Flexible Solutions (NYSE: FSI) invests in food-grade growth as 2025 profit falls
Rhea-AI Filing Summary
Flexible Solutions International reported flat 2025 revenue of $38,515,058, roughly unchanged from 2024, while profitability declined sharply. Net income fell to $786,894, or $0.06 per share, from $3,038,529, or $0.24 per share, as the company invested heavily in its Illinois food-grade facility and a new Panama plant.
Non-GAAP operating cash flow was $5,541,108, or $0.44 per share, down from $7,082,952 or $0.57 per share. Management highlighted two multi‑year food-grade contracts with minimum annual revenue of $6.5 million and potential combined revenue above $50 million, plus the shift of industrial and agricultural production to Panama to reduce tariffs and shipping costs. The company fully repaid the ENP acquisition loan and a three‑year equipment note in 2025, freeing over $2 million in annual cash flow, and stated it expects profitability and cash flow to rebound in 2026 without raising equity.
Positive
- Expansion into food-grade markets with multi-year contracts: The company secured a 5-year food-grade contract with minimum annual revenue of $6.5 million and potential above $25 million, plus an additional large food-grade contract, targeting combined potential revenues greater than $50 million per year.
- Debt reduction and improved financial flexibility: The ENP acquisition loan and a three-year equipment note were fully repaid in 2025, freeing over $2 million in annual cash flow and allowing the company to pursue its growth strategy without equity financing.
Negative
- Significant decline in profitability: Full-year 2025 net income fell to $786,894, or $0.06 per share, from $3,038,529, or $0.24 per share in 2024, as expansion and transition costs weighed on results.
- Lower operating cash flow during a key investment phase: Non-GAAP operating cash flow decreased to $5,541,108, or $0.44 per share, from $7,082,952, or $0.57 per share, reflecting reduced cash generation while strategic projects in Illinois and Panama ramped.
Insights
Profits and cash flow fell in 2025 as FSI invested for food-grade and Panama growth, while debt service eased.
Flexible Solutions International kept 2025 revenue essentially flat at $38.52 million, but net income dropped to $0.79 million from $3.04 million. Non-GAAP operating cash flow also declined to $5.54 million from $7.08 million, reflecting higher expenses tied to expansion rather than top-line contraction.
Management attributes the earnings pressure to refurbishing the Illinois plant for food-grade contracts and building the Panama facility, plus Panama transition and food-related costs that were expensed as incurred. They indicate these elevated costs should ease in the first half of 2026, with expectations of increasing profits in the second half as new capacity and contracts ramp.
Strategically, the company is shifting legacy industrial and agricultural output to Panama to avoid US tariffs and shorten logistics, while focusing the Illinois site on higher-value food and nutraceutical products. The August 5‑year food contract, with minimum annual revenue of $6.5 million and potential above $25 million, alongside the January 2025 contract, could together exceed $50 million per year if scaled fully.
On the balance sheet, long-term debt was reduced as the ENP acquisition loan and a three‑year equipment note were fully repaid in 2025, freeing more than $2 million in annual cash flow. Management states working capital and existing lines of credit are sufficient to execute plans without equity issuance, framing 2025 as a transitional investment year with anticipated cash flow recovery in 2026.
8-K Event Classification
Key Figures
Key Terms
Non-GAAP financial
Operating Cash Flow financial
Safe Harbor regulatory
non-controlling interest financial
tariffs financial
mortgage financial
Earnings Snapshot
Management anticipates some profits in Q1 and Q2 2026, followed by rapidly increasing profits in the second half of 2026 as Panama and food-grade contracts ramp.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date
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(Exact name of Registrant as specified in its charter)
| Alberta | ||||
| (State or other jurisdiction | (Commission | (Employer | ||
| of incorporation) | File No.) | Identification No.) |
(Address of principal executive offices, including Zip Code)
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 obligations 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 | Name of 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 (§203.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§204.12b-2 of this chapter.
Emerging
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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. ☐
Item 8.01 Other Events
On April 15, 2026, the Company issued a press release announcing its financial results for the year ended December 31, 2025.
On April 17, 2026 the Company held a conference call to discuss its financial results for the year ended December 31, 2025, as well as other information regarding the Company.
