Microbix Biosystems (MBX) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $3.38 million, a 37% decrease from Q2 2025, mainly due to a sharp drop in antigen sales to China, resulting in a net loss and revenues below the CAD 5.5 million breakeven point.

• H1 2026 revenue reached $7.6 million, down 33% year-over-year, as the business rebuilds after setbacks with two major clients in 2025.

• The business is focused on expanding capabilities in antigen production, quality assessment products (QAPs), and the Kinlytic therapeutics program, with commercialization targeted for 2028.

• Management is optimistic about securing large-scale opportunities and expects to demonstrate significant progress in the coming months.

• Management is focused on adding new clients and programs to restore revenue and profitability.

Financial highlights

• H1 2026 antigen revenues fell 45% year-over-year to $4.76 million, mainly from a $4 million drop in China sales; excluding China, antigen sales rose 6%.

• Q2 revenue was significantly impacted by a CAD 2 million per quarter reduction in Chinese distribution, though non-China business grew 13% year-over-year.

• QAPS revenues were stable at $2.5 million for H1 2026; royalties increased to $340,840.

• Gross margins declined due to lower volumes and fixed manufacturing costs, with Q2 gross margin at 48%, below the 60% target achieved last year.

• Cash balance at quarter-end was CAD 8.1 million, with a cash burn of about CAD 1 million per quarter.

Outlook and guidance

• Management expects full-year 2026 results to align with current guidance, aiming to rebuild sales above breakeven.

• Orders from China have resumed at lower levels, with potential for a rebound depending on disease incidence and policy changes.

• QAPs revenues are expected to normalize in Q3 and Q4 due to the timing of large customer events, with further smoothing as new clients are added.

• Kinlytic revenues are anticipated to begin in 2028, pending regulatory approval and market launch.

• Focus remains on expanding both diagnostics and the Kinlytic urokinase drug program.