FGI Industries (FGI) Q2 2025 earnings summary

Executive summary

• Revenue rose 5.5% year-over-year to $31.0 million for Q2 2025, driven by growth in sanitaryware, bath furniture, and custom kitchen cabinetry, while shower systems declined.

• Gross margin declined 240 basis points to 28.1% due to tariffs, inflation, and higher freight costs, with gross profit down 2.9% to $8.7 million.

• Net loss widened to $1.4 million for Q2 2025, compared to net income of $23,000 in Q2 2024, reflecting higher operating and interest expenses.

• Strategic investments in brands, products, and channels supported above-market revenue growth, but industry-wide caution persisted due to tariffs.

• A 1-for-5 reverse share split was completed on July 31, 2025, to regain Nasdaq compliance.

Financial highlights

• Q2 2025 revenue: $31.0 million, up from $29.4 million in Q2 2024.

• Gross profit for Q2 2025: $8.7 million, a 2.9% decrease year-over-year.

• Adjusted operating loss and adjusted net loss were $0.8 million and $1.2 million, respectively, for the quarter.

• Net loss per diluted share was $0.64, compared to net income of $0.08 per share in the prior year.

• Cash and cash equivalents stood at $2.5 million, with total liquidity of $16.4 million as of June 30, 2025.

Outlook and guidance

• Fiscal 2025 guidance reiterated: total net revenue of $135–145 million, adjusted operating income of $(2.0)–1.5 million, and adjusted net income of $(1.9)–1.0 million, excluding non-recurring items.

• Management expects gross margin to remain in the upper 20s for the second half, supported by new program launches and expense controls.

• Strategic focus remains on product innovation, organic growth, and efficient capital deployment.