Star Metro - iFabric Corp. Announces Record Revenues for Q2 and H1 2026

MARKHAM, ON / ACCESS Newswire / August 13, 2026 / iFabric Corp. (TSX:IFA)(OTCQX:IFABF), a leader in innovative textile and performance-apparel technologies, today announced record revenue and earnings for the second quarter and six months ended June 30, 2026 ("Q2 & H1"), marking the strongest six-month period in the Company's history, with both operating divisions achieving all-time highs.

• H1 2026 revenue increased 188% to a record $37,088,424 from H1 2025, a $24,211,233 gain and the Company's strongest six-month performance to date, supported by record Q2 revenue of $9,585,729, up 65% year over year.

• The Intelligent Fabrics (IFTNA) Division generated record H1 revenue of $29,937,618, up 229% from H1 2025, driven by its first major scrubs and footwear programs.

• The Coconut Grove Division delivered record H1 revenue of $7,150,806, up 89% from H1 2025, led by the strong retail launch of the Company's own brand, Nudish^™.

• Strong balance sheet, with $25,486,793 million in cash and adjusted working capital of $45,184,032, following successful capital raise.

"These are the strongest results in iFabric's history. First-half revenue nearly tripled, both divisions achieved all-time records, and that growth translated into meaningful earnings. Our team executed exceptionally well, and we enter the second half with tremendous momentum," stated Hylton Karon, President and CEO.

"The Intelligent Fabrics Division is performing at the level we have worked toward for years. Our first major scrubs and footwear programs have been very well received by retail partners and show that our technology platform can support large, repeatable programs across North America. At Coconut Grove, Nudish^™ has had a strong launch, reaching a younger consumer, expanding our product range, and removing the restrictions and royalties of the prior licence," added Mr. Karon.

Q2 2026 HIGHLIGHTS:

• Q2 2026 revenue rose 65% to a record $9,585,729 from $5,796,761 in Q2 2025, an increase of $3,788,968. Revenue was reduced by $650,000 for marketing support provided to customers, as required under International Financial Reporting Standards ("IFRS").

• Intelligent Fabrics Division revenue increased 94% to $6,337,371 in Q2 2026 from $3,262,885 in 2025, primarily due to higher apparel sales in Canada and the U.S. from new programs launched in Q1 2026, particularly the Division's first major scrubs and footwear programs.

• Intimate Apparel Division revenue increased 28% to $3,248,358 in Q2 2026 from $2,528,626 in 2025, mainly driven by the launch of Nudish^™ at major retailers after the prior Maidenform® licence expired on December 31, 2025. The new brand targets a younger demographic, broadens product opportunities, and eliminates prior licence restrictions and royalties.

• Gross margin was 30% in Q2 2026 compared with 37% in 2025, mainly due to product mix and approximately $650,000 of customer marketing support deducted from revenue under IFRS. Gross profit increased 33% to $2,859,086 from $2,142,902, reflecting higher revenue.

• Selling, general and administrative costs rose 37% to $3,098,022 in Q2 2026 from $2,254,551 in 2025, reflecting higher variable selling costs, including royalties and commissions, as well as increased personnel, advertising, and travel costs to support future initiatives.

• The Company recorded sundry income of $925,840, net of fees, related to the recovery of U.S. tariffs previously paid on goods imported from China into the U.S. The claims have been processed and confirmed by U.S. Customs and Border Protection ("CBP"). Approximately $710,000 has been received to date, with the remaining $215,000 expected in the following quarter.

• Q2 2026 EBITDA was $714,629, compared with negative EBITDA of $288,798 in 2025, an improvement of $1,003,427. Negative adjusted EBITDA was $245,289 in Q2 2026, compared with negative adjusted EBITDA of $268,184 in 2025. A reconciliation of adjusted EBITDA to EBITDA appears in the table below.

• Net earnings in Q2 2026 were $238,597 ($0.007 per share, basic and diluted), compared with a net loss of $190,103 ($0.006 per share, basic and diluted) in 2025. The improvement was mainly due to higher revenue, increased gross profit dollars, and the U.S. tariff recovery, partially offset by higher expenses.

• Adjusted working capital, excluding a $3,607,523 term loan classified as current under IFRS, was $45,148,032 at the end of Q2, compared with $23,758,324 at the end of the previous quarter, an increase of $21,389,708 mainly attributable to approximately $21 million in net private placement proceeds from a share offering that closed on June 5, 2026.

