Microbix Biosystems (MBX) Q1 2025 earnings summary

Executive summary

• Fiscal Q1 revenue was just over CAD 6 million (USD 6,044,002), with recurring product sales up 40% year-over-year, excluding prior year’s non-recurring milestone payments.

• Gross margins expanded to 62% from 49% (excluding prior year’s Kinlytic milestone), reflecting operational efficiencies.

• Net earnings reached CAD 856,000 (USD 856,962), with strong bottom-line performance and disciplined operational expenditure.

• Share buybacks continued, with 2.5 million shares repurchased in the first four months and 1.6 million shares cancelled in Q1; strong warrant and option exercises post-quarter added nearly CAD 3 million in cash.

• Strategic expansion into recombinant antigens and new QAPs markets (genetic testing, oncology) positions the business for future growth.

Financial highlights

• Recurring core business revenue grew 40% year-over-year, excluding non-recurring items.

• Gross margin reached 62% in Q1, up from 49% (excluding Kinlytic milestone in prior year), due to improved efficiencies and product mix.

• Net earnings of CAD 856,000 (USD 856,962), or close to 15% of revenue.

• Antigen revenues grew 118% year-over-year to $4.3 million, expected to remain at comparable levels for the rest of the year.

• QAPs sales targeted to exceed CAD 1.6 million per quarter, with full-year QAPs sales expected to surpass last year’s CAD 7 million.

Outlook and guidance

• Revenue growth target for the year is 20%-40%, with Q1 achieving 40%.

• Gross margins expected in the high 50s for fiscal 2025, with 3%-5% quarterly variance depending on product mix.

• Operating expenses anticipated to remain stable, with only minor increases due to inflation.

• Antigen business growth rate expected to accelerate above the previous 5%-10% long-term rate due to recombinant capabilities and new geographies.

• QAPs revenue growth of 20%+ guided, supported by new projects and customer expansion.