Q1 2026 Lifecore Biomedical Inc Earnings Call

May 6, 2026

Speaker #1: Good morning and thank you for joining LIFECORE's Earnings Call for the first quarter ended March 31, 2026. During the call, all participants will be in a listen-only mode.

Operator: Good morning, thank you for joining Lifecore's Earnings Call for the Q1 ended 31 March 2026. During the call, all participants will be in a listen-only mode. I would like to turn the call over to Stephanie Diaz, Manager of Investor Relations for Lifecore.

Speaker #1: Now I would like to turn the call over to Stephanie Diaz, Manager of Investor Relations for Lifecore.

Speaker #2: Good morning and thank you for joining us. Today, LIFECORE Biomedical will provide its earnings for the first quarter ended March 31, 2026, and corporate update.

Stephanie Diaz: Good morning, and thank you for joining us. Today, Lifecore Biomedical will provide its earnings for the Q1 ended 31 March 2026, and corporate update. As the company has recently changed its fiscal year-end to align with the calendar year, we will be comparing our results for the Q1 ended 31 March 2026, with the comparable prior year Q ended 23 February 2025. Hosting the call today from Lifecore are Paul Josephs, President and Chief Executive Officer, and Ryan Lake, Chief Financial Officer. Before we begin, I'd like to remind everyone that today's conference call will contain forward-looking statements. It is important to note that the forward-looking statements made during this call reflect management's judgment and analysis only as of today, 6 May 2026, and the company's actual results could differ materially from those projected in such forward-looking statements.

Speaker #2: As the company has recently changed its fiscal year-end to align with the calendar year, we will be comparing our results for the first quarter ended March 31, 2026, with a comparable prior-year quarter ended February 23, 2025.

Speaker #2: Hosting the call today from LIFECORE are Paul Josephs, President and Chief Executive Officer, and Ryan Lake, Chief Financial Officer. Before we begin, I'd like to remind everyone that today's conference call will contain forward-looking statements.

Stephanie Diaz: Hosting the call today from Lifecore are Paul Josephs, President and Chief Executive Officer, and Ryan Lake, Chief Financial Officer. Before we begin, I'd like to remind everyone that today's conference call will contain forward-looking statements. It is important to note that the forward-looking statements made during this call reflect management's judgment and analysis only as of today, 6 May 2026, and the company's actual results could differ materially from those projected in such forward-looking statements.

Speaker #2: It is important to note that the forward-looking statements made during this call reflect management's judgment and analysis only as of today, May 6, 2026, and the company's actual results could differ materially from those projected in such forward-looking statements.

Speaker #2: For a more thorough discussion of the risks and uncertainties associated with any forward-looking statements, please see the disclaimer regarding forward-looking statements that is included in our earnings press release, which was furnished to the Securities and Exchange Commission this morning on Form 8K and is available on our corporate website at lifecore.com, as well as our other filings with the Securities and Exchange Commission, including but not limited to the company's Form 10Q for Q1 2026, which was filed with the SEC this morning, and is also available on our website.

Stephanie Diaz: For a more thorough discussion of the risks and uncertainties associated with any forward-looking statements, please see the disclaimer regarding forward-looking statements that is included in our earnings press release, which was furnished to the Securities and Exchange Commission this morning on Form 8-K and is available on our corporate website at lifecore.com, as well as our other filings with the Securities and Exchange Commission, including, but not limited to, the company's Form 10-Q for Q1 2026, which was filed with the SEC this morning and is also available on our website. Our earnings press release include the discussion of, and during this call, we will reference certain non-GAAP financial information. You can find relevant non-GAAP reconciliations in our earnings press release. With that, I would like to turn the call over to Paul Josephs, President and Chief Executive Officer.

Speaker #2: In addition, our earnings press release includes the discussion of and during this call, we will reference certain non-GAAP financial information. You can find relevant non-GAAP reconciliations in our earnings press release.

Speaker #2: With that, I would like to turn the call over to Paul Josephs, President and Chief Executive Officer.

Speaker #3: Thank you, Stephanie. Good morning, everyone, and thank you for joining us today. During the first quarter of 2026, we continue to execute on each of the three pillars of our growth strategy: maximizing our existing commercial business, advancing our development pipeline towards commercialization, and adding high-quality new programs to our pipeline through business development.

Paul Josephs: Thank you, Stephanie. Good morning, everyone, and thank you for joining us today. During the Q1 of 2026, we continued to execute on each of the three pillars of our growth strategy, maximizing our existing commercial business, advancing our development pipeline towards commercialization, and adding high-quality new programs to our pipeline through business development. We believe consistent execution across these pillars positions Lifecore for sustained long-term growth, supporting our goal of achieving a 12% revenue CAGR and EBITDA margins above 25% by the end of 2029. We remain confident in our full-year expectations and reaffirm our 2026 guidance. Ryan will provide additional details on our financial results following my overview of our Q1 achievements.

Speaker #3: We believe consistent execution across these pillars positions LIFECORE for sustained long-term growth, supporting our goal of achieving a 12% revenue CAGR and EBITDA margins above 25% by the end of 2029.

Speaker #3: We remain confident in our full-year expectations and reaffirm our 2026 guidance. Ryan will provide additional details on our financial results following my overview of our Q1 achievements.

Speaker #3: I will begin today with the progress made with each of our growth strategy pillars. Starting with our revamped commercial strategy, and priority to add high-quality programs to our development pipeline.

Paul Josephs: I will begin today with the progress made with each of our growth strategy pillars, starting with our revamped commercial strategy and priority to add high-quality programs to our development pipeline. I am encouraged by the progress made with regard to this initiative. As previously discussed, we have transformed our business development strategy and team to expand our target market and drive an increase in the number of high-quality customer wins. This effort generated a strong expansion of our pipeline in 2025. We are encouraged by the continued progress we have seen in 2026. In Q1 alone, we have signed 3 new commercial site transfer programs. In March, we announced the signing of a manufacturing services agreement for the commercial site transfer of a marketed approved product with a new aesthetics customer.

Speaker #3: I am encouraged by the progress made with regard to this initiative. As previously discussed, we have transformed our business development strategy and team to expand our target market and drive an increase in the number of high-quality customer wins.

Speaker #3: This effort generated a strong expansion of our pipeline in 2025, and we are encouraged by the continued progress we have seen in 2026. In the first quarter alone, we have signed three new commercial site transfer programs.

Speaker #3: In March, we announced the signing of a manufacturing services agreement for the commercial site transfer of a marketed approved product with a new aesthetics customer.

