Core Points - Lifecore Biomedical, Inc. has granted a restricted stock unit (RSU) award for 15,000 shares and stock options for 30,000 shares to a newly hired employee as part of its Equity Inducement Plan [1][2] - The RSUs will vest on the third anniversary of the grant date, while the stock options will vest one-third on the first anniversary and the remaining shares monthly thereafter, subject to continued employment [3] Company Overview - Lifecore Biomedical is a fully integrated contract development and manufacturing organization (CDMO) specializing in the development, fill, and finish of sterile injectable pharmaceutical products, including complex formulations [4] - The company has over 40 years of expertise in manufacturing premium, injectable-grade hyaluronic acid and partners with global and emerging biopharmaceutical and biotechnology companies [4]

Group 1 - Daniel Cohen is a Managing Director at Morgan Stanley and is leading the presentation [1] - Paul Josephs, CEO of Lifecore, has been in his role for approximately 16 to 18 months [2]

Lifecore Biomedical FY Conference Summary Company Overview - Lifecore Biomedical operates as a Contract Development and Manufacturing Organization (CDMO) focused on sterile injectables, particularly in ophthalmic and orthopedic sectors [3][4] - The company is expanding into biologics, GLP-1s, and peptides, with a strong commercial base and 11 late-stage development programs expected to generate significant revenue [3][4] Core Market Dynamics - The CDMO market is currently experiencing a shortage of qualified suppliers, which enhances Lifecore's value proposition due to its strong technical capabilities and regulatory compliance [7][8] - Lifecore is trading at approximately 3x revenue, significantly lower than recent transactions in the industry, indicating potential undervaluation [8] Strategic Initiatives - Lifecore has unveiled a three-pronged strategy: 1. Maximize existing commercial business, with a key customer projected to double their volume by 2027 [9][10] 2. Commercialize late-stage development pipeline with launches expected between 2025 and 2029 [9][10] 3. Add new impactful programs, supported by a revamped sales and marketing team focused on aggressive growth [10][11] Customer Base - Lifecore targets both large pharmaceutical companies and emerging biopharma, providing tailored solutions and technical expertise to solve complex manufacturing problems [12][14] Leadership and Team Changes - The leadership team has been largely overhauled, including the appointment of a new Chief Commercial Officer and other key positions to enhance operational efficiency and strategic direction [15][16] Financial Performance and Projections - For the fiscal year ending May, Lifecore reported approximately $129 million in revenue and $19.6 million in adjusted EBITDA [25] - The company aims for midterm revenue of about $200 million with EBITDA margins expanding to 25%, potentially reaching $50 million in EBITDA [25][26] Capital Expenditure and Investment - Major investments have already been made, with ongoing maintenance and compliance-related CapEx projected at around $10 million annually [26][27] - Lifecore is engaged in a significant late-stage program with a large multinational partner, indicating strong future revenue potential [27][28] Market Trends and Industry Outlook - The CDMO industry is characterized as exciting and growing at double-digit rates, with Lifecore positioned well within a $10 billion market [30][34] - The strategic importance of external manufacturing has evolved, with higher-level executives now involved in sourcing decisions, reflecting the industry's maturation [35] Quality Assurance - Lifecore has a strong quality track record, recently passing a significant FDA inspection with favorable results, enhancing customer confidence [36][39] - The company is compliant with multiple regulatory standards, allowing it to serve a global customer base effectively [37] Conclusion - Lifecore Biomedical presents a compelling investment opportunity with a strong commercial base, promising development pipeline, and a strategic focus on growth in the CDMO sector [41]

Core Insights - Lifecore Biomedical, Inc. will participate as a Gold Sponsor at the 24th Annual Contract Pharma Contracting and Outsourcing Conference on September 18-19, 2025, in New Brunswick, NJ, highlighting its commitment to the pharmaceutical outsourcing and contract manufacturing sector [1][2]. Company Overview - Lifecore is a fully integrated contract development and manufacturing organization (CDMO) specializing in the development, fill, and finish of sterile injectable pharmaceutical products, including complex formulations [4]. - The company has over 40 years of experience in partnering with global and emerging biopharmaceutical and biotechnology companies across various therapeutic categories [4]. Growth Strategy - Lifecore's growth strategy focuses on three main areas: expanding existing customer relationships, advancing its late-stage development portfolio towards commercialization, and attracting new, high-value business [2][3]. - The participation in the Contract Pharma conference is part of the company's efforts to elevate awareness of its unique injectables development and manufacturing expertise [3]. Event Participation - At the conference, Lifecore will host meetings with existing and prospective customers and partners, aiming to strengthen its market presence and foster new business opportunities [3].

