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]