-- Recorded $31.1 Million in Revenue During the Three Months Ended September 30, 2025, Representing a 26% Increase From Comparable Period of 2024 --

-- Multiple New Programs Signed with New Customers --

-- Continued Improvements in Efficiency and Productivity Across the Organization --

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CHASKA, Minn., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (NASDAQ: LFCR) ("Lifecore"), a fully integrated contract development and manufacturing organization ("CDMO"), today announced its financial results for the three months ended September 30, 2025.

Highlights for Three Months Ended September 30, 2025

"We are thrilled with the progress made during this period. Guiding this progress is our three-pronged strategy for growth which is comprised of: maximizing our existing customer business, advancing programs currently within our late-stage development pipeline towards commercialization, and finally, winning impactful new business that will continue to fill our project pipeline - from early-stage work to commercial site transfers. We believe this strategy will allow us to reach our goals of achieving a 12+% revenue CAGR and increasing Adjusted EBITDA* margins to more than 25% over the mid-term, and the results we have seen to date support our optimism.

"Financial outcomes during the period were strong, as we recorded a 26% increase in revenue as compared to the prior year comparable period, along with significant improvements in SG&A expense. These financial results reflect our focus on improving workforce productivity by implementing initiatives which drive continued improvements. We are very pleased with the progress made during the period, which we believe has put us on the path to achieving growth and sustainable profitability in the years ahead," stated Paul Josephs, president and chief executive officer of Lifecore.

Maximizing Existing Commercial Business

   -- During the period, Lifecore made significant progress to ensure it is 
      operationally capable to support a significant inflection point in 
      existing commercial customer demand in 2027. This included qualifying a 
      new hyaluronic acid ("HA") specification that will allow the use of 
      Lifecore HA in product used in the Asian market. In addition, the company 
      also completed stability batches on its isolator filler to support future 
      regulatory approval of finished product produced at Lifecore for 
      distribution in the Asian market. Both these milestones are a reflection 
      of Lifecore's strong technical capability and proven multicompendial 
      regulatory system. 

New Business

   -- Lifecore signed two new programs during the three months ended September 
      30, 2025, including one late-stage program and one early-stage program. 
      These opportunities span the full range of Lifecore's services and 
      capabilities, and they reflect continued growth into modalities beyond 
      the company's traditional area of strength in ophthalmic therapeutics. 
 
   -- Subsequent to the quarter end, Lifecore signed an additional two programs, 
      adding one commercial site transfer and one early-stage program to the 
      company's pipeline. The commercial site transfer is with a large 
      multinational pharmaceutical company and marks the company's second 
      project with this partner in 2025. This program will be incorporated into 
      Lifecore's late-stage pipeline and, based on current market demand, is 
      expected to contribute meaningfully to both revenue growth and capacity 
      utilization. 

Operations

   -- Lifecore continues to make impactful improvements to operations, 
      resulting in reduced operational expenses and improved productivity. 
      Through active management and targeted initiatives, the company has 
      improved workforce productivity in manufacturing by more than 20% over 
      approximately the past year. This achievement reflects the 
      performance-driven culture at Lifecore and underscores the company's 
      commitment to continuous improvement. 
 
   -- Lifecore plans to further maximize efficiencies and productivity via 
      aggressive procurement and organizational strategies. The company 
      believes that a key catalyst in this effort will be the launch of its new 
      enterprise resource planning ("ERP") system, which is expected to go live 
      in Q1 2026. Lifecore expects this system to strengthen inventory control, 
      support sharper financial management, and help reduce costs as the 
      company grows.To further advance the company's efficiency objectives, 
      Lifecore recently hired a seasoned industry executive in the role of head 
      of business transformation. This newly created position will champion the 
      company's efforts to improve its cost structure, to drive productivity, 
      and to gain efficiencies to maximize the EBITDA opportunity ahead. 

