Flexsteel(US:FLXS)2026-02-04 21:30Financial Performance - Net sales for the quarter ended December 31, 2025, were $118.2 million, a 9.0% increase from $108.5 million in the prior year quarter [53]. - Net sales for the six months ended December 31, 2025, were $228.7 million, a 7.6% increase from $212.5 million in the prior year [59]. - Net income for the quarter ended December 31, 2025, was $6.6 million, or $1.18 per diluted share, down from $9.1 million, or $1.62 per diluted share in the prior year quarter [58]. Gross Margin - Gross margin for the quarter ended December 31, 2025, was 22.7%, up 170 basis points from 21.0% in the prior year quarter [55]. - Gross margin for the six months ended December 31, 2025, was 23.1%, an increase of 180 basis points from 21.3% in the prior year [60]. Expenses - Selling, general and administrative expenses increased to $17.8 million for the quarter ended December 31, 2025, representing 15.1% of net sales compared to 14.9% in the prior year quarter [56]. Cash Flow and Working Capital - Net cash provided by operating activities for the six months ended December 31, 2025, was $5.1 million, down from $9.1 million in the prior year [66]. - Working capital increased to $126.0 million as of December 31, 2025, compared to $110.4 million on June 30, 2025 [64]. Debt and Credit - As of December 31, 2025, there were no outstanding borrowings under the Credit Agreement, with letters of credit totaling $0.9 million [75]. Tax Rate - The effective tax rate for the quarter ended December 31, 2025, was 28.9%, compared to 22.4% in the prior year quarter [57].