FSI ANNOUNCES FIRST QUARTER, 2025 FINANCIAL RESULTS
Flexible Solutions International (FSI) reported its Q1 2025 financial results, showing decreased performance compared to the previous year. Revenue declined 19% to $7.47 million from $9.22 million in Q1 2024. The company reported a net loss of ($277,734) or ($0.02) per share, compared to a net income of $457,226 or $0.04 per share in Q1 2024.
The lower earnings were attributed to reduced sales volume, higher cost of goods including tariffs, and expenses related to CAPEX and Panama factory operations. Non-GAAP operating cash flow was $480,268 ($0.04 per share), down from $1.38 million ($0.11 per share) in Q1 2024. CEO Daniel O'Brien noted that customers who adjusted inventory in Q1 returned to normal order patterns in April, and ENP's lower revenue has rebounded in Q2.
Flexible Solutions International (FSI) ha comunicato i risultati finanziari del primo trimestre 2025, evidenziando una performance in calo rispetto all'anno precedente. I ricavi sono diminuiti del 19%, passando da 9,22 milioni di dollari nel primo trimestre 2024 a 7,47 milioni di dollari. L'azienda ha registrato una perdita netta di (277.734 dollari), pari a una perdita di (0,02 dollari) per azione, rispetto a un utile netto di 457.226 dollari o 0,04 dollari per azione nel primo trimestre 2024.
Il calo degli utili è stato attribuito a una riduzione del volume delle vendite, a un aumento del costo delle merci, inclusi i dazi, e a spese legate agli investimenti in conto capitale e alle operazioni dello stabilimento di Panama. Il flusso di cassa operativo non GAAP è stato di 480.268 dollari (0,04 dollari per azione), in calo rispetto a 1,38 milioni di dollari (0,11 dollari per azione) nel primo trimestre 2024. Il CEO Daniel O'Brien ha osservato che i clienti che avevano adeguato le scorte nel primo trimestre sono tornati a modelli di ordine normali in aprile, e che i ricavi più bassi di ENP si sono ripresi nel secondo trimestre.
Flexible Solutions International (FSI) informó sus resultados financieros del primer trimestre de 2025, mostrando un desempeño inferior en comparación con el año anterior. Los ingresos disminuyeron un 19%, pasando de 9,22 millones de dólares en el primer trimestre de 2024 a 7,47 millones de dólares. La compañía reportó una pérdida neta de (277,734 dólares) o (0,02 dólares) por acción, frente a una ganancia neta de 457,226 dólares o 0,04 dólares por acción en el primer trimestre de 2024.
La menor rentabilidad se atribuyó a una reducción en el volumen de ventas, mayores costos de bienes, incluidos aranceles, y gastos relacionados con CAPEX y las operaciones de la fábrica en Panamá. El flujo de caja operativo ajustado (non-GAAP) fue de 480,268 dólares (0,04 dólares por acción), una caída desde 1,38 millones de dólares (0,11 dólares por acción) en el primer trimestre de 2024. El CEO Daniel O'Brien señaló que los clientes que ajustaron inventarios en el primer trimestre regresaron a patrones normales de pedido en abril, y que los ingresos más bajos de ENP se han recuperado en el segundo trimestre.
Flexible Solutions International (FSI)는 2025년 1분기 재무 실적을 발표하며 전년 대비 실적이 감소했다고 밝혔습니다. 매출은 2024년 1분기 922만 달러에서 19% 감소한 747만 달러를 기록했습니다. 회사는 2024년 1분기 45만7,226달러 순이익(주당 0.04달러)과 비교해 (277,734달러) 순손실(주당 -0.02달러)을 보고했습니다.
수익 감소는 판매량 감소, 관세를 포함한 상품 원가 상승, 자본적 지출 및 파나마 공장 운영 관련 비용 증가에 기인합니다. 비GAAP 영업 현금 흐름은 2024년 1분기 138만 달러(주당 0.11달러)에서 48만 268달러(주당 0.04달러)로 줄었습니다. CEO 다니엘 오브라이언은 1분기에 재고를 조정한 고객들이 4월에는 정상 주문 패턴으로 돌아왔으며, ENP의 낮은 매출도 2분기에 반등했다고 언급했습니다.
Flexible Solutions International (FSI) a publié ses résultats financiers du premier trimestre 2025, montrant une performance en baisse par rapport à l'année précédente. Le chiffre d'affaires a diminué de 19 %, passant de 9,22 millions de dollars au premier trimestre 2024 à 7,47 millions de dollars. La société a enregistré une perte nette de (277 734 dollars), soit (0,02 dollar) par action, contre un bénéfice net de 457 226 dollars ou 0,04 dollar par action au premier trimestre 2024.
