Flexible Solutions International (FSI) reported first‑quarter 2026 revenue of $8.3 million, an 11.0% year‑over‑year increase from $7.5 million in Q1 2025. The lift was largely attributable to a new food‑grade contract signed in August 2025, which more than offset weakness in the company’s legacy chemical sales.
"New revenue from the August 2025 food grade contract more than made up for weakness in legacy products," said CEO Dan O’Brien. The company’s legacy chemical segment has been under pressure, but the food‑grade business is gaining traction. FSI’s Illinois plant, which received FDA food‑grade approval in 2022, is now operating at full capacity for the new contract, and shipping is being executed in full truckload quantities. "Full scale production has begun for the food grade contract announced in August," O’Brien added.
FSI is pursuing a strategic pivot toward higher‑margin food‑grade products. The company is moving its legacy industrial and agricultural operations to a new Panama facility and consolidating its ENP business in Illinois. In 2025, FSI fully repaid its ENP acquisition loan and a three‑year equipment note, freeing more than $2 million in annual cash flow. These investments are expected to ease in the first half of 2026, but they have temporarily weighed on profitability.
"We anticipate that Q2, Q3 and Q4 2026 will be much stronger than Q1," O’Brien said. He also noted that the August contract, combined with a January contract, could bring new food‑grade production to more than $50 million per year by 2027, and that the company believes it can double revenue in the next 18 months. The outlook signals confidence in the scaling of the food‑grade segment and a shift away from legacy sales.
Analysts had projected Q1 2026 revenue of $13.81 million and EPS of $0.07. The actual revenue of $8.3 million fell short of expectations by $5.51 million, a miss of roughly 40%. No earnings or margin details were disclosed at this time, so the impact on profitability remains unclear.
FSI will release its complete financial results on May 15 2026, followed by a conference call on May 18 2026. Investors can review the full earnings package on the company’s investor relations website for detailed guidance and profitability metrics.
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