FGI Industries (Nasdaq: FGI) posts 2025 loss, guides modest 2026 profit
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
FGI Industries Ltd. reported fourth-quarter and full-year 2025 results, with revenue of $30.5 million in Q4 and $130.5 million for the year, down 14.4% and 1.0% from 2024. Q4 gross margin improved to 26.7%, up 210 basis points year over year.
The company posted a Q4 operating loss of $0.7 million and net loss attributable to shareholders of $2.6 million, or $1.37 per diluted share, and a full-year net loss of $6.1 million. FGI ended 2025 with total liquidity of $8.5 million and issued 2026 guidance for revenue of $134–141 million and modestly positive adjusted profitability.
Positive
- None.
Negative
- None.
Insights
FGI shows stable full-year revenue, ongoing losses, and cautious 2026 profit targets.
FGI Industries delivered 2025 revenue of $130.5 million, just 1.0% below 2024, while Q4 revenue fell 14.4% amid tariff-related demand pressure. Profitability remained weak, with a full-year operating loss of $2.4 million and adjusted operating margin of (1.8%).
Management highlighted improved Q4 gross margin of 26.7%, up 210 basis points, driven by product mix and higher-margin businesses, while operating expenses fell 12.0% year over year in the quarter to $8.8 million. Liquidity totaled $8.5 million at December 31, 2025.
For 2026, guidance calls for revenue of $134–141 million, adjusted operating income of $0.7–2.5 million, and adjusted net income between $(0.3) million and $1.1 million. Actual results will depend on the evolving tariff environment and execution of the company’s brands, products and channels strategy.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q4 2025 revenue: $30.5 million
Full-year 2025 revenue: $130.5 million
Q4 2025 gross margin: 26.7%
+5 more
8 metrics
Q4 2025 revenue
$30.5 million
Fourth quarter 2025, down 14.4% year over year
Full-year 2025 revenue
$130.5 million
Full year 2025, down 1.0% vs 2024
Q4 2025 gross margin
26.7%
Up 210 basis points from Q4 2024
Full-year 2025 net loss attributable to shareholders
$6.1 million
Compared with $1.2 million net loss in 2024
Total liquidity at Dec. 31, 2025
$8.5 million
Cash of $1.9 million plus $6.6 million availability
2026 revenue guidance
$134–141 million
Company outlook for fiscal 2026
2026 adjusted operating income guidance
$0.7–2.5 million
Expected adjusted operating income for 2026
Q4 2025 adjusted net loss
$0.6 million
Excludes valuation allowance and other non-recurring items
Key Terms
Adjusted Operating Income, Adjusted Net Income, Non-GAAP Measures, China+1 strategy, +2 more
6 terms
Adjusted Operating Income financial
"We define Adjusted Operating Income as GAAP income from operations excluding the impact of certain non-recurring income and expenses"
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
Adjusted Net Income financial
"We define Adjusted Net Income as GAAP income before income taxes excluding the impact of certain non-recurring income and expenses"
Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.
Non-GAAP Measures financial
"These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles in the United States"
Financial results that companies present using formulas or adjustments different from standard accounting rules (GAAP) to highlight what management considers the business’s ongoing performance. Investors care because these figures can make trends or profitability look clearer—like showing a car’s fuel efficiency after removing unusual trips—but they can also hide one‑time costs or aggressive assumptions, so comparing them with GAAP numbers helps judge reliability.
