Flexible Solutions (NYSE: FSI) targets $50M food-contract revenue after Q2 loss
Rhea-AI Filing Summary
Flexible Solutions International Inc. (FSI) reported a weak second quarter for the period ended June 30, 2026. Revenue from product sales was $7.61 million, down about 14% from $8.87 million a year earlier, largely because Q2 2025 included a non-recurring $2.5 million R&D payment. The company recorded a GAAP net loss of $1.91 million (loss of $0.15 per basic share) versus GAAP net income of $2.03 million (earnings of $0.16 per share) in Q2 2025.
Management attributes the loss to costs of scaling large food-grade contracts in the NanoChem division and ongoing training and development costs at the Panama plant, with related revenues lagging. ENP also had a particularly weak seasonal quarter. The company highlights that, excluding the prior year’s irregular R&D revenue, recurring revenue was higher year over year.
FSI outlines growth plans centered on food and nutraceutical products, Panama-based production of biodegradable polymers, and ENP’s turf and greenhouse markets, while noting tariffs of 15%–58.5% on Chinese raw material imports and logistics disruptions linked to the Iran war. The company states it continues to pay down long-term debt, has adequate working capital and bank credit lines, and believes it can execute its plans without equity financing.
Positive
- Excluding a prior-year $2.5 million one-time R&D payment, recurring revenue was higher year over year.
- Long-term debt has been reduced to one small term loan and a small IL factory mortgage, with management stating working capital is adequate.
- A key food-grade contract carries a minimum $6.5 million per year in revenue under a 5-year term with tariff and inflation protection.
- Management targets growing two major food contracts to over $50 million per year in combined revenue over the next 4–6 quarters.
Negative
- Q2 2026 revenue declined about 14% to $7.61 million from $8.87 million in Q2 2025.
- Results swung from $2.03 million net income in Q2 2025 to a $1.91 million net loss in Q2 2026.
- Current US tariffs on Chinese raw materials range from 15% to 58.5%, pressuring input costs.
- Management describes US agricultural markets as under extreme pressure, contributing to ENP weakness and Q2 sales softness.
Filing Explained
FSI reports a $6.5 million annual minimum food contract in full production and new perpetual regional product rights after the buyer could not fund payments.
FSI reports that a five-year food-grade contract with a stated minimum of
The filing also says the buyer of
Form 8-K is used to report specified material events, and this filing reports these contract and rights developments alongside the quarterly results. The filing distinguishes the
The company says revenue from the larger food contract and the Florida rights is expected to appear in Q3 financials, providing the next filing-based check on whether these stated production and distribution changes are translating into reported revenue.
8-K Event Classification
Key Figures
Key Terms
GAAP financial
Safe Harbor regulatory
non-GAAP financial
biodegradable polymers technical
tariffs financial
Earnings Snapshot
Management states it anticipates a return to profitability in Q3 2026 with rapidly increasing profits in Q4, and highlights growth plans tied to large food-grade contracts and Panama production.
FAQ
How did Flexible Solutions International (FSI) perform financially in Q2 2026?
Why did FSI’s Q2 2026 results worsen compared with Q2 2025?
What growth initiatives did FSI highlight for NanoChem and the Panama division?
How is FSI’s balance sheet and funding strategy described in this 8-K?
What tariff and cost pressures does Flexible Solutions International (FSI) face?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
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| 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 August 14, 2026, the Company issued a press release announcing its financial results for the second quarter ended June 30, 2026.
On August 17, 2026 the Company held a conference call to discuss its financial results for the second quarter ended June 30, 2026, as well as other information regarding the Company.
| Item 9.01 | Exhibits |
| Exhibit | ||
| Number | Description of Document | |
| 99.1 | August 14, 2026 Press Release | |
| 99.2 | Text of remarks by Dan O’Brien – August 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: August 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 |
August 14, 2026 |
FSI ANNOUNCES SECOND QUARTER, 2026 FINANCIAL RESULTS
A Conference call is scheduled for Monday, AUGUST 17, 2026 11:00am Eastern Time
See dial in number below
TABER, ALBERTA, August 14, 2026 – 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 second quarter ended June 30, 2026.
Mr. Daniel B. O’Brien, CEO, states, “This quarter shows the costs of scaling the food grade contracts while the revenue from scaling is not yet fully evident. It also shows the last of the training and development costs in our Panama plant, again, with the revenue lagging the costs. Also, Q2 is the weakest quarter for our ENP division. Finally, the year earlier period had a $2.5 million R&D payment that was not repeated in this year.”