Cette baisse des bénéfices est due à une diminution du volume des ventes, à une augmentation du coût des marchandises, y compris les droits de douane, ainsi qu'à des dépenses liées aux investissements en capital (CAPEX) et aux opérations de l'usine de Panama. Le flux de trésorerie opérationnel non-GAAP s'est élevé à 480 268 dollars (0,04 dollar par action), contre 1,38 million de dollars (0,11 dollar par action) au premier trimestre 2024. Le PDG Daniel O'Brien a souligné que les clients ayant ajusté leurs stocks au premier trimestre sont revenus à des habitudes de commande normales en avril, et que les revenus plus faibles d'ENP ont rebondi au deuxième trimestre.
Flexible Solutions International (FSI) meldete seine Finanzergebnisse für das erste Quartal 2025 und zeigte eine schlechtere Leistung im Vergleich zum Vorjahr. Der Umsatz sank um 19 % auf 7,47 Millionen US-Dollar von 9,22 Millionen US-Dollar im ersten Quartal 2024. Das Unternehmen verzeichnete einen Nettoverlust von (277.734 US-Dollar) bzw. (0,02 US-Dollar) pro Aktie, verglichen mit einem Nettogewinn von 457.226 US-Dollar bzw. 0,04 US-Dollar pro Aktie im ersten Quartal 2024.
Der geringere Gewinn wurde auf ein reduziertes Verkaufsvolumen, höhere Warenkosten einschließlich Zölle sowie Ausgaben im Zusammenhang mit CAPEX und den Werksbetrieb in Panama zurückgeführt. Der Non-GAAP operative Cashflow betrug 480.268 US-Dollar (0,04 US-Dollar pro Aktie), nach 1,38 Millionen US-Dollar (0,11 US-Dollar pro Aktie) im ersten Quartal 2024. CEO Daniel O'Brien bemerkte, dass Kunden, die im ersten Quartal ihre Lagerbestände angepasst hatten, im April zu normalen Bestellmustern zurückkehrten und die niedrigeren Umsätze von ENP im zweiten Quartal wieder angestiegen sind.
- Customers have returned to normal order patterns in April 2025
- ENP revenue has shown rebound in Q2
- Operating cash flow remains positive at $480,268
- New opportunities emerging in detergent, water treatment, oil field extraction, and food/nutrition markets
- Revenue decreased 19% year-over-year to $7.47 million
- Net loss of $277,734 compared to profit in Q1 2024
- Operating cash flow declined 65% from $1.38M to $480,268
- Higher cost of goods and tariffs impacting margins
- Reduced ownership in FL LLC resulting in lower investment income
Insights
FSI reports disappointing Q1 with 19% revenue decline and shift to loss, but management signals Q2 rebound already underway.
FSI's Q1 2025 results reveal significant challenges with revenue dropping
Multiple factors contributed to this performance decline. Management cited temporary inventory adjustments by customers as a primary cause, with CEO O'Brien noting these customers have already "returned to normal order patterns in April." Additional headwinds included higher cost of goods, increased tariffs, and accounting effects from capital expenditures and the Panama factory construction being classified as expenses rather than capitalized.
The operating cash flow metric, while still positive at
Also impacting results was reduced investment income due to FSI's decreased ownership stake in their Florida LLC joint venture. The company sold
The NanoChem division and ENP subsidiary continue driving most revenue and cash flow. Management highlighted emerging opportunities in food and nutrition supplement manufacturing markets alongside their established detergent, water treatment, oil extraction, and agricultural segments.
While Q1 was clearly disappointing, management's commentary suggests Q2 has already seen improvement, with both regular customers and the ENP subsidiary reportedly returning to stronger order patterns. However, investors should monitor whether these improvements translate to resumed profitability in upcoming quarters.
A CONFERENCE CALL IS SCHEDULED FOR FRIDAY, MAY 16, 2025, 11:00AM EASTERN TIME
SEE DIAL IN NUMBER BELOW
TABER, ALBERTA, May 15, 2025 (GLOBE NEWSWIRE) -- FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE Amex: FSI), is the developer and manufacturer of biodegradable polymers for oil extraction, detergent ingredients and water treatment as well as crop nutrient availability chemistry. Flexible Solutions also manufactures biodegradable and environmentally safe water and energy conservation technologies. FSI is also increasing its presense in the food and nutrition supplement manufacturing markets. Today the Company announces financial results for first quarter ended March 31, 2025.