China+1 strategy financial
"FGI and our customers continue to evaluate a China+1 strategy to diversify and broaden our geographic sourcing"
tariff environment financial
"The tariff environment in 2026 remains fluid. FGI navigated through the volatility of the tariffs in 2025"
Earnings Snapshot
Q4 2025 revenue: $30.5 million · Guidance included
Q4 and full-year 2025
Q4 2025 revenue
$30.5 million
-14.4% y/y
Full-year 2025 revenue
$130.5 million
-1.0% y/y
Q4 2025 gross margin
26.7%
+210 bps y/y
Full-year 2025 gross margin
27.0%
+10 bps y/y
Full-year 2025 operating loss
$2.4 million
vs. $2.1 million loss in 2024
Full-year 2025 net loss attributable to shareholders
$6.1 million
vs. $1.2 million net loss in 2024
Guidance
For 2026, FGI guides revenue of $134–141 million, adjusted operating income of $0.7–2.5 million, and adjusted net income between $(0.3) million and $1.1 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________
FORM 8-K
____________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 9, 2026
____________________________________________________
(Exact name of registrant as specified in its charter)
____________________________________________________
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
(973 ) 428-0400
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
____________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02. Results of Operations and Financial Condition.
On April 9, 2026, FGI Industries Ltd. (the “Company”) issued a press release reporting financial results for the third quarter and fiscal year ended December 31, 2025. A copy of the press release is furnished herewith under the Securities Exchange Act of 1934, as amended, as Exhibit 99.1 to this Form 8-K and is incorporated by reference into this Item 2.02 as if fully set forth herein.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits.
| Exhibit | ||||||||
| Number | Description | |||||||
| 99.1 | Press release, dated April 9, 2026. | |||||||
| 104 | Cover Page Interactive Data File formatted in Inline XBRL. | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FGI Industries Ltd. | ||||||||
Date: April 9, 2026 | By: | /s/ John Chen | ||||||
| John Chen | ||||||||
| Executive Chairman | ||||||||
EXHIBIT 99.1
FGI INDUSTRIES ANNOUNCES
FOURTH QUARTER AND FULL-YEAR 2025 RESULTS
EAST HANOVER, N.J., April 9, 2026 – FGI Industries Ltd. (Nasdaq: FGI) (“FGI” or the “Company”), a leading global supplier of kitchen and bath products, today announced results for the fourth quarter and full-year 2025.
FOURTH QUARTER 2025 HIGHLIGHTS
(As compared to the fourth quarter of 2024)
▪Total revenue of $30.5 million, -14.4% y/y
▪Gross profit of $8.1 million, -6.8% y/y
▪Gross margin of 26.7%, +210 bps y/y
▪Operating loss of $0.7 million and net loss attributable to shareholders of $2.6 million
▪Adjusted operating loss of $0.7 million1
▪Adjusted net loss of $0.6 million
FULL-YEAR 2025 HIGHLIGHTS
(As compared to full-year 2024)
▪Total revenue of $130.5 million, -1.0% y/y
▪Gross profit of $35.3 million, -0.5% y/y
▪Gross margin of 27.0%, +10 bps y/y
▪Operating loss of $2.4 million and net loss attributable to shareholders of $6.1 million
▪Adjusted operating loss of $2.4 million
▪Adjusted net loss of $2.6 million
MANAGEMENT COMMENTARY
Dave Bruce, CEO of FGI, stated, “FGI reported total revenue of $30.5 million in the quarter, representing a year-over-year decrease of 14.4%. Gross profit was $8.1 million, a decrease of 6.8% compared to the prior year. The gross margin was 26.7%, an increase of 210 basis points compared to the fourth quarter of 2024 driven by the better relative performance of some of our higher margin businesses. Customers continued to evaluate the impact of tariffs on their businesses amid the Supreme Court decision in February and subsequent response by the administration. The industry outlook remains uncertain due to tariffs but FGI’s strategic investments in our Brands, Products and Channels strategy continues and is bearing fruit becoming a positive driver of revenue growth. FGI and our customers continue to evaluate a China+1 strategy to diversify and broaden our geographic sourcing. FGI’s fourth quarter revenue decreased 14.4% compared to the prior year period. Revenue declined 15.5%, 16.9% and 5.6% in the U.S., Canada and Europe markets. Sanitaryware, bath furniture and shower system revenue decreased 12.2%, 34.9% and 13.9% compared to the prior year period. Our Other segment revenue, including Covered Bridge, declined 9.0% compared to the prior year. Covered Bridge further expanded its geographies and increased its dealer count. Isla Porter, our digital custom kitchen joint venture, continues to establish relationships with the premium design community with on-trend products. In India, we added more dealers as we expand our presence there.” Bruce continued, “We are excited about our new product introductions and continue to invest in our brands and our future growth initiatives in our core businesses.
