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- **Revenue Growth**: Q3 2025 revenue up 13% YoY to $10.56 million, driven by ENP division and new food contracts.
- **New Contracts**: Two food-grade contracts with $6.5M+ annual minimum and $25M+ potential, generating $1M+ Q4 revenue.
- **Panama Expansion**: $4M+ invested in Panama factory for tariff-free international production, expected to begin in Q4 2025.
- **Margins**: Targeting 22-25% gross margins for new contracts, with net margins ~14% after taxes.
- **ENP Momentum**: Q3 ENP revenue of $13-15M, with Q4 growth and 2026 expansion plans.
- **Financial Outlook**: Q4 2025 net loss expected, with rebound in Q1 2026 as new contracts scale.

**【CEO Opening Remarks & Financial Overview】**
- **Revenue Growth**: Q3 2025 revenue increased 13% YoY to $10.56 million, driven by strong performance in the ENP division and new food-grade contracts.
- **Net Loss**: Reported a net loss of $503,000 (or $0.04 per share) due to expenses related to the Panama factory and new food contracts. Q3 2024 net income was $612,000.
- **Operating Cash Flow**: 9-month operating cash flow was $4.26 million, down 31% YoY, but expected to rebound in Q1 2026.
- **Debt Reduction**: Paid off a $2 million equipment loan in December 2025, improving cash flow flexibility.

**【NanoChem Solutions (NCS) Division】**
- **Food Contracts**: Secured two major food-grade contracts with minimum annual revenue of $6.5 million and potential $25 million+ per year. August contract reached full production in Q3, generating over $1 million in Q4 revenue.
- **CapEx Requirements**: $4 million for equipment and plant improvements to meet January contract demands. Additional $2-3 million needed for maximum $25 million revenue scale.
- **Margins**: Targeting 22-25% gross margins (pre-tax) for new contracts, with net margins around 14% after taxes.
- **Production Timeline**: Panama factory expected to begin production in Q4 2025, with full-scale revenue in 2026.

**【ENP Division】**
- **Q3 Performance**: ENP division revenue grew 13% YoY, driven by strong demand for turf and golf course products.
- **Q4 Outlook**: Anticipate continued growth in Q4, with second-half 2026 sales expected to exceed first-half levels.
- **Strategic Focus**: Shifting production to Panama to reduce tariffs and improve delivery times for international customers.

**【Panama Factory】**
- **Cost Efficiency**: All equipment and raw materials for international sales will be sourced in Panama, avoiding U.S. tariffs.
- **Timeline**: First production expected in Q4 2025, with full operational capacity in 2026.
- **Shipping Advantages**: 30-minute proximity to port reduces shipping times and costs.

**【Q&A Highlights】**
- **Margins Clarification**: 22-25% gross margins (pre-tax) for new food contracts, translating to ~14% net margins.
- **Customer Relationships**: Contracts secured through direct engagement at trade shows, focusing on solving customer problems.
- **ENP Growth**: Q3 2025 ENP revenue of $13-15 million, with expectations for similar Q4 performance and 2026 growth.
- **Panama Risks**: Delays in obtaining Panamanian occupancy permits could push production into Q1 2026.
- **Future Contracts**: Seeking new customers with higher margin potential (30-35%), starting in 2026.


Flexible Solutions International, Inc. (FSI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FSI

FSI fundamentals

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