• IFA reported Q1 financials that beat our estimates across the board with revenue of $27.5M (+288% YoY), compared to our estimates of $25.1M. • Adjusted EBITDA came in at $5.7M (21% margin) vs. our $1.0M and well-beyond management’s past commentary on profitability. • Given the positive momentum on both growth and margins for 2026 and beyond, we are increasing our estimates, now aligning with management’s new targets for margins. Our new target is $7.50/share based on the same 18.0x 2027E EBITDA. This morning, iFabric Corp. (IFA:TSX, IFABF:OTCQX) announced its Q1/26 financial results that exceeded both our expectations and the high end of guidance, with revenue of $27.5M (+288% YoY) and Adjusted EBITDA of $5.7M (21% margin). The quarter was led by the Intelligent Fabrics segment ramping the Doctors Choice scrubs and Roots footwear program, alongside the Nudish intimate apparel launch at U.S. retailers. We have increased our estimates for the remainder of 2026 and 2027. We remind readers that we initiated coverage on IFA last month. Read the report here. We are maintaining a BUY rating and increasing our target price to $7.75/share (previously $4.50/share) on IFA. Q1 Financial Highlights • Revenue came in at a record $27.5M (+288% YoY), beating our estimate of $25.1M and the corporate guidance of $25-27M (upped from $20-25M). This was comprised of $3.9M in Intimate Apparel revenue (+212% YoY) and $23.6M from Intelligent Apparel revenue (+305% YoY). • The growth in revenue was led by medical scrubs, the new footwear programs, and the rebranding of the intimate apparel product lines. Furthermore, IFA’s core products benefited from increased store count penetration. • Revenue by geography breaks down into $10.5M from Canada (+141% YoY), $16.0M from the U.S. (+859% YoY), and $1.0M from Asia and other (-1% YoY). The U.S. was the standout, reflecting both the Nudish launch at major U.S. retailers, where the brand is no longer restricted to product categories. • Gross margin was 33%, above our estimate of 31% but down from 39% in Q1/25. Compression was driven by product mix (a higher proportion of lower-margin Intelligent Fabrics products) and increased U.S. tariffs on Chinese imports, which IFA is attempting to recover $850K from. • Adjusted EBITDA was $5.7M, largely beating our forecast of $1.0M. This represented a 21% EBITDA margin compared to 4% in Q1/25. SG&A increased 61% YoY due to increased royalties, commissions, personnel, advertising, etc. • Net income of $3.7M, smashing our estimate of $0.6M. EPS was $0.122/share compared to $0.003/share in Q1/25. • OCF before WC was $4.5M; however, A/R increased by $15.6M QoQ, leading to negative OCF and FCFF in the quarter. • IFA ended the quarter with $1.8M in cash vs. $3.8M in Q4. Total debt increased to $13.2M, translating to net debt to 2026E EBITDA of 1.2x.