iFabrick (IFA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached CAD 7.1 million (or $7.08M), up 5% year-over-year, marking a record first quarter driven by strong Intelligent Fabrics performance and new programs in Canada and the US.

• Intelligent Fabrics division revenue grew 25% to CAD 5.8 million, while Intimate Apparel division revenue fell 40% to CAD 1.3 million due to lack of new programs and seasonal weakness.

• Gross margin declined to 39% from 44% last year, mainly due to a higher mix of lower-margin products and lower Intimate Apparel sales.

• Adjusted EBITDA dropped to $300,000–$318,478, reflecting lower margins and higher expenses.

• Net earnings after tax attributable to shareholders fell to $88,458 ($0.003/share) from $550,596 ($0.018/share) year-over-year.

Financial highlights

• Revenue increased by CAD 300,000 year-over-year, driven by new Canadian programs in Intelligent Fabrics.

• Adjusted EBITDA fell from $800,000–$855,380 to $300,000–$318,478.

• Working capital increased to $19.88M, and cash rose to $5.64M–$5.6M, supported by strong collections.

• SG&A expenses increased 13% to $2.4M, mainly from regulatory and study costs, and investments in personnel and marketing.

• Expenses rose by CAD 300,000, mainly due to leaching study costs and travel.

Outlook and guidance

• Management expects another growth year in 2025, with double-digit revenue growth anticipated and new product segments launching later in the year.

• New product segments and programs are expected to drive further growth into 2026.

• Margin impact from tariffs is expected to be minor in 2025, with mitigation strategies in place, but further hikes could affect future U.S. revenues and margins.