Flexible Solutions (NYSE: FSI) grows Q1 2026 sales 11% but stays slightly loss-making
Rhea-AI Filing Summary
Flexible Solutions International reported first quarter 2026 sales of $8.30 million, up about 11% from $7.47 million a year earlier, driven mainly by its NanoChem and ENP divisions. Despite the growth, the company posted a small net loss of $241,420, or $0.02 per share, similar to Q1 2025.
Non-GAAP operating cash flow improved to $575,240, or $0.05 per share, from $480,268, or $0.04 per share, reflecting stronger underlying cash generation even as it continues to absorb expansion costs for large food-grade contracts and the new Panama factory. Management expects new food-contract and Panama-related revenue to start showing in Q2 and to drive better profitability in the second half of 2026.
Positive
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Negative
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Insights
Q1 2026 shows solid revenue and cash-flow growth while earnings remain slightly negative.
Flexible Solutions International grew Q1 2026 revenue about 11% year over year to $8.30 million, while the net loss narrowed modestly to $241,420. The core NanoChem and ENP businesses remain the main revenue and cash generators.
Non-GAAP operating cash flow rose to $575,240 from $480,268, indicating healthier cash generation once non-cash items and investment-related gains or losses are removed. Management highlights that expansion spending for food-grade contracts and the Panama plant is still pressuring GAAP earnings.
Looking ahead, the company points to growing food-grade contracts with potential annual revenue of more than $50 million and expects new revenue to appear in Q2 2026, with profits anticipated to increase in the second half of 2026. Debt repayments in 2025 have also freed over $2 million in annual cash flow, which could support these growth initiatives.
8-K Event Classification
Key Figures
Key Terms
Non-GAAP operating cash flow financial
thermal poly-aspartic acid technical
SQF certified regulatory
non-controlling interest financial
Safe Harbor regulatory
Earnings Snapshot
Management expects some profits in Q2 2026 followed by rapidly increasing profits in the second half of 2026, driven by large food-grade contracts and the Panama factory ramp-up.
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
of Report (date of earliest event reported):
(Exact name of Registrant as specified in its charter)
| Alberta | ||||
(State or other jurisdiction of incorporation) |
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telephone number, including area code:
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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:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-14(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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.
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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 May 15, 2026, the Company issued a press release announcing its financial results for the quarter ended March 31, 2026.
On May 18, 2026 the Company held a conference call to discuss its financial results for the quarter ended March 31, 2026, as well as other information regarding the Company.
| Item 9.01 | Exhibits |
| Exhibit Number | Description of Document | |
| 99.1 | May 15, 2026 Press Release | |
| 99.2 | Text of remarks by Dan O’Brien – May 18, 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: May 18, 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 | May 15, 2026 |
FSI ANNOUNCES FIRST QUARTER, 2026 FINANCIAL RESULTS
A Conference call is scheduled for Monday, May 18, 2026 11:00am Eastern Time
See dial in number below
TABER, ALBERTA, May 15, 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 first quarter ended March 31, 2026.
Mr. Daniel B. O’Brien, CEO, states, “The quarter was better than the year earlier – even while still carrying significant expansion costs to earn the large new contracts from 2025 and the new factory in Panama.” Mr. O’Brien continues, “The production line for the January 2025 contract is running and output is increasing steadily. We expect new revenue to be evident in our Q2 results.”
| ● | Sales for the first quarter (Q1) were $8,296,997 up approximately 11% when compared to sales of $7,473,692 in the corresponding period a year ago. | |
| ● | Q1, 2026 net loss was ($241,420), or ($0.02) compared to a net loss of ($277,734), or ($0.02) per share, in Q1, 2025. | |
| ● | Basic weighted average shares used in computing earnings per share amounts were 12,735,609 and 12,587,476 for Q1, 2026 and Q1, 2025 respectively. | |
| ● | Q1, 2026 Non-GAAP operating cash flow: The Company shows 3 months operating cash flow of $575,240, or $0.05 per share. This compares with operating cash flow of $480,268, or $0.04 per share, in the corresponding 3 months of 2025 (see the table and notes that follow for details of these calculations). |
The NanoChem division and ENP subsidiary continue to be the dominant sources of revenue and cash flow for the Company. New opportunities continue to unfold in detergent, water treatment, oil field extraction, turf, ornamental and agricultural use to further increase sales in these divisions. More recently, opportunities in the food and nutrition supplement manufacturing markets have emerged.
Conference call
A conference call has been scheduled for 11:00 am Eastern Time, 8:00 am Pacific Time, on Monday May 18th, 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 – First Quarter, 2026 Financials may be requested
The above information and following table contain supplemental information regarding income and cash flow from operations for the period ended March 31, 2026. Adjustments to exclude depreciation, stock option expenses and one time charges are given. This financial information is a Non-GAAP financial measure as defined by SEC regulation G. The GAAP financial measure most directly comparable is net income.