"The tariff environment in 2026 remains fluid. FGI navigated through the volatility of the tariffs in 2025 with full year revenue and gross profit each down less than 1% compared to the prior year. Despite the cautious order environment by our customers in the fourth quarter, we are seeing a pickup in activity as we begin 2026."
Jae Chung, Chief Financial Officer of FGI, commented, “Total revenue decreased 14.4% year-over-year in the fourth quarter. FGI continues to invest in long-term growth through our BPC strategy and discipline in overall operating expenses, which decreased 12.0% year-over-year to $8.8 million. FGI ended the fourth quarter with total available liquidity of $8.5 million. We believe the best use of our capital is for internal investment in order to
1Adjusted operating loss and adjusted net loss are non-GAAP financial measures. Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures and reconciliations to GAAP measures included in this press release.
attract new customers, expand existing relationships, develop new products and manufacturing capabilities and expand into new jurisdictions, and this will remain our priority in the near term.”
FOURTH QUARTER 2025 RESULTS
Revenue totaled $30.5 million during the fourth quarter of 2025, a decrease of 14.4% compared to the prior-year period despite the on-going and fluid tariff environment.
•Sanitaryware revenue was $19.1 million during the fourth quarter of 2025, a decrease from $21.8 million in the prior-year period.
•Bath Furniture revenue was $2.3 million during the fourth quarter of 2025, a decrease from revenue of $3.5 million in the prior-year period, as a result of our broader strategic focus on diversifying our product mix and expanding higher-growth categories.
•Shower Systems revenue was $5.8 million during the fourth quarter of 2025, a decrease from $6.7 million last year.
•Other revenue, primarily from Kitchen Cabinets, was $3.3 million during the fourth quarter, remaining stable compared to revenue of $3.6 million in the prior year.
Gross profit was $8.1 million during the fourth quarter of 2025, a decrease of 6.8% compared to the prior-year period. Gross profit margin increased to 26.7% during the fourth quarter of 2025, up 210 basis points from the prior-year period due to the implementation of tariffs, higher freight costs and better relative performance from some of our higher margin businesses.
Operating loss was $0.7 million during the fourth quarter of 2025, improving from an operating loss of $1.3 million in the prior-year period. Adjusted operating loss was $0.7 million during the fourth quarter compared to $1.1 million in the prior-year-period. The improvement in operating loss and adjusted operating loss from the prior year was a result of a decrease in selling and distribution cost as well as lower R&D costs. Operating margin and adjusted operating margin were (2.2%) and (2.2%) during the fourth quarter, respectively, up from (3.5%) and (3.2%) in the same period last year.
The Company reported GAAP net loss attributable to shareholders of $2.6 million, or net loss of $1.37 per diluted share during the fourth quarter of 2025, versus net loss of $0.4 million, or $0.21 per diluted share, in the same period last year. Net loss for the fourth quarter of 2025 and 2024 included valuation allowance on deferred tax assets, business expansion expense and non-recurring IPO-related compensation. Excluding these items, adjusted net loss for the fourth quarter of 2025 was $0.6 million, or $0.29 per diluted share, versus adjusted net loss of $0.7 million, or $0.34 per diluted share, for the same prior-year-period. All share and per-share data gives retroactive effect to the reverse share split of the preference shares and ordinary shares at a ratio of 1-for-5 that became effective July 31, 2025.
