FST Corp. Reports Third Quarter 2026 Financial Results

Quarterly profitability returned, while current liabilities exceeded current assets by $2,536,130.

Rhea-AI Summary

FST (NASDAQ: KBSX) reported a return to profitability for the third quarter ended September 30, 2026, with net income of $291,001.

Net income compared with a $715,955 loss a year earlier; shareholder earnings were $0.01 per share, versus a $0.02 loss. Operating income was $31,405, versus a $946,709 loss. Revenue grew 2% year over year, supported by additional steel and graphite sales to equipment manufacturers.

Cash and cash equivalents totaled $6,129,149, alongside $517,340 in restricted cash. A $2,536,130 working capital deficit accompanied $20,518,189 in short-term bank borrowings. Nine-month operating cash flow was $730,253. FST Taiwan became wholly owned on August 28, 2026. Quarterly repurchases totaled 66,577 shares for approximately $69,861. FST launched KBS TOUR V-X steel iron shafts and established a European office. Management anticipates continued revenue growth in the fourth quarter of 2026.

11 points · 0 major

MixediHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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1 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue grew 2% year over year, reflecting additional equipment-manufacturer sales in steel and graphite lines.
• Moderate pointQuarterly net income of $291,001 reversed a $715,955 loss in the third quarter of 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter 2026 revenue growth is anticipated by management as domestic and export sales expansion continues.
• Minor pointShareholder earnings of $0.01 per share compared with a $0.02 loss per share a year earlier.
• Minor pointOperating income of $31,405 reversed a $946,709 operating loss in the third quarter of 2025.

6 minor points

• Minor pointNine-month operating cash flow was $730,253, providing cash from operations.
• Minor pointFST Taiwan became wholly owned on August 28, 2026, following acquisition of the remaining non-controlling interests.
• Minor point66,577 ordinary shares repurchased for approximately $69,861 in the third quarter; approximately $2.93 million remained authorized.
• Minor point. Forward-looking: it has not happened yet and may not happen.Newly established European office expands regional sales coverage; management targets incremental revenue in late 2026 and early 2027.
• Minor point. Forward-looking: it has not happened yet and may not happen.New equipment-manufacturer programs are planned for the remainder of 2026 and early 2027, with KBS providing stock shafts.
• Minor point. Forward-looking: it has not happened yet and may not happen.Additional cost-control measures are planned across production, inventory management, logistics and discretionary operating expenses.

Negative

• Major pointShort-term bank borrowings of $20,518,189 remained outstanding at September 30, 2026.
• Moderate pointWorking capital deficit of $2,536,130 reflected current assets of $29,636,813 versus current liabilities of $32,172,943.
• Minor pointNine-month investing cash outflow of $1,812,138 primarily funded property, plant and equipment purchases.
• Minor pointNet bank borrowings of $1,166,177 added financing during the nine months ended September 30, 2026.
• Minor pointAcquisition of remaining FST Taiwan interests cost $247,409, partially offsetting financing cash inflows.

News Explained

The board-authorized $3 million share-repurchase program had about $2.93 million available as of September 30, 2026; the program has no fixed expiration, and the release describes this as capacity available for future repurchases, not additional completed buying.

Key Figures

Revenue: $12,804,404 Net income attributable to shareholders: $290,819 Earnings per share: $0.01 per share +5 more

Revenue

$12,804,404

Reported quarter; up 2.0% year over year

Net income attributable to shareholders

$290,819

Q3 2026; compared with a $672,771 loss in the prior-year period

Earnings per share

$0.01 per share

Q3 2026; compared with $(0.02) per share in the prior-year period

Operating income

$31,405

Q3 2026; compared with a $946,709 operating loss in the prior-year period

Cash and cash equivalents

$6,129,149

As of September 30, 2026

Working capital deficit

$2,536,130

As of September 30, 2026

Short-term bank borrowings

$20,518,189

Included in current liabilities as of September 30, 2026

Share repurchase program

$3.0 million authorized; approximately $69,861 repurchased

Three months ended September 30, 2026

Previous Earnings Reports

1 past event · Latest: Jul 28

Same Type 1 event

1. Jul 28

   Q2 earnings results

   24h Move

   -2.2%

   Revenue rose 9.7%, while quarterly net loss narrowed and operating income turned positive.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

oem, working capital deficit, restricted cash, non-controlling interests

4 terms

oem technical

"additional sales in the OEM business"

OEM stands for Original Equipment Manufacturer, which is a company that produces parts or components used in the final products made by other companies. For investors, understanding OEMs is important because their performance can impact the supply chain and overall success of major industries, especially those relying on specialized parts. Think of OEMs as the suppliers that provide the building blocks for larger products, like the engine parts for a car.

working capital deficit financial

"resulting in a working capital deficit of $2,536,130"

A working capital deficit occurs when a company's short-term obligations—like bills, supplier payments and near-term debt—are larger than its readily available short-term resources such as cash, money expected from customers, and inventory that can be sold. Like a household whose monthly bills exceed its checking account, it signals potential difficulty paying immediate expenses, which matters to investors because it raises the chance the company will need outside financing or cut operations, affecting risk and value.

restricted cash financial

"restricted cash of $517,340"

Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.

non-controlling interests financial

"acquisition of the remaining non-controlling interests"

An ownership stake in a subsidiary held by outside shareholders rather than the parent company, representing the portion of that subsidiary’s assets and profits the parent does not control. For investors, it shows what part of consolidated earnings and equity belongs to others — like a roommate who owns part of a house — which affects how much value and profit per share are truly attributable to the parent company’s shareholders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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2 Percent Revenue Increase Year-over-Year;
FST Launched KBS TOUR V-X Family of Steel Iron Shafts

Boulder, Colorado--(Newsfile Corp. - October 29, 2026) - FST Corp. (NASDAQ: KBSX) ("FST" or the "Company"), a leading manufacturer and marketer of steel and graphite golf shafts and a provider of other golf-related services, today announced its unaudited financial results for the third quarter ended September 30, 2026.

