v3.26.1
Reportable Segments and Disaggregated Revenue
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Reportable Segments and Disaggregated Revenue

Note 13 – Reportable Segments and Disaggregated Revenue

 

The Company has one reportable segment, which manufactures and distributes cultured dairy products. Our products are produced using the same processes and materials and are sold to consumers through a common network of distributors and retailers. The Company derives revenue primarily in North America and manages the business activities on a consolidated basis. The business activities include selling cultured dairy products across various channels including retail-direct, distributor, and direct store delivery in a refrigerated format. We operate our business with a centralized financial systems infrastructure, and we share centralized resources for procurement and general and administrative activities. The accounting policies of the segment are the same as those described in the Summary of Significant Accounting Policies for the Company. Refer to Note 1 for additional information.

 

The Chief Executive Officer (“CEO”) has been identified as our Chief Operating Decision Maker (“CODM”). The Company manages operations on a company-wide basis, thereby making determinations as to the allocation of resources as one segment. The CODM uses consolidated single-segment financial information to assess performance for the segment and decides how to allocate resources based on the Company’s consolidated net income (loss), which is reported on the Consolidated Statement of Operations. The measure of segment assets is reported on the Consolidated Balance Sheet as total assets.

 

Products from which the reportable segment derives its revenue

 

Lifeway’s primary product is drinkable kefir. The Company manufactures (directly or through a co-manufacturer) and markets products under the Lifeway, Fresh Made, and GlenOaks Farms brand names, as well as under private labels on behalf of certain customers.

 

The Company’s product categories are:

 

  · Drinkable kefir, a cultured dairy product sold in a variety of organic and non-organic sizes, flavors, and types.
  · European-style soft cheeses, including farmer cheese, white cheese, and Sweet Kiss.
  · Cream and other, which primarily consists of cream, a byproduct of raw milk processing.
  · Drinkable yogurt, sold in a variety of sizes and flavors.
  · Other dairy, which primarily consists of butter and sour cream.

 

Net sales of products by category were as follows for the six months ended June 30:

                
   2026   2025 
In thousands  $   %   $   % 
                 
Drinkable Kefir   114,829    88%    85,554    85% 
Cheese   9,338    7%    7,811    8% 
Cream and other   3,935    3%    4,825    5% 
Drinkable Yogurt   1,260    1%    1,083    1% 
Other dairy   543    1%    719    1% 
Net Sales   129,905    100%    99,992    100% 

 

Net sales of products by category were as follows for the three months ended June 30:

                 
   2026   2025 
In thousands  $   %   $   % 
                 
Drinkable Kefir   59,414    89%    46,758    86% 
Cheese   4,654    7%    3,999    8% 
Cream and other   1,886    3%    2,366    4% 
Drinkable Yogurt   676    1%    449    1% 
Other dairy   263    –%    329    1% 
Net Sales   66,893    100%    53,901    100% 

 

Beginning in the second quarter of 2026, ProBugs Kefir net sales are included in Drinkable Kefir. Prior period amounts have been reclassified in the three and six-month tables above.

 

Significant Customers

 

Sales are predominately to companies in the retail food industry located within the United States. Two major customers accounted for a total of 25% of net sales for the six months ended June 30, 2026 and 2025. Two major customers accounted for a total of 25% of net sales for the three months ended June 30, 2026 and 2025.

 

Geographic Information

 

Net sales outside the of the United States represented less than 1% of total consolidated net sales for the six and three months ended June 30, 2026 and 2025. Net sales are determined based on the destination where the products are shipped by Lifeway.

 

All the Company’s long-lived assets are in the United States.