Microbix Reports Results for Q1 2026

Rhea-AI Summary

Microbix (OTCQX:MBXBF) reported Q1 fiscal 2026 results for the quarter ended December 31, 2025, with revenue of $4.22M (down 30% YoY, up 13% QoQ) and a net loss of $1.17M. Gross margin fell to 41% from 62% a year earlier. Cash was $9.10M and accounts receivable rose to $3.98M. Management expects full‑year results in line with disclosed forward‑looking information and is pursuing new clients and programs; a Q1 webinar is scheduled for February 12, 2026 at 10:00 AM ET.

Positive

• Cash balance of $9.10M at December 31, 2025
• Current ratio of 7.51, indicating strong short‑term liquidity
• QAPs revenue up 15% YoY, driven by branded product growth
• Branded QAPs sales doubled versus Q1 2025

Negative

• Total revenue down 30% YoY to $4.22M
• Antigen sales declined 49% YoY due to a $2M distributor reduction
• Gross margin fell 21 percentage points to 41%
• Operating and net loss of $1.17M in Q1
• Cash used in operations $2.60M versus $0.79M provided prior year
• Accounts receivable increased by $2.37M QoQ to $3.98M

Q1 Revenues of $4.2 million and Controlled Net Loss

MISSISSAUGA, ON / ACCESS Newswire / February 12, 2026 / Microbix Biosystems Inc. (TSX:MBX)(OTCQX:MBXBF, Microbix^®), a life sciences innovator, manufacturer, and exporter, reports results for its first quarter of fiscal 2026 ended December 31, 2025 ("Q1"). Results for Q1 demonstrated the Company's efforts to rebuild revenues back above its breakeven point following two client setbacks in mid-2025, with revenue growth of 13% compared to Q4 fiscal 2025. Q1 revenues and net loss were as-budgeted for fiscal 2026.

Management Discussion

Microbix is prepared for material sales growth following additions to its capabilities and capacity. It is now at work on adding new client programs and clients to counter setbacks with two large clients in 2025. Progress with business development will be announced when secured. Microbix currently anticipates full-year fiscal 2026 results in-line with the forward-looking information (FLI) disclosed in its Management Discussion and Analysis (MD&A), towards rebuilding sales above its earnings breakeven point.

Quarter ending December 31, 2025 ("Q1")

Q1 revenue was $4,218,909, an increase of 13% over the prior quarter (Q4 2025) but a 30% decrease from Q1 2025 revenues of $6,044,002. Included were antigen revenues of $2,174,357 (2025 - $4,266,758), which were down 49% from last year due to a $2 million reduction of sales to our distributor into China. Sales to other antigen customers were up 5% compared to the prior year period. QAPs^™ revenues of $1,876,276 were up 15% from Q1 2025 ($1,626,980), primarily due to a doubling of sales of branded QAPs products (REDx^™ & PROCEEDx^™) versus Q1 2025. Revenue from royalties were $168,276 (2025 - $150,263). In summary, our Q1 was impacted by a large decrease in sales into China, which was partly offset by increased sales for QAPs (inclusive of QUANTDx™ & reagents).

Q1 gross margin percentage was 41%, down from 62% in 2025, primarily due to decreased product sales which resulted in fixed manufacturing costs needing to be absorbed across fewer units of production.

Operating expenses (including finance expenses) in Q1 were relatively flat compared to Q1 2025, principally due to increased net financing costs versus prior year, due to lower interest income as a result of lower interest rates on decreased short-term investments.

Overall, weaker Q1 revenues and decreased margins led to an operating and net loss of $1,167,177 versus a Q1 2025 operating and net income of $856,962. Cash used in operating activities was $2,602,403, compared to cash provided by operating activities of $792,702 in 2025. Much of the cash used in operating activities during the quarter was consumed by increasing accounts receivable, which grew by $2,373,886 since September 30, 2025, and stood at $3,984,395 as at December 31, 2025. At the end of Q1, Microbix's current ratio (current assets divided by current liabilities) was 7.51 and its debt-to-equity ratio (total debt over shareholders' equity) was 0.38.

FINANCIAL HIGHLIGHTS
As at and for the quarter ended		December 31, 2025				December 31, 2024
Total Revenue		$	4,218,909			$	6,044,002
Gross Margin			1,733,467				3,752,680
SG&A Expenses			2,125,595				2,076,116
R&D Expense			557,066				599,602
Foreign Exchange (Gain) Loss			37,787				106,871
Financial Expenses			180,196				113,129
Operating Income for the period			(1,167,177	)			856,962
Net Income and Comprehensive Income for the period			(1,167,177	)			856,962
EPS - Basic		$	(0.008	)		$	0.006
- Diluted		$	(0.008	)		$	0.006
Cash Provided (Used) by Operating Activities			(2,602,403	)			792,702
		December 31, 2025				September 30, 2025
Cash			9,097,580				12,112,760
Accounts receivable			3,984,395				1,610,509
Total current assets			23,041,460				23,574,891
Total assets			36,590,575				37,409,933
Total current liabilities			3,067,347				2,778,953
Total liabilities			9,983,398				9,622,391
Total shareholders' equity			26,607,176				27,787,542
Current ratio			7.51				8.48
Debt to equity ratio			0.38				0.35

