iFabrick Corp (IFA) investor relations material

Executive summary

• Q2 revenues were flat year-over-year at $5.8M, but adjusted for a $350,000 brand advertising deduction, they were up 5%, resulting in a record second quarter and meeting expectations despite U.S. market uncertainty.

• Gross margins appeared to drop 5% year-over-year to 37% from 42%, entirely due to the advertising deduction; underlying margins were stable.

• Expenses decreased slightly from $2.4M to $2.3M due to adjustments in provisions for regulatory and professional fees.

• Exchange losses of $150K–$157K impacted the quarter due to currency volatility.

• Earnings for the quarter were essentially flat, with a Q2 net loss after tax of $190K (loss of $0.006/share) versus net earnings of $56K last year.

Financial highlights

• Q2 2025 revenue was $5.8M, virtually unchanged year-over-year; H1 2025 revenue rose 5% to $12.88M.

• Cash decreased by $3.4M in Q2, mainly due to a record $5M in deposits for forward inventory purchases, indicating $20M in inbound inventory and potential $35M in future sales.

• Deposit levels are at an all-time high, signaling strong expected revenue growth in the next three quarters.

• Q2 working capital was $19.17M; Q2 cash was $2.66M, down from $5.64M last quarter due to inventory deposits.

• Q2 adjusted EBITDA was negative $268K, down from $357K in 2024, impacted by advertising contributions and FX losses.

Outlook and guidance

• Management expects record revenues for 2025, supported by the highest level of deposits for future deliveries in company history.

• Revenue pipeline entering H2 2025 is described as unprecedented, with groundwork laid for further growth in 2026.

• 2025 is projected to be another record year, with further acceleration anticipated in 2026 due to new product launches and expanded market access.

• EBITDA margin target remains 10–15%, with expectations of $4.5M EBITDA if revenues exceed $30M in Q3 and Q4.