Flexible Solutions | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 10.56 M

Revenue: As of FY2025 Q3, the actual value is USD 10.56 M, beating the estimate of USD 10.28 M.

EPS: As of FY2025 Q3, the actual value is USD -0.04.

EBIT: As of FY2025 Q3, the actual value is USD 386.48 K.

Energy and Water Conservation Products (EWCP)

• Product Sales: $128,635 for the three months ended September 30, 2025, compared to $291,830 for the same period in 2024.
• Cost of Sales: $28,455 for the three months ended September 30, 2025, compared to $109,804 for the same period in 2024.
• Gross Profit: $100,180 for the three months ended September 30, 2025, compared to $182,026 for the same period in 2024.
• Net Operating Income: $64,492 for the three months ended September 30, 2025, compared to $111,162 for the same period in 2024.

Biodegradable Polymers (BPCA)

• Product Sales: $10,427,656 for the three months ended September 30, 2025, compared to $9,023,107 for the same period in 2024.
• Research and Development Sales: $2,500,000 for the nine months ended September 30, 2025, with no comparable sales in 2024.
• Cost of Sales: $8,004,061 for the three months ended September 30, 2025, compared to $5,398,317 for the same period in 2024.
• Gross Profit: $2,423,595 for the three months ended September 30, 2025, compared to $3,624,790 for the same period in 2024.
• Net Operating Income: $400,955 for the three months ended September 30, 2025, compared to $1,885,765 for the same period in 2024.

Cash Flow

• Cash Provided by Operating Activities: $6,757,198 for the nine months ended September 30, 2025, compared to $7,787,989 for the same period in 2024.
• Cash Used in Investing Activities: - $1,795,402 for the nine months ended September 30, 2025, compared to - $125,801 for the same period in 2024.
• Cash Used in Financing Activities: - $4,312,708 for the nine months ended September 30, 2025, compared to - $2,160,206 for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company anticipates growth in the market vertical for TPAs, with expectations for increased sales in the oil, gas, and agriculture industries.
• Non-Core Business: The company completed the sale of a building and land owned by 317 Mendota for $3,750,000, which will impact future rental income and asset management.
• Priority: The company is focused on maintaining sufficient cash resources to meet future commitments and cash flow requirements, with working capital of $21,780,752 as of September 30, 2025.