Financial and Corporate

   -- In August 2025, Lifecore announced that it will be moving its fiscal year 
      end to align with the calendar year, effective for the December 31, 2025, 
      calendar period. This move will allow Lifecore to report in a timely 
      manner with the majority of its peer companies, customers and other 
      stakeholders, an important factor when evaluating operational and 
      financial performance. It also aligns with the launch of the company's 
      new ERP system and expected, associated benefits.In accordance with 
      United States Securities and Exchange Commission rules applicable to the 
      fiscal year change, the company is comparing the results for the 
      three-month period ended September 30, 2025, with the most closely 
      comparable previously reported three-month period, which for this period 
      is the three-month period ended August 25, 2024. Lifecore expects to 
      announce its results for the three-month period ended December 31, 2025, 
      and the approximately seven-month transition period from May 26 to 
      December 31, 2025, in March of 2026. 

Consolidated Financial Results for Three Months Ended September 30, 2025

Revenues for the three months ended September 30, 2025, were $31.1 million, an increase of 26% compared to $24.7 million for the comparable prior period ended August 25, 2024. The increase in revenues of $6.4 million was primarily due to a $4.8 million increase in HA manufacturing revenues primarily from increased demand from a customer due to its supply chain initiatives. In addition, CDMO revenues increased $1.6 million, which was primarily from $2.6 million of higher sales volumes and $0.3 million of pricing and other revenue, partially offset by $1.3 million of lower development revenue due to completion of a discrete development project in the prior comparable period and timing of customer project lifecycles.

Gross profit for the three months ended September 30, 2025, was $7.8 million, compared to $5.4 million for the comparable prior period ended August 25, 2024. The increase of $2.4 million in gross profit is due to a $4.3 million increase in HA manufacturing gross profit due to increased sales volume and manufacturing absorption, partially offset by a $1.9 million decrease in CDMO gross profit. The CDMO decline was due to lower development revenue of $1.4 million and a decrease in aseptic gross profit of $1.9 million due to product mix and costing, partially offset by favorable manufacturing absorption of $1.4 million.

Selling, general and administrative expenses for the three months ended September 30, 2025, were $8.9 million, compared to $14.8 million for the comparable prior period ended August 25, 2024. The $5.9 million decrease in SG&A expenses includes a reduction of $2.2 million in recurring accounting, legal, and consulting expenses and a net $3.7 million reduction in non-recurring expenses primarily related to legacy matters.

Interest expense, net of interest income, was $6.3 million for the three months ended September 30, 2025, an increase compared to $5.4 million for the comparable prior period ended August 25, 2024. The increase in interest expense included an increase of $1.3 million related to the Alcon term loans, which will continue to grow due to accumulating interest paid-in-kind and amortization of the debt discount, partially offset by a $0.4 million decrease due to lower outstanding borrowings under the revolving credit facility.

For the three months ended September 30, 2025, the company recorded a net loss of $10.0 million and a loss of $0.29 per diluted share, as compared to a net loss of $16.2 million and a loss of $0.53 per diluted share for the comparable prior period ended August 25, 2024. In addition to the reasons described above, the loss in 2025 included a small effect from an unfavorable debt derivative adjustment, while the loss in 2024 included a small net effect from a favorable debt derivative adjustment that was partially offset by registration rights penalty expense. Adjusted EBITDA* for the three months ended September 30, 2025, was $3.1 million, an increase of $4.9 million compared to a negative $1.8 million in the comparable prior period ended August 25, 2024. The improvement in Adjusted EBITDA* was primarily due to the increase in gross profit and the reduction in recurring selling, general and administrative expenses.

*Adjusted EBITDA is a non-GAAP financial measure and excludes certain items from net income or loss, the nearest comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Please see "Non-GAAP Financial Information" below for more information, including information regarding a definition of Adjusted EBITDA and reconciliation to net loss for the periods noted in this press release.

Financial Guidance for Calendar Year 2025 Transition Period

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