FGI holds earnings calls only for the second and fourth quarters, but releases results of operations via press releases and SEC filings on a quarterly basis. Inquiries may continue to be submitted to investorrelations@fgi-industries.com or by phone at 973-515-7190.
FINANCIAL RESOURCES AND LIQUIDITY
As of December 31, 2025, the Company had $1.9 million of cash and cash equivalents, total debt of $11.9 million and $6.6 million of availability under its credit facilities net of letters of credit. Total liquidity was $8.5 million at December 31, 2025.
FINANCIAL GUIDANCE
The Company provides its fiscal 2026 guidance as follows:
•Total net revenue of $134-141 million
•Total adjusted operating income of $0.7-2.5 million
•Total adjusted net income of $(0.3)-1.1 million
Note that total adjusted operating income excludes certain non-recurring items and total adjusted net income excludes certain non-recurring extraordinary items and includes an adjustment for minority interest.
FOURTH QUARTER CONFERENCE CALL
FGI will conduct a conference call on Friday, April 10 at 9:00 am Eastern Time to discuss the quarterly results.
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of the Company’s corporate website at https://investor.fgi-industries.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register and download and install any necessary audio software.
To participate in the live teleconference:
| Toll Free: | 1-833-821-8134 | |||||||
| International Live: | 1-412-652-1262 | |||||||
To listen to a replay of the teleconference, which will be available through April 24, 2026:
| Domestic Replay: | 1-844-512-2921 | |||||||
| International Replay: | 1-412-317-6671 | |||||||
| Conference ID: | 10206547 | |||||||
ABOUT FGI INDUSTRIES
FGI Industries Ltd. (Nasdaq: FGI) is a leading global supplier of kitchen and bath products. For over 30 years, we have built an industry-wide reputation for product innovation, quality, and excellent customer service. We are currently focused on the following product categories: sanitaryware (primarily toilets, sinks, pedestals, and toilet seats), bath furniture (vanities, mirrors and cabinets), shower systems, customer kitchen cabinetry and other accessory items. These products are sold primarily for repair and remodel activity and, to a lesser extent, new home or commercial construction. We sell our products through numerous partners, including mass retail centers, wholesale and commercial distributors, online retailers and specialty stores.
Non-GAAP Measures
In addition to the measures presented in our consolidated financial statements, we use the following non-GAAP measures to evaluate our business, measure our performance, identify trends affecting our business and assist us in making strategic decisions. Our non-GAAP measures are: Adjusted Operating Income, Adjusted Operating Margins and Adjusted Net Income. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). They are supplemental financial measures of our performance only, and should not be considered substitutes for net income, income from operations or any other measure derived in accordance with GAAP and may not be comparable to similarly titled measures reported by other entities. We define Adjusted Operating Income as GAAP income from operations excluding the impact of certain non-recurring income and expenses, including non-recurring compensation expenses related to our IPO, unusual litigation and business expansion expense. We define Adjusted Net Income as GAAP income before income taxes excluding the impact of certain non-recurring income and expenses, such as non-recurring compensation expenses related to our IPO, unusual litigation and business expansion expense, as well as income taxes at historical average effective rate and net income attributable to non-controlling shareholders. We define Adjusted Operating Margins as Adjusted Operating Income divided by revenue.
