Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - 89bio, Inc. (ETNB) increased by 83% to $14.84 [3] - Aptevo Therapeutics Inc. (APVO) rose by 75% to $2.47 [3] - Psyence Biomedical Ltd. (PBM) saw a 29% increase to $4.82 [3] - Beam Global (BEEM) gained 27% reaching $3.23 [3] - MicroAlgo Inc. (MLGO) was up 14% at $13.06 [3] - Akero Therapeutics, Inc. (AKRO) increased by 12% to $47.50 [3] - Hyperion DeFi, Inc. (HYPD) rose by 11% to $13.69 [3] - Sonnet BioTherapeutics Holdings, Inc. (SONN) increased by 11% to $7.85 [3] - FuelCell Energy, Inc. (FCEL) was up 9% at $8.34 [3] - Robo.ai Inc. (AIIO) gained 6% to $2.05 [3] Premarket Losers - Presidio Property Trust, Inc. (SQFT) decreased by 14% to $7.58 [4] - Aeluma, Inc. (ALMU) fell by 10% to $15.18 [4] - FGI Industries Ltd. (FGI) dropped 10% to $7.65 [4] - Lazydays Holdings, Inc. (GORV) was down 9% at $2.26 [4] - StableX Technologies, Inc. (SBLX) decreased by 8% to $5.40 [4] - Artelo Biosciences, Inc. (ARTL) fell by 8% to $4.48 [4] - SciSparc Ltd. (SPRC) decreased by 8% to $4.10 [4] - Cracker Barrel Old Country Store, Inc. (CBRL) was down 7% at $45.75 [4] - Columbus Circle Capital Corp I (BRR) fell by 7% to $9.42 [4] - Visionary Holdings Inc. (GV) decreased by 7% to $2.58 [4]

Core Viewpoint - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - FGI Industries Ltd. (FGI) is up 278% at $15.02 [3] - Senmiao Technology Limited (AIHS) is up 96% at $4.22 [3] - Conifer Holdings, Inc. (CNFR) is up 86% at $2.11 [3] - WEBTOON Entertainment Inc. (WBTN) is up 39% at $20.81 [3] - Nukkleus Inc. (NUKK) is up 18% at $6.08 [3] - Tantech Holdings Ltd (TANH) is up 12% at $2.13 [3] - Check-Cap Ltd. (CHEK) is up 9% at $2.33 [3] - Ivanhoe Electric Inc. (IE) is up 8% at $9.71 [3] - Wolfspeed, Inc. (WOLF) is up 8% at $3.21 [3] - Bolt Projects Holdings, Inc. (BSLK) is up 5% at $3.95 [3] Premarket Losers - Envirotech Vehicles, Inc. (EVTV) is down 17% at $2.27 [4] - Dave & Buster's Entertainment, Inc. (PLAY) is down 15% at $20.40 [4] - NanoVibronix, Inc. (NAOV) is down 12% at $9.37 [4] - ADTRAN Holdings, Inc. (ADTN) is down 10% at $9.37 [4] - Rain Enhancement Technologies Holdco, Inc. (RAIN) is down 10% at $6.00 [4] - CNS Pharmaceuticals, Inc. (CNSP) is down 7% at $8.50 [4] - AVITA Medical, Inc. (RCEL) is down 7% at $6.22 [4] - Vince Holding Corp. (VNCE) is down 7% at $2.60 [4] - Monte Rosa Therapeutics, Inc. (GLUE) is down 6% at $6.50 [4] - Meiwu Technology Company Limited (WNW) is down 6% at $2.06 [4]

Revenue Performance - Revenue increased by $1.6 million, or 5.5%, to $31.0 million for the three months ended June 30, 2025, compared to $29.4 million for the same period in 2024[145]. - Total revenue for the three months ended June 30, 2025, was $30.998 million, a 5.5% increase from $29.371 million for the same period in 2024[150]. - Revenue from sanitaryware sales accounted for 58.3% of total revenue for the three months ended June 30, 2025, with a 4.3% increase to $18.1 million[146]. - Bath furniture sales increased by 2.7% to $4.1 million for the three months ended June 30, 2025, accounting for 13.3% of total revenue[147]. - Revenue from sales of Shower Systems decreased by 11.2% to $5.2 million for the three months ended June 30, 2025, compared to $5.9 million for the same period in 2024[148]. - Revenue from sales of other products increased by 67.7% to $3.5 million for the three months ended June 30, 2025, compared to $2.1 million for the same period in 2024[149]. - Revenue for the six months ended June 30, 2025, was $64,210,808, compared to $60,124,468 for the same period in 2024, indicating a growth in revenue[187]. Profitability and Margins - Gross margins improved