Speaker #3: Under the terms of the agreement, we will perform technical transfer activities for a product that is currently manufactured outside the US. Our client's goal is to establish US-based manufacturing for products sold in the US.

Paul Josephs: Under the terms of the agreement, we will perform technical transfer activities for a product that is currently manufactured outside the US. Our client's goal is to establish US-based manufacturing for products sold in the US. This is an exciting opportunity for us with a customer relationship that we expect to grow over time. Importantly, we believe this product may generate commercial revenue in 2028. In addition, during the Q1, we announced the signing of two CDMO manufacturing services agreements with an existing US biopharmaceutical customer. This customer is a publicly traded US-based pharmaceutical company that has successfully developed multiple marketed products and continues to drive growth in its commercial pipeline. The first of these agreements is a commercial site transfer under which we will assume manufacturing of a currently marketed product produced by another CDMO. This is a new product to Lifecore.

Speaker #3: This is an exciting opportunity for us, with a customer relationship that we expect to grow over time. Importantly, we believe this product may generate commercial revenue in 2028.

Speaker #3: In addition, during the first quarter, we announced the signing of two CDMO manufacturing services agreements with an existing US biopharmaceutical customer. This customer is a publicly traded US-based pharmaceutical company that has successfully developed multiple marketed products, and continues to drive growth in its commercial pipeline.

Speaker #3: The first of these agreements is a commercial site transfer under which we will assume manufacturing of a currently marketed product produced by another CDMO.

Speaker #3: This is a new product to LIFECORE. We will perform technical transfer services required to support regulatory approval at our site. Upon successful approval of this transfer, the agreement provides for the commercial manufacturing of this product at LIFECORE.

Paul Josephs: We will perform technical transfer services required to support regulatory approval at our site. Upon successful approval of this transfer, the agreement provides for the commercial manufacturing of this product at Lifecore. Consistent with previously discussed commercial site transfers, we believe this product may generate commercial revenue in 2028. The second agreement with the same customer reflects an expansion of our relationship. Lifecore currently manufactures this commercial ophthalmic product in 1 delivery format and will now begin to manufacture it in a 2 delivery system. This additional delivery system is currently manufactured in Europe. We believe this 2 delivery system will be additive to our existing commercial revenue for this product.

Speaker #3: Consistent with previously discussed commercial site transfers, we believe this product may generate commercial revenue in 2028. The second agreement with the same customer reflects an expansion of our relationship.

Speaker #3: LIFECORE currently manufactures this commercial ophthalmic product in one delivery format and will now begin to manufacture it in a second delivery system. This additional delivery system is currently manufactured in Europe.

Speaker #3: We believe this secondary delivery system will be added to our existing commercial revenue for this product. We are motivated to have been selected for all these high-value programs.

Paul Josephs: We are motivated to have been selected for all these high-value programs, as we believe it reflects the continued progress in becoming a partner of choice for our current and future customers. Our unwavering commitment to best-in-class quality and strong technical expertise are key drivers for those customers that have continued to place their trust in us for the development and manufacturing of their important programs. During the quarter, our business development team spent considerable time and effort strengthening our business development pipeline, resulting in a growing number of meaningful meetings with customers and prospects. A meaningful highlight for us was the significant engagement our team experienced with our customers at the recent Drug, Chemical & Associated Technologies, or DCAT, association meeting in New York. DCAT is our largest and most important sales and marketing event in North America.

Speaker #3: As we believe it reflects the continued progress in becoming a partner of choice for our current and future customers. Our unwavering commitment to best-in-class quality and strong technical expertise are key drivers for those customers that continue to place a trust in us for the development and manufacturing of their important programs.

Speaker #3: During the quarter, our business development team spent considerable time and effort strengthening our business development pipeline, resulting in a growing number of meaningful meetings with customers and prospects.

Speaker #3: A meaningful highlight for us was the significant engagement our team experienced with our customers at the recent Drug, Chemical, and Associated Technologies—or DCAT—Association meeting in New York.

Speaker #3: DCAT is our largest and most important sales and marketing event in North America. This year's engagement was unprecedented for us. With our team participating in a record number of meetings with both existing and potential customers.

Paul Josephs: This year's engagement was unprecedented for us, with our team participating in a record number of meetings with both existing and potential customers. Given the strong engagement and the growing momentum of our business development team is building, we believe we are well-positioned to capitalize on the positive market dynamics, including the growth of manufacturing in the United States and the fact that approximately 50% of the US drug development pipeline are injectable therapies. We believe that this current environment points in our favor and leaves us well-positioned to aggressively pursue new business and capitalize on the opportunity in front of us.

Speaker #3: Given this strong engagement and the growing momentum of our business development team is building, we believe we are well positioned to capitalize on the positive market dynamics.

Speaker #3: Including the growth of manufacturing in the United States, and the fact that approximately 50% of the US drug development pipeline are injectable therapies. We believe that this current environment points in our favor, and leaves us well positioned to aggressively pursue new business and capitalize on the opportunity in front of us.

Speaker #3: With respect to our first growth strategy, expanding our existing commercial business, we continue to work closely with our commercial partners during the quarter to deliver outstanding service.

Paul Josephs: With respect to our first growth strategy, expanding our existing commercial business, we continued to work closely with our commercial partners during the quarter to deliver outstanding service with a clear focus on readying our organization for the doubling of commercial demand with our largest customer, which is expected to begin in 2027. Concurrently, we remain committed to commercial excellence. During the quarter, we implemented targeted pricing initiatives to maintain and expand our product margins. Turning to the second growth strategy pillar of advancing development programs to commercialization, we are encouraged about our growing and diverse pipeline. One of the highlights during the quarter was the expansion of our work with Endogena, a clinical-stage therapeutics company. In January of this year, we signed a second agreement with Endogena, having previously been selected to provide formulation and process optimization activities in support of their DT001 program.

Speaker #3: With a clear focus on readying our organization for the doubling of commercial demand with our largest customer, which is expected to begin in 2027.

Speaker #3: Concurrently, we remain committed to commercial excellence. And during the quarter, we implemented targeted pricing initiatives to maintain and expand our product margins. Turning to the second growth strategy pillar of advancing development programs to commercialization, we are encouraged about our growing and diverse pipeline.

Speaker #3: One of the highlights during the quarter was the expansion of our work within Domo. A clinical stage therapeutics company. In January of this year, we signed a second agreement within Domo having previously been selected to provide formulation and process optimization activities in support of their DT001 program.

Speaker #3: Under the terms of our latest agreement, we will be responsible for producing and supplying clinical batches of DT001 planned studies designed to prepare the product for advancement into phase two clinical trials in 2026.

