FGI Industries | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 30.5 M

Revenue: As of FY2026 Q1, the actual value is USD 30.5 M, missing the estimate of USD 33.36 M.

EPS: As of FY2026 Q1, the actual value is USD -0.5, missing the estimate of USD -0.12.

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

Overall Financial Performance

FGI Industries Ltd. reported a net loss of - $1.1 million for the three months ended March 31, 2026, which is an increase from a net loss of - $0.8 million in the same period of 2025, representing a 40.2% increase in net loss . The loss from operations improved to - $691,409 in Q1 2026 from - $1,280,859 in Q1 2025, a 46.0% improvement . Operating margins also improved from -3.9% in Q1 2025 to -2.3% in Q1 2026 . Gross profit decreased by - $739,567, or -8.3%, to $8.2 million in Q1 2026, while the gross profit margin remained stable at 26.8% for both periods . Selling and distribution expenses decreased by - $0.9 million, or -13.2%, to $6.2 million, and general and administrative expenses decreased by - $0.3 million, or -12.8%, to $2.4 million in Q1 2026 . Research and development expenses decreased by - $34,116, or -10.8%, to $282,610 . The company recorded an income tax expense of $24,678 in Q1 2026, compared to an income tax benefit of - $0.7 million in Q1 2025 .

Segment Revenue by Product Line

• Sanitaryware: Revenue decreased by -20.0% to $16.1 million in Q1 2026 from $20.2 million in Q1 2025, accounting for 52.9% of total revenue in Q1 2026 .
• Bath Furniture: Revenue increased by 10.9% to $4.5 million in Q1 2026 from $4.1 million in Q1 2025, representing 14.9% of total revenue .
• Shower System: Revenue increased by 14.0% to $6.5 million in Q1 2026 from $5.7 million in Q1 2025, making up 21.2% of total revenue .
• Others: Revenue increased by 2.5% to $3.3 million in Q1 2026 from $3.3 million in Q1 2025, driven by volume growth in custom-kitchen cabinetry businesses .

Segment Revenue by Geographic Location

• United States: Revenue decreased by -5.9% to $19.9 million in Q1 2026 from $21.2 million in Q1 2025, accounting for 65.3% of total revenue .
• Canada: Revenue decreased by -25.5% to $6.1 million in Q1 2026 from $8.2 million in Q1 2025, representing 20.0% of total revenue .
• Europe: Revenue increased by 15.4% to $3.6 million in Q1 2026 from $3.1 million in Q1 2025, accounting for 11.7% of total revenue .
• Rest of World: Revenue increased by 20.7% to $911,157 in Q1 2026 from $755,039 in Q1 2025 .

Cash Flow

• Net cash used in operating activities: Improved to - $325,713 in Q1 2026 from - $1,651,686 in Q1 2025 .
• Net cash used in investing activities: Decreased to - $79,726 in Q1 2026 from - $450,155 in Q1 2025 .
• Net cash provided by (used in) financing activities: Shifted to $1.3 million provided in Q1 2026 from - $1.3 million used in Q1 2025 .
• Cash, end of period: Increased to $2.7 million in Q1 2026 from $1.2 million in Q1 2025 .

Liquidity and Outlook

As of March 31, 2026, FGI Industries Ltd. had $2.7 million in cash and an outstanding balance of $13.1 million under its credit facilities . Management is executing cost control initiatives and promoting new product lines such as anti-overflow toilets, shower systems, and custom kitchen cabinetry . The company anticipates gross margins to remain in line with 2025 and 2024 levels, and total financial resources of $7.9 million are considered sufficient to fund its organic growth strategy over the next twelve months .