to 26.9% in 2024 and 27.4% in 2023, up from 19.5% in 2022, reflecting a focus on higher-margin products[139]. - The company expects to maintain gross margins in line with 2024 and 2023 levels[139]. - Gross profit was $8.7 million for the three months ended June 30, 2025, a decrease of 2.9% compared to the same period in 2024[153]. - Adjusted Operating Margins for the six months ended June 30, 2025, were -3.3%, compared to -0.9% in the prior-year period, reflecting a decline in operational efficiency[187]. Financial Position and Liquidity - Total liquidity as of June 30, 2025, was $16.4 million, providing financial flexibility for organic growth strategies[139]. - As of June 30, 2025, the company had approximately $2.5 million in cash and cash equivalents and $12.6 million outstanding under its credit facilities[161]. - The company was not in compliance with certain financial covenants related to its debt coverage ratio as of June 30, 2025[162]. - The company expects to improve liquidity and reduce its cost structure through various actions, including lease terminations and cost control initiatives[163]. Expenses and Losses - Net loss for the three months ended June 30, 2025, was $1.36 million, a significant increase from a net loss of $23,415 in the same period of 2024[143]. - Net loss was $1.4 million for the three months ended June 30, 2025, compared to a net loss of $23,000 for the same period in 2024[160]. - The company reported a net loss of $2,234,256 for the six months ended June 30, 2025, compared to a net loss of $174,776 in the same period of 2024, indicating a significant increase in losses[187]. - Selling and distribution expenses decreased slightly by 0.8% to $6.2 million for the three months ended June 30, 2025[143]. - Selling and distribution expenses decreased by 0.8% to $6.2 million for the three months ended June 30, 2025, while increasing by 7.9% to $13.4 million for the six months ended June 30, 2025[154]. Cash Flow and Investments - Net cash provided by operating activities improved to $195,667 for the six months ended June 30, 2025, compared to a net cash used of $7,127,778 in the prior-year period, driven by a $3.9 million decrease in accounts receivable and a $1.3 million reduction in inventory[176]. - Net cash used in investing activities was $631,150 for the six months ended June 30, 2025, a decrease from $1,859,419 in the same period of 2024, reflecting a more conservative pace of capital investments[177]. - Capital expenditures amounted to $631,150 for the six months ended June 30, 2025, down from $1,859,419 in the same period of 2024, with no significant capital expenditures expected in the immediate future[179]. - Net cash used in financing activities totaled $1,943,867 for the six months ended June 30, 2025, compared to $2,733,024 provided in the prior-year period, indicating net repayments on revolving credit facilities[178]. Strategic Initiatives - The company has entered into a 5-year licensing agreement for an industry-leading overflow toilet technology, marketed as FLUSH GUARD Overflow Technology[139]. - The company plans to continue investing in research and development to drive product innovation in 2025[139]. - New product lines, including anti-overflow toilets and custom kitchen cabinetry, have begun generating increased revenue[172]. Accounts Payable and Tax Benefits - The company experienced a $2.1 million increase in accounts payable, which supported operating cash flow during the period[176]. - A higher deferred tax benefit of $1.0 million reduced the non-cash tax burden during the period, contributing to the improvement in operating cash flow[176].

