LWAY Stock: Record Revenue, Plummeting Profit - The Danone Effect Explained

In this coverage, we dissect Lifeway Foods' (NYSE: LWAY) Q3 2025 performance - a quarter that perfectly illustrates how corporate battles can mask operational excellence.
The Central Paradox: Record $57M revenue and 29% comparable growth, yet net income dropped 17% sequentially. Where did the profits go?

Key Sequential Analysis (Q3 vs Q2):
✅ Revenue up 6% ($57.1M vs $53.9M)
✅ Gross margin stable (28.7% vs 28.6%)
✅ Operating cash flow up 78% ($6.9M vs $3.9M)
❌ Net income down 17% ($3.5M vs $4.2M)
💰 Culprit: $2.4M in legal fees related to Danone proposal

Chapter Timestamps:
00:00 - Introduction: Record Sales Shadowed by Legal Costs
01:44 - Q3 Results: $57M Revenue and the 24% vs 29% Growth Story
05:41 - Product Concentration: 86% Kefir Dependence Analysis
07:18 - Waukesha Expansion: $45M CapEx Program Accelerates
08:52 - The Herd Strategy: 626 Cows for Supply Chain Control
10:59 - The $2.4M Danone Defense: Corporate Battle Impact
14:07 - Sequential Analysis: Q3 vs Q2 Performance Comparison
18:43 - Cash Flow Surge: $7M Operating Cash Validates Business Model
23:19 - Five-Year Bet: Herd Agreement Extended and Expanded
29:16 - Final Question: Execution Under Siege - The $45-50M EBITDA Test

DISCLAIMER: Content for educational purposes only. Not financial advice. Creator may hold positions in discussed securities. Past performance ≠ future results. Invest at your own risk. Consult a qualified financial advisor before making investment decisions.

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