EPS of $0.00 increased by 129.9% from previous year
Gross margin of 9.3%
Net income of 116.00K
"N/A" - N/A
Integrated BioPharma Inc (INBP) QQ2 2025 Results: Modest Margin Leverage and Solid Liquidity in a Niche Packaged Foods/Nutraceuticals Franchise
Executive Summary
Integrated BioPharma Inc delivered a positive top-line result in Q2 2025 with year-over-year revenue growth of 9.6% to $12.614 million, while managing costs to produce a modest but positive EBITDA of $0.503 million and net income of $0.116 million. The company posted an operating income of $0.202 million and an operating margin of 1.6%, signaling incremental operating leverage against a relatively small base. The gross margin stood at 9.28%, reflecting a lean cost structure in a low-to-moderate-margin packaged foods/nutraceuticals environment and potential mix effects between Contract Manufacturing and Other Nutraceuticals segments.
From a balance-sheet and cash-flow perspective, INBP remains ultraliquid with cash and cash equivalents of $2.461 million and total current assets of $18.153 million against current liabilities of $5.575 million, yielding a robust current ratio of 3.26 and a cash ratio of 0.441. Net debt sits at negative $1.138 million, underscoring minimal leverage and ample liquidity to support near-term growth initiatives or potential opportunistic investments. Free cash flow was a small but positive $0.172 million for the quarter, funded by $0.201 million of operating cash flow and aided by disciplined capital expenditure of $0.029 million.
Looking ahead, INBP appears to be operating in a low-risk liquidity framework with modest earnings power. The key questions for investors center on the ability to scale profitability through better product mix, potential private-label and contract-manufacturing opportunities, and sustaining cash generation in the face of commodity and distribution headwinds. Absent explicit quarterly guidance, the investment thesis hinges on balance-sheet strength, margin trajectory, and the potential for incremental revenue growth from its dual-segment model.
Key Performance Indicators
Revenue
12.61M
QoQ: -7.37% | YoY:9.60%
Gross Profit
1.17M
9.28% margin
QoQ: -14.59% | YoY:125.19%
Operating Income
202.00K
QoQ: -58.78% | YoY:144.69%
Net Income
116.00K
QoQ: -55.21% | YoY:130.37%
EPS
0.00
QoQ: -55.81% | YoY:129.92%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $12.614 million in Q2 2025, up 9.60% YoY and down 7.37% QoQ.
Net Income: $0.116 million; Net Margin: 0.92% (0.0092).
Financial Highlights
Revenue and profitability:
- Revenue: $12.614 million in Q2 2025, up 9.60% YoY and down 7.37% QoQ.
- Gross Profit: $1.171 million; Gross Margin: 9.28% (0.0928).
- EBITDA: $0.503 million; EBITDA Margin: 3.99% (0.0399).
- Operating Income: $0.202 million; Operating Margin: 1.60% (0.0160).
- Net Income: $0.116 million; Net Margin: 0.92% (0.0092).
- Earnings per Share (EPS): $0.0038;Diluted EPS: $0.0037; Weighted avg shares: 30.174 million (diluted 31.303 million).
Cash flow and capex:
- Net cash provided by operating activities (CFO): $0.201 million.
- Capital expenditures (CAPEX): $(0.029) million.
- Free cash flow (FCF): $0.172 million.
Balance sheet and liquidity:
- Cash and cash equivalents: $2.461 million; Total assets: $25.662 million.
- Total liabilities: $5.934 million; Total stockholders’ equity: $19.727 million.
- Current assets: $18.153 million; Current liabilities: $5.575 million; Current ratio: 3.26; Quick ratio: 1.271; Cash ratio: 0.441.
- Debt: Total debt $1.323 million; Long-term debt $0.359 million; Net debt: $(1.138) million (net cash).
- Working capital dynamics imply solid liquidity given a sizable cash position relative to near-term liabilities.
Efficiency and turnover:
- Receivables Turnover: 2.98x; Inventory Turnover: 1.034x; Days Sales Outstanding (DSO): 30.17 days; Days Inventory Outstanding (DIO): 87.03 days; Cash Conversion Cycle: 95.12 days.
Valuation and capitalization (as observed in the dataset):
- Price-to-earnings (P/E) approx 21.46x; Price-to-book (P/B) ~0.51x; Price-to-sales (P/S) ~0.79x; Enterprise value multiple ~17.53x; Dividend yield: 0%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
12.61M
9.60%
-7.37%
Gross Profit
1.17M
125.19%
-14.59%
Operating Income
202.00K
144.69%
-58.78%
Net Income
116.00K
130.37%
-55.21%
EPS
0.00
129.92%
-55.81%
Key Financial Ratios
currentRatio
3.26
grossProfitMargin
9.28%
operatingProfitMargin
1.6%
netProfitMargin
0.92%
returnOnAssets
0.45%
returnOnEquity
0.59%
debtEquityRatio
0.07
operatingCashFlowPerShare
$0.01
freeCashFlowPerShare
$0.01
priceToBookRatio
0.51
priceEarningsRatio
21.46
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings call transcript not provided in the data set. As a result, no management quotes or theme-based quotes can be cited. If a transcript becomes available, we will extract themes under strategy, operations, and market conditions with direct quotes and context.
