FGI INDUSTRIES LTD C/WTS (TO PUR COM) | 10-Q: FY2026 Q1 Revenue: USD 30.5 M

Revenue: As of FY2026 Q1, the actual value is USD 30.5 M.

EPS: As of FY2026 Q1, the actual value is USD -0.5.

EBIT: As of FY2026 Q1, the actual value is USD -337.38 K.

Financial Performance Overview (Three Months Ended March 31, 2026 vs. 2025)

Total Revenue

Total revenue for FGI Industries Ltd. decreased by 8.2% to $30,501,460 in 2026 from $33,212,548 in 2025 .

Revenue by Product Line

• Sanitaryware: Revenue decreased by 20.0% to $16,126,369 in 2026 from $20,159,852 in 2025, primarily driving the overall revenue decline . Sanitaryware represented 52.9% of total revenue in 2026, down from 60.7% in 2025 .
• Bath Furniture: Revenue increased by 10.9% to $4,546,147 in 2026 from $4,100,382 in 2025, accounting for 14.9% of total revenue in 2026, up from 12.3% in 2025 . This growth is attributed to recently launched mid-tier product lines .
• Shower System: Revenue increased by 14.0% to $6,480,302 in 2026 from $5,686,317 in 2025, representing 21.2% of total revenue in 2026, compared to 17.1% in 2025 . New programs in this category contributed to the growth .
• Others: Revenue increased by 2.5% to $3,348,642 in 2026 from $3,265,997 in 2025, primarily due to volume growth from the Covered Bridge custom-kitchen cabinetry businesses .

Revenue by Geographic Location

• United States: Revenue decreased by 5.9% to $19,911,144 in 2026 from $21,168,372 in 2025, largely due to decreased sanitaryware sales . The U.S. market generated 65.3% of total revenue in 2026 .
• Canada: Revenue decreased by 25.5% to $6,097,086 in 2026 from $8,184,143 in 2025, also primarily due to decreased sanitaryware sales .
• Europe: Revenue increased by 15.4% to $3,582,073 in 2026 from $3,104,994 in 2025, reflecting continued demand in the European market .
• Rest of World: Revenue increased by 20.7% to $911,157 in 2026 from $755,039 in 2025 .

Profitability Metrics

• Gross Profit: Decreased by 8.3% to $8,160,691 in 2026 from $8,900,258 in 2025 .
• Gross Profit Margin: Remained stable at 26.8% for both 2026 and 2025 . The company anticipates gross margins to remain in line with 2025 and 2024 levels .
• Selling and Distribution Expenses: Decreased by 13.2% to $6,215,257 in 2026 from $7,163,178 in 2025 .
• General and Administrative Expenses: Decreased by 12.8% to $2,354,233 in 2026 from $2,701,213 in 2025 .
• Research and Development Expenses: Decreased by 10.8% to $282,610 in 2026 from $316,726 in 2025 .
• Loss from Operations: Improved by 46.0%, decreasing to -$691,409 in 2026 from -$1,280,859 in 2025 .
• Operating Margins: Improved by 160 basis points, reaching -2.3% in 2026 from -3.9% in 2025 .
• Net Loss: Increased by 40.2% to -$1,143,165 in 2026 from -$815,557 in 2025 .
• Net Loss Attributable to FGI Industries Ltd. shareholders: Increased by 54.1% to -$969,405 in 2026 from -$629,092 in 2025 .

Non-GAAP Adjusted Metrics

• Adjusted Operating Loss: Improved by 45.2% to -$691,409 in 2026 from -$1,260,953 in 2025 .
• Adjusted Operating Margins: Improved by 150 basis points, reaching -2.3% in 2026 from -3.8% in 2025 .
• Adjusted Net Loss Attributable to FGI Industries Ltd. shareholders: Improved by 30.7% to -$743,399 in 2026 from -$1,072,383 in 2025 .

Cash Flow

• Net cash used in operating activities: Improved significantly, decreasing to -$325,713 in 2026 from -$1,651,686 in 2025 . This improvement was primarily due to favorable changes in working capital, including a $1.1 million decrease in inventories and a $0.6 million decrease in prepayments and other receivables from related parties .
• Net cash used in investing activities: Decreased to -$79,726 in 2026 from -$450,155 in 2025, mainly due to reduced capital expenditures .
• Net cash provided by (used in) financing activities: Shifted from -$1,330,812 used in 2025 to $1,274,861 provided in 2026, primarily from net proceeds from revolving credit facilities .
• Cash, end of period: Increased to $2,659,190 in 2026 from $1,226,365 in 2025 .

Customer and Vendor Concentration

• Customer Concentration: For Q1 2026, three customers accounted for 14.7%, 14.5%, and 12.1% of total revenue, respectively . As of March 31, 2026, three customers represented 26.0%, 13.5%, and 10.3% of total accounts receivable .
• Vendor Concentration: For Q1 2026, Tangshan Huida Ceramic Group Co., Ltd. accounted for 47.4% of total purchases . As of March 31, 2026, Huida accounted for 79.5% of total accounts payable .

Future Outlook and Strategy

FGI Industries Ltd. plans to prioritize long-term growth over short-term profitability by investing in product innovation, expanding relationships, developing new products and manufacturing capabilities, and entering new markets . Key strategic initiatives include a continued commitment to product innovation, driving organic growth through its “BPC” (Brands, Products, Channels) strategy, and efficient capital deployment . The company expects to maintain its strong manufacturing and customer relationships, which provide a competitive advantage .