Microbix Biosystems: Q1 2025 Earnings Reflect Strong Recurring Revenue Growth

Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF), a life sciences innovator, manufacturer, and exporter, reported its first quarter of fiscal 2025 results on February 13, 2025. The company demonstrated robust growth in recurring sales of its diagnostic-test related ingredients and devices businesses, leading to a 40% year-over-year increase in such revenues and material net income for the quarter.

Key drivers of Microbix Biosystems' Q1 2025 revenues were the strong growth in recurring sales of its test ingredients ("Antigens") and test quality assessment products ("QAPs™"). Antigen revenues grew by 118% year-over-year to $4,266,758, while QAPs revenues were $1,626,980, down 28% from last year due to reduced activity from test manufacturers versus the prior year period and specifically relating to delays in test-development programs of one such customer. Revenue from royalties were $150,263. These Q1 revenues generated solid margins and led to net earnings of $0.9 million. The company continues targeting annual sales growth in the range of 20 to 40%.

Overall Q1 gross margin percentage was 62%, down from 74% last year. However, when excluding the impact of Kinlytic licensing revenues in Q1 2024, Microbix's margins for Q1 2025 were 62%, compared to 49% in Q1 2024, representing a year-over-year improvement of 13% due to improved efficiencies, pricing, product mix, and currency exchange rates. Operating expenses (including finance expenses) in Q1 decreased by 23% relative to Q1 2024, principally due to significant Q1 2024 consulting fees incurred relating to the Kinlytic licensing agreement.