N/A
— N/A
N/A
— N/A
Forward Guidance
No explicit forward-looking targets were disclosed in the provided Q2 2025 data. In a defensive consumer products context, potential progressive catalysts could include: (1) margin stabilization or expansion through product mix shifts toward higher-margin nutraceuticals and/or enhanced contract manufacturing contributions; (2) disciplined capital allocation enabling small-scale investments or bolt-on opportunities without materially increasing leverage; (3) continued liquidity headroom to support growth channels such as private-label sales or e-commerce distribution. Monitoring points for investors include (a) quarterly margin trajectory, (b) cadence of operating cash flow relative to net income, (c) any changes in accounts receivable or inventory that could signal working-capital optimization, and (d) any strategic updates on partnerships, line-of-business mix, or potential acquisitions that could scale the business beyond the current $12.6–$12.7 million annualized revenue base.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
INBP Focus
9.28%
1.60%
0.59%
21.46%
PRRFY
36.40%
13.10%
2.82%
10.02%
TQLB
0.00%
0.00%
61.32%
8.52%
NSPDF
0.00%
0.00%
0.00%
0.00%
ARZTY
0.00%
0.00%
0.00%
0.00%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
INBP presents a cautious-to-positive investment thesis anchored by liquidity and negligible leverage, with modest but positive earnings power and cash generation. The key driver is margin stabilization and a scalable contribution from the contract manufacturing and nutraceutical segments. Given the small scale, the stock may trade with higher sensitivity to quarterly variance and liquidity constraints. Investors should monitor: (1) quarterly gross margin trend and cost control efficacy, (2) progression of operating cash flow relative to net income, (3) working capital dynamics (A/R and inventory), and (4) any strategic announcements around partnerships, private-label opportunities, or bolt-on acquisitions that could meaningfully expand revenue and improve margins over time.
Key Investment Factors
Growth Potential
Small-cap packaged foods/nutraceuticals firm with dual segments (Contract Manufacturing and Other Nutraceuticals). Growth potential relies on expanding contract manufacturing volume, private-label opportunities, and selective product-line expansion in branded nutraceuticals. Execution of cost controls and margin improvements could lift EBITDA/operating margins as revenue scales from a low base.
Profitability Risk
Limited revenue scale and a narrow product mix could yield earnings volatility. Operating leverage is modest; margins remain thin (gross margin ~9.28%). Regulatory changes in nutraceuticals, supplier concentration, and customer concentration risk could impact profitability. The company carries minimal debt but also relies on a lean asset base, which could constrain aggressive expansion without external financing.
Financial Position
Strong liquidity with cash of $2.46 million and net debt of -$1.14 million. Very low leverage (debt ratio ~0.052; debt/equity ~0.067) supports optionality for selective investments or acquisitions while protecting downside risk.
SWOT Analysis
Strengths
Positive quarterly net income and free cash flow in a low-margin, niche packaged foods/nutraceuticals business.
Strong liquidity and very low leverage; net debt is negative, signaling cushion for operations and growth opportunities.
Dual-segment model (Contract Manufacturing and Other Nutraceuticals) provides diversification across revenue streams and potential cross-sell opportunities.
Conservative capital structure with minimal ongoing cash outflows (limited debt service).
Weaknesses
Relatively small revenue base with a modest gross margin (~9.28%), leaving limited operating leverage.
Opaque R&D and SG&A breakout in the reported data; potential hidden cost structures or investments not disclosed in the quarter.
Low scale compared with larger peers; incremental gains may be incremental and subject to execution risk.
Opportunities
Expansion of contract manufacturing volumes and private-label opportunities to lift top-line growth and leverage fixed costs.
Potential product-line expansion and branded nutraceuticals growth leveraging Peaceful Sleep and Wheatgrass portfolios.
Continued cash generation enables potential strategic acquisitions or partnerships without compromising balance sheet strength.
Threats
Competitive intensity in packaged foods and nutraceuticals; margin pressure from commodity costs and supplier pricing.
Regulatory scrutiny for nutraceutical products and labeling; potential recalls or compliance costs.
Macro headwinds affecting consumer discretionary spend and channel mix, especially in mass-market distribution.