iFabric Corp Reports Q2 & H1 2025 Results

Executive Summary

• iFabric Corp. announced its financial results for the second quarter and first half ended June 30, 2025, reporting a shift from net earnings to net losses due to significant brand advertising contributions and exchange losses.
• Total revenues for the six months ended June 30, 2025, increased by 5% to $12,877,201 compared to the same period in 2024, driven by growth in the Intimate Apparel Division.
• The company reported negative adjusted EBITDA for the quarter and significantly lower adjusted EBITDA for the half-year, citing a $350,000 reduction in revenue from brand advertising contributions and a weakening US dollar.

Key Details

• Q2 2025 Revenue: $5,796,761 (virtually unchanged from $5,796,220 in Q2 2024).
• Q2 2025 Net Loss: $190,103 ($0.006 per share, basic and diluted), compared to net earnings of $56,103 ($0.002 per share) in Q2 2024.
• Q2 2025 Adjusted EBITDA: Negative $268,184, compared to positive $356,817 in Q2 2024.
• Six-Month Revenue: $12,877,201 for H1 2025, an increase of $326,357 (5%) from $12,550,844 in H1 2024.
• Six-Month Net Loss: $101,645 ($0.003 per share), compared to net earnings of $606,699 ($0.020 per share) in H1 2024.
• Six-Month Adjusted EBITDA: $50,294, compared to $1,212,197 in H1 2024.
• Division Performance (Q2):
  • Intelligent Fabrics Division revenue decreased 7% to $3,262,885 (from $3,499,504 in 2024).
  • Intimate Apparel Division revenue increased 10% to $2,528,626 (from $2,294,966 in 2024).
• Gross Profit (Q2): Decreased 11% to $2,142,902 (37% margin) from $2,416,118 (42% margin) in Q2 2024. The decrease was primarily attributable to brand advertising contributions impacting margins by 6%.
• Brand Advertising Impact: Revenues were reduced by $350,000 in Q2 2025 due to brand advertising contributions deducted under IFRS, representing a 6% impact to total revenues.
• Exchange Losses: Q2 2025 included exchange losses of $156,535 due to a weakening US dollar; H1 2025 included exchange losses of $176,593.
• Working Capital: $19,167,596 at end of Q2 2025 (excluding demand loan not requiring repayment in 2025), down from $19,883,462 at end of previous quarter.
• Cash Position: $2,655,107 at end of Q2 2025, down from $5,640,755 at end of previous quarter. The decrease was attributed to a $3.4 million increase in deposits on inventory for future delivery.
• Bank Facility: Operating line available up to $12,000,000 was unutilized at the end of Q2 2025.
• Upcoming Event: CEO Hylton Karon will participate in a webinar hosted by Adelaide Capital on August 19th at 2pm ET.

Notable Quotes

• "Q2 and H1 performed as expected despite some uncertainty in the United States, reinforcing our confidence in the strategic direction of the company. We maintain a positive outlook for the remainder of 2025, which is on track to set new record revenues, based on deposits against future deliveries, which are currently at the highest level in Company history," stated Hylton Karon, President and CEO.
• "U.S. tariffs have not materially impacted the financials due to a combination of strategies, namely, pre-buying and negotiations with suppliers and customers who are aware of the situation and pricing expectations are adjusting accordingly. This realism and cooperation has our U.S. market poised for continued expansion," added Mr. Karon.