Core Insights - Flexible Solutions International Inc. (FSI) specializes in biodegradable polymers for various applications including oil extraction, detergents, water treatment, and agriculture, and is expanding into food and nutritional supplement manufacturing [1] - FSI received a payment of $2.5 million on July 1, 2025, to support the development of a new food-grade product, with potential for additional payments in the coming quarters [2][8] - The company is optimistic about securing long-term production partnerships for its completed food-grade product [3] Financial Performance - FSI's shares have increased by 165.4% over the past year, significantly outperforming its industry, which saw a rise of only 4.2% [5] Market Position - FSI currently holds a Zacks Rank of 5 (Strong Sell), indicating a less favorable market position compared to better-ranked stocks in the basic materials sector [6] - Competitors such as Carpenter Technology Corporation, Centrus Energy Corp., and Avino Silver & Gold Mines Ltd. have higher Zacks Ranks, with notable share price increases over the past year [7][9]

Core Insights - Flexible Solutions International, Inc. (FSI) has received a payment of US$2.5 million for its assistance in developing a new food-grade product, indicating successful R&D efforts [1][2][3] - The company is expanding its presence in the food and nutrition supplement manufacturing markets, having obtained FDA food grade approval for its Peru IL plant in 2022 [3] Financial Highlights - The payment of US$2.5 million was received on July 1, 2025, with potential for additional payments in the future related to the product development assistance [2] - Future business opportunities may arise for FSI's NCS division in manufacturing the new food-grade product, although any announcements regarding this will occur at a later date [2] Company Overview - FSI specializes in biodegradable polymers for various applications, including oil extraction, detergents, water treatment, and crop nutrient availability [1] - The company's NanoChem Solutions Inc. subsidiary focuses on biodegradable, water-soluble products made from thermal polyaspartate (TPA) biopolymers, which have diverse applications [3] - FSI also manufactures energy and water conservation products for multiple markets, including drinking water, agriculture, and industrial sectors [3]

Core Viewpoint - Flexible Solutions International, Inc. (FSI) reported a loss of 2 cents per share for Q1 2025, a decline from earnings of 4 cents per share in the same quarter last year, missing the Zacks Consensus Estimate of 5 cents [1] - Revenues for the quarter were approximately $7.5 million, down about 19% year over year, also falling short of the Zacks Consensus Estimate of $10.2 million [1] Segment Highlights - Sales from FSI's Energy and Water Conservation products decreased roughly 3% year over year to around $0.04 million, impacted by lower customer orders [2] - Sales of Biodegradable Polymers fell approximately 19% year over year to around $7.4 million due to reduced customer orders [2] Financials - FSI ended the quarter with cash of approximately $9.6 million, an increase of around 26% from the prior quarter [3] - Long-term debt was roughly $6.5 million, down about 2% sequentially [3] Outlook - FSI indicated that customers who adjusted inventory in Q1 returned to normal order patterns in April [4] - The company noted new opportunities in various applications, including detergent, oil field extraction, and water treatment, which are expected to boost sales in the NanoChem division and the ENP subsidiary [4] - FSI expects its cash resources to be sufficient to meet cash flow requirements and future commitments [4] Stock Performance - Shares of Flexible Solutions have increased by 102.4% over the past year, contrasting with a 0.6% decline in the Zacks Chemicals Specialty industry [5]

Financial Data and Key Metrics Changes - Sales for Q1 2025 decreased by 19% compared to Q1 2024, amounting to $7.47 million versus $9.22 million [18] - Profits in Q1 2025 resulted in a loss of $278,000 or $0.02 per share, compared to a gain of $457,000 or $0.04 per share in Q1 2024 [19] - Operating cash flow for Q1 2025 was $480,000 or $0.04 per share, down from $1.38 million or $0.11 per share in 2024 [20] Business Line Data and Key Metrics Changes - The NanoChem division (NCS) accounts for approximately 70% of total revenue, focusing on biodegradable polymers and nitrogen conservation products [4] - The E and P division, which targets greenhouse turf and golf markets, experienced reduced sales compared to the previous year [19] - The food division's sales are projected to grow in 2025, contingent on the production timeline of a new food-grade product [13] Market Data and Key Metrics Changes - Agricultural products in the US are under pressure, with crop prices not increasing at the rate of inflation, leading to uncertainty due to tariff changes [12] - Current tariffs on imports from China range between 30% to 58.5%, affecting raw material costs [13] Company Strategy and Development Direction - The company is developing a new agriculture and polymer factory in Panama to enhance international sales and reduce tariff exposure [14][15] - The strategy includes optimizing food-grade production in the US while transitioning agriculture and polymer production to Panama [16] - The company aims to achieve significant revenue growth from the new food-grade contract, with a target of $30 million per year in revenue over the next four to six quarters [9] Management's Comments on Operating Environment and Future Outlook - Management expects growth to continue in 2025, particularly in the second half of the year [11] - The company anticipates that challenges from inventory reductions by large customers will resolve in Q2 [19] - Management expressed confidence in the ability to execute plans with existing capital and no need for additional financing [21] Other Important Information - The company is investing approximately $4 million in capital expenditures for equipment and plant improvements related to the new food-grade product [8] - Long-term debt is being paid down according to loan terms, with significant cash flow expected to be freed up by the end of 2025 [21] Q&A Session Summary Question: Financial responsibility for the clean room for the new contract - The company is solely responsible for the clean room costs, while the client contributes to equipment expenses [24] Question: Expectations on margins for the new food business - Margins are expected to be stable and tied to inflation, with a set pricing equation in place [25] Question: Impact of high tariff products on margins - The company does not expect significant margin hits from high tariff products [31] Question: Future capital or operating expenses after expansions - Continuous cost increases are anticipated, particularly for accounting and software upgrades due to new complex products [33] Question: Dividend policy considerations - The company may consider a more formalized dividend policy but emphasizes flexibility [36] Question: Expectations for Q2 results - Management expects Q2 results to be better than Q1 [39] Question: Risks to making the new contract work - Risks include equipment, clean room, and timing, but the probability of failure is considered low [40] Question: Future food deals in the pipeline - Potential deals exist, but specifics cannot be disclosed due to contractual constraints [50] Question: Impact of declining oil prices on business - Lower oil prices could reduce raw material and shipping costs, potentially increasing margins [52] Question: Competitors in TPA domain - The company is a leader in food-grade TPA, with no direct competitors in the food sector [58]