Paul Josephs: Under the terms of our latest agreement, we will be responsible for producing and supplying clinical batches of DT001 planned studies designed to prepare the product for advancement into phase 2 clinical trials in 2026. We also made significant progress regarding our late-stage development pipeline, which includes 13 late-stage programs, with the addition of the 3 programs mentioned earlier in my comments. Five of these programs are commercial site transfers. Unlike development programs, commercial site transfers have existing market demand and are significantly de-risked. They do not require additional clinical trials and only require qualification at Lifecore, which gives us greater confidence in their financial projections. Given our quality track record and proficiency in producing similar products, we are confident in our ability to successfully transfer all products, five products to Lifecore.

Speaker #3: We also made significant progress regarding our late-stage development pipeline, which includes 13 late-stage programs with the addition of the three programs mentioned earlier in my comments.

Speaker #3: Five of these programs are commercial site transfers. Unlike development programs, commercial site transfers have existing market demand and are significantly de-risked. They do not require additional clinical trials and only require qualification LIFECORE.

Speaker #3: Which gives us greater confidence in their financial projections. Given our quality track record and proficiency in producing similar products, we are confident in our ability to successfully transfer all product to LIFECORE.

Speaker #3: Depending on timing of regulatory approvals, we expect that they will all generate commercial revenue at our site in 2028. It is also important to note that two of our late-stage customers nearing commercialization achieved important milestones that support their path towards regulatory approval and commercialization.

Paul Josephs: Depending on timing of regulatory approvals, we expect that they will all generate commercial revenue at our site in 2028. It is also important to note that two of our late-stage customers nearing commercialization achieved important milestones that support their path towards regulatory approval and commercialization. One of our late-stage ophthalmic customers recently announced positive top-line Phase 3 results. After securing funding, another customer has a clear and actionable path towards commercialization, potentially in 2028. Beyond the achievements specific to our growth strategy, we made meaningful progress across several key areas of our business, including SG&A, operations, and quality. Within SG&A, we continue to identify and act on opportunities for cost reductions and intend to continue to implement changes that we will believe will drive sustained margin improvement over time.

Speaker #3: One of our late-stage ophthalmic customers recently announced positive top-line phase three results. And after securing funding, another customer has a clear and actionable path toward commercialization potentially in 2028.

Speaker #3: Beyond the achievements specific to our growth strategy, we made meaningful progress across several key areas of our business, including SG&A operations and quality. Within SG&A, we continue to identify and act on opportunities for cost reductions and intend to continue to implement changes that we will believe will drive sustained margin improvement over time.

Speaker #3: In addition to our operational achievements, during the quarter, we successfully launched our enterprise resource planning or ERP system in January. To date, this implementation has been smooth.

Paul Josephs: In addition to our operational achievements, during the quarter we successfully launched our enterprise resource planning, or ERP system in January. To date, this implementation has been smooth, and we ultimately expect the system to improve efficiencies in financial management, cost containment, productivity, and inventory control. With regard to quality, our commitment to industry-leading quality was again demonstrated during the quarter. During the quarter, we completed multiple inspections with new business prospects and existing customers. Each of these inspections had a positive outcome, which we believe that further validates Lifecore's growing reputation as a leading CDMO and partner of choice for customers seeking high quality. Importantly, these inspections consistently serve as a learning opportunity for us and allow us to strengthen our quality systems that are the foundation for all our development and commercial manufacturing activities.

Speaker #3: And we ultimately expect the system to improve efficiencies in financial management, cost containment, productivity, and inventory control. With regard to quality, our commitment to industry-leading quality was again demonstrated during the quarter.

Speaker #3: During the quarter, we completed multiple inspections with new business prospects and existing customers. Each of these inspections had a positive outcome, which we believe further validates LIFECORE's growing reputation as a leading CDMO and partner of choice for customers seeking high quality.

Speaker #3: Importantly, these inspections consistently serve as a learning opportunity for us and allow us to strengthen our quality systems that are the foundation for all our development and commercial manufacturing activities.

Speaker #3: During the first quarter of 2026, our team successfully executed against each pillar of our growth strategy. Concurrently, we continue to optimize our organization to drive cost reductions and improve efficiencies to support margin improvement, all while continuing to elevate our quality systems.

Paul Josephs: During the Q1 2026, our team successfully executed against each pillar of our growth strategy. Concurrently, we continue to optimize our organization to drive cost reductions and improve efficiencies to support margin improvement, all while continuing to elevate our quality systems. I am energized by our achievements during the quarter. We remain committed to building on this momentum with discipline throughout the year. That concludes my update. I will now turn the call over to Ryan Lake to provide an overview of our financial results for the Q1 ended 31 March 2026. Ryan.

Speaker #3: I am energized by our achievements during the quarter, and we remain committed to building on this momentum with discipline throughout the year. That concludes my update.

Speaker #3: I will now turn the call over to Ryan Lake, to provide an overview of our financial results for the first quarter ended March 31st, 2026.

Speaker #3: Ryan?

Speaker #2: Thank you, Paul. And good morning, everyone. In conjunction with my comments, I’d like to recommend that participants refer to Lifecore’s Form 10-Q filing, which we filed with the SEC earlier today.

Ryan Lake: Thank you, Paul. Good morning, everyone. In conjunction with my comments, I'd like to recommend that participants refer to Lifecore's Form 10-Q filing, which we filed with the SEC earlier today. As a reminder, today we will compare our Q1, which ended on 31 March 2026, with the comparable prior year quarter ending on 23 February 2025. Before providing the quarter's financials, I'd like to state that I concur with Paul's optimism for the path ahead, and I'm pleased to reaffirm our 2026 guidance for revenue and adjusted EBITDA.

Speaker #2: As a reminder, today we will compare our first quarter, which ended on March 31st, 2026, with the comparable prior year quarter ending on February 23rd, 2025.

Speaker #2: Before providing the quarter's financials, I'd like to state that I concur with Paul's optimism for the path ahead and I'm pleased to reaffirm our 2026 guidance for revenue and adjusted EBITDA.

Speaker #2: As a reminder, for 2026, LIFECORE expects total revenue to be in a range of $120 to $125 million. Net loss to be in the range at $35.4 to $30.9 million.

Ryan Lake: As a reminder, for 2026, Lifecore expects total revenue to be in a range of $120 to $125 million, net loss to be in the range of $35.4 to $30.9 million, and adjusted EBITDA to be in the range of $20.5 to $25 million. Turning now to the quarter, revenues for Q1 2026 were $23.2 million, a decrease of $12 million or 34% compared to $35.2 million for the comparable prior year quarter ended 23 February 2025. The decrease in revenues was primarily the result of the factors we described during our Q4 earnings announcement, and we remain on track to deliver our stated revenue guidance by the end of 2026.

