iFabric Corp Reports Full-Year 2025 Results; Raises Q1 2026 Outlook

Core Insights - iFabric Corp reported record full-year 2025 revenue of $32.9 million, a 20% increase from 2024 revenue of $27.3 million, driven by new programs in the U.S. and Canada [2][3] - The Intelligent Fabrics Division saw a revenue increase of 33% to $26.2 million, attributed to category expansions and growth in medical apparel programs [2][3] - The company raised its Q1 2026 revenue outlook to $25 to $27 million, up from the previous guidance of $20 to $25 million [2][14] Financial Performance - Total revenues for the year ended December 31, 2025, increased by $5.5 million, representing a 20% increase over 2024 [2] - The Intelligent Fabrics Division's revenue increased by $6.4 million, reflecting successful category expansion [3] - The Intimate Apparel Division experienced a revenue decrease of 12% to $6.6 million, primarily due to the cessation of Maidenform® branded product shipments [5] Profitability Metrics - Gross profit margin decreased to 32% in 2025 from 41% in 2024, mainly due to tariffs on goods from China and one-time brand transition costs [6] - Selling, general, and administrative costs increased by 11% to $9.6 million, driven by strategic investments for future growth [7] - Adjusted EBITDA for fiscal 2025 was $1.9 million, down from $2.7 million in 2024, impacted by tariffs and transition costs [8] Cash Flow and Working Capital - The company's cash balance increased to $3.8 million as of December 31, 2025, from $2.1 million in 2024 [10] - Adjusted working capital rose by $298,792 to $19.1 million compared to the previous year [9] Quarterly Performance - Q4 2025 revenues were $11.0 million, a 5% increase from $10.5 million in Q4 2024 [10] - The Intelligent Fabrics Division's Q4 revenue was $10.2 million, up 13% from the previous year, while the Intimate Apparel Division's revenue decreased by 47% [11] Future Outlook - The company expects improved margins in fiscal 2026 due to easing tariff conditions and the transition to a royalty-free owned brand [6][13] - The updated Q1 2026 revenue guidance reflects strong customer delivery schedules and order flow [14]