The reconciliation of each Non-GAAP financial measure is as follows:
FLEXIBLE SOLUTIONS INTERNATIONAL, INC.
consolidated Statement of Operations
For Three Months Ended March 31, 2026 and 2025
(three Months Operating Cash Flow - Unaudited)
| THREE MONTHS ENDED MARCH 31 | ||||||||
| 2026 | 2025 | |||||||
| Revenue | $ | 8,296,997 | $ | 7,473,692 | ||||
| Income (loss) before income tax – GAAP | $ | (236,676 | ) | $ | (153,678 | ) | ||
| Provision for Income tax – net - GAAP | $ | (46,681 | ) | $ | (110,363 | ) | ||
| Net income (loss) - GAAP | $ | (241,420 | ) | $ | (277,734 | ) | ||
| Net income (loss) per common share – basic. – GAAP | $ | (0.02 | ) | $ | (0.02 | ) | ||
| 3 month weighted average shares used in computing per share amounts – basic.- GAAP | 12,735,609 | 12,587,476 | ||||||
3 month Operating Cash Flow Ended March 31 | ||||||||
| Operating Cash Flow (3 months). NON-GAAP | $ | 575,240 a,b,c | $ | 480,268 a,b,c | ||||
| Operating Cash Flow per share excluding non-operating items and items not related to current operations (3 months) – basic. -NON-GAAP | $ | 0.05 a,b,c | $ | 0.04 a,b,c | ||||
| Non-cash Adjustments (3 month) -GAAP | $ | 619,268 d | $ | 563,118 d | ||||
| Shares (3 month basic weighted average) used in computing per share amounts – basic -GAAP | 12,735,609 | 12,587,476 | ||||||
Notes: certain items not related to “operations” of the Company’s net income are listed below.
| a) | Non-GAAP – Flexible Solutions International purchased 65% of ENP in 4th quarter, 2018 (October 2018). Therefore Operating Cash Flow is adjusted by the pre tax Net income or loss of the non-controlling interest in ENP for 2023 only. After 2023 the entry in the “Statement of operations and comprehensive income” is a pretax number therefore no adjustment is required. |
| b) | Non-GAAP – amounts exclude certain cash and non-cash items: Depreciation and Stock compensation expense (2026 = $619,268, 2025 = $563,118), Interest expense (2026 = $134,069, 2025 = $198,019), Interest income (2026 = $37,446, 2025 = $49,573), (Loss) income on investment (2026 = ($54,088), 2025 = $63,925), Income tax expense (2026 = $46,681, 2025 = $110,363), and Net loss (income) attributable to non-controlling interests (2026 = $41,937, 2025 = ($13,693)). These onetime expenditures were not related to operations of FSI. *See the financial statements for all adjustments. |
| c) | The revenue and gain from the 50% investment in the private Florida LLC announced in January 2019 are not treated as revenue or profit from operations by Flexible Solutions given the Company only purchased 50% of the LLC. The profit is treated as investment income and therefore occurs below Operating income in the Statement of Operations. As a result, the gains and losses from all investments (2026 = ($54,088), 2025 = $63,925), 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
Q1 2026 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 First Quarter 2026.
To begin, I will review our Company condition and our product lines, along with what we think might occur in Q2 and Q3 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 nutraceuticals 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 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.
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. We are already engaging with potential new customers.
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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.
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 and a maximum, if the customer requests it, of greater than $25 MM per year.
This 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 several weeks ago and will be increased weekly until full production is achieved. Significant revenue from this contract may be visible in our Q2 financials and will increase rapidly in Q3 and 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 profitable 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.
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 Q1 and expect 2026 to be another difficult year.
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The Florida LLC investment: The LLC had a small loss in Q1 2026. The Company is focused on international agriculture sales into multiple countries. It faces the same issues I noted regarding our internal agricultural sales.
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.
Moving 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 quarter increased by 11% compared with Q1 2025; $8.30 MM vs $7.47 MM.
Profits: 2026 recorded a loss of $241 thousand or 2 cents per share compared to a loss of $278 thousand or 2 cents per share in 2025.
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 continued in Q1 2026 in Panama and for food products in IL but at much lower levels. We anticipate some profits in Q2 2026 followed by rapidly increasing profits in the second half of the year.
Operating Cash Flow: This non-GAAP number is useful to show our progress especially with non-cash items removed for clarity. For Q1 2026, it was $575 thousand or 5 cents per share, up from $480 thousand or 4 cents per share in 2025. Cash flow has been impacted by the same costs as noted for profits and is expected to rebound in Q2 and the remainder of 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 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 May 19th. Email copies can be requested from Jason Bloom at Jason@flexiblesolutions.com. Thank you, the floor is open for questions.
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