Financial Data and Key Metrics Changes - FGI reported total revenue of $31 million in Q2 2025, representing a year-over-year increase of 5.5% [6][13] - Gross profit was $8.7 million, a decrease of 2.9% compared to the prior year [6][13] - Gross margin declined to 28.1% from 30.5% in 2024, primarily due to the ongoing tariff environment [7][14] - Operating expenses increased by 1.3% to $9.5 million from $9.4 million in the prior year [14] - GAAP operating loss was $800,000, compared to a loss of $500,000 in the prior year [14] Business Line Data and Key Metrics Changes - Revenue from sanitary ware increased by 4.3% year-over-year [9] - Bath furniture revenue increased by 2.7% year-over-year due to market-aligned pricing and design [8] - Shower systems revenue declined by 11.2%, despite positive demand trends [9] - Other revenue, primarily from covered bridge cabinetry, increased by 67.7% driven by order momentum and expanded geographies [9] Market Data and Key Metrics Changes - Revenue in the U.S. declined by 0.4%, while revenue grew by 236.7% in Canada and Europe [8] - The company is focusing on a "China plus one" strategy to diversify sourcing [7][24] Company Strategy and Development Direction - FGI is investing in organic growth initiatives across brands, products, and channels, referred to as the BPC strategy [6] - The company is actively diversifying its global sourcing base, with significant changes expected in the sourcing footprint by next year [24] - Strategic investments are aimed at driving above-market organic growth in the future [9] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in navigating the tariff environment, citing strong relationships with suppliers and customers [11][34] - The order pipeline is recovering, although some customers remain cautious due to tariff uncertainties [12][22] - Management anticipates that new business programs will contribute positively to margins in the second half of the year [27][40] Other Important Information - FGI maintains its 2025 revenue guidance of $135 million to $145 million, with adjusted operating income guidance ranging from negative $2 million to positive $1.5 million [15] - Total liquidity at the end of Q2 was $16.4 million, deemed sufficient to fund growth initiatives [15] Q&A Session Summary Question: Concerns about demand degradation due to tariffs - Management indicated that the pause in orders was primarily due to uncertainty surrounding tariffs, which led customers to hesitate in purchasing inventory [20][21] Question: Impact of the "China plus one" strategy on all business segments - Management confirmed that the strategy will impact all business segments, including sanitary ware, and significant changes in the global sourcing footprint are expected [23][24] Question: Trends in operating expenses and gross margins for the second half - Management noted that they are closely monitoring expenses and expect gross margins to remain in the upper 20s, driven by new business programs [25][27] Question: Improvement in the order pipeline since the beginning of Q2 - Management reported a positive trajectory in the order pipeline, recovering momentum prior to the tariff impact [36][39] Question: Clarification on gross margins and guidance for the back half of the year - Management indicated that they expect to rebound in gross margins based on original plans, despite delays caused by tariffs [40]

Investor Second Quarter 2025 Presentation Disclaimer Certain matters discussed in this presentation contain forward-looking statements concerning our business, operations and financial performance and conditions, as well as our plans, objectives and expectations for our business operations and financial performance and condition. These statements may be preceded by, followed by or include the words "may," "expect," "will," "will likely result," "should," "estimate," "plan" and other similar expressions that ...

