MARKHAM, ON / ACCESS Newswire / March 31, 2026 / iFabric Corp. ("iFabric" or the "Company") (TSX:IFA)(OTCQX:IFABF), announces its results for the fourth quarter and fiscal year ended December 31, 2025, and raises its revenue outlook for the first quarter of 2026. Management highlights the following:
Record Full-Year 2025 Revenue of $32.9 Million, Up 20% From Record 2024 Revenue
Intelligent Fabrics Division Revenue Increased 33% to $26.2 Million, Driven by Category Expansions and Strong Medical Apparel Program Growth
Q1 2026 Revenue Outlook Raised to $25 to $27 Million, From Prior Guidance of $20 to $25 Million
"2025 marked another record year for iFabric and further validated the growth platform we are building through the continued expansion of our Intelligent Fabrics business," said Hylton Karon, President and Chief Executive Officer of iFabric Corp. "We delivered record full-year and fourth-quarter revenue, and that momentum has carried directly into 2026. With a materially stronger first-quarter now nearly complete, we believe the initiatives put in place during 2025 are creating a broader and more scalable growth platform for our Company," concluded Hylton Karon
"The strength of our 2025 results reflects disciplined execution, category expansion, and the scaling of programs where our products are delivering performance advantages and value to customers," said Giancarlo Beevis, Chief Executive Officer of Intelligent Fabric Technologies (North America) Inc. "In particular, our clinically-proven medical apparel programs and other innovative product initiatives continued to gain traction throughout 2025 and into 2026. We are seeing growth from both existing programs and new launches, and we believe that expanding retailer adoption across these categories is further validating the commercial potential of our platform," concluded Mr. Beevis
Year Ended December 31, 2025
Total revenues increased by $5,547,528 to $32,874,918 for the year ended December 31, 2025, compared to $27,327,390 for the year ended December 31, 2024, representing a 20% increase over the record revenues recorded in 2024 and attributable to new programs in both the U.S. and Canada.
Intelligent Fabrics Division revenue increased by 33% or $6,443,547, to $26,221,629 for the twelve months in 2025 from $19,778,082 for the twelve months in 2024, reflecting the success of category expansion, including major growth in clinically-proven medical apparel ("scrubs") programs and additional new-category initiatives launched to broaden the Company's addressable market.
For the Intimate Apparel Division, revenue decreased by 12% or $896,019 to $6,641,039 for the twelve months in 2025 from $7,537,058 for the twelve months in 2024. This decrease was primarily attributable to the planned cessation of shipments of Maidenform branded products in the fourth quarter due to the non-renewal of the Maidenform license under which such products were sold. Maidenform branding is being replaced by iFabric-owned branding aimed at a younger demographic, as part of a growth strategy that has already produced strong early results that will be visible in Q1 2026. In addition, the segment incurred a one-time provision of $364,320 in respect of markdown support to retailers in connection with the final sell-through of Maidenform branded products. This provision was deducted from revenues as required by IFRS. All major customers have confirmed their agreement to switch to the new branding.
Gross profit as a percentage of revenue decreased to 32% in 2025 from 41% in 2024. The decrease in gross profit percentage is primarily attributable to tariffs affecting goods manufactured in China and imported into the United States. That industry-wide event created broad supply-chain and pricing disruptions additional to the one-time brand-transition provision detailed above. Tariff conditions and visibility have since improved, and the Company has taken proactive steps to expand its supply base to additional countries of origin to reduce future tariff-related exposure. With tariff-related uncertainty now easing, the ending of certain IEEPA-based duties, the establishment of a 10% temporary U.S. import surcharge framework, and with one-time transitional brand license exit costs now behind the Company, margins are expected to improve significantly in fiscal 2026. Additionally, as the Company replaces a royalty-bearing licensed brand with a royalty-free owned brand, iFabric expects meaningful long-term margin benefits.
Selling, general and administrative costs increased by 11% to $9,591,175 for the twelve months in 2025 compared to $8,611,234 for the twelve months in 2024, due to increased personnel costs, professional fees, insurance, rent, freight, commissions and royalties primarily incurred as strategic investments to support future revenue growth.
Adjusted EBITDA for fiscal 2025 amounted to $1,931,094 compared to adjusted EBITDA of $2,743,670 in 2024. While 2025 margins were impacted by tariffs and planned one-time transition costs, the Company believes those actions were prudent, time-limited, and position iFabric for stronger profitability and operating leverage as growth initiatives scale in 2026.
The Company's adjusted working capital (working capital adjusted to exclude a term loan classified as current under IFRS) increased by $298,792 to $19,127,409, compared to adjusted working capital of $18,828,617 as at December 31, 2024.
The Company's cash balance increased to $3,783,334 as at December 31, 2025 from $2,058,156 as at December 31, 2024, due to the holding of more U.S. dollars. The Company's bank operating line was utilized to the extent of $6,661,109 to fund inventory purchases for delivery in the next quarter. The line was unutilized in 2024.
