Executive Summary

Q1 FY26 revenue was $12.69M, down 6.8% year over year and down 10.3% sequentially from Q4 FY25, with gross profit of $1.02M and operating income of $0.16M; diluted EPS was $0.00 .
Mix and volume from key customers drove the decline: Life Extension and Herbalife remained highly concentrated at 71% and 20% of Contract Manufacturing segment sales, respectively; top-two customers represented 87% of consolidated net sales vs. 85% a year ago .
Margins compressed as revenue fell faster than costs: gross margin declined to approximately 8.0% from 10.1% a year ago as fixed manufacturing costs weighed on profitability .
Liquidity improved: cash rose to $4.73M and operating cash flow was $1.30M; working capital increased to ~$14.86M, supported by lower receivables and higher inventories .
No formal guidance or earnings call transcript; near‑term stock catalysts hinge on customer diversification progress, pricing actions to offset inflation/tariff pressures, and capex execution ($173K in Q1; ~$500K FY26 plan) .

What Went Well and What Went Wrong

What Went Well

Cash generation and balance sheet: Q1 operating cash flow was $1.30M; cash ended at $4.73M; working capital improved to ~$14.86M (from $14.52M at FY25 year‑end) .
Stable SG&A: selling and administrative expenses were ~$0.86M, essentially flat vs. ~$0.88M a year ago, demonstrating cost discipline despite lower revenue .
Management focus on diversification: “We will continue to focus on our core businesses…expanding our customer base,” reinforcing a strategic push to broaden revenues beyond top accounts .

What Went Wrong

Revenue and margin pressure: net sales fell $0.93M YoY; gross margin compressed ~210 bps to ~8.0%, driven by volume declines and higher manufacturing costs .
Customer concentration risk increased: Life Extension and Herbalife combined were 87% of consolidated net sales (vs. 85% prior year), magnifying exposure to their demand patterns .
Segment headwinds: Other Business Lines revenue declined $122K YoY, primarily due to lower MDC Warehousing & Distribution sales (-$175K), partially offset by Chem distributor gains (+$53K) .

Financial Results

Metric	Q3 2025	Q4 2025	Q1 2026
Revenue ($USD Millions)	$13.947	$14.175	$12.689
Gross Profit ($USD Millions)	$1.551	$1.469	$1.019
Gross Margin %	11.1%*	10.4%*	8.0%
Operating Income ($USD Millions)	$0.739	$0.589	$0.163
Net Income ($USD Millions)	$0.611	$(0.178)	$0.123
Diluted EPS ($USD)	$0.02	$(0.01)	$0.00
EBITDA ($USD Millions)	$0.815*	$0.660*	$0.240*
EBITDA Margin %	5.84%*	4.66%*	1.89%*
Net Income Margin %	4.38%*	-1.26%*	0.97%*

Note: * Values retrieved from S&P Global.

Segment breakdown (Q1 2026 vs. Q1 2025):

Segment	Geography	Q1 2026 Sales ($000)	Q1 2025 Sales ($000)
Contract Manufacturing	U.S. Customers	$10,131	$10,788
Contract Manufacturing	International Customers	$2,036	$2,185
Contract Manufacturing	Total	$12,167	$12,973
Other Business Lines	U.S. Customers	$522	$644
Other Business Lines	International Customers	$0	$0
Other Business Lines	Total	$522	$644
Total Company	Total Net Sales	$12,689	$13,617

KPIs:

KPI	Q1 2026	Q1 2025
Top-two customers share of consolidated net sales	87%	85%
Life Extension share of Contract Manufacturing	71%	68%
Herbalife share of Contract Manufacturing	20%	21%
International sales ($USD Thousands)	$2,036	$2,185
Cash balance ($USD Thousands)	$4,732	$2,271
Operating cash flow ($USD Thousands)	$1,301	$657
Working capital ($USD Thousands)	$14,860	$—

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY26/Q2 onward	None disclosed	None disclosed	Maintained: no formal guidance
Margins	FY26/Q2 onward	None disclosed	None disclosed	Maintained: no formal guidance
OpEx	FY26/Q2 onward	None disclosed	None disclosed	Maintained: no formal guidance
Capex	FY26	~$500K plan	~$500K plan	Maintained; Q1 spend $173K

Earnings Call Themes & Trends

No earnings call transcript was available for Q1 2026 after targeted searches; themes below reflect press releases and MD&A.

