Flexsteel Industries | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 110.44 M

Revenue: As of FY2026 Q1, the actual value is USD 110.44 M, beating the estimate of USD 105.38 M.

EPS: As of FY2026 Q1, the actual value is USD 1.31, beating the estimate of USD 0.78.

EBIT: As of FY2026 Q1, the actual value is USD 8.596 M.

Segment Revenue

• Net sales for the quarter ended September 30, 2025, were $110.4 million, an increase of 6.2% compared to $104.0 million in the prior year quarter.

Operational Metrics

• Gross margin for the quarter ended September 30, 2025, was 23.5%, compared to 21.5% in the prior year quarter, an increase of 200 basis points.
• Selling, general and administrative expenses were $17.0 million for the quarter ended September 30, 2025, compared to $16.3 million in the prior year quarter.
• Operating income for the quarter ended September 30, 2025, was $8.987 million, compared to $6.047 million in the prior year quarter.
• Net income for the quarter ended September 30, 2025, was $7.327 million, compared to $4.140 million in the prior year quarter.

Cash Flow

• Net cash provided by operating activities for the three months ended September 30, 2025, was $4.114 million, compared to $2.398 million in the prior year quarter.
• Net cash used in investing activities for the three months ended September 30, 2025, was - $1.357 million.
• Net cash used in financing activities for the three months ended September 30, 2025, was - $4.178 million.

Unique Metrics

• Home furnishings backlog was $67 million as of the quarter ended September 30, 2025, an increase of 9.8% compared to $61 million in the prior year quarter.

Future Outlook and Strategy

• The company plans to focus on leveraging sales and favorable foreign currency translation to improve gross margins.
• Investments in growth initiatives are expected to continue, impacting SG&A expenses.
• The company has reduced its maximum revolving line of credit to $55 million to better align with current and projected borrowing availability.