iFabrick (IFA) Q2 2025 earnings summary

Executive summary

• Q2 revenues were reported as flat at $5.8M, but after adjusting for a $350K brand advertising deduction, actual growth was about 5% year-over-year.

• Q2 and H1 2025 results met expectations despite U.S. market uncertainty, with a strong revenue pipeline and record deposits for future deliveries.

• Gross margin appeared to drop 5%, but this was entirely due to the same advertising deduction; underlying margins were stable.

• Strategic actions mitigated U.S. tariff impacts, supporting continued U.S. market expansion.

• Q2 earnings were essentially flat, consistent with historical seasonality where Q1 and Q2 are weaker.

Financial highlights

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

• Q2 gross margin fell to 37% from 42% year-over-year, mainly due to $350K in brand advertising contributions.

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

• Deposits suggest $20M in inventory inbound, translating to an estimated $35M in future sales over the next three quarters.

• Q2 adjusted EBITDA was negative $268K, down from $357K in 2024, impacted by advertising contributions and $157K in 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.

• Double-digit revenue growth trajectory is expected to continue, with 2025 projected as another record year and further acceleration in 2026.

• Guidance for 2026 will be provided, with expectations of continued strong growth, especially with new product launches and expanded market access.

• Q4 is expected to be the largest quarter due to seasonality, with strong revenue growth anticipated.