10-Q · May 15, 2026
Flexible Solutions International reported a disappointing Q4 2026, with revenue declining to $9.12 million from $11 million in the previous quarter and generating a negative diluted EPS of -$0.03. Gross margins…
Earnings analysis · 10-Q
FSI earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
FSI’s Q2 performance deteriorated materially, with revenue down 33.1% year over year to $7.61 million, gross margin falling to negative 3.8% from 47.4%, and diluted EPS declining to $(0.15) from $0.15. FGPI growth was…
Read full summary
FSI’s Q2 performance deteriorated materially, with revenue down 33.1% year over year to $7.61 million, gross margin falling to negative 3.8% from 47.4%, and diluted EPS declining to $(0.15) from $0.15. FGPI growth was more than offset by SPCH weakness, Panama start-up costs and the absence of $2.5 million of prior-year R&D services revenue. Liquidity remained adequate, supported by $3.50 million of first-half operating cash flow and $7.20 million of cash, but inventory, capital spending and customer concentration increased while disclosure-control weaknesses remained under remediation.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
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
- $-0.15
- Gross margin
- -3.8%
- Operating margin
- -29.2%
What stood out
-
FGPI Sales Increased 320%
FGPI product sales increased to $2,486,098 in Q2 2026 from $592,200 in Q2 2025, while FGPI gross profit rose to $456,611 from $158,158. Management attributed the increase to a new customer that represented 29% of six-month sales.
-
Receivables Release Supported Cash Flow
Accounts receivable declined to $4,440,720 at June 30, 2026 from $12,621,901 at December 31, 2025, contributing to $3,495,249 of operating cash flow in the first six months.
-
Cash Rose While Debt Declined
Cash increased to $7,197,785 from $6,625,748 at year-end 2025, while short-term lines of credit declined to $1,685,902 from $2,148,386 and total long-term debt declined to $4,243,238 from $4,441,660.
-
Liquidity Considered Sufficient
Management stated that the company has sufficient cash for the coming year, with working capital of $18,691,445 at June 30, 2026 and no substantial commitments requiring significant cash outlays over the coming fiscal year.
-
Settlement Created Commercial License
The June 2026 settlement converted the former 19.9% Florida-based LLC investment and $326,342 of forgiven receivables into a perpetual, exclusive, royalty-free license recorded at $1,856,578. Management expects to finalize the license fair-value assessment in Q3 2026.
What to watch
-
Sharp Revenue and Margin Deterioration
Q2 revenue fell to $7,610,148 from $11,367,132 in Q2 2025, while gross profit fell from $5,385,266 to a gross loss of $287,766 and operating income fell from $3,297,114 to an operating loss of $2,221,106. Diluted EPS declined from $0.15 to $(0.15).
-
SPCH Weakness and Panama Delays
SPCH product sales declined to $5,124,050 from $8,274,932, and SPCH reported a net operating loss of $1,831,449 versus operating income of $3,395,291 in Q2 2025. Management cited delays at the new Panama facility and reduced sales to the former equity investment.
-
Internal-Control Weaknesses Persist
The company reported ineffective disclosure controls and procedures as of June 30, 2026. Management stated that material weaknesses in the financial-statement close and review process remained under remediation, anticipated to be fully in place by Q4 2026.
-
Inventory and Capex Intensified
Inventory increased to $15,094,292 from $10,541,637 at December 31, 2025, including raw materials and supplies of $11,035,401. First-half capital expenditures were $2,979,557 versus $1,331,042 in the prior-year period, increasing cash requirements despite positive operating cash flow.
-
Customer Concentration Increased
Customer concentration increased: the three primary customers represented 54% of Q2 sales versus 45% in Q2 2025, and 55% of six-month sales versus 47%. One FGPI customer represented 29% of six-month sales.
Management's outlook
No numeric revenue or EPS guidance was provided. Management expects delayed SPCH orders to be recouped in 2026, expects training, equipment-maintenance and utility costs affecting gross margin to end or taper in Q3 2026, and does not anticipate capital requirements beyond cash on hand for the twelve months ending June 30, 2027.
Earlier filings 4
10-K · April 15, 2026
Flexible Solutions reports essentially flat revenue of $38.52M in 2025 (2024: $38.23M) with gross profit of $12.54M and operating income of $4.60M, but controlling‑interest net income and EPS materially declined in…
10-Q · November 14, 2025
Q3 revenue of $10,556,291 beat the estimate and rose vs prior-year Q3 ($9,314,937) but margins and attributable earnings deteriorated. Gross margin fell to 23.9% (from 40.9% in 2024Q3) and operating income collapsed to…
10-Q · August 14, 2025
FSI reported Q2 sales of $11,367,132 (up $838,393 vs Q2 2024 $10,528,739) with gross profit of $5,385,266 (47.4% gross margin) and diluted EPS of $0.15 (vs $0.10 in Q2 2024). Operating income rose to $3,297,114 (29.0%…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.