Corporate Outlook

Microbix is aggressively pursuing new client programs and new clients, while continuing to add to its portfolio of products and services, and its capabilities. It thereby intends to continue driving sales growth across all of its business lines, while also improving percentage gross margins and working to deliver bottom-line results. Microbix's goal is to create meaningful and sustained shareholder value within both its diagnostics-oriented business and its fully-funded Kinlytic^® urokinase "thrombolytic" drug program.

Furthermore, at 10:00 AM ET on Thursday February 12^th, 2026 Microbix intends to hold a webinar discussion of Q1 2026 results with its CEO, CFO, and COO.

Investor and shareholders can participate in the webinar, hosted by Adelaide Capital, by registering at: https://us02web.zoom.us/webinar/register/WN_khEZPyT6R6SNNAB6Mt0oaA. It will also be live-streamed to YouTube at: https://www.youtube.com/channel/UC7Jpt_DWjF1qSCzfKlpLMWw.

A replay of the webinar will also be made available on Adelaide Capital's YouTube channel.

About Microbix Biosystems Inc.

Microbix Biosystems Inc. creates proprietary biological products for human health, with over 120 skilled employees and revenues of C$ 18.6 million in its latest fiscal year (2025). It makes a wide range of critical ingredients and devices for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs^™) and reference materials (QUANTDx^™) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Its antigens drive the antibody tests of approximately 100 diagnostics makers, while QAPs or QUANTDx are sold to clinical lab accreditation organizations, diagnostics companies, and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 & 13485 accredited, U.S. FDA registered, Australian TGA registered, Health Canada establishment licensed, and provides IVDR-compliant CE marked products.

Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably Kinlytic^® urokinase, a biologic thrombolytic drug used to resolve blood clots, and reagents or medial to support diagnostic testing (e.g., its DxTM^™ for patient-sample collection). Microbix is traded on the TSX and OTCQX, and headquartered in Mississauga, Ontario, Canada.

Forward-Looking Information

This news release includes "forward-looking information," as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, discussion of Microbix's business and business results, goals or outlook, risks associated with financial results and stability, development projects such as those referenced in its corporate presentation, regulatory compliance and approvals, access to and sales to foreign jurisdictions, engineering and construction, production (including control over costs, quality, quantity and timeliness of delivery), foreign currency and exchange rates, maintaining adequate working capital and raising further capital on acceptable terms or at all, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company's judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information except as required by applicable law.

Please visit www.microbix.com or https://www.sedarplus.ca for recent Microbix news and filings.

For further information, please contact Microbix at:

Cameron Groome, CEO		Jim Currie, CFO		Deborah Honig,
(905) 361-8910		(905) 361-8910		Investor Relations
				Adelaide Capital Markets
				(647) 203-8793 ir@microbix.com

Copyright ^© 2026 Microbix Biosystems Inc.

Microbix^®, DxTM^™, Kinlytic^®, PROCEEDx^™, QAPs^™, QUANTDx^™, and REDx^™ are trademarks of Microbix Biosystems Inc.

SOURCE: Microbix Biosystems Inc.

View the original press release on ACCESS Newswire

FAQ

What were Microbix (MBXBF) Q1 2026 revenues and how did they compare year‑over‑year?

Microbix reported $4.22 million in Q1 revenue, down 30% versus Q1 2025. According to the company, the decline was mainly from a $2.0 million reduction in antigen sales to a distributor into China, partly offset by higher QAPs sales.

Why did Microbix (MBXBF) gross margin drop in Q1 2026 and what was the rate?

Gross margin declined to 41% from 62% in Q1 2025, a 21 percentage point drop. According to the company, lower product volumes forced fixed manufacturing costs to be spread over fewer units, reducing margins.

What was Microbix (MBXBF) Q1 2026 net income and cash flow from operations?

Microbix reported a net loss of $1.17 million and used $2.60 million in operating cash flow. According to the company, higher accounts receivable consumption primarily drove the negative operating cash flow.

How did Microbix (MBXBF) liquidity and balance sheet metrics look at December 31, 2025?

At quarter end Microbix held $9.10 million in cash with a current ratio of 7.51. According to the company, total current assets were $23.04 million versus current liabilities of $3.07 million.

What operational steps is Microbix (MBXBF) taking after Q1 2026 results?

Microbix is pursuing new client programs and expanding capabilities to rebuild sales and margins. According to the company, progress and secured business development wins will be announced when finalized.