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Lifeway Foods Shares Jump on Record Q3 Sales Despite EPS Miss and Cash-Flow Squeeze

A brief rally followed, with analysts questioning cash generation despite kefir momentum.

Overview

  • Revenue hit a company record at $57.1 million, up 29% year over year and marking a sixth straight quarter of net sales growth.
  • Gross margin expanded by three percentage points to 28.7%, supporting a 21% year-over-year increase in earnings per share.
  • EPS came in at $0.23 versus roughly $0.28 expected, delivering a revenue beat but an earnings miss against consensus.
  • Year-to-date free cash flow totaled about $1 million, down more than 90% from last year and under 9% of $11.3 million in GAAP profit.
  • CEO Julie Smolyansky emphasized category leadership in kefir and plans to tap health-and-wellness trends, as at least one columnist withheld a buy call and noted Lifeway was absent from a Stock Advisor top-10 list.