Speaker #2: And adjusted EBITDA to be in the range at $20.5 to $25 million. Turning now to the quarter, revenues for the first quarter of 2026 were $23.2 million.

Speaker #2: A decrease of $12 million or $34% compared to $35.2 million, for the comparable prior year quarter ended February 23rd, 2025. The decrease in revenues was primarily a result of the factors we described during our fourth quarter earnings announcement and we remain on track to deliver our stated revenue guidance by the end of 2026.

Speaker #2: Gross profit for the quarter was $4.5 million, a decrease of $5.4 million compared to $9.8 million for the comparable prior year quarter ended February 23rd, 2025.

Ryan Lake: Gross profit for Q1 was $4.5 million, a decrease of $5.4 million compared to $9.8 million for the comparable prior year quarter ended 23 February 2025. The $5.4 million decline in gross profit was primarily due to decreased revenues. Selling, general, and administrative expenses for Q1 were $7.9 million, a decrease of $2.1 million or 21% compared to $10 million for the comparable prior year quarter ended 23 February 2025. SG&A decreased by $2.1 million, driven by $1.6 million of lower recurring legal and accounting costs, lower compensation and lower credit losses, and $0.5 million of lower non-recurring expenses, primarily related to legacy legal matters.

Speaker #2: The $5.4 million decline in gross profit was primarily due to decreased revenues. Selling general and administrative expenses for the first quarter was $7.9 million.

Speaker #2: A decrease of $2.1 million or $21% compared to $10 million for the comparable prior year quarter ended February 23rd, 2025. SG&A decreased by $2.1 million driven by a $1.6 million lower recurring legal and accounting costs, lower compensation, and lower credit losses, and $0.5 million lower non-recurring expenses primarily related to legacy legal matters.

Speaker #2: The company recorded a net loss of $15 million and $43 cents of loss per diluted share as compared to a net loss of $14.8 million and $42 cents of loss per diluted share for the comparable prior year quarter ended February 23rd, 2025.

Ryan Lake: The company recorded a net loss of $15 million and $0.43 of loss per diluted share, as compared to a net loss of $14.8 million and $0.42 of loss per diluted share for the comparable prior year quarter ended 23 February 2025. adjusted EBITDA for the quarter was $1 million, a decrease of $4.7 million compared to $5.7 million for the comparable prior year quarter ended 23 February 2025. The decrease in adjusted EBITDA was primarily due to the decrease in revenues and was partially offset by favorable operating expenses. We are pleased with the company's financial performance during the Q1 and remain on track to achieve the guidance that I reiterated at the beginning of my comments.

Speaker #2: Adjusted EBITDA for the quarter was $1 million; a decrease of $4.7 million compared to $5.7 million for the comparable prior year quarter ended February 23rd, 2025.

Speaker #2: The decrease in adjusted EBITDA was primarily due to the decrease in revenues and was partially offset by favorable operating expenses. We are pleased with the company's financial performance during the first quarter and remain on track to achieve the guidance that I reiterated at the beginning of my comments.

Speaker #2: Today, I'm pleased to report that the first quarter of 2026 represents the sixth consecutive quarter of period-over-period declines in SG&A and R&D expenses. Since initiating our expense reduction initiatives in late 2024, LIFECORE's SG&A and R&D expenses have been reduced cumulatively by almost $8 million including substantial reductions in accounting, consulting, and legal expenses.

Ryan Lake: Today, I'm pleased to report that the Q1 of 2026 represents the sixth consecutive quarter of period-over-period declines in SG&A and R&D expenses. Since initiating our expense reduction initiatives in late 2024, Lifecore's SG&A and R&D expenses have been reduced cumulatively by almost $8 million, including substantial reductions in accounting, consulting, and legal expenses. These reductions drove the incremental improvements we recorded in EBITDA margins during 2025. As reflected in our 2026 guidance, we expect continued reductions to support that trend in the future. I'd now like to turn to liquidity, which has improved significantly since late 2024. We ended the Q1 of 2026 with overall liquidity of approximately $38 million, including approximately $21 million in cash and cash equivalents and approximately $17 million of availability under our revolver.

Speaker #2: These reductions drove the incremental improvements we recorded in EBITDA margins during 2025, and as reflected in our 2026 guidance, we expect continued reductions to support that trend in the future.

Speaker #2: I'd now like to turn to liquidity, which is improved significantly since late 2024. We ended the first quarter of 2026 with overall liquidity of approximately $38 million including approximately $21 million in cash and cash equivalents, and approximately $17 million of availability under our revolver.

Speaker #2: Importantly, the first quarter of 2026 marked our fifth consecutive quarter generating positive cash flow from operations, and excluding the registration rights payment in the fourth quarter of last year, represents the fourth consecutive quarter of being free cash flow positive.

Ryan Lake: Importantly, Q1 2026 marked our fifth consecutive quarter generating positive cash flow from operations and, excluding the registration rights payment in Q4 last year, represents the fourth consecutive quarter of being free cash flow positive. During Q1 2026, we generated $4.7 million in cash from operations and free cash flow of $3.6 million. We are pleased with the improvements we've been able to achieve since late 2024, and we remain committed to further strengthening our financial standing with continued expense reductions and strategic financial management going forward. This concludes my financial overview. I'll now turn the call back over to Paul for his final comments. Paul.

Speaker #2: During the first quarter of 2026, we generated $4.7 million in cash from operations and free cash flow of $3.6 million. We are pleased with the improvements we've been able to achieve since late 2024 and we remain committed to further strengthening our financial standing with continued expense reductions and strategic financial management going forward.

Speaker #2: This concludes my financial overview; I'll now turn the call back over to Paul for his final comments. Paul.

Speaker #3: Thank you, Ryan. During the first quarter, we believe that we continue to demonstrate that we are on the right path. We executed against our growth strategy, supporting our clients as they advanced towards commercialization, expanding our capacity and capabilities to meet growing demand, and addressing new modalities and aggressively pursuing and winning new business opportunities.

Paul Josephs: Thank you, Ryan. During Q1, we believe that we continue to demonstrate that we are on the right path. We executed against our growth strategy, supporting our clients as they advance towards commercialization, expanding our capacity and capabilities to meet growing demand, and addressing new modalities and aggressively pursuing and winning new business opportunities. In addition, we continue to strengthen our organization by driving efficiencies, improving our cost discipline while maintaining exceptional quality as the foundation that supports everything that we do. We believe we are well-positioned to achieve our 2026 objectives.

