Microbix Swings to Loss as China Demand Softens and Key Programs Are Cancelled

Microbix Biosystms ( (TSE:MBX) ) has issued an update.

Microbix reported a challenging fiscal 2025, with full-year revenue falling 27% to $18.6 million and the company swinging from net income of $3.5 million in the prior year to a net loss of $2.2 million. The downturn was driven by the absence of prior-year licensing revenue from its Kinlytic asset, weaker antigen sales into China amid fewer respiratory infections, and the cancellation of test-development programs by a major QAPs client, all of which compressed gross margins from 61% to 53% and increased pressure from operating expenses. Fourth-quarter revenue declined 41% to $3.7 million, led by a 55% drop in antigen sales as Chinese demand softened and shipments to a large European customer were delayed, resulting in a quarterly net loss of $1.5 million and a sharp margin deterioration. Despite these setbacks, the company highlighted ongoing investments in manufacturing efficiency, new product development, and expanded client relationships, and it ended the year with a strong liquidity position, including $12.1 million in cash and a high current ratio, positioning it to pursue new products and customers to rebuild revenue above breakeven levels.

The most recent analyst rating on (TSE:MBX) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Microbix Biosystms stock, see the TSE:MBX Stock Forecast page.

Spark’s Take on TSE:MBX Stock

According to Spark, TipRanks’ AI Analyst, TSE:MBX is a Neutral.

Microbix Biosystems’ overall stock score is primarily influenced by its strong financial performance and stability, despite recent revenue challenges. Technical indicators suggest bearish momentum, and valuation metrics are weak due to a negative P/E ratio. The earnings call reflects both immediate challenges and potential for future growth, balancing the overall outlook.

To see Spark’s full report on TSE:MBX stock, click here.

More about Microbix Biosystms

Microbix Biosystems Inc., based in Mississauga, Ontario, is a life sciences company that develops, manufactures and exports biological products, including antigens and quality assessment products (QAPs), primarily for use in diagnostics. The company serves global markets, with notable exposure to China and Europe, and also generates revenue from product royalties.

Average Trading Volume: 45,769

Technical Sentiment Signal: Sell

Current Market Cap: C$33.36M

See more data about MBX stock on TipRanks’ Stock Analysis page.