 5.88% | -68.62% | |
48 Neutral | $378.80M | -4.31 | -30.31% | ― | 28.89% | -13.96% | |
45 Neutral | $185.88M | -9.91 | -41.47% | ― | -3.42% | -85.49% |
* Consumer Defensive Sector Average
LWAY
Lifeway Foods
18.30
-6.23
-25.40%
NATR
Nature's Sunshine Products
23.78
11.13
87.98%
USNA
USANA Health
16.92
-10.86
-39.09%
MAMA
Mama's Creations
15.13
8.79
138.64%
BRCC
BRC
0.75
-1.37
-64.76%
WEST
Westrock Coffee
3.91
-3.17
-44.77%
Lifeway Foods Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Lifeway Foods Shareholders Reaffirm Board and Strategic Direction
Positive
Dec 31, 2025
At Lifeway Foods’ 2025 Annual Meeting of Shareholders held on December 29, 2025, investors elected the company’s slate of board nominees, including CEO Julie Smolyansky, and rejected opposition nominees George Sent and Edward Smolyansk...
Business Operations and StrategyPrivate Placements and Financing
Lifeway Foods amends credit facility to support expansion
Positive
Dec 30, 2025
On December 29, 2025, Lifeway Foods, Inc. and its subsidiaries Fresh Made, Inc. and Lifeway Wisconsin, Inc. entered into a Sixth Modification to their Amended and Restated Loan and Security Agreement with CIBC Bank USA, revising certain financial ...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Lifeway Foods Highlights Strong Growth and Expansion Strategy
Positive
Dec 29, 2025
At the December 29, 2025 annual shareholders meeting, CEO Julie Smolyansky highlighted Lifeway Foods’ strong multi-year growth, with U.S. multi-outlet kefir and farmer cheese sales rising an estimated 151% between 2019 and 2025 to about $188...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.