iFabric Corp Reports Full-Year 2025 Results; Raises Q1 2026 Outlook

iFabric Corp. released full-year 2025 financial results on March 31, 2026, reporting record revenue of $32.9 million, a 20% year-over-year increase. The Intelligent Fabrics Division drove the growth with $26.2 million in revenue (+33%), while the Intimate Apparel Division declined 12% to $6.6 million due to the planned phase-out of the royalty-bearing Maidenform license. Gross profit margin compressed to 32% from 41% in 2024, attributed to U.S. tariff impacts and one-time transition costs. Adjusted EBITDA fell 30% YoY to $1.93 million. The company ended the year with $3.78 million in cash and $19.1 million in adjusted working capital, while utilizing $6.66 million of its bank operating line for inventory. Management raised its Q1 2026 revenue guidance to $25 million–$27 million, up from the prior $20 million–$25 million range, citing stronger order flow, expanded retail placements, and sourcing diversification to mitigate future tariff exposure.

The March 31 release is largely a confirmation of the March 16, 2026 operational update, which already guided to ~$33 million in FY2025 revenue and a strong Q1 2026. The upward revision to Q1 guidance ($25M–$27M vs $20M–$25M) is positive but incremental, reflecting execution on previously announced retail expansions rather than a fundamental shift in the business model. The 30% decline in Adjusted EBITDA and gross margin compression are negative surprises, though management attributes them to temporary tariff headwinds and brand transition costs. The market had already priced in the top-line acceleration, evidenced by the stock's rally from ~$2.00 to ~$3.00+ following the March 16 update. This release validates the growth trajectory but highlights near-term profitability friction. It does not constitute a material re-rating catalyst.

iFabric Corp. operates through two primary divisions: Intelligent Fabrics (IFTNA) and Intimate Apparel. The flagship growth engine is IFTNA, which develops and licenses proprietary textile technologies including PROTX2 (antimicrobial/anti-odor), ecoPEL (PFAS-free water repellency), and DryTX (moisture management). The company is strategically transitioning from a licensed apparel model (Maidenform) to an owned-brand platform, launching Verzus All Apparel and partnering with Mercury Athletics to produce Doctor's Choice medical scrubs. Recent expansions include footwear programs, functional bedding via The Lad Collective, and mass-market retail placements in North America and Europe.