Flexible Solutions International Reports Q2 2025 Financial Results, Announces Conference Call

Flexible Solutions International (NYSE Amex: FSI) reported Q2 2025 financial results, with sales of $11.4 million, up 8% YoY, and net income of $2.03 million, or $0.16 per basic share, compared to $1.29 million, or $0.10 per basic share, in Q2 2024. The higher earnings were due to research and development services sales, while higher cost of goods, including tariffs, negatively impacted earnings. The NanoChem division and ENP subsidiary were the dominant sources of revenue and cash flow for the Company.

Flexible Solutions International (NYSE Amex: FSI) reported its second-quarter (Q2) 2025 financial results, showcasing a robust performance with notable improvements in key financial metrics. The company reported sales of $11.4 million, representing an 8% year-over-year (YoY) increase from $10.53 million in Q2 2024 [1]. Net income for the period was $2.03 million, or $0.16 per basic share, compared to $1.29 million, or $0.10 per share, in the same period last year [1]. This significant increase in net income was largely driven by research and development (R&D) services sales, which offset some of the negative impacts from higher costs of goods and tariffs [2].

The higher earnings reported for Q2 2025 were attributed to the recognition of some related expenses in previous quarters as work was performed, as well as the classification of certain costs related to the buildout of the Panama factory as expenses rather than capital expenditures [1]. This accounting effect contributed to an artificial boost in profitability for the quarter.

The NanoChem division and ENP subsidiary continue to be the dominant sources of revenue and cash flow for the Company. Over the next several months, existing products made by NanoChem will begin production in Panama to facilitate the production of new food-grade products at the NanoChem plant in Illinois. These strategic moves reflect Flexible Solutions' efforts to realign its manufacturing capabilities geographically, serving both international and domestic markets [1].

The 6-month operating cash flow reached $4.25 million, or $0.34 per basic share, representing a more modest 10.4% increase from $3.85 million (or $0.31 per share) in the comparable period of 2024 [1]. This metric provides a more reliable measure of the company's operational performance, indicating a steady increase in cash flow.

Despite facing headwinds from increased tariffs and soft sales in its core business, Flexible Solutions demonstrated resilience by executing a strategic transition. The company is shifting legacy production to Panama for international customers while expanding its food-grade business in Illinois to serve the American market. This strategic realignment suggests a careful geographical diversification of manufacturing capabilities [2].

The company has scheduled a conference call for Friday, August 15, 2025, at 11:00 am Eastern Time (or 8:00 am Pacific Time) to discuss these financial results further. CEO Daniel B. O’Brien will be presenting and answering questions on the call. Interested parties can dial 1-888-999-5318 (or 1-848-280-6460) to participate [1].

References:
[1] https://www.marketscreener.com/news/fsi-announces-second-quarter-2025-financial-results-ce7c51d9df81f721
[2] https://www.stocktitan.net/news/FSI/fsi-announces-second-quarter-2025-financial-v2mj8bu2n80m.html