iFabric Corp reported record quarterly revenue of CAD 9.6 million for Q2 2026, a 65% increase from CAD 5.8 million in the same period last year, according to the company’s earnings call transcript. The figure exceeded the USD 8.1 million consensus estimate, though earnings per share missed analyst expectations.
Revenue for the six-month period reached a record CAD 37.1 million, up 188% from CAD 12.9 million in the prior-year period. True invoiced revenue for Q2 stood at approximately CAD 10.3 million before a CAD 650,000 advertising support deduction required under IFRS accounting rules. Adjusted gross margin, excluding the deduction, was approximately 36.8%, compared with a reported 30% gross margin for the quarter.
Earnings per share for the quarter were CAD 0.007, falling short of the CAD 0.01 estimate by 30%. EBITDA turned positive at CAD 715,000, a significant improvement from breakeven in Q2 2025. Six-month EBITDA totaled CAD 5.8 million, compared with zero in the prior-year period. Gross margin declined to 30% from 37% in Q2 2025, primarily due to the advertising support deduction.
The company recognized CAD 925,000 in tariff recovery income related to U.S. Customs Trump-era tariffs, with CAD 710,000 received in cash and CAD 250,000 expected in the following quarter. Cash and cash equivalents at quarter-end stood at CAD 25 million following a June capital raise that generated net proceeds of approximately CAD 21 million. Working capital totaled CAD 45.1 million, and available credit facilities amounted to CAD 14 million to CAD 15 million.
Selling and administrative expenses rose by CAD 800,000 year-over-year, driven by higher variable costs tied to revenue growth, increased travel, and staffing expansion. Supplier deposits grew to CAD 5 million, reflecting 25% down payments on approximately CAD 20 million in pipeline programs.
Management highlighted plans to reduce reliance on retailer-funded advertising support, aiming to handle marketing in-house moving forward. Operational updates included the expansion of the scrubs program at Walmart, which currently spans eight SKUs in 1,400 stores with potential to expand to 12 SKUs in 4,800 stores by fall 2027. Target’s scrubs program launched in about 400 stores with expected expansion.
New initiatives include a partnership with GermstopSQ Inc. to develop and commercialize an active antimicrobial hard-surface coating technology, with iFabric covering all direct development costs. Product pipelines for wound care and bedding, including Protx2 and DreamSkin, are targeted for late 2027 or early 2028, while functional bedding with The Lad Collective is expected in 2027.
Shares declined 10.75% in pre-market trading following the results, falling from USD 5.21 to USD 4.65. The stock later traded at USD 4.50, down 2.17% from the prior close of USD 4.60. Over the past year, the shares have gained 66%, though they remain below the 52-week high of USD 5.73.
