Microbix Reports Results for H1 & Q2 2026

H1 Revenues of $7.6 million and Controlled Net Loss

MISSISSAUGA, ON / ACCESS Newswire / May 14, 2026 / Microbix Biosystems Inc. (TSX:MBX)(OTCQX:MBXBF)(Microbix®), a life sciences innovator, manufacturer, and exporter, reports results for its second quarter and first half of fiscal 2026 ended March 31, 2026 ("Q2" and "H1"). Results for Q2 and H1 demonstrated early results of the Company's continuing work to rebuild revenues back to profitability following two client setbacks in mid-2025, with revenue growth of 5% in H1 compared to H2 fiscal 2025.

Management Discussion

Microbix is prepared for material sales growth following additions to its capabilities and capacity. It is now at work on adding new client programs and clients to counter setbacks with two large clients in 2025. Progress with business development will be announced when secured. Microbix anticipates full-year fiscal 2026 results in-line with the forward-looking information (FLI) disclosed in its current Management Discussion and Analysis (MD&A), towards rebuilding sales above its earnings breakeven point.

Quarter ending March 31, 2026 ("Q2")

Q2 revenue was $3,377,708, a 37% decrease from Q2 2025 revenues of $5,324,864. Included were antigen revenues of $2,584,552 (2025 - $4,317,532), which were down 40% from last year. This antigen decrease was a result of a $2 million reduction in sales to the Company's distributor for China believed due to reduced incidence of respiratory diseases requiring testing and tighter test-access and reimbursement policies. Sales to other antigen customers were up 13% compared to the prior year period. QAPs revenues of $620,593 were down 28% from Q2 2025 (2025 - $ 864,320), primarily due to sales of PT/EQA oriented products being lower during this quarter due to timing of key customer shipments. Revenue from royalties were $172,563 (2025 - $ 143,012). In summary, our Q2 sales decline was driven by a significant decrease in antigen sales to China, offset somewhat by increased sales to other antigen customers.

Q2 gross margin percentage was 48%, down from 60% in 2025, primarily due to decreased product sales resulting in fixed manufacturing costs needing to be absorbed across fewer units of production.

Operating expenses (including finance expenses) in Q2 were down 3% compared to Q2 2025. Favourable foreign exchange gains and lower selling costs due to timing of trade show activities were somewhat offset by increased R&D costs and increased net financing costs versus prior year, due to lower interest income as a result of lower interest rates on a lesser amount of short-term investments.

Overall, weaker Q2 revenues and decreased margins led to an operating loss of $1,430,338, and a net loss of $1,430,338 versus a Q2 2025 operating income and net income of $20,664. Cash used in operating activities was $307,771, compared to cash provided by operating activities of $994,052 in 2025. Much of the cash used in operating activities during the quarter was due to the larger operating loss.

Six Months ending March 31, 2026 ("H1")

H1 revenue was $7,596,617, a 33% decrease from H1 2025 revenues of $11,368,866. Included in H1 2025 were antigen revenues of $4,758,909 (2025 - $8,584,290), down 45% from last year. This decrease was predominantly due to a decrease in sales to our distributor in China of over $4 million. Excluding this distributor, antigen sales increased by 6% in H1 2026 versus H1 2025. QAPs revenues of $2,496,869 were relatively flat versus H1 2025 (2025 - 2,491,301. Revenue from royalties were $340,840 (2025 - $293,275). In summary, the H1 2026 revenues were greatly impacted by the decrease in antigen sales to China.

H1 gross margin was 44%, down from 61% in H1 2024, primarily due to decreased product sales in China which resulted in fixed manufacturing costs needing to be absorbed across fewer units of production.

Operating expenses in H1 decreased slightly relative to H1 2025, as increased net financing costs versus prior year, due to lower interest income as a result of lower interest rates on decreased short-term investments were offset by lower selling costs and favourable foreign exchange gains.

Overall, weaker H2 revenues and decreased margins led to an operating loss and net loss of $2,597,514 versus a H1 2025 operating income and net income of $877,627. Cash used in operating activities was $2,910,174, compared to cash provided by operating activities of $1,786,753 in H1 2025.

At the end of H1, Microbix's current ratio (current assets divided by current liabilities) was 5.35 and its debt-to-equity ratio (total debt over shareholders' equity) was 0.41.

Corporate Outlook

Microbix is aggressively pursuing new client programs and new clients, while continuing to add to its portfolio of products and services, and its capabilities. It thereby intends to continue driving sales growth across all of its business lines, while also improving percentage gross margins and working to deliver bottom-line results. Microbix's goal is to create meaningful and sustained shareholder value within both its diagnostics-oriented business and its fully-funded Kinlytic® urokinase "thrombolytic" drug program.

Furthermore, at 10:00 AM ET on Thursday May 14^th, 2026 Microbix intends to hold a webinar discussion of Q2 2026 results with its CEO, CFO, and COO.

Investors and shareholders can participate in the webinar, hosted by Adelaide Capital, by registering at: https://us02web.zoom.us/webinar/register/WN_8O4BZDDqQmGB2VZLOHUNfw. It will also be live-streamed to YouTube at: https://www.youtube.com/channel/UC7Jpt_DWjF1qSCzfKlpLMWw.

A replay of the webinar will also be made available on Adelaide Capital's YouTube channel.

About Microbix Biosystems Inc.

Microbix Biosystems Inc. creates proprietary biological products for human health, with over 120 skilled employees and revenues of C$ 18.6 million in its latest fiscal year (2025). It makes a wide range of critical ingredients and devices for the global diagnostics industry, notably antigens for immunoassays (antibody tests) and its laboratory quality assessment products (QAPs™) and reference materials (QUANTDx™) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Its antigens drive the immunoassays of approximately 100 diagnostics makers, while QAPs or QUANTDx are sold to clinical lab accreditation organizations, diagnostics companies, and clinical labs. Microbix QAPs are now available in over 30 countries, supported by international distributors. Microbix is ISO 9001 & 13485 accredited, U.S. FDA registered, Australian TGA registered, Health Canada licensed, and provides IVDR-compliant CE marked products.

Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably Kinlytic® urokinase, a biologic thrombolytic drug used to resolve blood clots, and reagents or medial to support diagnostic testing (e.g., its DxTM™ for patient-sample collection). Microbix is traded on the TSX and OTCQX, and headquartered in Mississauga, Ontario, Canada.

Forward-Looking Information

This news release includes "forward-looking information," as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, discussion of Microbix's business and business results, goals or outlook, risks associated with financial results and stability, development projects such as those referenced in its corporate presentation, regulatory compliance and approvals, access to and sales to foreign jurisdictions, engineering and construction, production (including control over costs, quality, quantity and timeliness of delivery), foreign currency and exchange rates, maintaining adequate working capital and raising further capital on acceptable terms or at all, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company's judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information except as required by applicable law.

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Copyright © 2026 Microbix Biosystems Inc.

Microbix®, DxTM™, Kinlytic®, PROCEEDx™, QAPs™, QUANTDx™, and REDx™ are trademarks of Microbix Biosystems Inc.

SOURCE: Microbix Biosystems Inc.