Flexible Solutions International Reports Q2 2025 Revenue of $11.37 Million and Net Income Growth

Flexible Solutions International Inc. reported its financial results for the second quarter and first half of 2025, revealing a total revenue of $11.37 million for the three months ended June 30, 2025, compared to $10.53 million for the same period in 2024. The company’s net income for the quarter was $2.03 million, or $0.16 per share, up from $1.29 million, or $0.10 per share, in the prior year. For the six months ended June 30, 2025, total revenue was $18.84 million, a decrease from $19.75 million in the same period of 2024, while net income remained relatively stable at $1.75 million compared to $1.75 million in the previous year.

The company experienced a decline in product sales, particularly in its Energy and Water Conservation Products (EWCP) and Biodegradable Polymers (TPA) segments, attributed to decreased customer orders. However, revenue from research and development services increased significantly, contributing $2.5 million in the second quarter, which was a new addition to the revenue stream. The gross profit margin improved, reflecting a higher proportion of revenue from research and development services, which typically have a higher margin compared to product sales.

Operationally, Flexible Solutions International reported a decrease in accounts receivable, which fell to $8.6 million from $11.7 million at the end of 2024. The company’s inventory increased to $11.33 million, up from $10.89 million, indicating a strategic decision to bolster stock levels in anticipation of future demand. The company’s total assets decreased to $58.23 million from $59.97 million at the end of 2024, while total liabilities also decreased significantly to $15.65 million from $18.60 million, primarily due to a reduction in short-term lines of credit.

In terms of strategic developments, the company continues to focus on its core product lines while exploring opportunities for growth in research and development services. The management noted that the company has sufficient cash resources to meet its commitments, with working capital reported at $21.94 million as of June 30, 2025. The company has no substantial commitments requiring significant cash outlays in the coming fiscal year, indicating a stable financial position moving forward.

Looking ahead, Flexible Solutions International anticipates that market conditions, including the price of crude oil and potential new tariffs on imported materials, will significantly impact its operations. The company remains committed to enhancing its product offerings and expanding its market presence, particularly in the agricultural sector, where demand for its biodegradable polymers is expected to grow. The management expressed confidence in the company’s ability to navigate these challenges while continuing to deliver value to its shareholders.