Microbix Biosystems Inc., a Canadian life sciences firm, has released its financial results for the third quarter and nine months of fiscal 2026, showcasing a 17% increase in revenue compared to the same quarter in 2025. This rise is part of the company’s efforts to recover from operational challenges encountered last year.
For the quarter ending June 30, 2026, Microbix generated revenue of $4.1 million, marking a notable rise from $3.5 million during the same period of the prior year. Key drivers for this upward trend included a significant 20% year-over-year increase in antigen sales. Sales to a crucial customer rose over 40%, contributing to this growth.
Quality Assessment Products (QAPs) revenues also climbed by 13%, reaching $1.7 million. Despite facing a modest increase in royalty revenues, overall improvements in gross margin were observed, which rose to 54% from 41% in Q3 2025 as a result of increased sales and reduced manufacturing expenses.
On a year-to-date basis, however, revenues totaled approximately $11.7 million, down 21% from $14.8 million in the previous year. This decline is attributed mainly to a significant drop in sales to a distributor in China, which fell over $4 million. Excluding this distributor, antigen sales showed an 8% increase year-over-year. Despite a challenging environment, QAPs revenues rose by 5%.
The gross margin for the nine-month period was 48%, down from 56% in the prior year, reflecting the impact of decreased sales and fixed costs needing to be absorbed across fewer units of production.
Microbix reported an operating loss of approximately $806,762 for Q3 fiscal 2026, showing improvement from a $1.6 million loss in the previous year’s quarter. For the year-to-date, the cumulative operating loss reached $3.4 million, a stark contrast to the $765,150 loss recorded during the same period in 2025.
Moving forward, Microbix plans to enhance its capabilities and pursue new client programs in order to rebound from past setbacks. The company aims to achieve sustained revenue growth and profitability, projecting full-year results aligned with their forward-looking guidance.
Microbix reported Q3 revenues of $4,059,303 for fiscal 2026, which marks a 17% increase compared to Q3 fiscal 2025 revenues of $3,472,182. This growth is attributed to a significant increase in sales to key customers, particularly in the antigen product line.
Microbix anticipates that its full-year results for fiscal 2026 will align with the forward-looking information disclosed in its Management Discussion and Analysis (MD&A). The company aims to rebuild sales above its earnings breakeven point, although it faced setbacks in mid-2025 with two clients.
For the nine months ending June 30, 2026, Microbix's revenues decreased by 21% to $11,655,920 compared to YTD 2025 revenues of $14,841,048. This decline was heavily influenced by a significant drop in antigen sales to a distributor in China, despite growth in other areas of the business.
Microbix's Q3 gross margin improved to 54%, up from 41% in the previous year. This improvement was primarily due to increased antigen and QAPs sales, which helped to cover more of the company's fixed manufacturing overhead costs.
Microbix has acknowledged that its forward-looking information is inherently uncertain and that actual performance may be affected by various material factors, many of which are beyond the company's control. This includes risks associated with financial results, regulatory compliance, and the ability to maintain adequate working capital.
Microbix reported a net loss of $806,762 for Q3 of fiscal 2026, which was an improvement from the net loss of $1,642,776 in Q3 2025. Despite this improvement, the company still faces challenges in achieving profitability.
Microbix is actively pursuing new client programs and customers, and is focused on expanding its portfolio of products and services. The management insists that these efforts are to drive sales growth across all business lines, although the impacts of these initiatives are yet to be fully realised.
Microbix Biosystems Inc. is traded on the TSX under the ticker symbol MBX and on the OTCQX under the symbol MBXBF. Its headquarters is located in Mississauga, Ontario, Canada.