Speaker #3: In addition, we continue to strengthen our organization by driving efficiencies, improving our cost discipline, while maintaining an exceptional quality as a foundation that supports everything that we do.

Speaker #3: We believe we are well positioned to achieve our 2026 objectives and have a clear strategy that we have built and are continuing to make progress that give us every reason to look forward to our midterm goals with great optimism.

Paul Josephs: Have a clear strategy that we have built and are continuing to make progress that give us every reason to look forward to our midterm goals with great optimism. This concludes our prepared remarks for today. Operator, you may now open the call for questions.

Speaker #3: This concludes our prepared remarks for today. Operator, you may now open the call for questions.

Speaker #2: Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Operator: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for questions. Our first question comes from Michael Petusky with Barrington Research. You may proceed.

Speaker #2: One moment for questions. Our first question comes from Michael Potocki with Barrington Research. You may proceed.

Speaker #4: Hey, good morning, guys. Congrats on all the progress related to the new contract, etc. So Ryan, I guess I want to take and get at the sort of the numbers and how that connects to the full-year guide both the revenue and EBITDA sort of meaningfully below what we were expecting and it just feels like the declining Q1 was considerably above sort of the certainly the run rate of the headwinds that you guys identified last conference call, meaning $12 million down this quarter, versus I believe it was something like an $18 million headwind for the full year.

Michael Petusky: Hey, good morning, guys, congrats on all the progress related to the contract, new contracts, et cetera. Ryan, I guess I wanted to get at the sort of the numbers and how that connects to, you know, the full-year guide. You know, both the revenue and EBITDA came in sort of meaningfully below what we were expecting. It just feels like the decline in Q1 was considerably above sort of the, you know, certainly the run rate of the headwinds that you guys identified last conference call meeting. $12 million down this quarter versus, I believe it was something like an $18 million headwind for the full year.

Michael Petusky: Can you sort of help me bridge that and just talk about maybe how this plays for the rest of the year in terms of are you expecting sequential revenue growth? Like, how, you know, percentage of revenue in H2 versus H1? Can you just speak to some of that? Thanks.

Speaker #4: Can you sort of help me bridge that and just talk about maybe how this plays for the rest of the year in terms of are you expecting sequential revenue growth?

Speaker #4: Percentage of revenue in second half versus first half, can you just speak to some of that? Thanks.

Ryan Lake: Yeah. Thanks, Michael Petusky. I guess maybe to start with the second part of your question first. As we communicated on the year-end earnings call, we expect revenue to roughly be in the mid-40% range in H1, and then in the mid-50% range in H2. That hasn't changed. I think that it's really just timing or split between Q1 and Q2. I think in terms of the way that you're looking at some of your models, I think it's basically just pushing, you know, that, I guess, miss for Q1 and putting that in Q2.

Speaker #3: Thanks, Michael. So I guess maybe to start with the second part of your question first, and as we communicated on the year-end earnings call, we expect revenue to roughly be in the 40% mid-40% range in the first half of the year, and then in the mid-50% range in the second half of the year.

Speaker #3: So that hasn't changed. I think that it's really just timing or split between Q1 and Q2. So I think in terms of the way that you're looking at some of your models, I think it's basically just pushing that, I guess, miss for Q1 and putting that in Q2.

Speaker #3: We didn't give specific guidance previously between the breakouts between Q1 and Q2, but I'd say largely we're still on track for that mid-40% range in the first half and then mid-50% range in the second half.

Ryan Lake: We didn't give specific guidance previously between the breakouts between Q1 and Q2, but I'd say largely we're still on track for that mid-40% range in H1 and then mid-50% range in H2. I would also say just from an EBITDA perspective that, you know, we remain kind of committed to that in terms of, you know, roughly split in the 40% range in H1 for adjusted EBITDA and 60% range in H2.

Speaker #3: And I would also say just from an EBITDA perspective, that we remain kind of committed to that in terms of roughly split in the 40% range in the first half for adjusted EBITDA and 60% range in the second half.

Speaker #3: As far as some of the items that we communicated year-end in terms of the headwinds, with regard to one of our customer supply chain initiatives, as well as the termination of agreement, I'd say a big part of that is really front-loaded into this year in terms of timing and comparisons.

Ryan Lake: As far as some of the items that we communicated at year-end, in terms of the headwinds, with regard to one of our customer supply chain initiatives as well as the termination of agreement, I'd say, you know, a big part of that is really front-loaded into this year, in terms of timing and comparison. I wanna say, like, 50% of that was roughly in Q1. I think as we look at H1 of the year, roughly 80% of that impact will be kind of bled through the financials.

Speaker #3: So I want to say like 50% of that was roughly in Q1, and I think as we look at the first half of the year, roughly 80% of that impact will be kind of bled through the financials.

Speaker #2: Okay. All right. That's super helpful. Okay. So Paul, I guess one of the, I guess, to me, one of the early indicators in terms of future success for you guys is getting folks to CHASC.

Michael Petusky: Okay. All right. That's super helpful. Okay. Paul, I guess, you know, one of the, I guess, to me, one of the early indicators in terms of, you know, future success for you guys is getting folks to Chaska. Can you just talk about, you know, potential customer traffic in Chaska to whatever extent you can? I mean, are you seeing sort of a pickup relative to where it was, you know, 6, 12 months ago? Are, you know, is the quality of the projects that are potentially being looked at, you know, increasing?

Speaker #2: Can you just talk about potential customer traffic in CHASC, to whatever extent you can? I mean, are you seeing sort of a pickup relative to where it was 6 or 12 months ago? Is the quality of the projects that are potentially being looked at increasing?

Michael Petusky: Can you just sort of talk to, I guess, to, you know, traffic in terms of getting folks to travel to Minnesota and just the potential customers you're talking to? Thanks.

Speaker #2: Can you just sort of talk to, I guess, to traffic in terms of getting folks to travel to Minnesota and just the potential customers you're talking to?

Michael Petusky: Can you just sort of talk to, I guess, to, you know, traffic in terms of getting folks to travel to Minnesota and just the potential customers you're talking to? Thanks.

Speaker #2: Thanks.

Speaker #3: Oh, Michael, thank you for the question. Yes, we're very encouraged and energized by the amount of traffic that we're seeing from potential new customers, not only from a business perspective, but a key or a leading indicator of new businesses quality audits.

Paul Josephs: Oh, Michael, thank you for the question. Yes, we're very encouraged and energized by the amount of traffic that we're seeing from potential new customers, not only from a business perspective, but you know, a key or a leading indicator of new business is, you know, quality audits. You know, we have a significant increase in the number of audits that we're seeing from prospective customers. Now we're actually into mid-June before we're able to entertain audits from new customers. That gives me great optimism. In fact, you know, we'll have the CEO, a US CEO of a large multinational in our site this week, you know, talking about new opportunities.

