10-Q · May 14, 2026
ImmuCell Corporation's Q1 2026 showed a robust performance, achieving $10.36 million in revenue, up 28.4% from the prior year. The gross profit margin improved to 45.0% from 41.6% in Q1 2025, and net income grew 34.2%…
Earnings analysis · 10-Q
ICCC earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
ImmuCell delivered 11.5% year-over-year Q2 sales growth and diluted EPS of $0.20 versus $0.06, supported by stronger domestic First Defense sales and a $2,000,000 settlement. However, gross margin fell to 33.9% from…
Read full summary
ImmuCell delivered 11.5% year-over-year Q2 sales growth and diluted EPS of $0.20 versus $0.06, supported by stronger domestic First Defense sales and a $2,000,000 settlement. However, gross margin fell to 33.9% from 43.7%, with manufacturing inefficiencies, raw material inflation, and cost reclassification pressuring profitability; operating margin of approximately 26.9% was substantially settlement-driven. Liquidity improved materially, with cash reaching $8,860,205 and six-month free cash flow of approximately $5,690,933, but the planned approximately $8,000,000 capacity expansion and concentrated colostrum/customer base add execution risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.2
What stood out
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Sales grew on stronger domestic demand
Product sales increased 11.5% year over year to $7,186,113 from $6,444,880. Domestic sales rose 27.7% to $6,225,952, offsetting a 38.9% decline in international sales to $960,161.
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EPS rose sharply, aided by settlement
Diluted EPS increased to $0.20 from $0.06 in Q2 2025, while net income rose 265.6% to $1,834,656 from $501,880. Results included $2,000,000 of other operating income from a former contract manufacturer settlement.
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Operating profit benefited from one-time items
Operating income increased 239.7% to $1,934,934 from $569,562, lifting operating margin to approximately 26.9% from 8.8%. The improvement was substantially supported by the $2,000,000 settlement and lower product development expense of $119,652 versus $831,858.
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Gross margin compressed materially
Gross profit declined 13.5% to $2,437,222 from $2,817,924, and gross margin fell to approximately 33.9% from 43.7%. Management cited $200,000 of manufacturing inefficiencies, $200,000 of higher raw material costs, and a $300,000 shift of former Re-Tain facility costs into cost of goods sold.
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Cash generation strengthened
Six-month operating cash flow increased to $6,592,102 from $3,175,334. After $911,169 of capital expenditures, six-month free cash flow was approximately $5,690,933, although capex was up from $484,209 in the prior-year period.
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Liquidity improved and debt declined
Cash increased 133% to $8,860,205 from $3,806,831 at December 31, 2025, while net working capital rose 28% to $16,644,234. Net debt obligations declined to $8,302,886 from $9,099,107.
What to watch
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Capacity expansion execution risk
The updated risk factor identifies approximately $3.5 million of incremental freeze-drying investment and approximately $4.5 million of colostrum-processing investment over the next 12 to 18 months. Management also disclosed $1,202,000 already committed to increasing First Defense production capacity, creating execution, cost-overrun, contamination, yield, and supply risks.
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Colostrum supply and quality risk
The updated colostrum-collection risk states that supply farms are almost entirely located in one state and could face disease outbreaks, supplier attrition, competing bids, or unsuitable quality. As of June 30, 2026, the company had reserved $233,665 for colostrum considered obsolete, although USDA approval on July 31, 2026 may allow the reserve to be released to cost of goods sold in Q3.
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High customer concentration
Customer concentration remains material: Company A and Company B represented 73% of Q2 product sales, and together accounted for 76% of trade accounts receivable at June 30, 2026. A loss or deterioration of either major customer could adversely affect revenue and collections.
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Manufacturing costs pressure margins
Gross margin declined to approximately 33.9% from 43.7% year over year as costs of goods sold increased 30.9% to $4,748,891, outpacing the 11.5% sales increase. Management cited $200,000 of manufacturing inefficiencies and $200,000 of higher raw material costs.
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Expansion increases funding demands
The company expects recurring debt principal repayments of $1,600,000 during 2026 and interest expense of $367,000, while its $1,000,000 line of credit is available only through September 11, 2026. The capacity program is expected to require approximately $8,000,000 across its two phases.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management expects the first phase of the First Defense manufacturing expansion to cost approximately $3.5 million over approximately 12 months and the second phase to cost approximately $4.5 million over an additional six months.
Earlier filings 4
10-K · May 13, 2026
ImmuCell Corporation's 10-K filing for the fiscal year ending December 31, 2025, revealed a mixed performance with total revenues reaching $30 million, reflecting a consistent operational focus on market penetration for…
10-K · March 30, 2026
ImmuCell pivoted in 2025 to concentrate on its core First Defense® calf-health franchise while pausing further investment in Re‑Tain® after an FDA Incomplete Letter and recognizing a $2.7 million non‑cash impairment.…
10-Q · November 13, 2025
ImmuCell reported Q3 product sales of $5,506,122 (down from $6,011,573 in Q3 2024) while gross margin improved to $2,363,098 (42.9% of sales) and the company delivered a small operating profit of $20,075 (0.4% operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.