We use these non-GAAP measures, along with GAAP measures, to evaluate our business, measure our financial performance and profitability and our ability to manage expenses, after adjusting for certain one-time expenses, identify trends affecting our business and assist us in making strategic decisions. We believe these non-GAAP measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance and the adjustments we make to these non-GAAP measures provide investors further insight into our profitability and additional perspectives in comparing our performance over time on a consistent basis. With respect to the Company’s expectations of its future performance, the Company’s reconciliations of guidance for full year 2025 Adjusted Operating Income and 2025 Adjusted Net Income are not available, as the Company is unable to quantify certain amounts to the degree of precision that would be required in the relevant GAAP measures without unreasonable effort.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as “anticipate,” “expect,” “could,” “may,” “intend,” “plan”, “see” and “believe,” among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements regarding FGI’s guidance, the Company’s growth strategies, outlook and potential acquisition activity, the tariff environment, the macroeconomic instability and its associated impact on the national and global economy and the residential repair and remodel market, the company’s planned product launches and new customer partnerships and the effect of supply chain disruptions and freight costs. These forward-looking statements are based on currently available operating, financial, economic and other information, and are subject to a number of risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. A variety of factors, many of which are beyond our control, could cause actual future results or events to differ materially from those projected in the forward-looking statements in this release. For a full description of the risks and uncertainties which could cause actual results to differ from our forward-looking statements, please refer to FGI’s periodic filings with the Securities & Exchange Commission including those described as “Risk Factors” in FGI’s annual report on Form 10-K for the year ended December 31, 2024, and in quarterly reports on Form 10-Q filed thereafter. FGI does not undertake any obligation to update forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
INVESTOR CONTACT
Jae Chung, Chief Financial Officer
973-515-7190
investorrelations@fgi-industries.com
FGI INDUSTRIES LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||
| USD | USD | ||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS | |||||||||||
| Cash | $ | 1,899,801 | $ | 4,558,160 | |||||||
| Accounts receivable, net | 13,847,762 | 20,293,555 | |||||||||
| Inventories, net | 15,292,742 | 13,957,867 | |||||||||
| Prepayments and other current assets | 3,228,259 | 2,091,407 | |||||||||
| Prepayments and other receivables – related parties | 17,274,859 | 11,996,973 | |||||||||
| Total current assets | 51,543,423 | 52,897,962 | |||||||||
| PROPERTY AND EQUIPMENT, NET | 3,853,864 | 3,634,340 | |||||||||
| OTHER ASSETS | |||||||||||
| Intangible assets, net | 1,733,616 | 1,849,951 | |||||||||
| Operating lease right-of-use assets, net | 11,031,892 | 12,823,747 | |||||||||
| Deferred tax assets, net | 211,581 | 2,665,585 | |||||||||
| Other noncurrent assets | 1,163,205 | 1,589,830 | |||||||||
| Total other assets | 14,140,294 | 18,929,113 | |||||||||
| Total assets | $ | 69,537,581 | $ | 75,461,415 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| CURRENT LIABILITIES | |||||||||||
| Short-term loans | $ | 11,868,828 | $ | 14,502,367 | |||||||
| Accounts payable | 24,687,900 | 19,349,529 | |||||||||
| Accounts payable – related parties | 49,855 | 894,661 | |||||||||
| Income tax payable | — | 23,189 | |||||||||
| Operating lease liabilities – current | 1,700,936 | 1,867,956 | |||||||||
| Accrued expenses and other current liabilities | 5,607,405 | 5,905,124 | |||||||||
| Total current liabilities | 43,914,924 | 42,542,826 | |||||||||
| OTHER LIABILITIES | |||||||||||
| Operating lease liabilities – noncurrent | 10,012,616 | 11,352,939 | |||||||||
| Total liabilities | 53,927,540 | 53,895,765 | |||||||||
| COMMITMENTS AND CONTINGENCIES | |||||||||||
| SHAREHOLDERS’ EQUITY | |||||||||||
Preference Shares ($0.0001 par value, 2,000,000 shares authorized, no shares issued and outstanding as of December 31, 2025 and December 31, 2024)(1) | — | — | |||||||||
Ordinary shares ($0.0005 par value, 40,000,000 shares authorized, 1,920,140 and 1,912,783 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively)(1) | 960 | 956 | |||||||||
| Additional paid-in capital | 21,612,226 | 21,279,047 | |||||||||
| (Accumulated deficit) retained earnings | (2,927,091) | 3,212,435 | |||||||||
| Accumulated other comprehensive loss | (1,402,946) | (2,239,560) | |||||||||
| FGI Industries Ltd. shareholders’ equity | 17,283,149 | 22,252,878 | |||||||||
| Non-controlling interests | (1,673,108) | (687,228) | |||||||||
| Total shareholders’ equity | 15,610,041 | 21,565,650 | |||||||||
| Total liabilities and shareholders’ equity | $ | 69,537,581 | $ | 75,461,415 | |||||||
(1) Giving retroactive effect to the reverse share split of the preference shares and ordinary shares at a ratio of 1-for-5 that became effective July 31, 2025.