Financial Data and Key Metrics Changes - Sales for Q1 2025 decreased by 19% compared to Q1 2024, amounting to $7.47 million versus $9.22 million [18] - Q1 2025 profits resulted in a loss of $278,000 or $0.02 per share, compared to a gain of $457,000 or $0.04 per share in Q1 2024 [19] - Operating cash flow for Q1 2025 was $480,000 or $0.04 per share, down from $1.38 million or $0.11 per share in 2024 [20] Business Line Data and Key Metrics Changes - The NanoChem division (NCS) accounts for approximately 70% of total revenue, focusing on biodegradable polymers and nitrogen conservation products [4] - The E and P division, which targets greenhouse turf and golf markets, is expected to see growth in the second half of 2025 [11] - The food division's sales are projected to grow in 2025, contingent on the production timeline of a new food-grade product [13] Market Data and Key Metrics Changes - Agricultural products in the US are under pressure, with crop prices not increasing at the rate of inflation, leading to uncertainty due to tariff changes [12] - Current tariffs on imports of raw materials from China range between 30% to 58.5%, impacting cost structures [13] Company Strategy and Development Direction - The company is developing a duplicate agriculture and polymer factory in Panama to reduce exposure to US tariffs and improve shipping efficiency [14][15] - The strategy includes moving most agriculture and polymer production to Panama, allowing the Illinois plant to focus on food-grade production [16] - The company aims to achieve significant revenue from the new food-grade contract, with a target of $30 million per year in the next four to six quarters [9] Management's Comments on Operating Environment and Future Outlook - Management expects Q2 2025 results to improve compared to Q1 2025, with anticipated resolution of inventory reductions by large customers [19][35] - The company is cautious about the impact of rising costs and low crop prices on sales, particularly due to political actions and tariffs [12] - Management believes that lower oil prices could positively affect raw material and shipping costs, potentially increasing margins [49] Other Important Information - The company has sufficient cash flow and working capital to execute its plans without the need for debt or equity financing [21][22] - Long-term debt is being paid down, with significant cash flow expected to be freed up in the coming years [21] Q&A Session Summary Question: Financial responsibility for clean room construction - The company is solely responsible for the clean room capital expenditures, while the client contributes to equipment costs [24] Question: Expectations on margins for new food business - Margins are expected to be stable and tied to inflation, with a set pricing equation agreed upon with the client [25][26] Question: Impact of high tariff products on margins - The company did not purchase high tariff raw materials, mitigating potential margin hits [29] Question: Expectations for sustained operating expenses post-expansion - Continuous cost increases are anticipated, particularly for accounting and software upgrades due to new complex products [31] Question: Future dividend policy - A regular dividend is possible but would be small to ensure sustainability during uncertain events [33] Question: Anticipated improvements in Q2 results - Management expects Q2 results to be better than Q1 [35] Question: Risks associated with new contract execution - Risks include equipment and clean room timing, but management is confident in execution capabilities [36] Question: Rationale for shifting manufacturing to Panama - The decision was influenced by previous tariff impacts and the need for a competitive international production site [39][40] Question: Potential food deals in the pipeline - The company has potential deals but cannot disclose details due to contractual constraints [47] Question: Relationship between oil prices and business - Lower oil prices could lead to reduced raw material and shipping costs, potentially benefiting margins [49]

