FST Corp. (NASDAQ: KBSX) reported its unaudited fourth‑quarter and full‑year 2025 results, showing a 30% increase in Q4 revenue to $13.22 million from $10.14 million in the same period a year earlier. The company’s gross profit margin fell to 41.6% from 46.0% in Q4 2024, while the Q4 net loss narrowed to $620,552, or $(0.01) per share, largely due to an $831,000 increase in gross profit and a $1.024 million foreign‑exchange gain.
In the full year, revenue rose 31% to $47.97 million from $36.50 million in 2024, and the gross profit margin remained steady at 43.0% versus 43.1% in 2024. Net loss for the year was $7.16 million, or $(0.16) per share, driven by higher landed costs, foreign‑exchange losses, and listing‑related expenses. After excluding $2.44 million in listing expenses, $852,183 in FX loss, and $1.88 million in derivative loss, the adjusted net loss was $1.98 million.
Management highlighted continued growth in its graphite shaft business and emphasized cost‑control initiatives, including the rollout of the Shopify Plus platform. CEO David Chuang said, "We are very excited to join the Shopify Plus Platform. This move, we believe, will help streamline our operations and reduce operating expenses, especially those relating to marketing and customer service." He added that the integration could bring "meaningful improvement" to both top and bottom‑line performance.
The company also outlined plans to expand sales in domestic and export markets, launch new product lines in Q1 and Q2 2026, and strengthen its KBS Open Golf Tournament exposure. Management noted, "Thus far in Q1 2026, we see our growth continuing strongly, with new inroads in several new geographic markets as well as in our expanded graphite product lines. We're also implementing key strategic cost‑reduction initiatives, which we anticipate will result in meaningful improvements in our gross profit and total operating income."
Liquidity remains a concern: as of December 31 2025, current assets totaled $27.48 million against current liabilities of $34.65 million, with cash and cash equivalents of $7.18 million. Management believes that current liquidity and credit facilities are sufficient to support operations for the next 12 months.
Overall, revenue growth is driven by higher OEM sales in steel and graphite lines, but margin compression and a widening net loss highlight ongoing cost pressures. The company’s focus on operational efficiencies through Shopify Plus and targeted cost‑control measures signals a strategy to improve profitability while maintaining confidence in its liquidity and future growth prospects.
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