First America Resources Corporation Reports 20% Revenue Growth in Q2 2026

First America Resources Corporation (FSTJ) reported significant financial improvements in its latest 10-Q filing for the second quarter of 2026, showcasing a 20% increase in revenue compared to the same period in 2025. The company generated revenues of $5.79 million for the three months ended June 30, 2026, up from $4.82 million in the prior year. For the first half of 2026, total revenues reached $10.59 million, compared to $8.85 million for the same period in 2025. The gross profit margin also improved, rising to 56% for the second quarter and 59% for the first half of the year, attributed to effective cost management and increased operational efficiency.

Operating expenses for the second quarter increased by 7% to $2.71 million, driven primarily by higher payroll and rent costs, reflecting the company's expansion efforts. Notably, payroll expenses rose by $221,000, while general and administrative expenses decreased by $70,000. The company reported an income from operations of $545,000 for the second quarter, a significant turnaround from a loss of $55,000 in the same quarter of 2025. For the first half of 2026, income from operations was $873,000, compared to a loss of $400 in the prior year.

In terms of operational metrics, First America Resources Corporation has seen a positive shift in its financial position. The company reported a cash balance of $524,504 as of June 30, 2026, compared to $276,855 at the end of 2025. The total assets increased to $8.65 million, up from $6.66 million at the end of the previous fiscal year. The company’s stockholders' deficit also improved, narrowing to $807,686 from $1,587,927, indicating a strengthening balance sheet.

The company continues to focus on its core business of electronic waste management and IT asset disposition through its subsidiary, METech Recycling, Inc. First America Resources operates multiple R2-certified facilities across the U.S., emphasizing sustainability and secure data destruction. The management has indicated that they expect revenue growth to continue, supported by strategic operational expansions and increased customer engagement. However, the company acknowledges the need for additional funding to support its growth initiatives, which may involve raising debt or equity capital.

Looking ahead, First America Resources Corporation remains optimistic about its financial trajectory, projecting positive cash flows through at least August 2027. The management's confidence is bolstered by recent profitable operations and the commitment of significant shareholders to support the company's funding needs. As the company expands its operations and enhances its service offerings, it aims to capitalize on the growing demand for eco-responsible recycling solutions in the electronic waste sector.