Item 9.01 Exhibits
| Exhibit | ||
| Number | Description of Document | |
| 99.1 | April 15, 2026 Press Release | |
| 99.2 | Text of remarks by Dan O’Brien – April 17, 2026 conference call | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document |
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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.
| Date: April 17, 2026 | FLEXIBLE SOLUTIONS INTERNATIONAL INC. | |
| By: | /s/ Daniel B. O’Brien | |
| Daniel B. O’Brien, President and Chief Executive Officer | ||
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EXHIBIT 99.1
NEWS RELEASE
April 15, 2026
FSI ANNOUNCES FULL YEAR, 2025 FINANCIAL RESULTS
A Conference call is scheduled for 8:00 am April 17, 2026, 11:00am Eastern Time
See dial in number below
TABER, ALBERTA, April 15, 2026 – FLEXIBLE SOLUTIONS INTERNATIONAL, INC. (NYSE-AMERICAN: 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. In addition, FSI is increasing its presense in the food and nutrition supplement manufacturing markets. Today the Company announces financial results for full year ended December 31, 2025.
Mr. Daniel B. O’Brien, CEO, states, “In 2025 we completely refurbished our Illinois factory to facilitate production of our two new major food grade contracts. We accomplished this while maintaining revenue and remaining profitable.” In addition, we completed our new international agriculture and industrial product factory in Panama which will allow Illinois the space to focus on growth in the food space.” Mr. O’Brien continues, “I can’t compliment the FSI group employees highly enough; to achieve what they have in the last 15 months without needing equity or debt capital and staying profitable is amazing. Congratulations everyone.”
| ● | Sales for the Full Year were $38,515,058 compared to sales of $38,234,860 in the corresponding period a year ago. | |
| ● | Full Year, 2025 net income was $786,894, or $0.06 per share, compared to a net income of $3,038,529, or $0.24 per share, in Full Year, 2024. | |
| ● | Basic weighted average shares used in computing earnings per share amounts were 12,648,728 and 12,454,957 for full year, 2025 and full year, 2024 respectively. | |
| ● | 2025 Non-GAAP operating cash flow: The Company shows 12 months operating cash flow of $5,541,108, or $0.44 per share. This compares with operating cash flow of $7,082,952, or $0.57 per share, in the corresponding 12 months of 2024 (see the table that follows 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
Due to business travel obligations a conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on April 17, 2026. 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 - Full Year 2025 Financials may be requested
Note: The above information and following table contain supplemental information regarding income and cash flow from operations for the period ended December 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 Full Year Ended December 31 (12 Months Operating Cash Flow)
(Unaudited)
| 12 months ended December 31 | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 38,515,058 | $ | 38,234,860 | ||||
| Income (loss) before income tax – GAAP | $ | 3,267,378 | $ | 4,952,800 | ||||
| Provision for Income tax(recovery) – net - GAAP | $ | 899,583 | $ | 851,211 | ||||
| Net income (loss) - GAAP | $ | 786,894 | $ | 3,038,529 | ||||
| Net income (loss) per common share – basic. – GAAP | $ | 0.06 | $ | 0.24 | ||||
| 12 month weighted average shares used in computing per share amounts – basic.- GAAP | 12,648,728 | 12,454,957 | ||||||
12 month Operating Cash Flow Ended December 31 | ||||||||
| Operating Cash Flow (12 months). NON-GAAP | $ | 5,541,108 | a,b,c | $ | 7,082,952 | a,b,c | ||
| Operating Cash Flow per share excluding non-operating items and items not related to current operations (12 months) – basic. -NON-GAAP | $ | 0.44 | a,b,c | $ | 0.57 | a,b,c | ||
| Non-cash Adjustments (12 month) -GAAP | $ | 2,581,635 | d | $ | 2,630,606 | d | ||
| Shares (12 month basic weighted average) used in computing per share amounts – basic -GAAP | 12,648,728 | 12,454,957 | ||||||
Notes: certain items not related to “operations” of the Company’s net income are listed below.
a) Non-GAAP – Flexible Solutions International owns 65% of ENP and 80% of 317 Mendota. Therefore Operating Cash Flow is adjusted by the pre tax Net income or loss of the non-controlling interest(minority interest) in both entities. A pretax minority interest number now appears in the financials for full year 2023 and future years.