FGI INDUSTRIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| USD | USD | USD | USD | ||||||||||||||||||||
| Revenue | $ | 30,468,983 | $ | 35,594,426 | $ | 130,528,652 | $ | 131,818,073 | |||||||||||||||
| Cost of revenue | 22,323,424 | 26,852,093 | 95,277,560 | 96,390,733 | |||||||||||||||||||
| Gross profit | 8,145,559 | 8,742,333 | 35,251,092 | 35,427,340 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Selling and distribution | 5,695,779 | 6,950,969 | 25,129,256 | 25,627,634 | |||||||||||||||||||
| General and administrative | 2,776,128 | 2,657,895 | 11,106,563 | 10,199,914 | |||||||||||||||||||
| Research and development | 332,234 | 395,938 | 1,417,329 | 1,699,383 | |||||||||||||||||||
| Total operating expenses | 8,804,141 | 10,004,802 | 37,653,148 | 37,526,931 | |||||||||||||||||||
| Loss from operations | (658,582) | (1,262,469) | (2,402,056) | (2,099,591) | |||||||||||||||||||
| Other income (expenses) | |||||||||||||||||||||||
| Interest income | 2,352 | 4,541 | 5,142 | 9,792 | |||||||||||||||||||
| Interest expense | (342,927) | (353,021) | (1,330,714) | (1,246,742) | |||||||||||||||||||
| Other (expenses) income, net | (137,262) | 596,962 | (611,386) | 1,054,443 | |||||||||||||||||||
| Total other (expenses) income, net | (477,837) | 248,482 | (1,936,958) | (182,507) | |||||||||||||||||||
| Loss before income taxes | (1,136,419) | (1,013,987) | (4,339,014) | (2,282,098) | |||||||||||||||||||
| Provision for (benefit of) income taxes | |||||||||||||||||||||||
| Current | 47,655 | 91,638 | 332,388 | 948,931 | |||||||||||||||||||
| Deferred | 1,813,244 | (630,870) | 2,454,004 | (1,496,752) | |||||||||||||||||||
| Total provision for (benefit of) income taxes | 1,860,899 | (539,232) | 2,786,392 | (547,821) | |||||||||||||||||||
| Net loss | (2,997,318) | (474,755) | (7,125,406) | (1,734,277) | |||||||||||||||||||
| Less: net loss attributable to non-controlling shareholders | (369,740) | (72,427) | (985,880) | (533,188) | |||||||||||||||||||
| Net loss attributable to FGI Industries Ltd. shareholders | (2,627,578) | (402,328) | (6,139,526) | (1,201,089) | |||||||||||||||||||
| Other comprehensive income (loss) | |||||||||||||||||||||||
| Foreign currency translation adjustment | 150,889 | (727,772) | 836,614 | (1,128,061) | |||||||||||||||||||
| Comprehensive loss | (2,846,429) | (1,202,527) | (6,288,792) | (2,862,338) | |||||||||||||||||||
| Less: comprehensive loss attributable to non-controlling shareholders | (369,740) | (72,427) | (985,880) | (533,188) | |||||||||||||||||||
| Comprehensive loss attributable to FGI Industries Ltd. shareholders | $ | (2,476,689) | $ | (1,130,100) | $ | (5,302,912) | $ | (2,329,150) | |||||||||||||||
| Weighted average number of ordinary shares | |||||||||||||||||||||||
| Basic | 1,919,842 | 1,912,783 | 1,918,061 | 1,913,033 | |||||||||||||||||||
| Diluted | 1,919,842 | 1,912,783 | 1,918,061 | 1,913,033 | |||||||||||||||||||
| Loss per share | |||||||||||||||||||||||
| Basic | $ | (1.37) | $ | (0.21) | $ | (3.20) | $ | (0.63) | |||||||||||||||
| Diluted | $ | (1.37) | $ | (0.21) | $ | (3.20) | $ | (0.63) | |||||||||||||||
(1) Giving retroactive effect to the reverse share split of the preference shares and ordinary shares at a ratio of 1-for-5 that became effective July 31, 2025.
