FST Corp. Revenue Up 47 Percent in Q3 2025; Improved Gross Margin and Bottom Line

Financial Performance - For Q3 2025, the company reported revenue of $12,554,939, a 47% increase from $8,527,875 in Q3 2024, driven by wider acceptance of KBS graphite shafts and increased U.S. OEM sales [1] - Gross profit margin for Q3 2025 improved to 39.2%, up from 38.8% in the prior year, attributed to increased KBS-branded programs [1] - The company had a net loss of $715,955, or $(0.02) per share, for Q3 2025, an improvement from a net loss of $1,757,891, or $(0.03) per share, in Q3 2024 [2] Year-to-Date Performance - For the first nine months of 2025, revenue reached $34,748,371, a 32% increase from $26,357,620 in the same period of 2024, primarily due to additional OEM sales [3] - Gross profit margin for the first nine months improved to 43.6%, compared to 41.9% in the prior year, driven by higher-margin product sales and improved operational efficiency [4] - The company reported a net loss of $6,543,002, or $(0.15) per share, for the first three quarters of 2025, compared to a net loss of $1,680,274, or $(0.03) per share, in the same period of 2024 [5] Cash Flow and Assets - As of September 30, 2025, cash and cash equivalents were $7,965,284, an increase of $1,162,916 during Q3 and up $2,866,864 from $5,098,420 at the end of 2024 [7] - Net cash provided by operating activities was $3,356,566 for the first three quarters of 2025, compared to $548,567 in the same period of 2024 [8] Strategic Initiatives - The company is launching a new product line, signing strategic partnerships to enhance OEM sales, expanding distribution channels in Asia and Europe, and implementing cost-control measures to improve margins [10] - The company expects all listing expenses related to its merger to be accounted for by the end of the year, which is anticipated to positively impact the bottom line in 2026 and beyond [10] Company Overview - FST Corp. manufactures and sells golf club shafts and other golf-related items, with a strong presence in the market through its KBS brand, utilized by golfers at all levels [11] - The company is positioned for expansion into under-tapped golf shaft markets, leveraging its vertically integrated business model for competitive advantages [11]