The Q2 miss and swing to a loss are bearish, but the stock may already price in the transition costs given the $69M market cap. The key catalyst is the Q3 2026 report, where management expects the food-grade contract ramp and seasonal rebound to deliver profitability. Traders should watch for any pre-announcements or order updates ahead of Q3 earnings.
Price Chart
Executive Summary
Flexible Solutions (FSI) reported Q2 2026 results with revenue of $7.61M, down ~14% YoY from $8.87M, swinging from net income of $2.03M ($0.16/share) to a net loss of $1.91M (-$0.15/share). The decline was driven by scaling costs for new food-grade contracts and the Panama plant, a weak seasonal quarter for the ENP division, and a non-recurring $2.5M R&D payment in the prior year. Management guided for a return to profitability in Q3 2026, citing a strong rebound in Q3 for the ENP and Panama divisions and the ramp-up of large food-grade contracts, but the current quarter's financials are clearly bearish on a GAAP basis.
Key Facts
- Q2 2026 revenue was $7,610,148, down ~14% from $8,867,132 in Q2 2025.
- Net loss was $1,912,967 (-$0.15/share) vs. net income of $2,028,912 ($0.16/share) in Q2 2025.
- The prior-year quarter included a non-recurring $2.5 million R&D payment.
- Management guided for Q3 2026 revenue hopes of $3M (Panama), >$5M (ENP), and >$4M (NanoChem), and a return to profitability.
- The company is scaling two large food-grade contracts with estimated maximum annual revenues of >$50 million over the next 4-6 quarters.
Financial Impact
Q2 2026 GAAP net loss of $1.91M vs. net income of $2.03M in Q2 2025; revenue decline of $1.26M YoY.
Risk Factors
- Execution risk on scaling food-grade contracts to profitability.
- Continued weakness in agricultural markets and exposure to volatile raw material costs and tariffs.
- Failure to achieve guided Q3 revenue targets and return to profitability.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-038935 |
| Exhibit: ex99-1.htm | 0001493152-26-038935 |
| Exhibit: ex99-2.htm | 0001493152-26-038935 |
| Document: 0001493152-26-038935-index-headers.html | 0001493152-26-038935 |
| Document: 0001493152-26-038935-index.html | 0001493152-26-038935 |
| Document: 0001493152-26-038935.txt | 0001493152-26-038935 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | Press Release | $6.31 $6.36 | ▲ +0.76% | ▲ +0.91% | $6.26 (−0.79%) |
Oct 6, 2026 19d ago | DEF 14A | $6.28 $6.01 | ▼ −4.30% | ▼ −3.32% | $6.26 (−0.32%) |
Sep 1, 2026 7w ago | 8-K | $5.78 $5.70 | ▼ −1.38% | ▼ −1.47% | $6.26 (+8.30%) |
Aug 18, 2026 9w ago | 8-K | $5.25 $5.50 | ▼ −4.76% | ▼ −4.96% | $6.26 (−19.24%) |
Aug 14, 2026 10w ago | Press Release | $5.39 $5.30 | ▲ +1.67% | ▲ +0.48% | $6.26 (−16.14%) |
Jul 20, 2026 14w ago | Press Release | $5.22 $5.00 | ▲ +4.21% | ▲ +2.99% | $6.26 (−19.92%) |
Jul 1, 2026 16w ago | 8-K | $6.56 $5.96 | ▲ +9.15% | ▲ +9.41% | $6.26 (+4.57%) |
Jul 1, 2026 16w ago | 424B5 | $6.56 $5.96 | ▲ +9.15% | ▲ +9.41% | $6.26 (+4.57%) |
Jun 8, 2026 20w ago | 8-K | $6.40 $6.37 | ▼ −0.47% | ▼ −2.58% | $6.26 (−2.19%) |
May 18, 2026 23w ago | 8-K | $6.10 $6.44 | ▲ +5.57% | ▲ +3.96% | $6.26 (+2.62%) |
US Market Status
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