Company Overview - Lifecore Biomedical, Inc. is a fully integrated contract development and manufacturing organization (CDMO) specializing in the development, fill, and finish of sterile injectable pharmaceutical products, including complex formulations [2] - The company has over 40 years of expertise in manufacturing premium, injectable-grade hyaluronic acid and partners with global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories [2] Upcoming Investor Conferences - Lifecore management will participate in the Morgan Stanley 23 Annual Global Healthcare Conference from September 8-10, 2025, with a fireside chat scheduled for September 9, 2025, from 4:50 to 5:25 p.m. Eastern [3] - The company will also participate in the Barrington Research Virtual Fall Investment Conference on September 16, 2025, and the Jefferies CDMO Summit 2025 on September 17, 2025, in London, UK [3] Investor Engagement - A live webcast of the Morgan Stanley fireside chat will be accessible via Lifecore's investor website, with a replay available after the conference [1][3]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against LifeCore Biomedical, Inc. (NASDAQ: LFCR) on behalf of long-term stockholders due to a class action complaint alleging breaches of fiduciary duties by the board of directors [1][2] Summary by Sections Legal Investigation - The investigation is focused on claims made in a class action complaint filed on July 29, 2024, concerning the period from October 7, 2020, to March 19, 2024 [1] - The law firm encourages long-term stockholders who suffered losses to contact them for discussions regarding their legal rights [1][3] Allegations Against LifeCore - The complaint alleges that LifeCore made materially false and misleading statements about its business, operations, and prospects during the class period [2] - Specific allegations include: - Deficient internal controls over financial reporting [2] - Issuance of inaccurate financial statements that would require restatement [2] - Ineffective remediation efforts regarding the identified deficiencies [2] - Impaired ability to file periodic reports with the SEC in compliance with NASDAQ requirements [2] - Material overstatement of the company's financial position and prospects [2] - Public statements being materially false and misleading throughout the relevant period [2] Contact Information - Long-term stockholders with information or questions are encouraged to reach out to the law firm via email or phone [3][6]

Company Overview and Strategy - Lifecore is a fully integrated CDMO specializing in sterile injectable pharmaceuticals[9], aiming for a revenue CAGR of 12%+ and Adjusted EBITDA margins of 25%+ in the mid-term[7, 89] - The company projects revenues of $74 million - $76 million and Adjusted EBITDA of $12 million - $14 million for the 7-month transition period (May 26 – Dec 31, 2025)[10] - Lifecore has expanded capacity and revenue potential of approximately $300 million annually[7, 89] Market and Growth Drivers - The global injectable CDMO market is a $10 billion market with a +10% CAGR[24] - The global CDMO market is a $120 billion market with a +8% CAGR[24] - The Hyaluronic Acid market is a $9.8 billion market with a +7% CAGR[24] Financial Performance and Outlook - Fiscal Year 2025 revenues reached $128.9 million, a +0.5% increase compared to FY24[82] - Fiscal Year 2025 Adjusted EBITDA was $19.5 million, a -$0.7 million decrease compared to FY24[82] - The company is targeting a mid-term Adjusted EBITDA margin of 25%+[75] Pipeline and New Business - The total pipeline represents $150 million - $200 million in incremental commercial revenue potential[41] - The company has a strong and diverse pipeline with 11 active late-stage projects and 19 early-mid stage projects[42] - The company is expanding its target markets beyond high-viscosity legacy, including mAbs, complex generics, biologics, and GLP-1[55]

