FSI · Flexible Solutions International, Inc.

Flexible Solutions International reported full-year 2025 results with revenue stable at $38.5 million, reflecting resilience amid investments in growth initiatives. Net income declined to $0.79 million or $0.06 per share from $3.0 million or $0.24 per share in 2024, primarily due to costs for refurbishing the Illinois factory for two new food-grade contracts and completing the Panama facility for agriculture and industrial production. CEO Daniel B. O’Brien highlighted maintaining profitability without equity or debt financing, praising employee efforts. Key achievements include a 5-year food contract announced in August 2025 with minimum annual revenue of $6.5 million (up to $25 million), now at full 24/7 production, and a larger January 2025 contract ramping up, targeting over $50 million combined revenue in 4-6 quarters with limited capex. Panama operations will handle legacy products by end-2026, freeing Illinois for food growth and avoiding US tariffs on international sales. Non-GAAP operating cash flow fell to $5.54 million or $0.44 per share from $7.08 million, adjusted for non-operating items like depreciation, interest, taxes, and minority interests. Debt reduction progressed with full repayment of the ENP loan in June 2025 and equipment note in December 2025, enhancing cash flow. Management anticipates Q1/Q2 2026 profits and acceleration in H2, driven by food contracts, despite agriculture pressures from tariffs, shipping disruptions, and raw material costs tied to oil prices.