Subject line: Microbix – KRC Insights FQ1 2026 Update

 

KRC Insights published an update report on Microbix’s FQ1 2026 financial results. All of KRC’s previous research reports, including this latest one, can be found on Microbix’s website here: https://microbix.com/analyst-coverage/.

 

FQ1/26 REVIEW: MAINTAINING $0.55 TARGET. BUSINESS IS RECOVERING FROM 2025 SETBACKS. STRONG REVENUE GROWTH FORECAST FOR QAPS.

 

Revenue decline: base business revenues declined -30.2% to $4.2m from $6.0m YoY. There were no Kinlytic® royalties recognized during the quarter, Specifically, Antigen revenues declined -49.0%, due to a slowdown in sales via the Chinese distributor ($2.0m). Excluding China, revenues grew 5% indicating the antigen business is recovering outside China. QAPs™ revenues grew 15.3% primarily due to sales of REDx (ongoing QC) and PROCEEDx (research only) products.

 

Gross margins: GMs declined to 41.1% vs 62.1% YoY negatively impacted by lower Antigen product sales absorbing the fixed manufacturing cost base across fewer units of production.

 

Operating Expenses: Total operating expenses were essentially flat at a -2.3% decrease vs FQ1/25, slightly lower than our forecasts, as costs are managed in line with lower sales.

 

EBITDA: The net impact of lower revenues, lower gross margin and flat expenses resulted in an adjusted EBITDA margin of -12.6% vs 23.2% in FQ1/25.

 

Cash Position: Cash declined $3.0m sequentially to $9.1m from $12.1m in FQ4/25. Principal contributors to this movement include: $1.1m net loss and a $2.2m increase in working capital (mainly due to a $2.4m increase in accounts receivable at quarter-end); offset by $456k depreciation charge. $3.3m of receivables were paid in January and we expect working capital to revert to historical levels.

 

Outlook. We forecast revenue growth returning in the last 2 quarters of the fiscal year and net income break even on ~$5.5m/quarter of revenues in FQ4/26E. The Antigen business is recovering outside of China; for QAPs™, while molecular pathology and genetics testing is broadening MBX’s market reach. Confirmed by the announcement of a significant new client, College of American Pathologists.

 

Kinlytic® Update: As anticipated, no Kinlytic® urokinase licensing revenues were recorded. MBX is set to receive payment of US$1.0m upon approval of the supplemental Biologics License Application (sBLA), expected in late 2027, with licensing revenues anticipated to commence in F28E.

 

Valuation: Based on our F27E forecasts, we maintain our target of $0.55 derived from a sum-of-parts approach: 1) Valuing the base business by applying an EV/EBITDA multiple to the base business EBITDA, and then 2) adding $40.0m ($0.23cps) for the Kinlytic® urokinase development asset. We will reassess the valuation of Kinlytic® urokinase following the sBLA filing.

 

 

KRC Insights’ Bruce Krugel has been an active participant in the Canadian small cap equity market for more than two decades, having worked as both an equity research analyst and an institutional equity salesperson. He has broad experience in providing capital markets advisory services, research reports, identifying and executing on trade ideas, marketing companies and raising capital. The combination of these skills allows him to provide a differentiated offer that clients have found very useful.

 

 

About Microbix Biosystems Inc.

Microbix Biosystems Inc. creates proprietary biological products for human health, with over 120 skilled employees and revenues of C$ 18.5 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 treat 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, 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.

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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 (905) 361-8910

Jim Currie, CFO (905) 361-8910

Deborah Honig, Investor Relations Adelaide Capital Markets (647) 203-8793 ir@microbix.com

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