FGI INDUSTRIES LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| USD | USD | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | (7,125,406) | $ | (1,734,277) | |||||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||||||||||
| Depreciation | 667,432 | 474,828 | |||||||||
| Amortization | 2,238,730 | 2,701,615 | |||||||||
| Share-based compensation | 333,183 | 401,216 | |||||||||
| Provision for credit losses | 165,801 | 137,592 | |||||||||
| Provision for defective return | 5,392 | 257,643 | |||||||||
| Foreign exchange transaction loss (gain) | 563,740 | (659,544) | |||||||||
| Deferred income tax expense (benefit) | 2,454,004 | (1,496,752) | |||||||||
| Changes in operating assets and liabilities | |||||||||||
| Accounts receivable | 6,274,600 | (4,928,997) | |||||||||
| Inventories | (1,334,875) | (4,034,016) | |||||||||
| Prepayments and other current assets | (712,770) | 1,284,680 | |||||||||
| Prepayments and other receivables – related parties | (5,277,886) | (3,960,942) | |||||||||
| Other noncurrent assets | 426,625 | (344,697) | |||||||||
| Income taxes | (447,271) | (165,930) | |||||||||
| Accounts payable | 5,338,371 | 4,824,922 | |||||||||
| Accounts payable – related parties | (844,806) | 159,353 | |||||||||
| Operating lease liabilities | (1,753,925) | (2,207,636) | |||||||||
| Accrued expenses and other current liabilities | (297,719) | 1,865,625 | |||||||||
| Net cash provided by (used in) operating activities | 673,220 | (7,425,317) | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Purchase of property and equipment | (885,740) | (2,206,052) | |||||||||
| Purchase of intangible assets | (130,107) | (669,764) | |||||||||
| Net cash used in investing activities | (1,015,847) | (2,875,816) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Proceeds from credit facilities | 60,348,042 | 74,136,436 | |||||||||
| Repayments of credit facilities | (62,981,581) | (66,593,244) | |||||||||
| Net cash (used in) provided by financing activities | (2,633,539) | 7,543,192 | |||||||||
| EFFECT OF EXCHANGE RATE FLUCTUATION ON CASH | 317,807 | (461,140) | |||||||||
| NET CHANGES IN CASH | (2,658,359) | (3,219,081) | |||||||||
| CASH, BEGINNING OF YEAR | 4,558,160 | 7,777,241 | |||||||||
| CASH, END OF YEAR | $ | 1,899,801 | $ | 4,558,160 | |||||||
| SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
| Cash paid during the period for interest | $ | (1,336,413) | $ | (1,233,763) | |||||||
| Cash paid during the period for income taxes | $ | (766,903) | $ | (1,112,640) | |||||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||
| Lease liability arising from obtaining a right-of-use asset | $ | (1,150,282) | $ | (158,082) | |||||||
| Derecognition of right-of-use asset and lease liability upon early termination | $ | (1,251,111) | $ | — | |||||||
| Acquisition of intangible asset partially through prior period advanced payment | $ | — | $ | (1,241,664) | |||||||
Non-GAAP Measures
The following table reconciles GAAP income from operations to Adjusted Operating Income (Loss) and Adjusted Operating Margins, as well as GAAP net income to Adjusted Net Income for the periods presented.