Speaker #3: So we have a significant increase in the number of audits that we're seeing from prospective customers. And now we're actually into mid-June before we're able to entertain audits from new customers.

Speaker #3: So that gives me a great optimism. And in fact, we'll have the CEO, a US CEO of a large multinational in our site this week talking about new opportunities.

Speaker #3: So the quality of visitors that we're seeing from the business side is up, and the increase in the number of audits is up from prospective customers as well.

Paul Josephs: You know, with the quality of visitors that we're seeing on the business side is up, and the increase in the number of audits are up from prospective customers as well, which give us, you know, again, as leading indicators of new business, or they're trending in a positive manner.

Speaker #3: Which gives us, again, as leading indicators of new business or they're trending in a positive manner.

Speaker #2: Okay. Very good. Thanks, guys. Appreciate it. Thank you. Our next question comes from Matthew with Craig Hallam Capital Group. You may proceed.

Michael Petusky: Okay. Very good. Thanks, guys. Appreciate it.

Operator: Thank you. Our next question comes from Matt Hewitt with Craig-Hallum Capital Group.

Thank you. Our next question comes from Matt Hewitt with Craig-Hallum Capital Group.

Operator: Thank you. Our next question comes from Matt Hewitt with Craig-Hallum Capital Group.

Speaker #5: Good morning. Thanks for taking the questions. Regarding that pipeline, that increasing pipeline, you noted that the aesthetic win the tech transfer was because they were looking to onshore manufacturing here in the United States.

Matt Hewitt: Good morning. Thanks for taking the questions. Regarding that pipeline, that increasing pipeline, you noted that the aesthetic win, the tech transfer was because they were looking to onshore manufacturing here in the United States. I'm curious, as you look at your pipeline, as you look at the existing tech transfers as well as those that are in the pipeline, how much of that is a function of the tariffs and the desire to repatriate or to, you know, add manufacturing here in the States, versus how much of it is because of the market that you serve, the sterile injectables and some of the capacity constraints that that market is facing globally?

Speaker #5: I'm curious, as you look at your pipeline, as you look at the existing tech transfers as well as those that are in the pipeline, how much of that is a function of the tariffs and the desire to repatriate or to add manufacturing here in the States, versus how much of it is because of the market that you serve—the sterile injectables—and some of the capacity constraints that that market is facing globally?

Speaker #3: Matt, thanks for the question. I think it's meaningful. I certainly not the majority. But I'd say maybe low, double digits as it relates to reshoring.

Paul Josephs: Matt, thanks for the question. I think it's meaningful. It's certainly not the majority, but, you know, I'd say maybe low double digits, as it relates to reshoring, so it's a meaningful part of it. The other thing that's really manifested itself, like if you don't mind me conflating this answer, is, you know, there is meaningful FDA enforcement or increase in FDA enforcement or actions that is going on in the industry. You know, when I think about high quality and maybe some of these situations are, that our competitors are in with regard to, warning letters or FDA enforcement, that has also increased the opportunity for a company like Lifecore, which has a high-quality track record.

Speaker #3: So it's a meaningful part of it. The other thing that's really manifested itself, if you don't mind me conflating this answer, is there is meaningful FDA enforcement or increase in FDA enforcement or actions that is going on in the industry.

Speaker #3: So when I think about high-quality and maybe some of these situations that are competitors are in with regard to warning letters or FDA enforcement, that is also increased the opportunity for a company like Lifecore, which has a high-quality track record.

Speaker #3: So as I think about the site transfers, it's not only now the reshoring, but it's also the opportunity to take advantage of the regulatory market because we think that's a strong tailwind based on our quality systems led by Jackie Klecker, our EVP of quality.

Paul Josephs: As I think about, you know, the site transfers, it's not only now, the reshoring, but it's also the opportunity to take advantage of the regulatory market because we think that's a strong tailwind, based on our quality systems led by Jackie Klecker, our EVP of Quality. It's exciting times for us and we're energized moving forward.

Speaker #3: So it's exciting times for us. And we're energized moving forward.

Speaker #2: That's helpful. I guess maybe just to extrapolate on that a little bit, with some of your peers facing 83s and in some cases warning letters, does that create an opportunity for maybe some of these or one of these at least tech transfers to accelerate?

Matt Hewitt: That's helpful. I guess maybe just to extrapolate on that a little bit, with some of your peers facing 483s and in some cases, you know, warning letters, does that create an opportunity for maybe some of these or one of these at least tech transfers to accelerate? Meaning instead of having to go through the full 18-plus month process, the FDA recognizes, Hey, we're gonna be in a shortage situation if we don't address this faster, and maybe they help move things along a little bit faster. I think we saw that with some bags, a couple years ago, where they basically knocked down some of the barriers to get product to market faster because of some, you know, companies that were having issues.

Speaker #2: Meaning instead of having to go through the full 18-plus month process, the FDA recognizes, "Hey, we're going to be in a shortage situation if we don't address this faster and maybe they help move things along a little bit faster." I think we saw that with some bags a couple of years ago where they basically knocked down some of the barriers to get product-to-market faster because of some companies that were having issues.

Speaker #3: Thanks for the question, Matt. Certainly, it's a possibility. As I think about one opportunity within our pipeline, there may be that opportunity. But that is something that Lifecore doesn't necessarily control.

Paul Josephs: Thanks for the question, Matt. Certainly, it's a possibility. As, you know, as I think about one opportunity within our pipeline, there may be that opportunity, but, you know, it's that is something that Lifecore doesn't necessarily control. It's really within the control of our customers as we partner with them on their regulatory strategy. Nothing that we could say today that would point to an acceleration of anything within our pipeline, but certainly something that may become a reality in the future.

Speaker #3: It's on our it's really within the control of our customers as we partner with them. On their regulatory strategy, so nothing that we could say today that would point to an acceleration of anything within our pipeline, but certainly something that may become a reality in the future.

Speaker #2: Got it. All right. Thank you.

Matt Hewitt: Got it. All right. Thank you.

Speaker #5: Thank you. Our next question comes from Makita with Stevens. You may proceed.

Operator: Thank you. Our next question comes from Max Mock with Stephens. You may proceed.

Speaker #6: Hey, good morning. This is Hannah on for Mac. Thanks for taking my questions. HA performance was relatively strong this quarter and carries a higher margin profile for you guys.

