FGI Industries .(FGI) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $35.8 million, a year-over-year decrease of 0.7%[3] - Gross profit increased to $9.5 million, reflecting a 2.0% increase compared to the prior year, with a gross margin of 26.5%, up 70 basis points[6] - Operating income was $0.4 million, compared to an operating loss of $0.1 million in the prior-year period, with adjusted operating income also at $0.4 million[8] - The company reported a GAAP net loss attributable to shareholders of $1.7 million, or $0.86 per diluted share, compared to a net loss of $0.6 million, or $0.29 per diluted share, in the same period last year[9] - Revenue for the three months ended September 30, 2025, was $35,848,861, a decrease of 0.7% compared to $36,099,179 for the same period in 2024[25] - Net loss attributable to FGI Industries Ltd. shareholders for the nine months ended September 30, 2025, was $3,511,948, compared to a loss of $798,761 for the same period in 2024[25] - Adjusted Operating Income for the three months ended September 30, 2025, was $369,723, compared to $55,663 for the same period in 2024[28] - The company reported a loss before income taxes of $68,467 for the three months ended September 30, 2025, compared to a loss of $430,711 for the same period in 2024[28] Liquidity and Cash Flow - Total available liquidity at the end of Q3 2025 was $14.2 million, with cash and cash equivalents at $1.9 million and total debt of $14.1 million[11] - Cash used in operating activities for the nine months ended September 30, 2025, was $1,670,736, a significant improvement from $8,042,745 in 2024[26] - Cash at the end of the period on September 30, 2025, was $1,875,682, down from $3,044,662 at the end of the same period in 2024[26] Revenue Breakdown - Sanitaryware revenue grew to $22.9 million, an increase from $21.5 million in the prior-year period, while Bath Furniture and Shower Systems revenues declined by 10.8% and 17.8%, respectively[5] - Gross profit for the nine months ended September 30, 2025, was $27,105,533, compared to $26,685,007 for the same period in 2024, reflecting a 1.6% increase[25] - Total operating expenses for the nine months ended September 30, 2025, were $28,849,007, compared to $27,522,129 for the same period in 2024, indicating a 4.8% increase[25] Strategic Initiatives - FGI is focusing on strategic investments in brands, products, and channels to drive future growth despite the uncertain tariff environment[3] - The company is expanding its geographic presence, particularly in India, and enhancing its dealer network through Covered Bridge and Isla Porter initiatives[3] - FGI plans to hold quarterly earnings calls only for the second and fourth quarters moving forward[10] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $1,085,095, a decrease from $1,303,445 in 2024, reflecting a 16.7% reduction[25] Foreign Currency Impact - The company experienced a foreign currency translation adjustment loss of $3,742 for the three months ended September 30, 2025, compared to a gain of $47,269 in 2024[25]