b) Non-GAAP – amounts exclude certain cash and non-cash items: Depreciation and Stock compensation expense (2025 = $2,520,955, 2024 = $2,630,606), Interest expense (2025 = 613,852, 2024 = $610,265), Interest income (2025 = $150,233, 2024 = $196,454), Income from investment (2025 = $129,943, 2024 = $245,631), Loss on sale of investment (2025 = N/A, 2024 = $353,076), Loss on impaired investment (2025 = $1,000,000, 2024 = N/A), Loss on lease termination (2025 = N/A, 2024 = $41,350), Deferred income tax expense (2025 = $155,399, 2024 = $146,767), Current Income tax expense (2025 = $744,184, 2024 = $704,444), and pretax Net income attributable to non-controlling interests (2025 = $1,580,901, 2024 = $1,063,060) are removed to arrive at Operating Cash Flow. These expenditures are not directly related to operations of FSI. *See the financial statements for all adjustments.
c) The revenue and gain from the investment (“Income from investments”) in the private Florida LLC announced in January 2019 are not treated as revenue or profit from operations by Flexible Solutions. The profit is treated as investment income and therefore occurs below Operating income in the Statement of Operations. As a result, the gains from all investments (2025 = $129,943, 2024 = $245,631), including those from the Florida LLC, are removed from the calculation to arrive at Operating Cash Flow.
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.
EXHIBIT 99.2
FY 2025 Speech
Good morning. I’m Dan O’Brien, CEO of Flexible Solutions.
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 statements 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.
Welcome to the FSI conference call for Full Year 2025.
I would like to discuss our Company condition and our product lines first along with what we think might occur in Q1 and Q2 2026. I will comment on our financials in the second part of the speech.
NanoChem division: NCS represents the majority of FSI’s revenue. In 2022, NCS started food grade operations. By the end of 2026, we expect that NCS will be 100% focused on food grade products. Growth in the NCS division will be in food and nutriceuticals only.
Panama Division:
This division makes thermal poly-aspartic acid, called TPA for short, a biodegradable polymer with many valuable uses. Panama also manufactures SUN 27™ and N Savr 30™ which are used to reduce nitrogen fertilizer loss from soil. Panama is taking over production of all the legacy industrial and agriculture products historically made by NCS. This is a step-by-step process that is intended to be complete by the end of 2026.
TPA is used in agriculture to significantly increase crop yield. TPA is a biodegradable way of treating oilfield water for scale prevention. It is also sold as a biodegradable ingredient in cleaning products, and as a water treatment chemical.
Nearly all of our product for international sales will be made in Panama using raw materials sourced without the US tariffs. There will also be shipping advantages; the new plant is 30 minutes from the port. Inbound raw materials and outbound finished goods will not have to be shipped across the US, to and from IL, for our international customers. Delivery times will be shortened by many days.
Reduced shipping times and no exposure to US tariffs on international sales could allow us to increase sales to existing customers and obtain new customers over the next 2 years. We are already engaging with potential new customers.
NCS Food products: Our IL plant is FDA and SQF certified. We have commercialized two food products. The first was our wine additive, based on polyaspartates, that was developed in house.
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Last August we announced our second major food grade contract of 2025, our third overall. As noted in the news release, it is a 5-year contract with protection from tariffs and inflation. It has a minimum revenue of 6.5 MM per year and a maximum, if the customer requests it, of greater than $25 MM per year.
The August contract has reached full production, is running 24 hours per day and is now our second food grade product after the wine product. We are reviewing methods of increasing production quickly if the customer requests it.
Production will utilize equipment we have been buying and installing over the last 2 years but had no customer for. Therefore, very little CAPEX will be needed to reach $13 - $15 MM per year in sales and mild CAPEX in the 2-3 million range to reach $25 million.
In January 2025, we announced another, larger, food grade contract. Actual production at small volume started this week and will be increased weekly until full production is achieved. Significant revenue from this contract may be visible in our Q2 financials.
Growing these two food contracts to the estimated maximum revenues of greater than $50 million per year is our critical goal for the next 4 - 6 quarters. We hope to execute this to the customers’ absolute satisfaction and obtain all their business before taking on additional major projects.
