MindWalk Holdings Corp. (Nasdaq: HYFT) Q1 2026 Earnings Call | 09/15/2025

Summary of MindWalk Holdings Corp. Q1 2026 Earnings Call (9/15/2025)

Overview: MindWalk Holdings Corp., formerly Immunoprecise Antibodies, reported a robust Q1 fiscal 2026 performance, highlighted by record revenue and strategic advancements. The call, led by CEO Dr. Jennifer Bath and Interim CFO Joseph Scheffler, discussed financial results, the rebranding to MindWalk, and key operational milestones, including the divestiture of Netherlands operations.

Q1 Financial Performance:

• Revenue: Total revenue reached $7.6 million, up 45% year-over-year, driven by growth in project and product revenue. Continued operations contributed $3.2 million, up 28%.
• Gross Profit: Increased to $4 million with a 53% margin (vs. $2.4 million and 45% in Q1 2025).
• Operating Loss: Narrowed to $2.7 million from $4.2 million, excluding amortization and non-recurring charges.
• Adjusted EBITDA Loss: Halved to $1.4 million from $2.8 million, reflecting improved operating leverage.
• Net Loss: Improved to $3 million from $4 million.
• Expenses: General and administrative costs decreased, showcasing cost discipline, while sales and marketing expenses rose due to digital campaign investments.
• Balance Sheet: Ended Q1 with $5 million in cash, bolstered by $16.1 million in net proceeds from the Netherlands divestiture (completed six days into Q2). No debt was mentioned.

Strategic Developments:

• Divestiture: Sold Netherlands operations for $15.1 million net proceeds, classified as discontinued operations starting Q2. This strengthened the balance sheet and focused resources on high-margin initiatives.
• Rebranding to MindWalk: Unified legacy companies (Immunoprecise Antibodies, BioStrand, Ptolem) under the MindWalk brand and new NASDAQ ticker (HIFT). The rebrand reflects a shift from wet lab services to a scalable, bio-native AI platform integrating AI, multi-omics, and advanced lab research.
• Biointelligence Ecosystem: Powered by 25 billion proprietary HIFT (Hyperscale Integrated Functional Technology) connections, the platform combines:
  • Bio-native AI for clinically viable therapies.
  • Multi-omics data integration (sequence, structure, function, literature).
  • Advanced lab capabilities with a 98% success rate in B-cell technology and over 15 molecules in clinical trials.
• Business Model Shift: Transitioning to a platform-driven model with revenue streams from Software as a Service (SaaS), Data as a Service (DaaS), asset generation, and large-scale partnerships.

Operational Highlights:

• Dengue Vaccine Initiative: Advanced into preclinical manufacturing, focusing on a novel approach targeting specific immune responses (humoral and T-cell) to neutralize the virus and prevent replication. Collaborating with the NIH and other partners, with plans to move to Phase 1 clinical trials (externally funded).
• Lens AI Validation: Demonstrated ability to de-risk biologics development, enhancing therapeutic discovery efficiency.
• Client Integration: AI-driven solutions now mandatory in therapeutic programs for 750+ active clients, including 19 of the top 20 pharma companies, improving outcomes without increasing costs.
• Partnerships: Signed a top 10 pharmaceutical company for SaaS, involving initial R&D and discounts to onboard them, signaling growing interest in MindWalk’s technology.

Q&A Highlights:

• Discontinued Operations: Most products and services from the Netherlands operations are retained, except for one non-major service. No AI assets were divested, and physical products remain with MindWalk.
• Gross Margin Outlook: Continued operations, particularly Canada and BioStrand (90%+ margins), drive strong margins. Growth in BioStrand’s contribution expected to further boost margins, despite occasional R&D discounts for new SaaS clients.
• Dengue Vaccine Strategy: Focuses on a targeted approach using HIFT to identify optimal viral patterns, with preclinical trials assessing antibody production and T-cell activation. Partners, including the NIH, are interested in advancing to Phase 1 trials, with MindWalk seeking external funding.
• Business Direction: Pursuing both internal pipeline development (e.g., additional vaccine targets) and partnerships to enhance client pipelines. The HIFT-powered Lens AI is fully integrated into client programs, positioning MindWalk as a tech-bio leader rather than a traditional CMO/CRO.

Outlook:

• MindWalk anticipates sustained growth from its bio-native AI platform, with increasing contributions from high-margin SaaS and DaaS models.
• The strengthened balance sheet provides flexibility for growth initiatives, including translational programs like the dengue vaccine.
• The rebranding and platform focus are expected to attract new partnerships, particularly with tech and pharma companies, enhancing long-term value creation.