Flexible Solutions International (FSI) investor relations material

Executive summary

• Q1 2026 sales rose 11% year-over-year to $8.3 million, driven by growth in core divisions and new food-grade contracts, with net loss narrowing to $241,000 ($0.02/share) from $278,000 in Q1 2025.

• Major food-grade contracts are now in full production, with significant revenue expected to ramp up in Q2 and Q3 2026.

• Panama division is taking over legacy industrial and agricultural products, optimizing international production and logistics, and enabling tariff-free international sales.

• Gross profit margin declined due to higher costs from scaling new products, a new manufacturing location, and a shift to lower-margin products.

• Three primary customers accounted for 56% of sales, up from 49% in the prior year.

Financial highlights

• Q1 2026 sales were $8,296,997, up from $7,473,692 in Q1 2025 (11% increase).

• Net loss attributable to shareholders was $241,420 ($0.02/share), improved from $277,734 ($0.02/share) in Q1 2025.

• Operating cash flow (non-GAAP) for Q1 2026 was $575,240 ($0.05/share), up from $480,268 ($0.04/share) in Q1 2025.

• Gross profit was $1.89 million, slightly down from $1.95 million year-over-year.

• Cash at quarter-end was $5.8 million, down from $6.6 million at year-end 2025.

Outlook and guidance

• Profits anticipated in Q2 2026, with rapidly increasing profitability in the second half of the year.

• Combined food-grade contract revenues targeted to exceed $50 million annually within 4–6 quarters.

• Margins in food division expected at 22%-25% pre-tax, with future customers targeted to improve margins.

• Management expects sufficient cash resources to meet commitments and no substantial capital requirements for the next twelve months.