iFabric Corp.

Q2 revenue was $9.6 million versus $5.8 million a year ago, up $3.8 million or 65%. Management said the company invoiced about $10.3 million before a $650,000 advertising support deduction under IFRS. Gross margin was 30% versus 37% last year, with management attributing the full decline to that advertising deduction. EBITDA was $715,000, versus a loss/roughly breakeven expectation and about a $1 million turnaround from 2025. For the first six months, revenue was a record $37.1 million versus $12.9 million, up $24.2 million or 188%, and EBITDA was $5.8 million versus zero in 2025. The company ended Q2 with $25 million in cash after closing a capital raise in June that delivered about $21 million in net proceeds, and working capital was about $45.1 million, with available credit lines of about $14 million to $15 million. Forward-looking commentary was qualitative rather than formal guidance: Q3 should be mainly replenishment-oriented, some set programs could start late in the quarter, and Q1/Q4 are expected to remain the biggest quarters seasonally.

Hylton Karon framed the quarter as evidence of sustained growth and said investors should focus on year-over-year comparisons and trailing 12-month performance rather than quarter-to-quarter swings because of seasonality. He emphasized that the company has exceeded prior-year numbers consistently, believes the full-year picture will be more impressive, and highlighted a broader pipeline of future product categories, including medical and non-apparel opportunities. His tone was upbeat and confident, with a clear focus on long-term expansion and IP-driven value creation.

Hilton Price highlighted the core financial drivers: Q2 revenue growth of 65%, gross margin pressure caused by a $650,000 advertising deduction, and EBITDA of $715,000, helped by a $925,000 tariff recovery recognized as sundry income, of which $710,000 had already been collected in cash and $250,000 was still due next quarter. He said selling and administration expenses rose by $800,000, mostly from variable costs like royalties, commissions, travel, and a larger staff base. On the balance sheet, he pointed to the June capital raise, $25 million in cash, and around $45.1 million of working capital, and said the company can push revenues well north of $100 million without needing additional capital or debt. He also said the company’s long-term goal remains 15% net after G&A and that a dividend could be considered within the next 2 years if cash generation stays strong.

Analysts focused on supplier deposits, margin structure, advertising support to retailers, scrubs rollout timing, and the international roadmap. Management said deposits to suppliers had rebounded to $5 million, reflecting late-year programs, and explained that lower front-end deposits also reflect improved supplier terms. On margins, they said the blended target is 35%, with intimate apparel around 49% to 50% and IFTNA around 30%, and they expect to reduce direct retailer support over time by handling more marketing in-house. On scrubs, management said Walmart expansion depends on shelf space becoming available, Target’s 400-store rollout is largely set, Walmart could become a bigger opportunity by fall 2027, and the business remains focused on adding doors and SKU counts rather than a near-term DTC launch.