Mr. Daniel B. O’Brien, CEO, states, “The customers who adjusted inventory in Q1 returned to normal order patterns in April.” Mr. O’Brien continues, “ENP also saw lower revenue, which has rebounded in Q2 and we had lower investment income as a result of reduced ownership in the FL LLC.”
- Sales for the first quarter (Q1) were
$7,473,692 down approximately19% when compared to sales of$9,224,872 in the corresponding period a year ago. - Q1, 2025 net income (loss) was (
$277,734) , or ($0.02) compared to a net income of$457,226 , or$0.04 per share, in Q1, 2024. - The lower earnings reported for Q1, 2025 were due to lower sales volume, higher cost of goods including higher tariffs. Some costs that are needed for the CAPEX get classified as expenses and are set against current income. Our costs for the Panama factory have similar accounting effects.
- Basic weighted average shares used in computing earnings per share amounts were 12,587,476 and 12,449,699 for Q1, 2025 and Q1, 2024 respectively.
- Q1, 2025 Non-GAAP operating cash flow: The Company shows 3 months operating cash flow of
$480,268 , or$0.04 per share. This compares with operating cash flow of$1,382,874 , or$0.11 per share, in the corresponding 3 months of 2024 (see the table and notes that follow for details of these calculations).
The NanoChem division and ENP subsidiary continue to be the dominant sources of revenue and cash flow for the Company. New opportunities continue to unfold in detergent, water treatment, oil field extraction, turf, ornamental and agricultural use to further increase sales in these divisions. More recently, opportunities in the food and nutrition supplement manufacturing markets have emerged.
CONFERENCE CALL
A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on Friday May 16th, 2025. CEO, Dan O’Brien will be presenting and answering questions on the conference call. To participate in this call please dial 1-888-999-5318 (or 1-848-280-6460) just prior to the scheduled call time. To join the call participants will be requested to give their name and company affiliation. The conference ID: SOLUTIONS and/or call title Flexible Solutions International – First Quarter, 2025 Financials may be requested
The above information and following table contain supplemental information regarding income and cash flow from operations for the period ended March 31, 2025. Adjustments to exclude depreciation, stock option expenses and one time charges are given. This financial information is a Non-GAAP financial measure as defined by SEC regulation G. The GAAP financial measure most directly comparable is net income.
The reconciliation of each Non-GAAP financial measure is as follows:
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THREE MONTHS ENDED MARCH 31, 2025 AND 2024
(THREE MONTHS OPERATING CASH FLOW - UNAUDITED)
| THREE MONTHS ENDED MARCH 31 | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 7,473,692 | $ | 9,224,872 | ||||
| Income (loss) before income tax – GAAP | $ | (153,678 | ) | $ | 780,387 | |||
| Provision for Income tax – net - GAAP | $ | (110,363 | ) | $ | (264,178 | ) | ||
| Net income (loss) - GAAP | $ | (277,734 | ) | $ | 457,226 | |||
| Net income (loss) per common share – basic. – GAAP | $ | (0.02 | ) | $ | 0.04 | |||
| 3 month weighted average shares used in computing per share amounts – basic.- GAAP | 12,587,476 | 12,449,699 | ||||||
| 3 month Operating Cash Flow Ended March 31 | ||||||||
| Operating Cash Flow (3 months). NON-GAAP | | |||||||
| Operating Cash Flow per share excluding non-operating items and items not related to current operations (3 months) – basic. -NON-GAAP | | |||||||
| Non-cash Adjustments (3 month) -GAAP | | |||||||
| Shares (3 month basic weighted average) used in computing per share amounts – basic -GAAP | 12,587,476 | 12,449,699 | ||||||
Notes: certain items not related to “operations” of the Company’s net income are listed below.
a) Non-GAAP – Flexible Solutions International purchased
b) Non-GAAP – amounts exclude certain cash and non-cash items: Depreciation and Stock compensation expense (2025 =
c) The revenue and gain from the
d) Non-GAAP – amounts represent depreciation and stock compensation expense.
SAFE HARBOR PROVISION
The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward looking statement with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.
Flexible Solutions International
6001 54th Ave, Taber, Alberta, CANADA T1G 1X4
Company Contacts
Jason Bloom
Toll Free: 800 661 3560
Fax: 403 223 2905
E-mail: info@flexiblesolutions.com
If you have received this news release by mistake or if you would like to be removed from our update list please reply to: info@flexiblesolutions.com
To find out more information about Flexible Solutions and our products, please visit www.flexiblesolutions.com.
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