Group 1: Earnings Performance - FGI Industries Ltd. reported a quarterly loss of $0.6 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.3, and compared to earnings of $0.05 per share a year ago, indicating a significant decline in performance [1] - The company posted revenues of $31 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 4.62%, while year-ago revenues were $29.37 million [2] - Over the last four quarters, FGI Industries has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - FGI Industries shares have increased by about 0.4% since the beginning of the year, underperforming compared to the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for the coming quarter is $0.05 on revenues of $37.2 million, while for the current fiscal year, the estimate is -$0.90 on revenues of $139 million [7] - The estimate revisions trend for FGI Industries was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Retail - Home Furnishings industry, to which FGI Industries belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Executive Summary FGI Industries reported a 5.5% revenue increase in Q2 2025, driven by strategic investments and market expansion, despite tariff impacts leading to gross profit and net loss declines [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) FGI Industries achieved a 5.5% revenue increase to $31.0 million in Q2 2025, yet gross profit and margin declined, resulting in an operating and net loss due to tariff impacts Second Quarter 2025 Key Financial Highlights (YoY Comparison) | Metric | Q2 2025 (USD) | Change vs. Q2 2024 | | :-------------------- | :-------------- | :----------------- | | Total Revenue | $31.0 million | +5.5% | | Gross Profit | $8.7 million | -2.9% | | Gross Margin | 28.1% | -240 bps | | Operating Loss | $0.8 million | (from $0.5M income) | | Net Loss Attributable to Shareholders | $1.2 million | (from $0.2M income) | | Adjusted Operating Loss | $0.8 million | | | Adjusted Net Loss | $1.2 million | | [Management Commentary & Strategic Initiatives](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Initiatives) Management attributed revenue growth to strategic investments and market expansion in key product categories and international markets, while actively navigating tariffs and pursuing long-term growth initiatives - Revenue growth was driven by **Sanitaryware (+4.3% YoY)**, **Bath Furniture (+2.7% YoY)**, and **Covered Bridge cabinetry (+67.7% YoY)**[3](index=3&type=chunk) - International markets showed strong growth: **Canada revenue grew 2.0%** and **Europe grew 36.7% YoY**, while U.S. revenue declined **0.4%**[3](index=3&type=chunk) - The company is evaluating a **'China+1' strategy** to diversify geographic sourcing and mitigate tariff impacts[3](index=3&type=chunk) - Strategic investments include brands, products, channels, the digital custom kitchen joint venture Isla Porter (AI-backed platform), and expansion in India[3](index=3&type=chunk)[4](index=4&type=chunk) - Operating expenses increased **1.3% YoY to $9.5 million** due to investments in BPC growth strategy initiatives and one-time warehouse optimization costs[4](index=4&type=chunk) - The best use of capital is prioritized for internal investment to attract new customers, expand relationships, develop new products/manufacturing, and enter new jurisdictions[4](index=4&type=chunk) Second Quarter 2025 Financial Results FGI Industries' Q2 2025 financial results show revenue growth offset by declining gross profit and a net loss, primarily due to tariff impacts and increased operating expenses [Revenue and Gross Profit Analysis](index=1&type=section&id=Revenue%20and%20Gross%20Profit%20Analysis) FGI's Q2 2025 revenue grew 5.5% to $31.0 million, driven by product and international market expansion, though gross profit decreased 2.9% and margin declined 240 bps due to tariffs and freight costs Q2 2025 Revenue and Gross Profit (YoY Comparison) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | YoY Change | | :---------------- | :-------------- | :-------------- | :--------- | | Total Revenue | $30,998,260 | $29,370,949 | +5.5% | | Cost of Revenue | $22,291,653 | $20,407,647 | +9.2% | | Gross Profit | $8,706,607 | $8,963,302 | -2.9% | | Gross Margin | 28.1% | 30.5% | -240 bps | - The decline in gross margin was primarily attributed to the ongoing tariff environment and higher freight