Flexible Solutions International (FSI) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2026 was $15.9M, down from $18.8M year-over-year, with a net loss of $2.15M compared to net income of $1.88M in the prior year.

• Gross profit margin declined due to higher costs from scaling up new food grade product lines and Panama facility startup expenses.

• Three primary customers accounted for 54% of sales in Q2 2026, up from 45% in Q2 2025.

• A major settlement resulted in the surrender of a 19.9% equity interest in a Florida-based LLC in exchange for a perpetual, exclusive, royalty-free license for certain territories.

Financial highlights

• Q2 2026 sales were $7.6M, down from $11.4M in Q2 2025; six-month sales were $15.9M, down from $18.8M year-over-year.

• Net loss for Q2 2026 was $1.91M (EPS: -$0.15), compared to net income of $2.03M (EPS: $0.16) in Q2 2025.

• Gross profit for the six months was $1.60M, down from $7.34M year-over-year.

• Cash provided by operating activities was $3.5M for the six months, down from $4.7M in the prior year.

• Working capital at June 30, 2026 was $18.7M, down from $24.2M at year-end 2025.

Outlook and guidance

• Management expects the margin impact from Panama facility startup and new food grade product ramp-up to taper off in Q3 2026.

• No significant capital requirements are anticipated beyond cash on hand for the next twelve months.