LifeCore Biomedical Reports Revenue Decline and Increased Losses Amid Operational Challenges

Company Overview: LifeCore Biomedical, Inc. (NASDAQ: LNDC) is a fully integrated contract development and manufacturing organization (CDMO), focusing on the development and manufacturing of sterile injectable pharmaceutical products and high-quality hyaluronic acid.

Recent Performance: For the three months ended February 23, 2025, LifeCore reported total revenues of $35.154 million, a slight decrease from $35.704 million in the previous year. Despite revenue growth in HA manufacturing, a notable decline in CDMO revenues attributed to project completions and customer terminations impacted overall earnings.

Key Financial Highlights:

• Revenues: $35.154 million (Q3 2025) vs. $35.704 million (Q3 2024)
• Cost of Goods Sold: $25.309 million (Q3 2025) vs. $23.810 million (Q3 2024)
• Gross Profit: $9.845 million (Q3 2025) vs. $11.894 million (Q3 2024)
• Operating Loss: $(9.029) million (Q3 2025) vs. $(0.895) million (Q3 2024)
• Net Loss: $(14.769) million (Q3 2025) vs. $15.632 million (Q3 2024)

Positive Aspects:

• HA manufacturing revenues increased by $1.0 million due to heightened demand from customers.
• Continued strategic partnerships and R&D investments aim to enhance market presence.
• Significant cash available for borrowing: approximately $25.5 million under the Revolving Credit Facility.

Negative Aspects:

• CDMO revenue experienced a decline of $1.517 million mainly due to customer terminations and project lifecycle completions.
• Reported an operating loss of $(9.029) million and a substantial net loss of $(14.769) million.
• Increased operating expenses, particularly in SG&A, due to legal and consulting expenses related to ongoing litigation.

Final Notes: LifeCore continues to face challenges regarding revenue generation while managing higher costs, legal liabilities, and performance expectations from shareholders following several operational setbacks. The company’s focus on improving margins and enhancing operational efficiency will be crucial as it navigates through these financial results.