• Cash increased to $25,486,793 at June 30, 2026 from $1,760,999 at the end of the previous quarter, an increase of $23,725,794.

• SIX MONTH HIGHLIGHTS (H1 2026):

• H1 2026 revenue rose 188% to a record $37,088,424 from $12,877,201 in H1 2025, an increase of $24,211,223.

• By division, Intimate Apparel revenue increased 89% to $7,150,806 in H1 2026 from $3,779,365 in 2025, while Intelligent Fabrics revenue increased 229% to $29,937,618 from $9,087,336.

• H1 2026 gross margin was 32%, compared with 38% in 2025, mainly due to product mix and approximately $650,000 of customer marketing support deducted from revenue under IFRS. Gross profit dollars increased 142% to $11,811,303 from $4,882,356.

• H1 2026 EBITDA was $5,775,150, compared with negative EBITDA of $101,540 in 2025. Adjusted EBITDA was $5,487,554, compared with $50,294 in 2025. A reconciliation of adjusted EBITDA to EBITDA appears in the table below.

Complete Financial Statements are available at:https://www.sedarplus.ca/landingpage/

Hylton Karon, CEO of iFabric and Hilton Price CFO, will participate in a webinar hosted by Adelaide Capital at 11am ET on August 20th.

Register here: https://us02web.zoom.us/webinar/register/WN_M5I8ABzCQQGkgWyhCgXrAw

The webinar livestream will also be available to watch on the Adelaide Capital YouTube Channel, where a replay will be posted after the event: https://bit.ly/adcap-youtube

FINANCIAL HIGHLIGHTS

*Note: Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, share based compensation and non-recurring items.

About iFabric Corp:

Headquartered in Markham, Ontario, iFabric, www.ifabriccorp.com, is listed on the TSX and, currently has 30.3 million shares issued and outstanding. Its two strategic divisions offer a variety of products and services through wholly-owned subsidiaries, namely, Intelligent Fabric Technologies (North America) Inc. ("IFTNA") and Coconut Grove Pads Inc. ("Coconut Grove").

IFTNA is focused on development and sale of high-performance sports apparel, medical protective apparel, consumer protective apparel, and proprietary treatments that provide "intelligent" properties to fabrics, foams, plastics, and numerous other surfaces, thereby improving the safety and well-being of the user. Such intelligent properties include antiviral and antibacterial characteristics, water-repellence and UV protection, among others.

Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies' intimate apparel products and accessories.

*USE OF NON-GAAP MEASURES

Certain measures in this document do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS") and, therefore, are not considered generally accepted accounting principles ("GAAP") measures and may not be comparable to similar measures presented by other issuers. Where non-GAAP measures or terms are used, definitions are provided. The Company believes that certain non-GAAP financial measures provide important information regarding the operational performance and related trends of the Company's business. In this document and in the Company's consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.

Adjusted EBITDA

The Company uses Adjusted EBITDA to assess its operating performance without the effects of (as applicable): current and deferred tax expense, finance costs, interest income, depreciation and amortization of plant assets, other gains and losses, impairment loss, share-based compensation and other non-recurring items. The Company adjusts for these factors as they may be non-cash, unusual in nature and may not optimally represent its operating performance. Adjusted EBITDA is not intended to be representative of net earnings from operations or an alternative measure to cash provided by operating activities determined in accordance with IFRS.

The table below reconciles Adjusted EBITDA and Net earnings attributable to owners of the Company, calculated in accordance with IFRS:

FORWARD LOOKING STATEMENTS

Forward-looking statements provide an opinion as to the effect of certain events and trends on the business. Certain statements contained in this news release constitute forward-looking statements. The use of any words such as "anticipate", "continue", "plans", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the extent and impact of health pandemic outbreaks on our business; general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; the actual results of the Company's future operations; competition; changes in legislation affecting the Company; the ability to obtain and maintain required permits and approvals, the timing and availability of external financing on acceptable terms; lack of qualified, skilled labour or loss of key individuals.

A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's annual information form dated March 30, 2026 and other filings with the Canadian securities regulators available under the Company's profile on SEDAR+ at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance, or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Any financial outlook or future oriented financial information in this news release, as defined by applicable securities legislation, has been approved by management of iFabric. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason except as required by applicable securities laws.

FOR FURTHER INFORMATION please contact:

Website: www.ifabriccorp.com

Neither the TSX Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE: iFabric Corp

View the original press release on ACCESS Newswire

L.Mitchell--SMC