Hannah: Hey, good morning. This is Hannah on for Max Smock. Thanks for taking my questions. HA performance was relatively strong this quarter and carries a higher margin profile for you guys. Were there any production inefficiencies, scrap, or other dynamics that you would point to that may have impacted this quarter?

[Analyst] (William Blair): Hey, good morning. This is Hannah on for Max Smock. Thanks for taking my questions. HA performance was relatively strong this quarter and carries a higher margin profile for you guys. Were there any production inefficiencies, scrap, or other dynamics that you would point to that may have impacted this quarter?

Speaker #6: So, were there any production inefficiencies, scrap, or other dynamics that you would point to that may have impacted this quarter?

Speaker #3: Nothing specifically, Hannah, to call out for the quarter in terms of fermentation, production, nothing in particular there. I mean, I would say, and maybe just to reiterate a prior comment, we do have good visibility in general to our revenue coverage for the year.

Ryan Lake: Nothing specifically, Hannah, to call out for the quarter in terms of fermentation production. Nothing in particular there. I mean, I would say, and maybe just to reiterate a prior comment, we do have good visibility in general to our revenue coverage for the year, I think about 85%, from an aseptic volume perspective we have firm POs for. I think from an HA side, it's close to 100% PO coverage for the year, which gives us, you know, great confidence in the guidance that we've put out.

Speaker #3: I think about 85% from an aseptic volume perspective. We have firm POs for and then I think from an HA side, it's close to 100% PO coverage for the year, which gives us great confidence in the guidance that we've put out.

Speaker #6: Thanks. That's helpful. And then given demand trends across onshoring, GLP-1s, etc., how do you view current industry capacity for injectable fill finish?

Hannah: Thanks. That's helpful. Then given demand trends across onshoring, GLP-1s, et cetera, how do you view current industry capacity for injectable fill finish?

[Analyst] (William Blair): Thanks. That's helpful. Then given demand trends across onshoring, GLP-1s, et cetera, how do you view current industry capacity for injectable fill finish?

Speaker #3: Hannah, thanks for the question. I would say this, that as it relates to prefilled syringes and cartridges, there still remains opportunity where demand exceeds current available capacity.

Paul Josephs: Hannah, thanks for the question. I would say this, that as it relates to prefilled syringes and cartridges, there still remains opportunity where demand exceeds current available capacity. For your traditional vials that, where you're supported, whether it's your flu vaccine or COVID vaccine, et cetera, there remains a lot of capacity because of the drop in COVID demand. Where we're seeing the majority of our pipeline is in the prefilled syringes and cartridges.

Speaker #3: For your traditional vials that were your supported whether it's your flu vaccine or COVID vaccine, etc., there remains a lot of capacity because of the drop in COVID demand.

Speaker #3: And where we're seeing the majority of our pipeline is in the prefilled syringes and cartridges.

Speaker #6: Awesome. Thank you. I'll leave it there.

Hannah: Awesome. Thank you. I'll leave it there.

[Analyst] (William Blair): Awesome. Thank you. I'll leave it there.

Speaker #3: Thank you.

Paul Josephs: Thank you.

Speaker #2: Thank you. Our next question comes from Maxima with William Blair. You may proceed.

Operator: Thank you. Our next question comes from Max Smock with William Blair. You may proceed.

Speaker #7: Hi, it's Christine Raines on for Max. Good morning and thanks for taking our questions. Ryan, maybe a question for you. You pointed a pretty significant sequential uptick in Q2 revenue primarily as a result of the timing and believe you said that half of the impacts from the three headwinds you announced last quarter impacted Q1.

Christine Raines: Hi, it's Christine Raines on for Max Smock. Good morning, and thanks for taking our questions. Ryan Lake, maybe a question for you. You pointed a pretty significant sequential uptick in Q2 revenue, primarily a result of the timing. I believe you said that half of the impact from the 3 headwinds you announced last quarter impacted Q1. Very helpful context there. Also, I think you said that 80% of the headwind is expected in H1. Correct me if I'm wrong here, it sounds like another outsized roughly 30% headwind will impact Q2. Really hoping you can talk through what the offsets from a timing perspective are there on the positive and what gives you confidence in the sequential growth next quarter.

Speaker #7: So very helpful context there, but also I think you said that 80% of the headwind is expected in 1H, so correct me if I'm wrong here, but sounds like another outsize roughly 30% headwind will impact Q2.

Speaker #7: So really hoping you can talk through what the offsets from a timing perspective are there on the positive and what gives you confidence in the sequential growth next quarter.

Speaker #4: Thanks, Christine. Yeah, I mean, at this point, right, we have all orders in for the quarter. For the second quarter, so we've got really good visibility to that.

Ryan Lake: Thanks, Christine. Yeah, I mean, at this point, right, we have all orders in for the quarter, for Q2, so we've got really good visibility to that. You know, I think at the midpoint of the guidance, it's roughly, you know, in the $32 to 34 million revenue range.

Speaker #4: And I think at the midpoint of the guidance, it's roughly in the 32 to 34 million revenue range.

Speaker #7: Got it. Thanks. That's helpful. And then congratulations on the new winds. Hoping you can discuss the potential incremental revenue to 2028 from each of I believe there was three commercial tech transfers that you announced since last quarter.

Christine Raines: Got it. Thanks. That's helpful. Congratulations on the new wins. Hoping you can discuss the potential incremental revenue to 2028 from each of I believe there was 3 commercial tech transfers that you announced since last quarter.

Speaker #3: Yes, Christine. So the three that we signed, we believe that they would generate commercial revenue in the 2028 timeframe. And those programs as we think about those, they would be mid-seven-figure opportunities for us.

Paul Josephs: Yes, Christine. The three that we signed, we believe that they would generate commercial revenue in the 2028 timeframe. Those programs, as we think about those, they would be mid seven-figure opportunities for us.

Speaker #7: Great. Thank you. And then just one last one. Last quarter, you pointed to modest revenue growth expectation for 2027, but talked about how this could be impacted either positively or negatively by timing or outcomes of your customer programs.

Christine Raines: Great. Thank you. Just one last one. Last quarter, you pointed to modest revenue growth expectation for 2027, but talked about how this could be impacted either positively or negatively by timing or outcomes of your customer programs. Now that you have another quarter under your belt, hoping maybe you can put a finer point on this or help us frame out a range of possibilities or even just what the most important levers are that are influencing how this outlook ultimately shapes up.

Speaker #7: So now that you have another quarter in your belt, hoping maybe you can put a finer point on this or help us frame out a range of possibilities, or even just what the most important levers are that are influencing how this outlook ultimately shapes up.

Speaker #4: Yeah, Christine. So again, we're not providing guidance for 2027 at this point. Certainly, as we get further in the year, I think we'll see some of those things.