Fourth Quarter Ended December 31, 2025
Revenues were $10,976,110 for the quarter ended December 31, 2025, compared to $10,495,982 for the same period in 2024, setting a new quarterly record and representing an increase of $480,128 or 5% over the Q4 revenues achieved in 2024.
Certain expected deliveries of Intelligent Fabrics goods shifted into the opening days of Q1 2026 due to customer logistics constraints, affecting the timing of revenue recognition between Q4 2025 and Q1 2026.
Revenues for the Intelligent Fabrics Division were $10,203,845 in 2025 compared to $9,043,152 in 2024, representing an increase of $1,160,693 or 13%.
Revenues for the Intimate Apparel Division decreased to $772,265 in 2025 compared to $1,447,580 in 2024, representing a decrease of $675,315 or 47%. This decrease was primarily attributable to the planned cessation of shipments of Maidenform branded products as well as final sell-through support, as discussed above.
Gross profit margins decreased to 26% in 2025 from 40% in 2024, as a result of product mix for the quarter, transitional Maidenform license exit costs as discussed above, as well as tariff-related impacts affecting U.S.-bound imports. With improved tariff visibility now in place, iFabric's expanded multi-country sourcing strategy, the elimination of one-time transitional license exit costs, and the Company's expected shift from royalty-bearing sales to royalty-free owned-brand sales, margins are expected to improve significantly in fiscal 2026.
Selling, general and administrative costs during Q4 2025 increased by $457,751 or 19%, to $2,841,770 from $2,384,019 in Q4 2024, mainly attributable to increased selling costs, which are variable in nature and support growth.
Adjusted EBITDA amounted to $1,030,710 in Q4 2025 compared to $1,895,396 in 2024, with the decrease attributable to the factors discussed above.
Updated Q1 2026 Revenue Outlook
The Company previously provided guidance for Q1 2026 revenue to be in the range of $20 million to $25 million. Based on current customer delivery schedules, order flow and visibility into quarter-end shipments, the Company is updating its Q1 2026 revenue guidance to be in the range of $25 million to $27 million.
Webinar
The Company will participate in a webinar hosted by Adelaide Capital on April 9, 2026, at 2:00 p.m. ET to review iFabric's Q4 and full-year 2025 results, including key business highlights and operating performance. The webinar will also include a question-and-answer session.
Registration link: https://us02web.zoom.us/webinar/register/WN_MhizOHDfRvOql-kgIQr6rQ
Complete financial statements are available on www.sedarplus.ca and on the Company's website at www.ifabriccorp.com.
FINANCIAL HIGHLIGHTS
| Year |
|
| Year |
|
| Quarter |
|
| Quarter |
| |||||
| Ended |
|
| Ended |
|
| Ended |
|
| Ended |
| |||||
| December 31 |
|
| December 31 |
|
| December 31 |
|
| December 31 |
| |||||
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
| |||||
| $ |
|
|
| $ |
|
|
| $ |
|
|
| $ |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Revenue |
|
| 32,874,918 |
|
|
| 27,327,390 |
|
|
| 10,976,110 |
|
|
| 10,495,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share based compensation |
|
| 159,341 |
|
|
| 548,040 |
|
|
| 7,507 |
|
|
| 131,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA *(Note) |
|
| 1,931,094 |
|
|
| 2,743,670 |
|
|
| 1,030,710 |
|
|
| 1,895,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net earning (loss) before tax |
|
| 245,575 |
|
|
| 2,228,476 |
|
|
| (172,615 | ) |
|
| 1,678,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) after tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to shareholders |
|
| (99,195 | ) |
|
| 1,632,614 |
|
|
| (541,352 | ) |
|
| 1,131,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other comprehensive earnings (loss) |
|
| (252,148 | ) |
|
| 332,431 |
|
|
| (65,214 | ) |
|
| 258,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total comprehensive earnings (loss) |
|
| (351,343 | ) |
|
| 1,960,151 |
|
|
| (606,566 | ) |
|
| 1,383,424 |
|
Net earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| (0.003 | ) |
|
| 0.054 |
|
|
| (0.018 | ) |
|
| 0.037 |
|
Diluted |
|
| (0.003 | ) |
|
| 0.054 |
|
|
| (0.018 | ) |
|
| 0.037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
*Note: Adjusted EBITDA represents earnings before non-recurring items, interest, taxes, depreciation, amortization, and share based compensation.
*USE OF NON-GAAP MEASURES
Certain measures in this document do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS") and, therefore, are not considered generally accepted accounting principles ("GAAP") measures and may not be comparable to similar measures presented by other issuers. Where non-GAAP measures or terms are used, definitions are provided. The Company believes that certain non-GAAP financial measures provide important information regarding the operational performance and related trends of the Company's business. In this document and in the Company's consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.