Group 1 - Lifecore Biomedical reported a quarterly loss of $0.1 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, representing an earnings surprise of -11.11% [1] - The company posted revenues of $36.44 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 1.96%, but down from $37.89 million year-over-year [2] - Lifecore Biomedical has surpassed consensus revenue estimates three times over the last four quarters [2] Group 2 - The stock has added about 4% since the beginning of the year, underperforming the S&P 500's gain of 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the coming quarter is -$0.29 on revenues of $25.37 million, and -$0.61 on revenues of $132.88 million for the current fiscal year [7] Group 3 - The Zacks Industry Rank for Medical - Biomedical and Genetics is in the top 41% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Lifecore Biomedical was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock [6]

Financial Data and Key Metrics Changes - Revenues for Q4 FY2025 were $36.4 million, a decrease of 4% compared to $37.9 million in the prior year period, primarily due to a $5.6 million decrease in CDMO revenues [16][17] - For the full year, revenues were $128.9 million, an increase of 0.5% compared to $128.3 million in the prior year, driven by a $7.1 million increase in manufacturing demand [19][20] - The company recorded a net loss of $1.1 million for Q4 FY2025, compared to a net loss of $7.1 million in the same period last year [18][22] - Adjusted EBITDA for Q4 FY2025 was $9.1 million, a decrease of $1.3 million from $10.4 million in the prior year [18][22] Business Line Data and Key Metrics Changes - CDMO revenues decreased by $5.6 million in Q4 FY2025, primarily due to lower development revenue [16][17] - Hyaluronic acid manufacturing revenues increased by $4.1 million due to increased demand from the largest customer [17] - For the full year, CDMO revenues declined by $6.5 million, primarily due to lower development revenue [19][20] Market Data and Key Metrics Changes - The company is seeing increased demand from its largest customer due to supply chain initiatives, which is expected to contribute to future revenue growth [31][46] - The GLP-1 market is projected to triple by 2030, indicating significant growth potential for the company in this area [32] Company Strategy and Development Direction - The company is focused on three growth strategies: maximizing existing customer business, advancing late-stage development programs, and winning new impactful business [3][4] - A significant inflection point is anticipated in 2027 related to minimum take-or-pay commitments from a current customer, expanding into Asia Pacific markets [4] - The company has signed a new ten-year commercial manufacturing and supply agreement with a late-stage customer, indicating progress in its late-stage pipeline [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's achievements during the transition year and the improvements made in efficiency and productivity [26][15] - The company is positioned to capitalize on the strong demand for pharmaceutical manufacturing in the U.S. and is increasing investments in sales and marketing [46][55] - Management remains confident in achieving a 12% revenue CAGR and increasing EBITDA margins to over 25% in the midterm [2][22] Other Important Information - The company will transition its fiscal year end to align with the calendar year, effective for the 12/31/2025 period [23][24] - Financial guidance for the seven-month transition period from May 26 to December 2025 is expected to be between $74 million to $76 million in revenue and $12 million to $14 million in adjusted EBITDA [24] Q&A Session Summary Question: What is the expected incremental revenue from the largest customer supply chain initiatives? - Management confirmed that the previously mentioned $20 million of incremental revenue is still a relevant figure, with expectations for volumes to ramp up ahead of the minimum volume commitments in 2027 [29][31] Question: Can you provide details on the new GLP-1 agreement? - Management expressed excitement about the collaboration but did not disclose specific terms, noting the GLP-1 market's projected growth [32] Question: What are the expected margins for the next twelve months? - Management indicated that gross margins for the upcoming seven-month period are expected to be in the low 30% range, with improvements anticipated compared to FY2025 [34][35] Question: How are tariff discussions impacting business? - Management views tariff discussions as noise, emphasizing strong U.S. pharmaceutical manufacturing and the company's strategic positioning to capitalize on opportunities [44][46] Question: What is the current number of late-stage projects? - The company currently has 11 late-stage programs, an increase from 10 previously communicated [56] Question: What was the cash flow from operations in Q4? - The company reported positive cash flow from operations of over $5 million and free cash flow of over $3 million for Q4 [58] Question: What is the timeline and cost for the ERP implementation? - The ERP system is targeted to go live in 2026, with an estimated investment of $600,000 to $1 million [60]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 25, 2025, or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________. Commission file number: 000-27446 LIFECORE BIOMEDICAL, INC. (Exact name of registrant as specified in its charter) (State or other juris ...