iFabric earns $543,802 in Q3

Executive Summary

• iFabric Corp. reported record third-quarter 2025 revenue of $9.02 million, representing an 111% year-over-year increase, driven primarily by strong growth in its Intelligent Fabric division.
• The company posted net earnings of $543,802 (1.8 cents per share) for Q3 2025, a significant turnaround from the net loss of $105,616 in the same period last year.
• Management cited temporary gross margin compression due to U.S. tariffs and upfront costs associated with a new ERP system implementation, but expects these factors to normalize in the near future.

Key Details

• Q3 2025 Revenue: $9,021,607, an increase of 111% ($4,741,043) compared to $4,280,564 in Q3 2024.
• Intelligent Fabric Division (Q3): Revenue of $6,930,448, up 170% ($4,361,311) from $2,569,137 in Q3 2024, attributed to new programs primarily in the United States.
• Intimate Apparel Division (Q3): Revenue of $2,089,409, up 22% ($383,232) from $1,706,177 in Q3 2024.
• Gross Profit (Q3): $2,727,058 (30% gross margin), an increase of 55% ($970,328) from $1,756,730 (41% gross margin) in Q3 2024. Margins were impacted by U.S. tariffs and a product mix shift toward higher-volume, lower-margin products.
• SG&A Expenses (Q3): $2,093,936, up 20% from $1,742,051 in Q3 2024, driven by increased personnel, regulatory, advertising, and travel costs, as well as costs for the new ERP system implementation (scheduled to go live in January 2026).
• Adjusted EBITDA (Q3): $850,090, compared to a negative adjusted EBITDA of $1,943 in Q3 2024.
• Net Earnings (Q3): $543,802 (1.8 cents per share, basic and diluted), compared to a net loss of $105,616 (0.3 cents per share) in Q3 2024.
• Working Capital: $19,894,491 at the end of Q3 2025, an increase of $726,895 from the previous quarter, attributable to current quarter earnings.
• Cash Position: Decreased to $1,233,908 as of Sept. 30, 2025, from $2,655,107 at the end of the previous quarter, due to increased deposits against future inventory deliveries.
• Year-to-Date (Nine Months Ended Sept. 30, 2025) Revenue: $21,898,808, up 30% ($5,067,400) from $16,831,408 in 2024.
• YTD Intelligent Fabric Revenue: $16,017,784, up 49% ($5,282,854) from $10,734,930 in 2024.
• YTD Intimate Apparel Revenue: $5,868,774, down 4% ($220,704) from $6,089,478 in 2024.
• YTD Gross Margin: 35% in 2025 compared to 42% in 2024, due to product mix and U.S. tariffs. Gross profit dollars increased by 7% to $7,609,414.
• YTD SG&A Expenses: $6,749,405 in 2025, up 8% from $6,227,215 in 2024.
• YTD Adjusted EBITDA: $900,384 in 2025, compared to $1,210,254 in 2024.

Notable Quotes

• "Our record quarter underscores how our technology portfolio is effectively resonating with retailer customers and scaling with their major new programs," said Hylton Karon, chief executive officer of iFabric. "We're entering Q4 with strong momentum and clear line of sight to carry that strength across FY 2026. Even as we invest to support rapid growth, we remain focused on profitable execution, operational excellence and delivering innovative products that keep iFabric on a compelling upward trajectory."