Flexible Solutions International Reports Q3 Revenue Increase but Profit Decline

Flexible Solutions International Inc. reported its financial results for the third quarter and the nine months ended September 30, 2025, revealing a decline in both revenue and profitability compared to the same period in the previous year. The company generated total sales of $10.6 million for the third quarter, an increase from $9.3 million in the prior year, primarily driven by a rise in sales of its TPA products. However, the overall gross profit decreased to $2.5 million from $3.8 million, reflecting increased costs associated with scaling up new products. For the nine-month period, total sales reached $29.4 million, slightly up from $29.1 million, but gross profit fell to $9.9 million from $10.6 million.

The company's net income for the third quarter was reported at a loss of $503,358, a significant drop from a profit of $611,858 in the same quarter of 2024. For the nine months, net income was $1.2 million, down from $2.4 million in the previous year. The decline in profitability was attributed to decreased customer orders for its energy and water conservation products, alongside increased operational costs and a one-time loss on the sale of a 30.1% interest in a Florida-based LLC in 2024.

Operationally, Flexible Solutions International saw a notable increase in reliance on its three primary customers, which accounted for 65% of product sales in the third quarter, up from 60% in the previous year. The company also reported a decrease in accounts receivable, totaling $9.5 million as of September 30, 2025, down from $11.7 million at the end of 2024. The company’s cash position improved, with cash balances rising to $8.5 million from $7.6 million at the end of the previous fiscal year.

In terms of strategic developments, the company has continued to focus on its product lines, including biodegradable polymers and water conservation chemicals. The TPA division, which manufactures biodegradable polymers, is expected to grow as demand increases in the oil, gas, and agriculture sectors. The company also completed the sale of a building and land owned by its subsidiary, 317 Mendota, for $3.75 million in October 2025, which will enhance its liquidity position. Looking ahead, the company anticipates that market conditions, including crude oil prices and drought conditions, will significantly impact its future operating results. The management remains optimistic about the growth potential of its product lines and plans to continue investing in research and development to drive innovation.