Microbix loses $1.16-million in fiscal Q1

Executive Summary

• Microbix Biosystems Inc. reported Q1 2026 financial results for the quarter ended December 31, 2025, showing a 13% revenue increase from Q4 2025 but a 30% decrease from Q1 2025.
• The company reported a net loss of $1,167,177 for Q1 2026, compared to a net income of $856,962 in Q1 2025, driven by a significant drop in antigen sales to China and lower gross margins.
• Management anticipates full-year fiscal 2026 results to be in-line with forward-looking information, focusing on rebuilding revenues above the breakeven point through new client programs and capacity additions.

Key Details

• Revenue: Q1 2026 revenue was $4,218,909, an increase of 13% over Q4 2025, but a 30% decrease from Q1 2025 ($6,044,002).
• Antigen Sales: Revenue from antigens was $2,174,357, down 49% from Q1 2025 ($4,266,758). This decline was primarily due to a $2-million reduction in sales to a distributor in China. Sales to other antigen customers increased by 5% year-over-year.
• QAPs Revenue: Revenue from Quality Assessment Products (QAPs) was $1,876,276, up 15% from Q1 2025 ($1,626,980). This growth was driven by a doubling of sales for branded QAP products (REDx and PROCEEDx).
• Royalties: Royalty revenue was $168,276, compared to $150,263 in Q1 2025.
• Gross Margin: Q1 gross margin percentage was 41%, down from 62% in Q1 2025. The decrease was attributed to decreased product sales resulting in fixed manufacturing costs being absorbed across fewer units.
• Operating Expenses: Operating expenses (including finance expenses) were relatively flat compared to Q1 2025. Net financing costs increased due to lower interest income from decreased short-term investments.
• Net Income/Loss: The company reported an operating and net loss of $1,167,177 for Q1 2026, compared to an operating and net income of $856,962 in Q1 2025.
• Cash Flow: Cash used in operating activities was $2,602,403, compared to cash provided by operating activities of $792,702 in Q1 2025.
• Accounts Receivable: Accounts receivable increased by $2,373,886 since September 30, 2025, reaching $3,984,395 as of December 31, 2025.
• Financial Ratios: At the end of Q1, the current ratio was 7.51, and the debt-to-equity ratio was 0.38.
• Outlook: Management expects full-year fiscal 2026 results to align with previously disclosed forward-looking information. The company is actively pursuing new client programs and adding capabilities to counter previous client setbacks.
• Webinar: A webinar to discuss Q1 2026 results is scheduled for Thursday, February 12, 2026, at 10 a.m. ET, hosted by Adelaide Capital and live-streamed on YouTube.

Notable Quotes

• "Results for Q1 demonstrated the company's efforts to rebuild revenues back above its breakeven point following two client setbacks in mid-2025..."
• "Microbix is prepared for material sales growth following additions to its capabilities and capacity. It is now at work on adding new client programs and clients to counter setbacks with two large clients in 2025."
• "Microbix currently anticipates full-year fiscal 2026 results in-line with the forward-looking information (FLI) disclosed in its management discussion and analysis (MD&A), toward rebuilding sales above its earnings breakeven point."