Microbix Reports Results for Q3 Fiscal 2025

MISSISSAUGA, Ontario, Aug. 14, 2025 (GLOBE NEWSWIRE) -- Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix^®), a life sciences innovator, manufacturer, and exporter, reports results for its third quarter and nine months of fiscal 2025 ended June 30, 2025 (“Q3” and “YTD”). Sales for Q3 were down for both Antigens and QAPs™, while YTD Antigens were up and QAPs were down YTD.

Management Discussion

Results for Q3 were disappointing, impacted by two key events, cancellation of test-development programs by a key customer and the decline in sales to China. YTD recurring revenues of $14.4 million are slightly lower than prior year. Financial strength remains, with strong cash & equivalents and overall liquidity. New business development is proceeding well but management’s outlook for the remainder of fiscal 2025 continues to be more guarded, mainly due to reduced sales into China.

Quarter ending June 30, 2025 (“Q3”)

For the current year, Q3 revenue was $3,472,182, a 31% decrease from Q3 2024 revenues of $5,059,465. Included in Q3 were antigen revenues of $1,832,134 (2024 - $3,276,469), down 44% from last year due to a decline in sales into China that is due to fewer respiratory infections this past winter. QAPs revenues of $1,516,344 were down 9% from Q3 2024 ($1,669,653), due to cancellation of test-development programs by a key customer. Revenue from royalties were $123,704 (2024 - $113,343). In summary, our Q3 sales decrease was predominantly driven by much lower antigen sales to our Asian distributor and lower sales to a QAPs customer that cancelled its test-development programs.

Q3 gross margin percentage was 41%, down from 54% last year. The lower Q3 2025 gross margins were primarily driven by a less favourable product mix and fixed manufacturing costs needing to be absorbed across fewer units of production.

Operating expenses (including finance expenses) in Q3 increased by 22% relative to Q3 2024, principally due to lower investment income on cash equivalents, coupled with a favourable debt modification interest impact in Q3 2024. In addition, there was no grant income recognized in Q3 2025 ($155,133 in Q3 2024) and we incurred incremental foreign exchange losses in Q3 2025 vs. Q3 2024 of $192,180.

Overall, lower Q3 revenues, weaker margins and higher operating expenses led to a net loss of $1,642,776 versus Q3 2024 net income of $246,746. Cash used in operating activities was $1,923,694, compared to cash provided of $604,064 in Q3 2024. Cash used in operating activities was impacted by deployment of funds into non-cash working capital accounts, most notably increased inventory relating to product portfolio expansion and reduced accounts payable reflective of reduced activity with the previously cited two customers. Cash and equivalents at June 30, 2025 remained strong at $12.1 million.

Period ending June 30, 2025 (“YTD”)

YTD revenue was $14,841,048, a 22% decrease from YTD 2024 revenues of $19,100,251. Included in YTD 2025 were antigen revenues of $10,416,424 (2024 - $9,341,607), up 11% from last year. QAPs revenues of $4,007,645 were down 25% from YTD 2024 (2024 - $5,317,486), again due in large part to a year-over-year reduction in spend by one large client. Revenue from royalties were $416,979 (2024 - $354,498). In summary, the YTD 2025 antigens sales growth result was offset by lower QAPs revenues and the lack of Kinlytic licensing revenue.

YTD gross margin was 56%, down from 63% in YTD 2024, primarily due to the impact of lower sales of a higher margin antigen product, decreased QAPs revenues, and lack of Kinlytic revenues/margins.

YTD operating expenses increased slightly relative to YTD 2024, principally due to increased investment in R&D projects, sales and marketing activities, lack of current year OTF grant income and increased financing costs (due to lower interest income and F24 favourable debt modification adjustment).

Overall, YTD revenues, weaker margins and increased operating expenses led to an operating loss and net loss of $765,150 versus a YTD 2024 operating income and net income of $3,079,855 (predominantly due to the $3.4 million net impact from Kinlytic licensing). Cash used in operating activities was $164,240, compared to cash provided by operating activities of $3,581,689 in YTD 2024.

At the end of Q3, Microbix’s current ratio (current assets divided by current liabilities) was 9.73 and its debt to equity ratio (total debt over shareholders’ equity) was 0.30, both measures having improved from the prior year third quarter (Q3 2024) and the preceding fiscal year-end (Q4 2024).

Corporate Outlook

Microbix will continue driving sales growth across all of its business lines, while working to keep improving percentage gross margins and delivering bottom-line results. Management notes that the second-half 2025 outlook for its Antigens business has become challenging due to reduced sales into China.

Furthermore, at 10:00 AM ET on Thursday August 14^th, Microbix intends to hold a webinar discussion of Q2 results with its CEO, CFO, and COO.

Investor and shareholders can participate in the webinar, hosted by Adelaide Capital, by registering at: .

It will also be live-streamed to YouTube at: .

A replay of the webinar will also be made available on Adelaide Capital’s YouTube channel.

About Microbix Biosystems Inc.

Microbix creates proprietary biological products for human health, with over 120 skilled employees and revenues targeting C$ 2.0 million or more per month. It enables the worldwide commercialization of diagnostic assays by making 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 media to support molecular 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 financial results or the outlook for the business, risks associated with its financial results and stability, its current or future products, development projects such as those referenced herein, access to and 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 many material factors, some 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.

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