Adjusted EBITDA
The Company uses Adjusted EBITDA to assess its operating performance without the effects of (as applicable): current and deferred tax expense, finance costs, interest income, depreciation and amortization of plant assets, other gains and losses, impairment loss, share-based compensation and other non-recurring items. The Company adjusts for these factors as they may be non-cash, unusual in nature and may not optimally represent its operating performance. Adjusted EBITDA is not intended to be representative of net earnings from operations or an alternative measure to cash provided by operating activities determined in accordance with IFRS.
The table below reconciles Adjusted EBITDA and Net earnings attributable to owners of the Company, calculated in accordance with IFRS:
| Three months |
|
| Three months |
|
| Twelve months |
|
| Twelve months |
| |||||
For the period ending |
| December 31, |
|
| December 31, |
|
| December 31, |
|
| December 31, |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net earnings (loss) after tax attributable to shareholders |
|
| (541,352 | ) |
|
| 1,131,531 |
|
|
| (99,195 | ) |
|
| 1,632,614 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to non-controlling interest |
|
| - |
|
|
| (6,530 | ) |
|
| - |
|
|
| (4,894 | ) |
Provision for income taxes |
|
| 368,737 |
|
|
| 553,361 |
|
|
| 344,770 |
|
|
| 600,756 |
|
Share-based compensation |
|
| 7,507 |
|
|
| 131,220 |
|
|
| 159,341 |
|
|
| 548,040 |
|
Impairment provision - legal claim |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (361,980 | ) |
Maidenform license transition costs |
|
| 364,320 |
|
|
| - |
|
|
| 364,320 |
|
|
| - |
|
ERP system - implementation costs |
|
| 200,690 |
|
|
| - |
|
|
| 200,690 |
|
|
| - |
|
Illegal US IEEPA tariffs (refundable) |
|
| 455,231 |
|
|
| - |
|
|
| 455,231 |
|
|
| - |
|
Amortization of deferred development costs |
|
| 8,901 |
|
|
| 8,901 |
|
|
| 35,604 |
|
|
| 35,604 |
|
Depreciation of plant, property and equipment and right-of-use assets |
|
| 49,037 |
|
|
| 55,400 |
|
|
| 190,150 |
|
|
| 196,480 |
|
Interest expense |
|
| 117,639 |
|
|
| 21,513 |
|
|
| 280,183 |
|
|
| 97,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted EBITDA |
|
| 1,030,710 |
|
|
| 1,895,396 |
|
|
| 1,931,094 |
|
|
| 2,743,670 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment provision - legal claim |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 361,980 |
|
Share-based compensation |
|
| (7,507 | ) |
|
| (131,220 | ) |
|
| (159,341 | ) |
|
| (548,040 | ) |
Maidenform license transition costs |
|
| (364,320 | ) |
|
| - |
|
|
| (364,320 | ) |
|
| - |
|
ERP system - implementation costs |
|
| (200,690 | ) |
|
| - |
|
|
| (200,690 | ) |
|
| - |
|
Illegal US IEEPA tariffs (refundable) |
|
| (455,231 | ) |
|
| - |
|
|
| (455,231 | ) |
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
EBITDA |
|
| 2,962 |
|
|
| 1,764,176 |
|
|
| 751,512 |
|
|
| 2,557,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
About iFabric Corp:
Headquartered in Markham, Ontario, iFabric, www.ifabriccorp.com, is listed on the TSX and, currently has 30.3 million shares issued and outstanding. Its two strategic divisions offer a variety of products and services through wholly-owned subsidiaries, namely, Intelligent Fabric Technologies (North America) Inc. ("IFTNA") and Coconut Grove Pads Inc. ("Coconut Grove").
IFTNA is focused on development and sale of high-performance sports apparel, medical protective apparel, consumer protective apparel, and proprietary treatments that provide "intelligent" properties to fabrics, foams, plastics, and numerous other surfaces, thereby improving the safety and well-being of the user. Such intelligent properties include antiviral and antibacterial characteristics, water-repellence and UV protection, among others.
Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies' intimate apparel products and accessories.
FORWARD LOOKING STATEMENTS
Forward-looking statements provide an opinion as to the effect of certain events and trends on the business. Certain statements contained in this news release constitute forward looking statements. The use of any words such as "anticipate", "continue", "plans", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the extent and impact of health pandemic outbreaks on our business; general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; the actual results of the Company's future operations; competition; changes in legislation affecting the Company; the ability to obtain and maintain required permits and approvals, the timing and availability of external financing on acceptable terms; lack of qualified, skilled labour or loss of key individuals.
A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's annual information form dated March 30, 2026 and other filings with the Canadian securities regulators available under the Company's profile on SEDAR+ at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance, or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Any financial outlook or future oriented financial information in this news release, as defined by applicable securities legislation, has been approved by management of iFabric. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason except as required by applicable securities laws.
FOR FURTHER INFORMATION please contact:
Investor Contacts Hylton Karon, President and CEO Giancarlo Beevis, COO | Finance Contact Hilton Price, CFO |
Website: www.ifabriccorp.com
Neither the TSX Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE: iFabric Corp
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/ifabric-corp-reports-full-year-2025-results-raises-q1-2026-outlo-1153438
