iFabrick (IFA) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 delivered record revenue of $32.9 million, up 20% year-over-year, driven by growth in both Intelligent Fabric Technologies and Coconut Grove Intimates divisions, with new proprietary brands and expanded retail programs in the U.S. and Canada.

• Intelligent Fabrics Division revenue rose 33% to $26.2 million, fueled by category expansion and strong medical apparel program growth.

• Intimate Apparel Division revenue declined 12% due to the planned cessation of Maidenform® shipments and transition to owned branding.

• Strategic investments in ERP systems and brand transitions set the stage for future efficiency and margin recovery.

• Q1 2026 revenue outlook raised to $25–$27 million, reflecting strong order flow and customer deliveries.

Financial highlights

• Full-year 2025 revenue: $32,874,918 (up 20% from $27,327,390 in 2024); Q4 revenue at $11 million, a 5% increase from the prior year.

• Gross margin declined to 32% in 2025 from 41% in 2024, mainly due to U.S. tariffs and one-time brand transition costs; Q4 margin at 26%.

• Adjusted EBITDA for 2025: $1,931,094 (down from $2,743,670 in 2024); Q4 2025 Adjusted EBITDA: $1,030,710 (down from $1,895,396 in Q4 2024).

• Cash increased to $3,783,334 at year-end 2025, with a bank line utilized for inventory buildup ahead of a strong Q1 2026.

• Inventories rose to $21 million from $10.1 million, supporting anticipated Q1 2026 revenues of $25–$27 million.

Outlook and guidance

• Q1 2026 revenue guidance is $25–$27 million, driven by expanded Walmart programs, new brand launches, and continued growth in scrubs and intimate apparel.

• Margins expected to recover to historical levels (35–37%) as intimate apparel shipments resume and tariffs are reduced.

• Adjusted EBITDA margin targeted at 15% for 2026 and up to 20% by 2027, leveraging fixed cost structure and higher sales volumes.

• Growth anticipated across both divisions, with strong performance expected in Q1 and Q4, and potential for record quarters if new contracts materialize.

• Margins expected to improve in 2026 as tariff-related uncertainty eases, one-time costs end, and shift to royalty-free owned brands.