| For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| USD | USD | USD | USD | ||||||||||||||||||||
| Loss from operations | $ | (658,582) | $ | (1,262,469) | $ | (2,402,056) | $ | (2,099,591) | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Non-recurring IPO-related share-based compensation | — | 59,719 | 19,906 | 238,876 | |||||||||||||||||||
| Business expansion expense | — | 61,770 | — | 247,080 | |||||||||||||||||||
| Adjusted Operating Loss | $ | (658,582) | $ | (1,140,980) | $ | (2,382,150) | $ | (1,613,635) | |||||||||||||||
| Revenue | $ | 30,468,983 | $ | 35,594,426 | $ | 130,528,652 | $ | 131,818,073 | |||||||||||||||
| Adjusted Operating Margins (%) | (2.2) | (3.2) | (1.8) | (1.2) | |||||||||||||||||||
| For the Three Months Ended December 31, | For the Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| USD | USD | USD | USD | ||||||||||||||||||||
| Loss before income taxes | $ | (1,136,419) | $ | (1,013,987) | $ | (4,339,014) | $ | (2,282,098) | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Non-recurring IPO-related share-based compensation | — | 59,719 | 19,906 | 238,876 | |||||||||||||||||||
| Business expansion expense | — | 61,770 | — | 247,080 | |||||||||||||||||||
| Adjusted loss before income taxes | (1,136,419) | (892,498) | (4,319,108) | (1,796,142) | |||||||||||||||||||
| Less: income taxes at 18% rate | (204,555) | (160,650) | (777,439) | (323,306) | |||||||||||||||||||
| Less: net loss attributable to non-controlling shareholders | (369,740) | (72,427) | (985,880) | (533,188) | |||||||||||||||||||
| Adjusted Net Loss | $ | (562,124) | $ | (659,421) | $ | (2,555,789) | $ | (939,648) | |||||||||||||||
FAQ
How did FGI (FGI) perform financially in the fourth quarter of 2025?
FGI reported fourth-quarter 2025 revenue of $30.5 million, down 14.4% year over year. Gross profit was $8.1 million with a gross margin of 26.7%. The company posted an operating loss of $0.7 million and a net loss attributable to shareholders of $2.6 million.
What were FGI (FGI)’s full-year 2025 revenue and profit figures?
For full-year 2025, FGI generated $130.5 million in revenue, a 1.0% decline from 2024. Gross profit was $35.3 million with a 27.0% gross margin. The company recorded an operating loss of $2.4 million and net loss attributable to shareholders of $6.1 million.
How did FGI (FGI)’s margins and operating expenses change in Q4 2025?
In Q4 2025, FGI’s gross margin improved to 26.7%, up 210 basis points year over year. Total operating expenses declined 12.0% to $8.8 million, reflecting lower selling and distribution and research and development costs, which helped narrow the operating loss compared to the prior-year quarter.
What liquidity and debt levels did FGI (FGI) report at year-end 2025?
As of December 31, 2025, FGI held $1.9 million in cash and cash equivalents and total debt of $11.9 million. The company had $6.6 million of availability under credit facilities, resulting in total liquidity of $8.5 million at year-end.
What 2026 financial guidance did FGI (FGI) provide?
FGI guided 2026 total net revenue to $134–141 million. It expects adjusted operating income of $0.7–2.5 million and adjusted net income between $(0.3) million and $1.1 million, excluding specified non-recurring items and including adjustments for minority interest.
How are tariffs and sourcing strategy affecting FGI (FGI)’s business?
Management noted an uncertain tariff environment and customer caution following a Supreme Court decision in February. FGI is pursuing a China+1 sourcing strategy to diversify geographic supply and continues investing in brands, products and channels, which it views as key drivers of future growth.