Microbix Biosystems (MBX) Q1 2025 earnings summary

Executive summary

• Q1 fiscal 2025 revenue reached just over CAD 6 million, with net income of CAD 856,000, driven by strong recurring sales and a 40% year-over-year increase in core businesses.

• Antigen revenues surged 118% year-over-year to $4.3 million, while QAPs revenues declined 28% due to customer delays; no non-recurring Kinlytic licensing revenue this quarter.

• Gross margins expanded to 62% (from 49% excluding prior year’s Kinlytic milestone), supported by operational efficiencies and improved product mix.

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

• Operating expenses decreased 23% year-over-year, mainly due to lower consulting fees.

Financial highlights

• Total Q1 revenue was $6,044,002, down from $8,407,884 in Q1 2024 due to the absence of last year's one-time Kinlytic licensing revenue.

• Recurring revenue grew to over CAD 6 million, up from CAD 4.3 million year-over-year, excluding one-time Kinlytic payments.

• Gross margin improved to 62% from 49% (excluding Kinlytic), driven by operational efficiencies and reduced batch failures.

• Net earnings for the quarter were CAD 856,000, close to 15% of revenue.

• Cash provided by operating activities was $792,702, down from $1,338,952 in Q1 2024.

Outlook and guidance

• Management targets annual sales growth of 20%-40%, with Q1 achieving 40%.

• QAPs revenue expected to grow over 20% for the year, with new projects and customers in the pipeline.

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

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

• Focus remains on driving sales growth across all business lines and improving gross margins.