Mr. Hylton Karon reports

IFABRIC CORP DELIVERS RECORD Q3 2025 REVENUE OF $9.0 MILLION, UP 111% YEAR-OVER-YEAR

iFabric Corp. had all-time-high revenue of $9,021,607 for its third quarter of 2025, a 111-per-cent increase versus Q3 2024. iFabric believes this step change in scale reflects robust demand for its differentiated technologies and sets a strong foundation for continuing year-over-year growth in Q4 2025 and across 2026.

The company is continuing to advance key customer product launch programs, which are intended to drive sales growth and expanding market reach. Management expects this momentum to continue into year-end and beyond, supported by a healthy order pipeline and continuing retailer adoption of company products. As part of this growth phase, iFabric experienced a gross margin and earnings dip this quarter that it believes to be temporary -- reflecting the first-wave impact of U.S. tariffs and upfront costs tied to the rollout of its new enterprise resource planning (ERP) software system; however, these transitional items are expected to normalize as announced tariff reductions phase in and efficiency gains from the ERP implementation are realized.

"Our record quarter underscores how our technology portfolio is effectively resonating with retailer customers and scaling with their major new programs," said Hylton Karon, chief executive officer of iFabric. "We're entering Q4 with strong momentum and clear line of sight to carry that strength across FY [fiscal year] 2026. Even as we invest to support rapid growth, we remain focused on profitable execution, operational excellence and delivering innovative products that keep iFabric on a compelling upward trajectory," concluded Mr. Karon.

Three months ended Sept. 30, 2025 (Q3 2025), highlights:

• Total Q3 2025 revenues were $9,021,607, an increase of 111 per cent, or $4,741,043, compared with $4,280,564 in 2024.
• Intelligent fabric division revenue was $6,930,448, an increase of 170 per cent, or $4,361,311, from $2,569,137 in 2024, with that growth attributable to new programs, mainly in the United States.
• Intimate apparel division revenue was $2,089,409 an increase of 22 per cent, or $383,232, from $1,706,177 in 2024, likewise as a result of new programs.
• Gross profit contribution increased to $2,727,058 (30-per-ccent gross margin) in 2025, an increase of 55 per cent, or $970,328, compared $1,756,730 (41-per-cent gross margin) in 2024. Gross margins for the quarter were impacted by U.S. tariffs as well as the product mix for the quarter, which saw increased shipments of higher-volume but lower-margin products.
• Selling, general and administrative costs were $2,093,936 in Q3 2025, compared with $1,742,051 in 2024, an increase of 20 per cent driven by increased personnel, regulatory, advertising and travel costs incurred to support future revenue growth as well as costs associated with the implementation of the company's new ERP system, which is scheduled to go live in January, 2026.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $850,090 in 2025, compared with adjusted negative EBITDA of $1,943 in 2024, for an increase of $852,033.
• Net earnings after tax attributable to iFabric's shareholders in Q3 2025 amounted to $543,802 (1.8 cents per share, basic and diluted), compared with a net loss attributable to shareholders of $105,616 (0.3 cent per share, basic and diluted) in 2024.
• Working capital (excluding a term loan classified as current under IFRS (international financial reporting standards) but not requiring repayment in 2026) amounted to $19,894,491 at the end of Q3 2025, compared with $19,167,596 at the end of the previous quarter, an increase of $726,895, attributable to the earnings for the current quarter.
• Cash decreased to $1,233,908 as at Sept. 30, 2025, from $2,655,107 at the end of the previous quarter, due to an increase in deposits against future inventory deliveries.

Nine months ended Sept. 30, 2025 (year-to-date 2025), highlights:

• Revenue increased to $21,898,808 for the nine months ended Sept. 30, 2025, up by 30 per cent, or $5,067,400, compared with $16,831,408 in 2024, with growth attributable to new programs.
• With regard to divisional revenues, YTD 2025 revenue of the intelligent fabrics division was $16,017,784 in 2025 from $10,734,930 in 2024 (for an increase of 49 per cent, or $5,282,854), while the intimate apparel division revenue was $5,868,774 in 2025 from $6,089,478 in 2024 (for a decrease of 4 per cent, or $220,704).
• Gross margins decreased to 35 per cent during the nine months of 2025, compared with 42 per cent in 2024, as a result of the product mix for the period and the impact of U.S. tariffs. Gross profit dollars increased by 7 per cent, or $475,444, to $7,609,414 in 2025, compared with $7,133,970 in 2024.
• For the nine months ended Sept. 30, 2024, selling, general and administrative costs were $6,749,405 in 2025, compared with $6,227,215 in 2024 (up by 8 per cent, or $522,190), mainly as a result of increased personnel, advertising and travel costs incurred to support future revenue growth as well as costs associated with implementation of the company's new ERP system.
• Adjusted EBITDA for the first nine months of 2025 amounted to $900,384, compared with adjusted EBITDA of $1,210,254 in 2024.

Complete financial statements are available on SEDAR+ and the company's website.

About iFabric Corp.

Headquartered in Markham, Ont., iFabric is listed on the Toronto Stock Exchange and currently has 30.3 million shares issued and outstanding. Its two strategic divisions offer a variety of products and services through wholly owned subsidiaries, namely Intelligent Fabric Technologies (North America) Inc. (IFTNA) and Coconut Grove Pads Inc.

IFTNA is focused on development and sale of high-performance sports apparel, medical protective apparel, consumer protective apparel, and proprietary treatments that provide intelligent properties to fabrics, foams, plastics and numerous other surfaces, thereby improving the safety and well-being of the user. Such intelligent properties include anti-viral and anti-bacterial characteristics, water repellence, and UV (ultraviolet) protection, among others.

Coconut Grove, operating as Coconut Grove Intimates, is a designer, manufacturer, distributor, licensor and licensee of ladies intimate apparel products and accessories.

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