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Flexible Solutions Reports Q2 Revenues of $7.4M, Down 35% Y/Y

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Key Takeaways

  • FSI's Q2 2026 revenues fell to $7.4 million from $11.4 million a year earlier.
  • FSI cited the absence of $2.5 million in one-time R&D revenue, weak Florida sales and shipment delays.
  • FSI expects direct control and growth in NanoChem, food and nutrition supplement markets to aid sales.

Flexible Solutions International, Inc. (FSI - Free Report) reported a sharp 35% year-over-year decline in second-quarter 2026 revenues to $7.4 million. The reason for the decline was primarily cited as a historical irregularity driven by the absence of a one-time $2.5 million research and development (R&D) services revenue recorded in the second quarter of 2025, along with weak sales from its Florida LLC operations that the company has exited and delayed shipments. The FSI management stated that the prior year's R&D revenue was a non-recurring item, although similar other R&D income may arise randomly in future periods.

The decline in sales attributed to weak performance of Florida LLC is also not likely to impact adversely in the future as the company has exited from it. FSI will be able to recover much of that business now that it has direct control over product and sales in the acquired territory.

The Canada-based Flexible Solutions specializes in biodegradable, water-soluble products as well as energy and water conservation products for drinking water, agriculture and industrial markets. The company remains committed to exploring new opportunities in applications such as detergent, water treatment, oil field extraction and agriculture to further expand sales in the NanoChem division, which accounts for a significant portion of the company’s revenues.

FSI's cash resources are also expected to be adequate to meet its cash flow requirements and future commitments. FSI is expanding its presence in the food and nutrition supplement manufacturing markets.

FSI’s shares have gained 1.6% over the past year against the industry’s 2.1% rise.

Zacks Investment ResearchImage Source: Zacks Investment Research

FSI’s Zacks Rank & Key Picks

FSI currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are Kronos Worldwide, Inc. (KRO - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and CF Industries Holdings, Inc. (CF - Free Report) .

While KRO and CRS currently sport a Zacks Rank #1 (Strong Buy) each, CF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for KRO’s 2026 loss is pinned at 33 cents per share, indicating a 65.63% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed the remaining three. KRO’sshares have gained 5% over the past year.

The Zacks Consensus Estimate for CRS’ 2026 earnings is pegged at $10.56 per share, indicating a rise of 41.18% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.95%.

The Zacks Consensus Estimate for CF’s current fiscal-year earnings is pinned at $17.24 per share, indicating an 83.99% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.42%. CF’s shares have gained 34.7% over the past year.

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