Flexible Solutions International Inc (FSI) News & EventsFSINews & EventsFlexible Solutions International Inc

Q2 Revenue Decline Mainly Due to Non-Repeating R&D Services

Q2 revenue decrease was largely due to the onetime Q2 2025 $2.5M R&D services number that did not repeat in Q2, 2026. In addition, sales by the FL LLC were very poor. Finally, some shipments were delayed into Q3. CEO Dan O'Brien comments, "This was an unusual quarter. We executed well but the numbers reflect an historical anomaly. In the 2025 period we had R&D revenue of $2.5M. In future periods there are likely to be other R&D revenue but it will be random. The Florida LLC, which we have exited from, had very poor sales in the quarter. We believe that we can recover much of the business now that we control the products and sales directly in the territory we obtained." ome orders from Q2 did not ship until Q3 further damaging the Q2 revenue."

Flexible Solutions Secures Exclusive Rights to Agricultural Products

Flexible Solutions announces that it has traded the remaining 19.9% of the FL LLC for exclusive rights to make and sell certain agricultural products in certain markets. On August 12th, 2024 the Company sold 30.1% of the equity in the FL LLC to an acquirer for $2 million and five annual payments of $800,000. The acquirer has been unable to fund the annual payments. As a result, the Company has been granted the perpetual, exclusive rights to 4 agricultural products and the IP of those products in the territory. The territory is defined as South of the Mexico/US border including all of Central America, South America and the Caribbean.

CEO Expects Stronger Performance in H2 2026

Dan O'Brien, CEO, comments, "New revenue from the August 2025 food grade contract more than made up for weakness in legacy products." Mr. O'Brien continues, "We anticipate that Q2, Q3 and Q4 2026 will be much stronger than Q1."