分组1 - Flexible Solutions International Inc. (FSI) reported a quarterly loss of $0.02 per share, missing the Zacks Consensus Estimate of $0.05, and compared to earnings of $0.04 per share a year ago, representing an earnings surprise of -140% [1] - The company posted revenues of $7.47 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 26.73%, and down from year-ago revenues of $9.23 million [2] - Over the last four quarters, FSI has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] 分组2 - The stock has gained approximately 19.9% since the beginning of the year, outperforming the S&P 500's gain of 0.2% [3] - The current consensus EPS estimate for the coming quarter is $0.07 on revenues of $11.61 million, and for the current fiscal year, it is $0.30 on revenues of $48.78 million [7] - The Zacks Industry Rank for Chemical - Specialty is currently in the bottom 42% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]

Core Viewpoint - Flexible Solutions International, Inc. reported a significant decline in sales and net income for the first quarter of 2025 compared to the same period in 2024, primarily due to lower sales volume and increased costs, while also highlighting recovery in order patterns and new market opportunities [2][3][5]. Financial Performance - Q1 2025 sales were $7,473,692, down approximately 19% from $9,224,872 in Q1 2024 [5][6]. - The net loss for Q1 2025 was ($277,734), or ($0.02) per share, compared to a net income of $457,226, or $0.04 per share in Q1 2024 [5][6]. - Non-GAAP operating cash flow for Q1 2025 was $480,268, or $0.04 per share, down from $1,382,874, or $0.11 per share in Q1 2024 [5][6]. Revenue Sources and Market Opportunities - The NanoChem division and ENP subsidiary remain the primary sources of revenue and cash flow for the company [3]. - New opportunities are emerging in various sectors including detergent, water treatment, oil field extraction, turf, ornamental, and agricultural use, as well as in food and nutrition supplement manufacturing [3][5]. Conference Call Information - A conference call is scheduled for May 16, 2025, at 11:00 AM Eastern Time, where CEO Dan O'Brien will present and answer questions regarding the financial results [4].

Sales Performance - The Company reported a decrease in sales for EWCP products and TPA products due to decreased customer orders, with specific revenue figures of $830,483 for Company A and $1,856,395 for Company B in Q1 2025 compared to $1,291,426 and $2,299,938 in Q1 2024 respectively[76][79]. - Three primary customers accounted for 49% of the Company's sales in Q1 2025, down from 55% in Q1 2024, indicating a diversification in customer base[78]. Financial Performance - Gross profit decreased due to an increase in tariffs, while professional fees increased due to higher accounting and audit fees related to the Company's growth[76]. - Interest expense increased due to higher debt levels, impacting overall financial performance[76]. - The Company experienced a cash outflow of $544,294 from operating activities in Q1 2025, an improvement from $604,819 in Q1 2024[81]. Working Capital and Cash Flow - The Company’s working capital as of March 31, 2025, was $22,796,690, showing a slight increase from $22,714,190 as of December 31, 2024[81]. - The Company has sufficient cash resources to meet future commitments and cash flow requirements for the coming year[81]. Future Outlook - The Company anticipates no significant capital requirements for the twelve months ending March 31, 2026, indicating stable financial planning[82]. - New tariffs on raw materials imported from China are expected to affect future operating results, particularly in relation to aspartic acid used in TPA products[80]. Internal Controls - The Company implemented new procedures to improve financial reporting controls after identifying material weaknesses in the previous year[86].

Company Overview - Flexible Solutions International Inc. (FSI) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.05, reflecting a +25% change, and revenues anticipated at $10.2 million, up 10.5% from the previous year [3]. Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for FSI matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - FSI currently holds a Zacks Rank of 4 (Sell), complicating the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, FSI met the consensus EPS estimate of $0.05, resulting in no surprise [12]. - Over the past four quarters, FSI has only surpassed consensus EPS estimates once [13]. Industry Comparison - In the Zacks Chemical - Specialty industry, Hawkins (HWKN) is expected to post earnings of $0.74 per share, indicating a +12.1% year-over-year change, with revenues projected at $230.08 million, up 3.2% from the previous year [17].

Company Overview - Flexible Solutions International, Inc. (FSI) is a developer and manufacturer of biodegradable polymers for various applications including oil extraction, detergent ingredients, water treatment, and crop nutrient availability [1][3] - The company also produces biodegradable and environmentally safe technologies for water and energy conservation, and is expanding into the food and nutrition supplement manufacturing markets [1][3] Financial Highlights - FSI announced a special dividend of ten cents per share, to be paid on May 28 to shareholders of record on May 19 [2] - CEO Dan O'Brien stated that the company's current financial condition and expectations of continued profitability allow for this special dividend, emphasizing that it is not a regular dividend [2] Product and Market Expansion - The company's subsidiary, NanoChem Solutions Inc., specializes in biodegradable, water-soluble products made from thermal polyaspartate (TPA) biopolymers, which have applications in scale inhibition, detergents, water treatment, and crop enhancement [3] - In 2022, FSI entered the food and nutrition markets by obtaining FDA and SQF food grade approval for its Peru IL plant, indicating a strategic move to diversify its product offerings [3]