costs[3](index=3&type=chunk)[7](index=7&type=chunk) [Operating and Net Income/Loss Analysis](index=1&type=section&id=Operating%20and%20Net%20Income%2FLoss%20Analysis) FGI reported an operating loss of $0.8 million and a GAAP net loss of $1.2 million in Q2 2025, a decline from prior-year income, driven by increased operating expenses for growth initiatives and personnel Q2 2025 Operating and Net Income/Loss (YoY Comparison) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | YoY Change | | :------------------------------------ | :-------------- | :-------------- | :-------------------- | | Operating Loss | $(832,338) | $(450,362) | (from income of $0.5M) | | Adjusted Operating Loss | $(832,338) | $(328,873) | | | Operating Margin | (2.7%) | (1.5%) | -120 bps | | Adjusted Operating Margin | (2.7%) | (1.1%) | -160 bps | | GAAP Net Loss Attributable to Shareholders | $(1,231,524) | $163,565 | (from income of $0.2M) | | GAAP Diluted EPS | $(0.64) | $0.08 | | | Adjusted Net Loss | $(1,161,873) | $22,700 | | | Adjusted Diluted EPS | $(0.61) | $0.01 | | - The decline in operating income was a result of increased personnel costs, marketing and promotion expenses, warehouse expenses, and operating expenses tied to growth initiatives[8](index=8&type=chunk) - Net loss for Q2 2025 and 2024 included after-tax expenses related to business expansion and non-recurring IPO-related compensation[9](index=9&type=chunk) Financial Position and Outlook FGI Industries maintains $16.4 million in liquidity as of June 30, 2025, and reiterates its fiscal year 2025 revenue guidance of $135-145 million, with varied segment performance [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, FGI Industries maintained $16.4 million in total available liquidity, comprising cash and credit facility availability, with total debt at $12.6 million Financial Resources and Liquidity (as of June 30, 2025) | Metric | Amount (USD) | | :-------------------------------- | :------------- | | Cash and Cash Equivalents | $2.5 million | | Total Debt | $12.6 million | | Availability under Credit Facilities (net of L/C) | $13.9 million | | Total Liquidity | $16.4 million | [Fiscal Year 2025 Guidance](index=2&type=section&id=Fiscal%20Year%202025%20Guidance) The company reiterated its fiscal year 2025 guidance, projecting total net revenue between $135-145 million, with adjusted operating income ranging from a loss of $2.0 million to a gain of $1.5 million, and adjusted net income from a loss of $1.9 million to a gain of $1.0 million Fiscal Year 2025 Guidance | Metric | Range (USD) | | :-------------------------- | :-------------------- | | Total Net Revenue | $135 - $145 million | | Total Adjusted Operating Income | $(2.0) - $1.5 million | | Total Adjusted Net Income | $(1.9) - $1.0 million | [Segment Revenue Performance](index=1&type=section&id=Segment%20Revenue%20Performance) Q2 2025 saw revenue growth in Sanitaryware, Bath Furniture, and Other (Kitchen Cabinets, including Covered Bridge), while Shower Systems revenue declined Q2 2025 Revenue by Product Category (YoY Comparison) | Product Category | Q2 2025 Revenue (USD) | Q2 2024 Revenue (USD) | YoY Change | | :----------------- | :-------------------- | :-------------------- | :--------- | | Sanitaryware | $18.1 million | $17.3 million | +4.6% | | Bath Furniture | $4.1 million | $4.0 million | +2.5% | | Shower Systems | $5.2 million | $5.9 million | -11.9% | | Other (Kitchen Cabinets) | $3.5 million | $2.1 million | +66.7% | - Bath Furniture revenue growth was driven by a shift to market-aligned program pricing and design, outpacing sales expectations due to new business wins[13](index=13&type=chunk) - Other revenue, primarily from Kitchen Cabinets (including Covered Bridge), showed strong growth due to continued order momentum, expanded geographies, and a higher dealer count[3](index=3&type=chunk)[13](index=13&type=chunk) Company Information and Disclosures FGI Industries, a global kitchen and bath product supplier, outlines its use of non-GAAP financial measures, forward-looking statement disclaimers, and updated investor relations policies [About FGI Industries](index=3&type=section&id=About%20FGI%20Industries) FGI Industries Ltd. is a global supplier of innovative kitchen and bath products, serving the repair and remodel market through diverse channels with sanitaryware, bath furniture, shower systems, and custom