Lifeway Foods cited strong volume growth of its drinkable kefir and farmer cheese as the primary driver of record sales in the second quarter of 2025, according to the company’s latest quarterly earnings report released this morning.
In the quarter ended June 30, the fermented beverage maker saw net sales climb 9.7% year-over-year to $53.9 million. Net income was $4.2 million, or $0.28 per basic and diluted common share.
“This was another quarter that reinforces Lifeway’s position as the undisputed leader in the kefir category. The consistency of our performance, even as we cycle past previous record highs, speaks to the strength of our brand, the loyalty of our customers and the expanding reach of our platform,” said Julie Smolyansky, president and CEO, in a prepared statement.
The company has benefited from “powerful consumer trends” that continue to accelerate demand for protein-rich, probiotic, functional foods, in addition to heightened awareness of gut health’s role in overall wellness. According to Smolyansky, this is particularly pronounced among the more than 15% of Americans now on GLP-1 medication who are seeking more nutrient-dense foods.
This quarter – which marks Lifeway’s 23rd consecutive quarter of year-over-year sales growth – signals that the company’s investments in marketing, sales activation and retail expansion are paying off. Its marketing is embedded “rightfully into the heart of culture” and sparkling viral moments on TikTok, Smolyansky claims, with millions of consumers discovering lightweight kefir through authentic testimonials.
Last month, the kefir maker announced its partnership with NASCAR driver Josh Bilicki for The Loop 110 on the streets of downtown Chicago. The partnership placed Lifeway front and center as the primary sponsor of Bilicki’s No. 91 Chevrolet Camaro, tapping into one of the fastest-growing fan demographics and helping the company become a “lifestyle icon.”
The company also continues to grow its distribution footprint across channels, with Target adding 1,100 new 32 oz. kefir placements, Publix launching new 8 oz. items and Whole Foods Market, BJ’s, Costco and Kroger expanding their Lifeway sets. Additionally, Lifeway’s farmer cheese has landed in H-E-B, Hy-Vee, Albertsons and Lowes Foods.
Its most recent portfolio addition, Probiotic Smoothies with Collagen, is also resonating with consumers. The new offering taps into Lifeway’s dual consumer priorities of gut health and “beauty from within” and capitalizes on the rapidly growing $8 billion global collagen market.
Capital spending was $4.5 million in the first half of 2025 as Lifeway expanded and upgraded its facilities. According to Smolyansky, the company’s state-of-the-art Waukesha, Wis., plant is already enhancing efficiencies and, once all planned investments are complete, production capacity will nearly double and bottling speed will nearly triple.
Confident that its growth strategy is paying off, Lifeway is reiterating its long-term target of $45 million to $50 million in adjusted EBITDA for fiscal year 2027 and expects to deliver the strongest annual sales growth in company history in 2025.
“The results speak for themselves, with continued investments behind our key Lifeway-branded products, alongside the growing consumer embrace of health and wellness, we are well-positioned to continue this incredible momentum through the back half of the year,” Smolyansky said during a call discussing the quarterly results.
The strong results come amid French dairy giant Danone’s third attempt to acquire Lifeway. In June, representatives of Lifeway initiated discussions with Danone to “reset” the relationship and reopen negotiations, per an August 1 SEC filing. The businesses have since entered into a confidentiality agreement to facilitate further due diligence.