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INTEGRATED BIOPHARMA INC (INBP)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue grew 9.6% year over year to $12.6M, with operating income turning positive to ~$0.2M and net income of ~$0.1M; six-month revenue rose 7.4% to $26.2M with ~$0.7M operating income .
  • Sequentially, revenue softened versus Q1 2025 ($12.6M vs $13.6M) and net income declined ($0.1M vs $0.3M), reflecting normal seasonality and mix/pricing dynamics .
  • Customer concentration continues to improve: top-two customers were 82% of revenue in H1 FY2025 vs 90% YoY, and 85% in Q1 FY2025 vs 91% YoY, supporting the diversification narrative .
  • No formal guidance and no earnings call transcript were available; narrative catalysts center on revenue diversification and sustained profitability improvement vs prior year .

What Went Well and What Went Wrong

What Went Well

  • Revenue grew 9.6% YoY in Q2 2025 and operating income flipped from a loss to a profit versus Q2 2024, indicating improved execution and mix discipline .
  • Six-month operating income reached ~$0.7M (vs ~$0.5M loss YoY), evidencing sustained profitability improvement across H1 FY2025 .
  • Management highlighted successful customer base expansion: “we were able to expand our customer base over the past year and increase our revenue,” reinforcing the diversification strategy .

What Went Wrong

  • Sequential softness: Q2 revenue of $12.6M was below Q1’s $13.6M, and net income dropped from ~$0.26–0.29M in Q1/Q4 to ~$0.12M in Q2, reflecting quarter-to-quarter variability .
  • Gross profit in Q2 ($1.17M) trailed Q1 ($1.37M) and Q4 ($1.28M), indicating margin pressure or mix changes sequentially .
  • Ongoing macro risks flagged (inflation/labor, tariffs, geopolitical events) could pressure costs and demand; the company also remains reliant on major customers despite improving concentration metrics .

Financial Results

Quarter-over-Quarter and Year-over-Year

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$12.746 $13.617 $12.614
Gross Profit ($USD Millions)$1.284 $1.371 $1.171
Operating Income ($USD Millions)$0.402 $0.490 $0.202
Net Income ($USD Millions)$0.268 $0.259 $0.116
Diluted EPS ($USD)$0.00 $0.01 $0.00

Q2 2025 YoY Snapshot (Quarter Ended December 31)

MetricQ2 2024Q2 2025YoY Details
Revenue ($USD Millions)$11.509 $12.614 +9.6% YoY
Operating Income ($USD Millions)$(0.452) $0.202 Turned to profit
Net Income ($USD Millions)$(0.382) $0.116 Turned to profit
Diluted EPS ($USD)$(0.01) $0.00 Improved YoY

KPIs and Concentration

KPIQ4 2024 (FY)Q1 2025 (Quarter)Q2 2025 (Six Months)
Top-2 Customer Revenue Concentration (%)90% (FY2024) 85% (Q1 FY2025) vs 91% YoY 82% (H1 FY2025) vs 90% YoY

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2025 / Q2 2025Not provided Not provided Maintained: No guidance
MarginsFY2025 / Q2 2025Not provided Not provided Maintained: No guidance
OpEx / OI&EFY2025 / Q2 2025Not provided Not provided Maintained: No guidance
Tax RateFY2025 / Q2 2025Not provided Not provided Maintained: No guidance
Segment/DividendsFY2025 / Q2 2025Not provided Not provided Maintained: No guidance

Earnings Call Themes & Trends

Note: No earnings call transcript found for Q2 2025; themes below reflect press release commentary.

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Customer diversificationFocus on diversifying customer base; top-2 customers ~90% of FY2024 revenue and 85% of Q1 FY2025 revenue vs 91% YoY Top-2 customers 82% of H1 FY2025 vs 90% YoY Improving concentration (lower %)
Profitability trajectoryFY2024 operating income modest; Q1 FY2025 profitability positive Q2 FY2025 operating income positive, net income positive YoY Positive YoY inflection, sequential variability
Macro/cost environmentInflation, labor markets, tariffs cited as risks Inflation/labor, tariffs, geopolitical conflicts reiterated Persistent external headwinds

Management Commentary

  • “Our revenues increased by 7.4% in the six months ended in December 31, 2024 compared to the comparable period a year ago… we were able to expand our customer base over the past year and increase our revenue.” — Co-CEOs Riva Sheppard and Christina Kay .
  • “Our revenue from our two largest customers in our Contract Manufacturing Segment represented approximately 82% and 90% of total revenue in the six-month period ended December 31, 2024 and 2023, respectively.” — Co-CEOs .
  • “Our goal of diversifying our customer base is reflected in our September quarter numbers from 91% in 2023 to 85% in 2024. We hope to continue this trend as well as grow with our current customers.” — Co-CEOs (Q1 FY2025 press release) .

Q&A Highlights

  • No earnings call transcript available in the document set for Q2 2025; no Q&A details to report .

Estimates Context

  • Wall Street consensus estimates from S&P Global were unavailable for Q2 2025 during this session due to access limits; as a result, we cannot quantify beats/misses versus consensus for revenue or EPS at this time.
  • Given the positive YoY inflection (revenue +9.6% YoY and operating/net income turned positive), sell-side estimates may need to reflect improved profitability trajectory, tempered by sequential fluctuations and concentration risk .

Key Takeaways for Investors

  • YoY inflection: Q2 delivered +9.6% revenue growth with positive operating and net income vs prior-year losses, signaling improved execution and mix .
  • Sequential variability: QoQ revenue and profit declined versus Q1, highlighting seasonality and the importance of monitoring customer order patterns .
  • Diversification traction: Top-two customer concentration fell to 82% in H1 FY2025 (vs 90% YoY) and to 85% in Q1 (vs 91% YoY), mitigating single-customer risk over time .
  • Profitability building: H1 operating income of ~$0.7M vs a ~$0.5M loss YoY supports a medium-term thesis of incremental margin improvement with disciplined cost control .
  • Risk frame: Inflation, labor tightness, tariffs, and geopolitical risks persist; monitor input costs and any pricing actions that could affect margins .
  • No guidance/limited disclosures: Absence of formal guidance and no call transcript reduce near-term visibility; focus on subsequent quarters’ press releases for confirmation of diversification and margin trends .
  • Actionable: Near term, watch for order flow from major customers and continued share gains from new accounts; medium term, thesis depends on sustaining lower concentration and scaling profitability across quarters .