This does not mean that we are not looking for more customers. We are already doing R&D work in certain areas. However, it does mean that several quarters are likely to elapse before other major customers are announced.
We would also like to be clear regarding margins in the food division. In order to obtain such large contracts from a very low base and in order to negotiate tariff and inflation protection clauses, we have lower margins than we prefer. We hope to be in the 22-25% range before tax. Future customers will be selected in order to increase our average margins now that we have a strong base in place.
ENP Division: ENP represents most of our other revenue. ENP is focused on sales into the greenhouse, turf and golf markets. ENP grew in 2025 and growth is expected again in 2026. Q1 is the weakest quarter for this division followed by Q2. Growth is usually concentrated in the second half of the year.
The Florida LLC investment: The LLC had a small profit for the 2025 year. The Company is focused on international agriculture sales into multiple countries. Its management has advised us that they estimate a return to growth in 2026 which should translate into increased revenue for FSI. International agriculture markets, like the US market, are stressed so we expect the growth rate to be low.
Agricultural products in the US remain under extreme pressure; crop prices are still not increasing at the rate of inflation and extreme uncertainty is present due to tariff changes, energy costs and fertilizer scarcity. Growers are facing a conflict between rising costs and low crop prices, aggravated by political actions and war. In some cases, sales are lost for the whole season. As a result, we saw weakness throughout 2025 and expect 2026 to be another difficult year.
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Tariffs: The current tariff on all our imports of raw materials from China into the US is between 15% and 58.5% depending on the material. We will be very careful not to import materials unless destined for US customers who are guaranteed to purchase from us and are aware that the tariffs will be added to their invoices. We did not manage our transition to Panama perfectly and had to import some raw materials into the US in the second half of 2025. Some of this tariff cost will be passed to customers, some will qualify for the rebate program and some reduced our 2025 margins.
Moving most agriculture and polymer production to Panama has freed space at the IL plant so that food grade production in the US can be optimized and expanded substantially as more US customers are found.
Shipping and Inventory: Shipping prices are not stable. Shipping times are longer than usual on the routes we use. These issues are caused by the Iran war and are expected to subside if the war does.
Raw material prices are unstable and increasing to account for the oil prices caused by the Iran war. We have significant inventory of most raw materials but estimate that we will have to raise prices to our customers in third quarter unless there is a significant reduction in the price of oil that reduces our raw material costs.
Highlights of the financial results:
Sales for the year were unchanged compared with 2024; $38.51 MM vs $38.23 MM.
Profits: 2025 recorded a gain of $787 thousand or 6 cents per share compared to a gain of $3.04 million or 24 cents per share in 2024.
Many costs incurred to prepare for the potential new revenue from the food grade contracts announced in January and August negatively affected 2025 profits because they were expensed as they occurred. Substantial costs for the Panama factory were also expensed quarter by quarter. This will continue in first half 2026 for Panama and for food products in IL but at much lower levels. We anticipate some profits in Q1 and Q2 2026 followed by rapidly increasing profits in the second half of the year.
We have done our best to maintain profitability as we built the new factory and repurposed the existing one for the new revenue streams in food products. For 2025, we achieved these goals. We did so while reducing net debt and avoiding any equity financing. This should be considered very significant to shareholder value.
Operating Cash Flow: This non-GAAP number is useful to show our progress especially with non-cash items removed for clarity. For 2025, it was $5.54 million or 44 cents per share, down from $7.08 million or 57 cents per share in 2024. Cash flow has been reduced by the same costs as noted for profits and is expected to rebound in 2026.
Long-term debt: We continue to pay down our long-term debt according to the terms of the loans. The loan we used to buy our ENP division was paid in full in June 2025. Our three-year note for equipment was fully paid in December 2025. This has freed up over $2 million in cash flow per year for other purposes. Only one small term loan and the mortgage on our IL factory remain.
Working capital is adequate for all our purposes. We have lines of credit with Stock Yards Bank for the ENP and NCS subsidiaries. We are confident that we can execute our plans with our existing capital and without resorting to any equity actions.
The text of this speech will be available as an 8K filing on www.sec.gov by Monday April 20th. Email copies can be requested from Jason Bloom at Jason@flexiblesolutions.com. Thank you, the floor is open for questions.
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