10-Q · May 1, 2026
Omega Flex reported Q1 2026 net sales of $23.1M, a 1% decline from $23.3M in Q1 2025. Gross margins decreased to 56.7%, down from 60.3%, and diluted EPS dropped to $0.21 from $0.35 year-over-year, reflecting higher raw…
Earnings analysis · 10-Q
OFLX earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Omega Flex's Q2 2026 results weakened materially year over year: revenue declined 5.8% to $24.057 million, gross margin contracted 540 basis points to 55.0%, and operating profit fell 35.3% to $3.053 million. Six-month…
Read full summary
Omega Flex's Q2 2026 results weakened materially year over year: revenue declined 5.8% to $24.057 million, gross margin contracted 540 basis points to 55.0%, and operating profit fell 35.3% to $3.053 million. Six-month operating cash flow declined to $2.377 million from $7.013 million, although the company retained $47.905 million of cash, an undrawn $15.000 million credit line, and no outstanding borrowings. MediTrac's EU certification and the new fitting are product positives, but the filing provides no quantitative guidance and highlights continued pressure from raw-material costs, tariffs, and selling expenses.
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.
From revenue to operating profit
Where each $100 of revenue went in this report.
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.
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
- $0.27
- Segment
- Single operating segment: manufacture and sale of flexible metal hose, fittings, and accessories; Q2 2026 net sales were $24.057 million versus $25.525 million in Q2 2025.
What stood out
-
Strong liquidity and no outstanding debt
The company maintained substantial liquidity, with $47.905 million of cash and a $15.000 million available line of credit; there were no borrowings outstanding as of June 30, 2026.
-
Lower administrative and liability costs
General and administrative expense declined 16.2% to $3.464 million from $4.133 million, primarily due to $641,000 of lower product-liability reserves and expenses.
-
MediTrac received EU certification
MediTrac received Conformité Européenne certification under EU MDR 2017/745 in August 2026, expanding the product line's regulatory access in Europe.
-
New fitting broadens commercial applications
Management introduced a re-engineered fitting on July 1, 2026, designed for broader residential and commercial applications, including larger-diameter systems up to two inches.
-
Operating cash flow remained positive
The company generated $2.377 million of operating cash flow during the first six months of 2026 and spent $885,000 on manufacturing equipment and leasehold improvements.
What to watch
-
Revenue declined on lower sales volume
Q2 2026 net sales fell 5.8% to $24.057 million from $25.525 million in the prior-year quarter, indicating continued volume pressure in the company's construction and industrial markets.
-
Input costs compressed gross margin
Gross margin dropped to 55.0% from 60.4%, a 540-basis-point contraction, primarily due to higher raw-material, inbound-transportation, and tariff costs.
-
Operating leverage deteriorated
Operating profit declined 35.3% to $3.053 million from $4.722 million, while operating margin fell to 12.7% from 18.5% as selling expense increased 3.7% to $5.411 million.
-
Cash generation weakened
Six-month operating cash flow decreased $4.636 million to $2.377 million from $7.013 million in the prior-year period, while cash declined 10.0% to $47.905 million from $53.226 million at December 31, 2025.
-
Product investment and selling costs rose
Six-month engineering expense increased 13.1% to $2.805 million from $2.480 million, driven by higher product-development and certification costs, while six-month sales expense rose 6.7% to $10.905 million.
-
No material risk-factor updates
The filing states that risk factors are discussed in detail in the December 31, 2025 Form 10-K; it does not identify any material changes to those risk factors in this 10-Q.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated that existing cash and borrowing capacity should be sufficient to meet anticipated cash needs for at least the next twelve months.
Earlier filings 4
10-K · March 12, 2026
Omega Flex reports 2025 net sales of $98,296,000, down from $101,681,000 in 2024 (a ~3.3% decline). Profitability compressed through the year (quarterly operating margin fell to 15.8% in 2025Q4 from 21.4% in 2024Q4)…
10-Q · October 31, 2025
Omega Flex reported quarterly net sales of $24,234,000 and diluted EPS of $0.37 for the three months ended September 30, 2025. Revenue and profitability declined modestly versus the prior-year quarter (net sales down…
10-Q · November 1, 2024
Omega Flex reported quarterly net sales of $24,880,000 and diluted EPS of $0.46 for the three months ended September 30, 2024, with revenue and earnings down versus the prior-year quarter. Gross margin held near 61.7%…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.