Revenue for second quarter was $12,804,404, a 2.0 percent increase from revenue of $12,554,939 for the third quarter of 2025. The revenue increase reflects additional sales in the OEM business in both the steel and graphite lines.

Net income for the quarter was $291,001, compared to a net loss of $715,955 in the third quarter of 2025. Net income attributable to FST Corp.'s shareholders was $290,819, or $0.01 per share, compared to a net loss attributable to FST Corp.'s shareholders of $672,771, or US$(0.02) per share, in the prior-year period.

Operating income in Q3 2026 was $31,405, compared to an operating loss of $946,709 in the third quarter of 2025.

The weighted average number of shares outstanding for the third quarter of 2026 and 2025 was 44,989,549, and 44,766,003, respectively.

As of September 30, 2026, the Company had cash and cash equivalents of $6,129,149 and restricted cash of $517,340. Total current assets were $29,636,813 and total current liabilities were $32,172,943, resulting in a working capital deficit of $2,536,130. Current liabilities included short-term bank borrowings of $20,518,189, which the Company has historically renewed or refinanced in the ordinary course of business.

For the nine months ended September 30, 2026, net cash provided by operating activities was $730,253; net cash used in investing activities was $1,812,138, primarily for purchases of property, plant and equipment of $1,590,620, including an automatic straightening machine in Taiwan and the renovation of the Company's Boulder office; and net cash provided by financing activities was $848,907, reflecting net bank borrowings of $1,166,177, partially offset by the acquisition of the remaining non-controlling interests in FST Taiwan, which became a wholly owned subsidiary on August 28, 2026, for $247,409 and repurchases of ordinary shares of $69,861.

"During the Third quarter we continued to leverage are favorable position in the market and execute our operating plan. Importantly, we launched the KBS TOUR V-X Family of Steel Iron Shafts and leading brands such as TaylorMade continued to select KBS shafts as the stock offering for several of its new family offerings to the marketplace," said FST Chairman and Chief Executive Officer David Chuang. "Meanwhile, we taken meaningful actions to establish a new European office to expand our sales footprint and strengthen both new and existing customer relationships in the region."

Share Repurchases

During the three months ended September 30, 2026, the Company repurchased an aggregate of 66,577 ordinary shares at an aggregate cost of approximately $69,861 under the $3.0 million share repurchase program authorized by its board of directors and announced on July 28, 2026. As of September 30, 2026, approximately $2.93 million remained available for repurchase under the program, which has no fixed expiration date.

Outlook

In the fourth quarter of 2026, management anticipates continued revenue growth as the Company focuses on expanding sales in both domestic and export markets. Strategic initiatives for the remainder of 2026 and early 2027 include:

• Launch of new programs with OEM partners where KBS provides the stock shaft;
• Realize incremental revenue from its newly established European office as it expands regional sales coverage, develops new customer relationships and provides more direct support to existing customers;
• Host the second annual KBS Open in Taiwan in late January 2027 to gain additional marketing exposure and enhanced brand awareness of the Company's products in Taiwan and other key Asian markets.
•  Implement additional cost-control measures across its operations, including initiatives focused on production efficiency, inventory management, logistics and discretionary operating expenses

About FST Corp.

Founded in 1989, FST Corp. manufactures and sells golf club shafts, along with other golf-related items, to golf equipment brands, OEMs, distributors, and consumers via the company's KBS Golf Experience retail outlets. FST's equipment, marketed under the KBS brand, is utilized by golfers at all levels, including many professional players participating in the PGA and other major golf associations. The company's product portfolio, retail presence, and golf-related services are part of a vertically integrated business model that has established the KBS brand on a global scale and created significant competitive advantages over peer brands. The company's growth strategies currently position it for expansion into under-tapped golf shaft markets.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding future performance, market conditions, such as foreign exchange conditions, and strategic initiatives, and the Company's belief with respect to its ability to capture growth opportunities and the impact of hosting the second annual KBS Open in Taiwan. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, including foreign exchange fluctuations, changes in U.S. and other trade policies, including tariffs and the availability, timing and amount of any tariff refunds, changes in market demand, the Company's ability to renew or refinance its short-term bank borrowings, competitive pressures, and other factors listed in the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (the "SEC") on April 20, 2026, and in other filings with the SEC, many of which are beyond the Company's control. Actual results may differ materially from those projected.

All forward-looking statements included in this report are made only as of the date of this report, and, except as required by law, the Company assumes no obligation to revise or update any forward-looking statements made by the Company as a result of new information, future events or other factors. If one or more forward-looking statements are revised or updated, no inference should be drawn that additional revisions or updates will be made in the future.

Company Contact:
FST Corp.
1801 13th Street, Suite 306,
Boulder, CO 80302
Office: 303-444-2226
Email: investorrelations@fstshafts.com

Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: ir@skylineccg.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321569

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Did FST (KBSX) return to profit in the third quarter of 2026?

FST reported net income of $291,001, compared with a net loss of $715,955 in the third quarter of 2025. Net income attributable to shareholders was $290,819, or $0.01 per share, versus a shareholder loss of $672,771, or $0.02 per share.

What did FST (KBSX) spend on equipment and facilities during the first nine months of 2026?

FST spent $1,590,620 on property, plant and equipment during the nine months ended September 30, 2026. Purchases included an automatic straightening machine in Taiwan and renovation of the Boulder office.

Does FST's (KBSX) share repurchase program have an expiration date?

FST's $3.0 million share repurchase program has no fixed expiration date. The board-authorized program was announced on July 28, 2026.