Here’s Why Lifecore Biomedical Inc (LFCR) Declined 22% at the End of Q3

Core Insights - Laughing Water Capital reported a decline of approximately -1% in Q3 2025, with year-to-date returns at approximately -2.7%, underperforming compared to the SP500TR and R2000 which returned 12.4% and 8.1% respectively in the quarter [1] Company Analysis: Lifecore Biomedical, Inc. (NASDAQ:LFCR) - Lifecore Biomedical, Inc. is identified as an integrated contract development and manufacturing organization, with a one-month return of -1.53% and a 52-week gain of 19.16% [2] - As of October 29, 2025, Lifecore's stock closed at $7.06 per share, with a market capitalization of $264.512 million [2] - The company has excess capacity in a market where demand exceeds supply, which is expected to lead to significant operating leverage due to high fixed costs and low variable costs [3] - Lifecore announced multiple new customer wins in Q3 2025, including partnerships with a GLP-1 and a large international pharmaceutical company, indicating a positive trend in securing additional business [3] - Regulatory changes, such as the FDA prioritizing domestically manufactured drugs and potential tariffs on foreign manufacturers, are expected to benefit Lifecore's business model [3] - There are indications that CDMOs are shifting focus from smaller biotech clients to larger opportunities due to regulatory pressures, which may enhance Lifecore's market position [3]