cabinetry - FGI Industries Ltd. is a leading global supplier of kitchen and bath products with over 30 years of industry reputation for product innovation, quality, and customer service[16](index=16&type=chunk) - Key product categories include sanitaryware (toilets, sinks), bath furniture (vanities, mirrors, cabinets), shower systems, custom kitchen cabinetry, and other accessory items[16](index=16&type=chunk) - Products are primarily sold for repair and remodel activities, and to a lesser extent, new home or commercial construction, through mass retail centers, wholesale/commercial distributors, online retailers, and specialty stores[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) FGI Industries uses non-GAAP measures like Adjusted Operating Income and Net Income to evaluate performance and aid strategic decisions, excluding non-recurring items for enhanced investor insight and comparability - Non-GAAP measures used include **Adjusted Operating Income**, **Adjusted Operating Margins**, and **Adjusted Net Income**[17](index=17&type=chunk) - Adjusted Operating Income excludes non-recurring income/expenses like IPO-related compensation, unusual litigation, and business expansion expense[17](index=17&type=chunk) - Adjusted Net Income further excludes income taxes at historical average effective rates and net income attributable to non-controlling shareholders[17](index=17&type=chunk) - These non-GAAP measures are used to evaluate business, measure financial performance, manage expenses, identify trends, and assist in strategic decisions, providing investors with additional insight and comparability[18](index=18&type=chunk) - Beginning in Q1 2025, the presentation of non-GAAP measures was revised to provide more meaningful insight, with historical comparative figures adjusted accordingly[29](index=29&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements, based on current information and subject to risks and uncertainties, with actual results potentially differing materially, and no obligation to update unless legally required - Forward-looking statements are identified by words such as "anticipate," "expect," "could," "may," "intend," "plan," "see," and "believe"[19](index=19&type=chunk) - These statements are based on currently available operating, financial, economic, and other information and are subject to numerous risks and uncertainties[20](index=20&type=chunk) - Actual future events or results may differ materially from those projected, and readers are referred to FGI's SEC filings (Form 10-K, 10-Q) for a full description of risks[20](index=20&type=chunk) - FGI does not undertake any obligation to update forward-looking statements unless required by applicable securities laws[20](index=20&type=chunk) [Investor Relations](index=2&type=section&id=Investor%20Relations) FGI Industries has updated its earnings call schedule to cover only Q2 and Q4, while continuing quarterly releases, with investor inquiries directed to the CFO and Q2 2025 conference call details provided - FGI will hold quarterly earnings calls only for the second and fourth quarters, continuing to release results via press releases and SEC filings quarterly[10](index=10&type=chunk) - Investor inquiries can be submitted via email to investorrelations@fgi-industries.com or by phone at **973-515-7190**, with Jae Chung as the Chief Financial Officer and investor contact[10](index=10&type=chunk)[21](index=21&type=chunk) - A conference call to discuss Q2 2025 results was scheduled for Tuesday, August 12 at **9:00 am Eastern Time**, with webcast and teleconference details provided[13](index=13&type=chunk)[15](index=15&type=chunk) Condensed Consolidated Financial Statements This section presents FGI Industries' unaudited condensed consolidated balance sheets, statements of operations, cash flows, and non-GAAP reconciliations for the specified periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets present FGI Industries' financial position as of June 30, 2025, compared to December 31, 2024, showing changes in assets, liabilities, and shareholders' equity Condensed Consolidated Balance Sheets (USD) | Metric | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------ | :-------------------- | | **ASSETS** | | | | Cash | $2,519,117 | $4,558,160 | | Accounts receivable, net | $15,704,382 | $20,293,555 | | Inventories, net | $12,680,481 | $13,957,867 | | Total current assets | $49,125,064 | $52,897,962 | | Total assets | $71,701,684 | $75,461,415 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Short-term loans | $12,558,500 | $14,502,367 | | Accounts payable | $21,447,290 | $19,349,529 | | Total current liabilities | $40,622,359 | $42,542,826 | | Total liabilities | $51,425,660 | $53,895,765 | | Total shareholders' equity | $20,276,024 | $21,565,650 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The unaudited condensed consolidated statements of operations and comprehensive loss detail the company's financial performance for the three and six months ended June 30, 2025, and 2024, highlighting revenue, gross profit, operating loss, and net loss trends Condensed Consolidated Statements of Operations and Comprehensive Loss (USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $30,998,260 | $29,370,949 | $64,210,808 | $60,124,468 | | Gross profit | $8,706,607 | $8,963,302 | $17,606,865 | $17,376,785 | | Total operating expenses | $9,538,945 | $9,413,664 | $19,720,062 | $18,148,081 | | Loss from operations | $(832,338) | $(450,362) | $(2,113,197) | $(771,296) | | Net loss | $(1,364,465) | $(23,415) | $(2,180,022) | $(561,274) | | Net (loss) income attributable to FGI Industries Ltd. shareholders | $(1,231,524) | $163,565 | $(1,860,616) | $(248,624) | | Diluted (Loss) earnings per share | $(0.64) | $0.08 | $(0.97) | $(0.13) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The unaudited condensed consolidated statements of cash flows provide an overview of cash generated from or used in operating, investing, and financing activities for the six months ended June 30, 2025, and 2024, showing a shift from cash used in operations to cash provided by operations year-over-year Condensed Consolidated Statements of Cash Flows (USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $195,667 | $(7,127,778) | | Net cash used in investing activities | $(631,150) | $(1,859,419) | | Net cash (used in) provided by financing activities | $(1,943,867) | $2,733,024 | | Net changes in cash | $(2,039,043) | $(6,470,149) | | Cash, End of Period | $2,519,117 | $1,307,092 | [Non-GAAP Reconciliations](index=13&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP income from operations to Adjusted Operating (Loss) Income and Adjusted Operating Margins, and GAAP net income to Adjusted Net Income, for the three and twelve months ended June 30, 2025, and 2024, adjusting for non-recurring items Reconciliation of GAAP to Adjusted Operating (Loss) Income (USD) | Metric | Q2 2025 | Q2 2024 | LTM June 30, 2025 | LTM June 30, 2024 | | :------------------------------------ | :------ | :------ | :---------------- | :---------------- | | Loss from operations | $(832,338) | $(450,362) | $(3,441,492) | $955,799 | | Adjustments: | | | | | | Non-recurring IPO-related share-based compensation | — | $59,719 | $139,344 | $238,876 | | Business expansion expense | — | $61,770 | $123,540 | $247,082 | | Adjusted Operating Loss | $(832,338) | $(328,873) | $(3,178,608) | $1,441,757 | | Adjusted Operating Margins (%) | (2.7) | (1.1) | (2.3) | 1.2 | Reconciliation of GAAP to Adjusted Net (Loss) Income (USD) | Metric | Q2 2025 | Q2 2024 | LTM June 30, 2025 | LTM June 30, 2024 | | :------------------------------------ | :------ | :------ | :---------------- | :---------------- | | Loss before income taxes | $(1,579,041) | $(321,830) | $(4,578,826) | $541,207 | | Adjustments: | | | | | | Non-recurring IPO-related share-based compensation | — | $59,719 | $139,344 | $238,876 | | Business expansion expense | — | $61,770 | $123,540 | $247,082 | | Adjusted loss before income taxes | $(1,579,041) | $(200,341) | $(4,315,942) | $1,027,165 | | Less: income taxes at 18% rate | $(284,227) | $(36,061) | $(776,870) | $184,890 | | Less: net loss attributable to non-controlling shareholders | $(132,941) | $(186,980) | $(539,944) | $(466,690) | | Adjusted Net (Loss) Income | $(1,161,873) | $22,700 | $(2,999,128) | $1,308,965 |

