Microbix Biosystems (MBX) Q4 2025 earnings summary

Executive summary

• Fiscal year revenue declined 27% year-over-year, with a net loss of $2.2 million compared to net income of $3.5 million in 2024, mainly due to the loss of major clients, a canceled instrument development program, and reduced antigen sales in China.

• Excluding the loss of Kinlytic and China distribution, other revenue areas grew 12% year-over-year.

• Operational improvements included higher batch yields, reduced batch failures, and expanded recombinant antigen capabilities.

• Management is focused on expanding product offerings and client base to recover revenue above breakeven.

• The company is positioned for recovery in fiscal 2026, with a strong balance sheet and a robust business development pipeline.

Financial highlights

• Total revenues declined 27% year-over-year, mainly due to the absence of CAD 4.1 million Kinlytic revenue and the loss of key clients.

• Gross margin decreased to 53% from 61% last year; Q4 gross margin was 40%, down from 55% in Q4 2024.

• Operating expenses increased by 4%, driven by higher R&D and trade show spending.

• Maintained a cash balance of over CAD 12 million ($12.1 million) at fiscal year-end.

• Q4 revenue was $3.7 million, a 41% decrease year-over-year; Q4 net loss was $1.5 million versus net income of $0.4 million in Q4 2024.

Outlook and guidance

• Recovery from the Q3 revenue setback is underway, with quarterly profitability targeted for Q4 of fiscal 2026.

• Revenues for fiscal 2026 are expected to be substantially higher than the CAD 14 million baseline, based on signed contracts.

• Sufficient financial resources are available to execute current plans, with access to up to CAD 24 million in liquidity.

• No plans to issue new equity; share buybacks will continue.

• Aggressive pursuit of new client programs and product expansion to drive sales growth and improve margins.