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Earnings analysis · 10-Q

FGI earnings analysis

Filed August 14, 2026 · Our reading of the company's report

The latest report

FGI delivered a mixed Q2: revenue of $31.885 million grew approximately 2.9% year over year but missed consensus by approximately 4.8%, while gross margin rose to 33.4%, operating margin reached 4.4%, and EPS was $0.60.…

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FGI delivered a mixed Q2: revenue of $31.885 million grew approximately 2.9% year over year but missed consensus by approximately 4.8%, while gross margin rose to 33.4%, operating margin reached 4.4%, and EPS was $0.60. Fiscal 2026 quantitative guidance was maintained at $134 million-$141 million of revenue and adjusted net income of negative $0.3 million to $1.1 million. The principal filing-specific concern is a material weakness in financial reporting controls as of June 30, 2026, although no financial-statement misstatements were identified.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

33% Gross margin Operating margin May 2022 Aug 2026

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.

Of every $100 of revenue Cost of sales $67 Operating expenses $29 Left as operating profit $4

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish May 2022 Aug 2026

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
$0.6

What stood out

  • Revenue Grew but Missed Consensus

    Q2 revenue was $31.885 million, up approximately 2.9% from $31.0 million in Q1 2026 and approximately 2.9% from $31.0 million in Q2 2025, but below the $33.4812 million consensus estimate by approximately 4.8%.

  • Gross Margin Improved Materially

    Gross margin expanded to 33.4% from 26.8% in Q1 2026 and 28.1% in Q2 2025, an increase of 6.6 and 5.3 percentage points, respectively.

  • Operating Profitability Turned Positive

    Operating margin improved to 4.4% from negative 2.3% in Q1 2026 and negative 2.7% in Q2 2025, a year-over-year expansion of 7.1 percentage points.

  • EPS Beat and Reversed Losses

    Reported EPS was $0.60 versus a $0.30 estimate, a $0.30 beat; EPS also improved from negative $0.50 in Q1 2026 and negative $0.64 in Q2 2025.

  • Fiscal 2026 Outlook Reaffirmed

    Fiscal 2026 revenue guidance of $134 million-$141 million was maintained, alongside adjusted operating income guidance of $0.7 million-$2.5 million and adjusted net income guidance of negative $0.3 million to $1.1 million.

What to watch

  • Material Weakness in Financial Controls

    Management concluded that disclosure controls and procedures were not effective as of June 30, 2026 because of a material weakness involving the precision of journal-entry and account-reconciliation review controls at a newly in-scope foreign subsidiary. Management stated that the weakness did not result in any identified misstatements, but remediation is still in progress.

  • Unquantified Legal Proceedings

    The filing states that legal proceedings and ordinary-course claims could adversely affect the company through management distraction and financial costs, although no quantified exposure was disclosed. The company also states that it cannot predict the results of such disputes.

Management's outlook

Fiscal 2026 guidance was reaffirmed at total net revenue of $134 million-$141 million, adjusted operating income of $0.7 million-$2.5 million, and adjusted net income of $(0.3) million-$1.1 million. EPS guidance was not provided.

Earlier filings 4

10-Q · May 15, 2026

FGI Industries reported a disappointing quarter with revenues of $30.5 million, down 8.2% from $33.2 million in the prior year, and a diluted EPS loss of $0.29 versus an expected loss of $0.12. Key drivers of the…

10-K · April 10, 2026

FGI positions itself as a branded and private-label supplier to the R&R and select new-build markets with a BPC (Brands, Products, Channels) strategy and an explicit aim to grow branded sales. Management is targeting…

10-Q · November 14, 2025

FGI reported Q3 2025 revenue of $35,848,861 (essentially flat YoY vs $36,099,179) and delivered operating income of $369,723 (1.0% margin) but still recorded a net loss attributable to shareholders of $1,651,332…

10-Q · August 13, 2025

FGI reported Q2 revenue of $30,998,260, up $1,627,311 (+5.5%) versus Q2 2024 but down $2,214,288 (-6.7%) versus Q1 2025. Gross margin contracted to 28.1% and the company recorded a quarterly loss per share of $(0.64)…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.