Core Insights - FGI Industries Ltd. reported total revenue of $31.0 million for Q2 2025, marking a year-over-year increase of 5.5% despite challenges from tariffs [2][4][7] - Gross profit decreased to $8.7 million, a decline of 2.9% year-over-year, with a gross margin of 28.1%, down 240 basis points from the previous year [5][7] - The company experienced an operating loss of $0.8 million, compared to an operating income of $0.5 million in the same period last year [6][7] Revenue Breakdown - Revenue from Sanitaryware was $18.1 million, up from $17.3 million year-over-year [8] - Bath Furniture revenue increased to $4.1 million from $4.0 million [8] - Shower Systems revenue declined to $5.2 million from $5.9 million, a decrease of 11.2% year-over-year [8] - Other revenue, primarily from Kitchen Cabinets, rose to $3.5 million from $2.1 million, driven by order momentum and higher dealer count [8] Market Performance - Revenue in the U.S. declined by 0.4%, while Canada and Europe saw growth of 2.0% and 36.7%, respectively [2] - The company is focusing on a China+1 strategy to diversify sourcing and mitigate tariff impacts [2][3] Financial Position - As of June 30, 2025, FGI had total liquidity of $16.4 million, with $2.5 million in cash and cash equivalents and total debt of $12.6 million [11] - Operating expenses increased by 1.3% year-over-year to $9.5 million, attributed to investments in growth initiatives [3][6] Future Outlook - The company is optimistic about new product introductions and continues to invest in brand and growth initiatives [2] - FGI reiterated its fiscal 2025 guidance, projecting total net revenue between $135 million and $145 million [16]

Core Insights - FGI Industries Ltd. will release its financial results for Q2 2025 on August 11, 2025, after market close [1] - A conference call to discuss these results is scheduled for August 12, 2025, at 9:00 am Eastern Time [1] Company Overview - FGI Industries Ltd. is a leading global supplier of kitchen and bath products with over 30 years of industry experience [3] - The company specializes in product categories such as sanitaryware, bath furniture, shower systems, kitchen cabinetry, and accessories [3] - FGI's products are primarily sold for repair and remodel activities, with a smaller portion for new home or commercial construction [3] - Distribution channels include mass retail centers, wholesale and commercial distributors, online retailers, and specialty stores [3]

Core Insights - The home improvement market is characterized by competition and evolution, with Home Depot Inc. (HD) and FGI Industries Ltd. (FGI) representing contrasting business models [1][2] Group 1: Home Depot (HD) - Home Depot is a retail giant with significant market share and a strong supply chain, dominating both DIY and professional segments in North America [3][4] - The company benefits from a balanced customer base, capturing demand from individual home projects and large-scale renovations, supported by aging housing stock and supply shortages [4] - Home Depot's "One Home Depot" strategy integrates digital and in-store experiences, enhancing customer flexibility and fulfillment [5] - Financially, Home Depot shows strong profitability and a focus on long-term growth, with continued investments in supply chain and digital tools [6] - Fiscal 2025 sales are projected to grow 3.1% year-over-year to $164.5 billion, with EPS expected to decline 1.3% to $15.04 [11] Group 2: FGI Industries (FGI) - FGI Industries focuses on kitchen and bath products, reporting an 8% year-over-year revenue increase to $33.2 million in Q1 2025, with significant growth in specific segments [7][10] - The company emphasizes repair-and-remodel demand and utilizes an AI-driven platform to engage the premium kitchen design market [9] - Despite a net loss of $0.6 million in the quarter, FGI maintains a revenue guidance of $135-$145 million for 2025, indicating confidence in its growth strategy [10][14] - FGI's sales are expected to increase 5.5% year-over-year to $139 million in 2025, with a projected loss per share of 18 cents [14] Group 3: Market Performance and Valuation - Home Depot's stock has grown 1.3% over the past year, underperforming the S&P 500's 13.3% return but outperforming FGI's 22.8% decline [17] - Home Depot trades at a forward P/E multiple of 23.21X, above its 3-year median, reflecting its alignment with Pro customers and strong brand equity [21][22] - FGI trades at 20.82X, above its 5-year median, indicating potential for multiple expansion as it executes its growth strategy [23] - Home Depot's operational strength and investor confidence position it as a long-term leader, while FGI's innovation-driven approach signals long-term promise despite its smaller scale [25][26]