Lifeway Foods Inc. announced financial results for the fourth quarter and full year ended December 31, 2025, including net sales totaling $212.5 million, highest in company history and up 13.7% year-over-year.

"2025 was a truly remarkable year for Lifeway, marked by exceptional growth and operational excellence," said Julie Smolyansky, president and CEO of Lifeway Foods. "We achieved record-breaking full year net sales of $212.5 million, up 13.7% year-over-year, with a 19% increase on a comparable basis, representing our sixth consecutive year of strong volume-led growth. This outstanding performance was capped off by a very strong fourth quarter, with net sales of $55.4 million, up 18.0% year-over-year, and gross margin expansion of 250 basis points. Our disciplined execution drove significant gross margin expansion of 140 basis points for the full year and net income growth of 54%, demonstrating the strength and scalability of our business model.

For 2025, gross profit margin was 27.4%, up 140 basis points from 26% last year. Net income came in at $13.9 million, or $0.91 per basic and $0.89 per diluted common share, compared to $9 million, or $0.61 per basic and $0.60 per diluted common share in the prior year.

For its 205 fourth quarter, Lifeway earned net Sales of $55.4 million, up 18% year-over-year; gross profit margin of 27.8%, up 250 basis points from 25.3% last year; and net income of $2.5 million, or $0.17 per basic and $0.16 per diluted common share, compared to a net loss of $0.2 million, or net loss of $0.01 per basic and diluted common share in the prior year.

"Our marketing investments are paying off exceptionally well, as consumers continue to embrace our flagship Lifeway Kefir and high-protein Lifeway Farmer Cheese, while also responding enthusiastically to our on-trend innovation announcements for Muscle Mates and Lifeway Kefir Butter. We are particularly excited about the recent validation from the U.S. government, which specifically named kefir in the new dietary guidelines and emphasized the importance of fermented foods and gut health. Lifeway's products are completely aligned with these guidelines, positioning us perfectly to capitalize on the growing consumer focus on protein-rich, probiotic and bioavailable foods. As awareness of GLP-1 medications and their impact on nutrition continues to surge, Lifeway stands uniquely positioned to serve both active GLP-1 users seeking nutrient-dense, gut-friendly foods and consumers looking for products that naturally stimulate GLP-1 hormone production. We are thrilled about the year ahead in 2026 and confident in our ability to deliver another phenomenal performance as we continue to meet the evolving needs of health-conscious consumers," Smolyansky said.