Ryan Lake: Yeah, Christine. You know, again, we're not providing guidance for 2027 at this point. Certainly, as we get further in the year, I think we'll see some of those things. I think importantly, when you look at, you know, our 30-plus development programs, a number of very key important milestones associated with each of those programs this year, where, you know, a lot of those customers are either waiting for clinical results or we're doing some very late-stage manufacturing work. For example, PPQ batches for those customers. We'll get a better sense of timing of not only of success of those products, what their commercial strategies are that will help inform those outlooks for 2027.

Speaker #4: I think importantly, when you look at our 30-plus development programs, a number of very key important milestones associated with each of those programs this year where a lot of those customers are either waiting for clinical results or we're doing some very late-stage manufacturing work.

Speaker #4: So for example, PPQ batches for those customers, we'll get a better sense of timing of not only of success of those products, what their commercial strategies are that will help inform those outlooks for 2027.

Ryan Lake: I would also say, right, like we do not have some of the forecasts from our customers that go out into 2027 and through 2027 yet. As those become clearer and as we start to inflect on the more than doubling of volumes with our largest customer, we'll be able to provide that additional clarity.

Speaker #4: And I would also say, right, we do not have some of the forecasts from our customers that go out into 2027 and through 2027 yet.

Speaker #4: So as those become clearer and as we start to inflect on the more than doubling of volumes with our largest customer, we'll be able to provide that additional clarity.

Speaker #7: Great. That's helpful. I had to try to sneak in the guidance one, but thank you for taking our questions.

Christine Raines: Great. That's helpful. I had to try to sneak in a guidance one, but, thank you for taking our questions.

Speaker #3: Thank ank you.

Speaker #2: Thank you. Our next question comes from Paul Knight with KeyBank. You may proceed.

Operator: Thank you. Our next question comes from Paul Knight with KeyBank. You may proceed.

Paul Knight: Hi, Paul. Are you having most success in auto-injector pen or a prefilled syringe?

Speaker #8: Hi, Paul. Are you having most success in auto injector pin or a prefilled syringe?

Paul Josephs: A prefilled syringe, Paul.

Speaker #3: Pre-filled syringe, Paul.

Speaker #8: What's driving that?

Paul Knight: What's driving that?

Paul Josephs: You know, I think it's a lot of, you know, the just the trend in healthcare moving more to the patient and away from the hospital and the clinic. You know, that seems to be where the majority of the therapeutic modalities are going to, you know, moving away from your traditional vials that you have to, you know, either go to the hospital or the doctor to, at every point to get your injection. I think that's really what's driving it, and that's why I think 50% of the injectable pipeline is, excuse me, 50% of the US drug pipeline is injectables, more taking into the more home healthcare related is how I see it.

Speaker #3: I think it's a lot of the just the trend in healthcare moving more to the patient and away from the hospital and the clinic.

Speaker #3: But so that seems to be where the majority of the therapies therapeutic modalities are going to. Moving away from your traditional vials that you have to either go to the hospital or the doctor to at every point to get your injection.

Speaker #3: So I think that's really what's driving it. And that's why I think 50% of the injectable pipeline is excuse me, 50% of the US drug pipeline is injectables, more taking into the more home healthcare-related is how I see it.

Speaker #8: And then with a 45 million, I believe, capacity at your facilities, is that a gating factor for some customers? Is 45 million adequate?

Paul Knight: With a 45 million, I believe, capacity at your facilities, is that a gating factor for some customers? Is 45 million adequate?

Paul Josephs: That's a great question. I think as I think about it, certainly if somebody has an immediate, I'll just give you an example, a 100 million unit GLP-1 opportunity, Lifecore is not the immediate partner of choice for that. Now we have optionality to grow into what we call site 3 to meet those growing needs if necessary. There'd be timing related aspects to that. I think where we fit a nice role in this market is for boutique mid-sized opportunities where there's a level of complexity and technical expertise that's required in development and commercial manufacturing in volumes that range from 5 to 10 million units of market demand. We're seeing that.

Speaker #3: That's a great question. I think that is, as I think about it, certainly if somebody has an immediate, I'll just make an give you an example.

Speaker #3: 100 million unit GLP-1 opportunity, life course not the immediate partner of choice for that. Now we have optionality to grow into what we call site three to meet those growing needs if necessary.

Speaker #3: But there would be timing-related aspects to that. I think where we fit a nice role in this market is for boutique, mid-sized opportunities where somebody there's a level of complexity with and technical expertise that's required in development and commercial manufacturing.

Speaker #3: In volumes that range from 5 to 10 million units in of market demand. And we're seeing that. There's just a great growth in our pipeline and Mark DeFonsica, our chief commercial officer and his team are doing a great job of continuing to expand and build upon our current pipeline.

Paul Josephs: There's just a great growth in our pipeline. Mark da Fonseca, our Chief Commercial Officer, and his team are doing a great job of continuing to expand and build upon our current pipeline.

Speaker #8: And within your sales group, any changes in that group?

Paul Knight: Within your sales group, any changes in that group?

Speaker #3: We continue to optimize and upgrade that group. Paul, we want to ensure that we have the best possible talent in those roles to drive meaningful and impactful opportunities into our site.

Paul Josephs: We continue to opt-optimize and upgrade that group. Paul, you know, we want to ensure that we have the best possible talent in those roles to drive meaningful and impactful opportunities into our site. You know, we've made some minor changes in over the past quarter to continue to upgrade our talent.

Speaker #3: So we've made some minor changes in over the past quarter to continue to upgrade our talent.

Speaker #8: Okay. Thank you.

Operator: Okay. Thank you. Thank you. I would now like to turn the call back over to Paul Josephs for any closing remarks.

Speaker #2: Thank you. I would now like to turn the call back over to Paul Josephs for any closing remarks.

Speaker #8: Thank you, operator. I wish to thank all of LIFECORE's stakeholders and supporters, including our investors, customers, and collaborators for their ongoing support and partnership.

Paul Josephs: Thank you, operator. I wish to thank all of Lifecore's stakeholders and supporters, including our investors, customers, and collaborators for their ongoing support and partnership. I also wish to thank our dedicated employees for their commitment to our success, as well as the success of our customers. We are very pleased with the progress made during Q1 2026 and look forward to future success and the growth ahead. That concludes our call today. Thank you for participating.

Speaker #8: I also wish to thank our dedicated employees for their commitment to our success, as well as the success of our customers. We are very pleased with the progress made during the first quarter of 2026 and look forward to future success and the growth ahead.

Speaker #8: That concludes our call today. Thank you for participating.

Operator: Thank you.