Topic	Previous Mentions (Q3 and Q4 2025)	Current Period (Q1 2026)	Trend
Customer concentration	Two largest customers ~83% of revenue YTD through Q3; ongoing focus on expanding customer base	Top-two customers 87% of consolidated net sales; Life Extension 71%, Herbalife 20% in Contract Manufacturing	Concentration remains elevated; slight uptick YoY
Pricing/inflation/tariffs	Acknowledged tightened labor markets and inflation; tariff impact noted	Margin pressure from higher manufacturing costs; inflation/tariffs cited as risks to pricing power	Persistent headwind
Segment mix	Sequential revenue variability across quarters highlighted	Other Business Lines -$122K YoY; MDC WHD down $175K, Chem up $53K	Mixed; warehousing soft; Chem stable-to-up
International sales	Stable contributions in prior periods	Down modestly to $2,036K from $2,185K YoY	Slight decline
Capex/operations	No specific guidance in Q3/Q4 press releases	FY26 capex plan ~$500K; Q1 spend $173K; lines of credit available ($4,000 revolver, $500 convertible ELOC)	Incremental investment; financing capacity intact
Legal/regulatory	No material proceedings	No material proceedings; risk factors unchanged	Stable

Management Commentary

“Our revenue decreased by approximately 7% in the quarter ended September 30, 2025…our revenue from our two largest customers…represented approximately 87%…and 85%…in the quarters ended September 30, 2025 and 2024, respectively.” — Co‑CEOs Riva Sheppard and Christina Kay .
“We will continue to focus on our core businesses and push forward in maintaining our cost structure in line with our sales and expanding our customer base.” — Management MD&A .
“Our net sales…decreased by $928…The decrease…was primarily due to decreased sales volumes to Herbalife ($307) and Life Extension ($215) and other customers ($284).” — Management MD&A .

Q&A Highlights

No Q1 2026 earnings call transcript was found; therefore, there were no disclosed analyst Q&A exchanges to summarize [ListDocuments (earnings-call-transcript search returned none)].

Estimates Context

S&P Global consensus estimates coverage appears limited for INBP; Primary EPS Consensus Mean was unavailable for Q1 FY26, and we did not observe published Street revenue/EBITDA consensus for comparison [GetEstimates].
Where estimates are unavailable, we benchmarked actuals against prior periods only; investors should note coverage constraints typical of OTC microcaps [GetEstimates].

Key Takeaways for Investors

Revenue fell 6.8% YoY to $12.69M with diluted EPS $0.00; margin compression reflects fixed cost absorption on lower volumes .
Customer concentration rose to 87%; Life Extension and Herbalife drove most of the segment’s sales, increasing sensitivity to their demand and pricing decisions .
Liquidity strengthened with $4.73M cash and $1.30M operating cash flow; working capital improved to ~$14.86M, providing flexibility for operations and capex .
Segment mix shows MDC Warehousing & Distribution softness offset by Chem distributor gains; near-term stabilization hinges on warehousing demand recovery and broader customer wins .
No formal guidance and no call transcript reduce near‑term visibility; watch for disclosures on pricing actions to offset inflation/tariff costs and any diversification updates .
FY26 capex plan (~$500K) and available credit lines ($4,000 revolver; $500 convertible ELOC) support incremental efficiency investments; execution should aid margins over time .
Trading implications: results likely tilt cautious near term given margin pressure and concentration; catalysts include new customer additions, improved mix, and evidence of pricing power to protect gross margins .

Additional detail and sources:

Q1 FY26 press release and 8‑K (Item 2.02): revenue/EPS and commentary .
Q1 FY26 10‑Q: full financials, segment details, risks, liquidity, capex .
Prior quarters: Q3 FY25 press release ; Q4 FY25 press release .

Notes:

- Values retrieved from S&P Global.

INTEGRATED BIOPHARMA INC (INBP)·Q1 2026 Earnings Summary