Ontario’s iFabric Corp. reported sales surged 65 percent in the second quarter to Canadian $9.6 million (U.S. $6.9 mm), led by a 94 percent gain in its Intelligent Fabrics Division and a 28 percent increase in its Intimate Apparel Division.

The Intelligent Fabrics (IFTNA) Division supplies chemical treatments and technologies that add functional, high-performance properties—such as antimicrobial protection, moisture management, UV defense, and PFAS-free water repellency—to textiles and hard surfaces. According to its website, clients include The North Face, Lululemon, Adidas, Under Armour, New Balance as well as many major retailers, including Dick’s Sporting Goods. The Intimate Apparel Division, also called the Coconut Grove Division, manufatures initimate apparel and sleepwear.

In the six months, revenue increased 188 percent to a record C$37,088,424 to represent the company’s strongest six-month performance to date.

“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.”

Q2 2026 Highlights

  • Q2 2026 revenue rose 65 percent to a record C$9,585,729 from C$5,796,761 in Q2 2025, an increase of C$3,788,968. Revenue was reduced by C$650,000 for marketing support provided to customers, as required under International Financial Reporting Standards (IFRS).
  • Intelligent Fabrics Division revenue increased 94 percent to C$6,337,371 in Q2 2026 from C$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 percent to C$3,248,358 in Q2 2026 from C$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 percent in Q2 2026 compared with 37 percent in 2025, mainly due to product mix and approximately C$650,000 of customer marketing support deducted from revenue under IFRS. Gross profit increased 33 percent to C$2,859,086 from C$2,142,902, reflecting higher revenue.
  • Selling, general and administrative costs rose 37 percent to C$3,098,022 in Q2 2026 from C$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 C$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 C$710,000 has been received to date, with the remaining C$215,000 expected in the following quarter.
  • Q2 2026 EBITDA was C$714,629, compared with negative EBITDA of C$288,798 in 2025, an improvement of C$1,003,427. Negative adjusted EBITDA was C$245,289 in Q2 2026, compared with negative adjusted EBITDA of C$268,184 in 2025.
  • Net earnings in Q2 2026 were C$238,597 (C$0.007 per share, basic and diluted), compared with a net loss of C$190,103 (C$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 C$3,607,523 term loan classified as current under IFRS, was C$45,148,032 at the end of Q2, compared with C$23,758,324 at the end of the previous quarter, an increase of C$21,389,708 mainly attributable to approximately C$21 million in net private placement proceeds from a share offering that closed on June 5, 2026.
  • Cash increased to C$25,486,793 at June 30, 2026 from C$1,760,999 at the end of the previous quarter, an increase of C$23,725,794.

Six Month Highlights (H1 2026)

  • H1 2026 revenue rose 188 percent to a record C$37,088,424 from C$12,877,201 in H1 2025, an increase of C$24,211,223.
  • By division, Intimate Apparel revenue increased 89 percent to C$7,150,806 in H1 2026 from C$3,779,365 in 2025, while Intelligent Fabrics revenue increased 229 percent to C$29,937,618 from C$9,087,336.
  • H1 2026 gross margin was 32 percent, compared with 38 percent in 2025, mainly due to product mix and approximately C$650,000 of customer marketing support deducted from revenue under IFRS. Gross profit dollars increased 142 percent to C$11,811,303 from C$4,882,356.
  • H1 2026 EBITDA was C$5,775,150, compared with negative EBITDA of C$101,540 in 2025. Adjusted EBITDA was C$5,487,554, compared with C$50,294 in 2025.

Image courtesy Fabric Corp.