Executive Summary

Q3 FY2025 revenue rose 6.1% year over year to $13.95M, with gross margin expanding to 11.1% and diluted EPS improving to $0.02, reflecting stronger operating leverage versus the prior year .
Sequentially, revenue increased from $12.61M in Q2 to $13.95M in Q3 and operating margin expanded from 1.6% to 5.3%, indicating improved mix and cost discipline .
Management continues to highlight progress on customer diversification; the share of revenue from the two largest customers fell to 83% for the nine months ended March 31, 2025 (from 90% a year ago) though concentration remains high .
No formal guidance was issued and no earnings call transcript was available; press releases remain the primary source of commentary, with macro risks (inflation, tariffs, labor markets) cited as ongoing factors .

What Went Well and What Went Wrong

Revenue growth and margin expansion: Q3 revenue up 6.1% YoY to $13.95M and gross margin improved to 11.1%, driving operating income to $0.74M and net income to $0.61M .
Operating leverage: Operating margin increased to 5.3% in Q3 from 3.6% in Q1 and 1.6% in Q2, reflecting improved cost structure and mix .
Customer diversification momentum: “Our revenues increased by 6.9%... we were able to expand our customer base over the past year and increase our revenue,” per Co-CEOs Riva Sheppard and Christina Kay (nine months ended March 31, 2025) .

Customer concentration remains elevated: Two largest customers accounted for ~83% of nine-month revenue (down from 90% YoY), and were 85% of Q1 quarter revenue, underscoring ongoing dependency risk .
Limited forward visibility: No guidance ranges provided; commentary is high level, with macro risks cited (inflation, tariffs, tightened labor markets), constraining estimate frameworks .
Volatility around profitability: Subsequent quarter (Q4 FY2025) posted a net loss despite higher revenue, highlighting sensitivity to cost and mix shifts .

Metric	Q1 FY2025 (Sep 30, 2024)	Q2 FY2025 (Dec 31, 2024)	Q3 FY2025 (Mar 31, 2025)
Revenue ($USD Millions)	$13.62	$12.61	$13.95
Gross Profit ($USD Millions)	$1.37	$1.17	$1.55
Gross Margin %	10.1%	9.3%	11.1%
Operating Income ($USD Millions)	$0.49	$0.20	$0.74
Operating Margin %	3.6%	1.6%	5.3%
Net Income ($USD Millions)	$0.26	$0.12	$0.61
Net Income Margin %	1.9%	0.9%	4.4%
Diluted EPS ($USD)	$0.01	$0.00	$0.02

Metric	Q3 FY2024 (Mar 31, 2024)	Q3 FY2025 (Mar 31, 2025)
Revenue ($USD Millions)	$13.15	$13.95
Gross Profit ($USD Millions)	$1.25	$1.55
Gross Margin %	9.5%	11.1%
Operating Income ($USD Millions)	$0.36	$0.74
Operating Margin %	2.7%	5.3%
Net Income ($USD Millions)	$0.29	$0.61
Diluted EPS ($USD)	$0.01	$0.02

Metric	Consensus (S&P Global)*	Actual Q3 FY2025
Revenue ($USD Millions)	N/A*	$13.95
Diluted EPS ($USD)	N/A*	$0.02

Values retrieved from S&P Global.*

KPI	Q1 FY2025	Q2 FY2025 (Six Months)	Q3 FY2025 (Nine Months)
Share of revenue from two largest customers (%)	85%	82%	83%

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025/FY2026	None	None	Maintained (no formal guidance)
Margins/OpEx/Tax	FY2025/FY2026	None	None	Maintained (no formal guidance)

Management did not issue quantitative guidance ranges in the Q3 FY2025 press release .

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Customer concentration & diversification	“Our goal of diversifying our customer base...” (Q1); 82% from two largest customers over six months (Q2)	83% from two largest customers over nine months (Q3); continued focus on expanding customer base	Improving slowly but remains elevated
Macro: inflation, tariffs, labor markets	Risks cited including inflation, labor markets, geopolitical conflicts (Q1/Q2)	Inflation and tariff pressures reiterated (Q3)	Persistent caution
Supply chain/ports	Risk of East Coast port strike noted in Q1	Not highlighted in Q3	Fading in commentary
Regulatory/legal	General regulatory risk disclosure (Q1/Q2)	Regulatory changes cited as ongoing risk (Q3)	Stable baseline risk

Note: No earnings call transcript was available; themes reflect press release disclosures .

“Our revenues increased by 6.9% in the nine months ended March 31, 2025... we were able to expand our customer base over the past year and increase our revenue” — Co-CEOs Riva Sheppard and Christina Kay .
“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) .
Macro caution: inflation, tariffs, tightened labor markets, and regulatory changes referenced in forward-looking statements (Q3 FY2025) .

No earnings call transcript found; no Q&A disclosures were available in our sources. The company’s IR site lists press releases but shows no upcoming events and provides no transcript link .

S&P Global shows no active Wall Street consensus for Q3 FY2025 EPS or revenue; coverage appears unavailable for INBP at this time*. Results should be evaluated without an estimates benchmark. Values retrieved from S&P Global.*
Given the lack of formal guidance and consensus, model updates should emphasize observed sequential margin gains and the trajectory of customer concentration .

Sequential operating improvements: Q3 operating margin rose to 5.3% from 1.6% in Q2, with EPS improving to $0.02, indicating better execution and mix in core contract manufacturing .
YoY strength: Revenue +6.1% YoY and net income more than doubled to $0.61M, supported by gross margin expansion to 11.1% .
Concentration risk persists: Two largest customers still represent ~83% of year-to-date revenue; diversification progress should remain a focal point in underwriting .
No guidance and limited Street coverage: Absence of formal guidance and lack of consensus estimates increase uncertainty; rely on sequential trends and operational KPIs for near-term positioning .
Macro sensitivity: Inflation/tariffs and labor market tightness remain stated risks; monitor cost dynamics and potential pass-throughs in contract terms .
Watch subsequent quarter volatility: Q4 FY2025 net loss despite higher revenue highlights sensitivity to costs and customer order timing; treat Q3 improvements cautiously in near-term forecasts .
Near-term trading implication: Positive Q3 momentum with margin gains could be supportive, but high customer concentration and macro overhangs argue for balanced risk management until diversification further improves .