Flexible Solutions International Inc. Earnings Recaps
Q1 2026
May 19, 2026
FSI's shares fell 4.7% post-earnings as investors reacted negatively to cautious outlook and continuing margin pressure, particularly from lower-than-preferred margins on large food-grade contracts and ongoing agricultural segment weakness.
Key takeaways
- Q1 sales rose 11% Y/Y to $8.3 million, driven by ramp-up in food-grade contracts at the Illinois plant.
- Company reported a slight loss of $241,000 ($0.02 per share), marginally improved from prior year’s loss.
- Food-grade contracts currently operate at lower margins (22%-25% pre-tax), suppressing overall profitability despite revenue growth.
- Agricultural division and Florida LLC faced persistent headwinds from tariffs, weak crop prices, and supply chain disruption, expected to pressure 2026 results.
- Management flagged potential price increases in Q3 due to rising oil and raw material costs, indicating margin risks remain elevated.
Q3 2025
Nov 18, 2025
Flexible Solutions International reported strong revenue growth in Q3 2025, driven by successful execution of food-grade contracts and solid performance in its NanoChem division, despite challenges in broader agricultural markets.
Key takeaways
- Revenue from the NanoChem division continues to represent the majority of the company's sales, fueled by successful food-grade product commercialization.
- A significant new contract for a food-grade product guarantees a minimum of $6.5 million annually and has the potential to exceed $25 million under favorable conditions.
- The company anticipates CapEx of $4 million for facility upgrades to support new product lines, with expected revenue generation beginning in Q4 2025.
- ENP division revenue is experiencing a promising trajectory, with expectations for year-over-year growth into 2026.
- Tariff pressures on raw material imports from China remain a concern, impacting margins but manageable through strategic customer engagement and tariff mitigation efforts.