Integrated BioPharma FY2026: Sales Drop 19%, Gross Margin Collapses to 1.8%, Loan Covenant Breached
INBP sits 34% above its 52-week low of $0.138.
Summary
Integrated BioPharma's FY2026 annual report shows a 19% revenue decline, a swing to a $2.8M net loss, a gross margin collapse to 1.8%, and a breach of its PNC loan covenant.
Updates
· ACCESS Newswire — Q4 revenue fell 31% to $9.8M; Q4 net loss was $1.4M, or $0.04 per share.
Key Events · Earnings and Guidance · INBP
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Revenue Falls 19.3% to $43.9M
Net sales declined $10.5M year-over-year, driven by lower sales to the two major contract manufacturing customers and the loss of three customers in the Other Business Lines segment.
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Gross Margin Collapses to 1.8%
Gross profit fell from $5.6M to $0.8M as fixed manufacturing costs remained flat while volume dropped, pushing gross margin down from 10.2% to 1.8%.
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Net Loss of $2.8M vs Prior-Year Profit
The company swung from net income of $0.8M in FY2025 to a net loss of $2.8M in FY2026, driven by the $4.7M decline in operating income.
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PNC Loan Covenant Breached
As of June 30, 2026, the company did not meet its Fixed Charge Coverage Ratio of 1.10 to 1.0 under the PNC Loan Agreement and has requested a waiver it expects to receive, but the waiver has not yet been granted.
Analysis · INBP · Life Sciences
The annual report reveals a sharp deterioration in operating performance. Net sales fell 19.3% to $43.9 million, and the company swung from a $0.8 million profit to a $2.8 million net loss. Gross margin collapsed from 10.2% to 1.8% because fixed manufacturing costs stayed flat while volume dropped. More concerning, the company breached its Fixed Charge Coverage Ratio covenant under the PNC credit facility and is relying on a waiver it has not yet received. With 90% of revenue concentrated in just two customers, the loss of either would be devastating. The company has $4.5 million in cash and $4.25 million in available credit, but the covenant breach and margin compression raise real questions about runway and lender patience.
How filings like this one have moved
In the 30 days to Oct 5, 2026, 36.9% of the 964 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.65%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, INBP was trading at $0.18 on OTC in the Life Sciences sector, with a market capitalization of approximately $5.7M. The 52-week trading range was $0.14 to $0.42. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.