Microbix Q4 2025 Results: Revenue Dips to $18.6M as China Antigen Sales Weaken

Life sciences company Microbix Biosystems faces headwinds in its latest quarter. For fiscal 2025 ending September 30, the firm reported total revenues of $18.6 million, down 27% from $25.4 million the prior year, alongside a net loss of $2.2 million compared to a $3.5 million profit in 2024.

What Dragged Down Performance?

Two major factors hammered results. First, antigen sales to China—a key market—collapsed by 55% in Q4 and declined 10% for the full year, primarily due to fewer respiratory infections in the region during winter. Second, a major quality assessment products (QAPs) client axed its test-development program entirely, eroding that revenue stream.

For context, Microbix derives significant revenue from antigens used in immunoassays by roughly 100 diagnostics manufacturers globally. The firm also sells QAPs and reference materials (QUANTDx) to clinical labs and accreditation organizations across 30+ countries.

The Full-Year Picture

Full-year 2025 antigen revenues hit $12.4 million (down 10%), while QAPs revenues fell 20% to $5.6 million. A silver lining: royalty revenues climbed 15% to $598,775. However, gross margin compressed to 53% from 61% due to fixed manufacturing costs spread across fewer units and an unfavorable product mix.

Operating expenses rose 4% as the company ramped up trade shows and R&D spending on QAPs development.

Q4 Specifics Show Steeper Decline

Q4 revenue dropped 41% year-over-year to $3.7 million from $6.3 million. Antigen sales tanked 55% to $1.95 million, while QAPs fell 5% to $1.61 million due to weaker branded product sales. Gross margin in the quarter fell to 40% from 55%.

The operating loss for Q4 reached $1.37 million before financing costs, with a net loss of $1.48 million versus Q4 2024’s $440,000 profit.

Cash Position Remains Healthy

Despite operational challenges, Microbix maintained a strong balance sheet. Cash and equivalents totaled $12.1 million at fiscal year-end, with a current ratio of 8.48 and debt-to-equity ratio of 0.35—both indicating solid liquidity.

Operating cash flow, however, turned negative by $80,286 for the year (versus $4.3 million inflow in 2024) due to increased inventory from portfolio expansion and lower payables reflecting reduced activity with struggling clients.

Looking Ahead

Management is now aggressively pursuing new client programs and products to rebuild revenues past the quarterly breakeven point. The company emphasizes its broader portfolio expansion in 2025, improved manufacturing processes, and growing client relationships across diagnostics and its fully-funded Kinlytic urokinase drug program.

Microbix trades on TSX under MBX and on OTCQX as MBXBF, employing over 120 people and maintaining FDA, Health Canada, and European IVDR compliance across its operations.