Mr. O’Brien continues, “We rarely give forward guidance. However, we would like to disclose; that we hope the Panama division will contribute $3 million in revenue in Q3, that we hope that ENP division revenue will exceed $5 million for the coming quarter and hope that, the NanoChem division will continue to scale the food product contracts resulting in NanoChem revenue exceeding $4 million in Q3.”
| ● | Sales for the second quarter (Q2) were $7,610,148 down approximately 14% when compared to sales of $8,867,132 in the corresponding period a year ago. | |
| ● | Q2, 2026 net loss was $1,912,967, or ($0.15) compared to a net income of $2,028,912, or $0.16 per share, in Q2, 2025. | |
| ● | Basic weighted average shares used in computing earnings per share amounts were 12,744,311 and 12,647,532 for Q2, 2026 and Q2, 2025 respectively. See the financials for diluted share count. |
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 Monday August 17th, 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 – Second Quarter, 2026 Financials may be requested
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
consolidated Statement of Operations
For Three Months Ended June 30, 2026 and 2025
| THREE MONTHS ENDED June 30 | ||||||||
| 2026 | 2025 | |||||||
| Revenue from product sales | $ | 7,610,148 | $ | 8,867,132 | ||||
| Income (loss) before income tax – GAAP | $ | (2,339,928 | ) | $ | 3,161,390 | |||
| Provision for Income tax (expense) benefit – net - GAAP | $ | 474,397 | $ | (1,016,156 | ) | |||
| Net income (loss) - GAAP | $ | (1,912,967 | ) | $ | 2,028,912 | |||
| Net income (loss) per common share – basic. – GAAP | $ | (0.15 | ) | $ | 0.16 | |||
| 3 month weighted average shares used in computing per share amounts – basic.- GAAP | 12,744,311 | 12,647,532 | ||||||
Notes to the financials
The Company will no longer be providing any non-GAAP numbers or calculations.
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
Q2 2026
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 Second Quarter 2026.
I will start by reviewing our Company condition and our product lines, along with what we think might occur in Q3 and Q4 2026. I will comment on our financials in the second part of the speech.
NanoChem division: NCS is one of three major revenue sources for FSI. 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 nutraceuticals only. The IL plant is FDA and SQF certified. We have commercialized two food products. The first was a wine additive, based on polyaspartates.
In August 2025, 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.
This contract has reached full production and is being optimized to ensure that it is profitable.
In January 2025, we announced our largest food grade contract. Volume production started very late in Q2 and will be increased weekly until full production is achieved. Significant revenue from this contract will be visible in our Q3 financials and will increase rapidly in Q4.
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 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 base in place.
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Panama Division: This division, our second major revenue source, 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 will 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.
In Q2, Panama production increased. However, the poor performance by the FL LLC and poor agriculture sales impacted revenue. Q3 has been much better as a result of selling direct to the historic Fl LLC customers and orders from legacy NanoChem customers. We expect Panama to be a strong contributor to revenue and profits in Q3 and thereafter.
Our Panama factory results in 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.
ENP Division: ENP is our third major source of revenue. ENP is focused on sales into the greenhouse, turf and golf markets. ENP grew in 2025 and growth is expected again in 2026. Q2 is a weak quarter and was very weak this year. Q3 is already showing a significant rebound.
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 in Q2 and expect 2026 to be another difficult year.
The Florida LLC investment: In August 2024 the Company sold 30.1% of the equity in the FL LLC to an acquirer for $2 million and five annual payments of $800,000. The acquirer was unable to fund the annual payments. As a result, the Company has been granted the perpetual, exclusive rights to 4 agricultural products and the IP of those products in the exclusive territory. The territory is defined as South of the Mexico/US border including all of Central America, South America and the Caribbean. We have been making these products for these countries for a decade and believe that now that we have sales rights for them, lost sales can be recovered and the historic revenue we saw from the FL LLC investment can be realized again. Full revenue recovery will not be immediate but, we have made progress already. This revenue will be evident in Q3.
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.
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.
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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 anticipate that we will have to raise prices to our customers in third or fourth 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 quarter decreased by 14% compared with Q2 2025; $7.60 MM vs $8.87 MM. The 2025 quarter included $2.5 million of irregular revenue from R&D activity which did not recur in 2026. With this removed, recurring revenue was higher year over year.
Profits: 2026 recorded a loss of $1.91 million or 15 cents per share compared to a gain of $2.03 million or 16 cents per share in 2025.
Costs incurred in scaling up the food grade contracts announced in January and August negatively affected Q2 profits because they are expensed as they occur. Scale up costs for the Panama factory are also expensed quarter by quarter. This continued in Q2 2026 in Panama and for food products in IL at lower levels but without sufficient revenue to avoid losses. We anticipate a return to profitability in Q3 2026 followed by rapidly increasing profits in Q4.
Long-term debt: We continue to pay down our long-term debt according to the terms of the loans. Only one small term-loan and the small 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 Tuesday August 18th. Email copies can be requested from Jason Bloom at Jason@flexiblesolutions.com. Thank you, the floor is open for questions.
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