0001628280-26-024682
SEC filingFY2025 marked a challenging year with revenue declining to $130.5M from $131.8M amid tariff pressures and product mix shifts, deepening net losses to -$6.1M despite stable 27.0% gross margins and a return to positive operating cash flow through working capital discipline.
Operating income deteriorated to a -$2.4M loss from -$2.1M, a 14.4% worsening, yielding an operating margin of -1.8%. These pressures highlight ongoing challenges from increased input costs, though cost management initiatives provided some mitigation. Net income swung to a deeper -$6.1M loss from -$1.2M, with diluted EPS at -$3.20 compared to -$0.13, as non-operating items amplified the operating shortfall.
A bright spot emerged in cash flow, with net cash from operating activities flipping to +$673K positive from a -$7.4M outflow. This turnaround reflects disciplined working capital management, including reductions in receivables and inventory optimization, alongside the benefits of facility lease termination. That action addressed idle capacity and cut ongoing fixed overhead expenses, supporting broader cost structure reduction efforts. Capital expenditures fell sharply to $886K from $2.2M, resulting in free cash flow of -$212.5K. These measures, including debt covenant waivers and credit renewals, aim to improve liquidity amid persistent tariff headwinds.
Looking ahead, management expects continued adverse tariff impacts but anticipates benefits from cost controls, kitchen cabinetry expansion, and efficiency gains to bolster the cost structure and position for recovery.