FLEXSTEEL INDUSTRIES (FLXS) Company Report

Flexsteel Industries (FLXS) reported net sales of $110.4 million for Q1 2026, a 6.2% increase year-over-year, marking its eighth consecutive quarter of sales growth.
The company achieved a GAAP operating income of $9 million, or 8.1% of sales, representing its tenth consecutive quarter of year-over-year adjusted operating margin improvement.
New Section 232 tariffs will impose a 25% tariff, increasing to 30% by year-end, on upholstered furniture, impacting over 90% of Flexsteel's sales and leading to the implementation of tariff surcharges.
Due to the uncertainty surrounding the impact of these new tariffs, Flexsteel has paused providing forward-looking guidance.

Oct 21, 2025, 1:00 PM

Transcript

Flexsteel Industries Reports Strong Q1 2026 Results Amid New Tariff Challenges

FLXS

Earnings

Guidance Update

Demand Weakening

Flexsteel Industries reported net sales of $110.4 million for Q1 fiscal year 2026, a 6.2% increase compared to the prior year quarter, marking its eighth consecutive quarter of sales growth.
The company achieved a GAAP operating income of $9.0 million, or 8.1% of sales, in Q1 2026, representing its tenth consecutive quarter of year-over-year adjusted operating margin improvement.
New Section 232 tariffs will subject all upholstered furniture sourced from Vietnam and Mexico to a 25% tariff effective October 14, 2025, increasing to 30% by the end of the calendar year, impacting over 90% of the company's sales.
To mitigate the tariff impact, Flexsteel is implementing tariff surcharges (e.g., increasing from 8.5% to 15% on source products and adding 15% on made-to-order products) and is evaluating structural cost reduction opportunities and alternative supply chain sources.
Due to the uncertainty surrounding the tariffs, the company has paused providing forward-looking guidance at this time.

Oct 21, 2025, 1:00 PM

Transcript

Flexsteel Industries, Inc. Reports Strong Fiscal First Quarter 2026 Results

FLXS

Earnings

Revenue Acceleration/Inflection

Demand Weakening

Flexsteel Industries, Inc. reported strong fiscal first quarter 2026 results, with net sales increasing 6.2% to $110.4 million for the quarter ended September 30, 2025. This represents the eighth consecutive quarter of year-over-year growth.
GAAP operating income for the quarter was $9.0 million, or 8.1% of net sales, compared to $6.0 million (5.8% of net sales) in the prior year quarter, marking the tenth consecutive quarter of year-over-year improvement in operating margin.
GAAP net income per diluted share for the quarter ended September 30, 2025, rose to $1.31, up from $0.74 in the prior year quarter.
The company anticipates new Section 232 tariffs on imported upholstered furniture, effective October 14th at 25% and increasing to 30% on January 1, 2026, will be highly disruptive to consumer demand and industry margins in the short term.

Oct 20, 2025, 11:00 PM

Press Release

Flexsteel Industries Inc. Reports Strong Fiscal First Quarter 2026 Results

FLXS

Earnings

Revenue Acceleration/Inflection

Demand Weakening

Flexsteel Industries Inc. reported strong fiscal first quarter 2026 results, with net sales increasing 6.2% to $110.4 million and diluted EPS rising to $1.31 compared to $0.74 in the prior year quarter.
The company achieved its eighth consecutive quarter of year-over-year sales growth and tenth consecutive quarter of year-over-year operating margin improvement, with operating income reaching $9.0 million or 8.1% of net sales.
Management highlighted significant near-term risks and headwinds, including new Section 232 tariffs on imported upholstered furniture, which became 25% effective October 14, 2025, and will increase to 30% effective January 1, 2026, anticipating broad price increases and disruption to demand and margins.
The company ended the quarter with a cash balance of $38.6 million and working capital of $116.9 million as of September 30, 2025.

Oct 20, 2025, 8:20 PM

8-K

Flexsteel Industries discusses FY2025 performance, growth strategies, and Q1 FY2026 guidance

FLXS

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Flexsteel Industries reported $441 million in sales for the fiscal year ending June 2025, achieving 6.9% growth.
The company recorded its seventh consecutive quarter of year-over-year sales growth in the quarter ending June 2025, with 3.4% growth in Q4 FY2025, and projects Q1 FY2026 sales growth of 1% to 6%.
Adjusted operating margin expanded by over 60% in fiscal year 2025 to 7.1% of sales, driven by operating leverage, higher-margin new products, and cost savings.
Flexsteel is focused on growth through market expansion, new product innovations like the Flex modular line and ZCLINER, and has returned approximately $95 million to shareholders over the past six years.

Sep 30, 2025, 2:15 PM

Transcript

Flexsteel Q3 2025 Earnings Results and Strategic Outlook

FLXS

Earnings

Guidance Update

Product Launch

Net sales of $114 million increased by 6.3% year-over-year, marking the sixth consecutive growth quarter.
Despite a GAAP operating loss of $5.1 million driven by a non-cash impairment charge of $14.1 million, adjusted operating income reached a 7.3% margin, exceeding guidance.
The company generated $12.3 million of operating cash flow and ended the quarter with $22.6 million in cash, supported by a robust working capital position.
Flexsteel is actively addressing tariff risks—with modest surcharges on Vietnam-sourced imports—and continues to invest in new product launches, which now represent over half of its sales.

Apr 22, 2025, 1:01 PM

Transcript

Flexsteel Industries Reports Q3 2025 Results

FLXS

Earnings

Revenue Acceleration/Inflection

Guidance Update

Flexsteel reported net sales of $114.0 million, marking a 6.3% year-over-year increase and the sixth consecutive quarter of sales growth.
The quarter saw a GAAP operating loss of ($5.1) million driven by a $14.1 million non-cash impairment charge, while adjusted operating income reached $8.3 million.
GAAP net loss per diluted share was ($0.71) versus an adjusted diluted EPS of $1.13, with robust cash generation of $12.3 million that bolstered the cash balance to $22.6 million.

Apr 21, 2025, 12:00 AM

8-K

Flexsteel Industries Q2 2025 Earnings Results Overview

FLXS

Earnings

Revenue Acceleration/Inflection

Guidance Update

Net sales reached $108.5 million, reflecting 8.4% growth compared to the prior year quarter, outperforming guidance by exceeding the high end of the $103–$107 million range.
Adjusted operating income was $6.7 million with an operating margin of 6.1%, marking the sixth consecutive quarter of improved year-over-year profitability.
The company generated strong free cash flow, ended the quarter debt-free, and provided Q3 guidance of sales between $110 million and $115 million, indicating ongoing growth momentum and strategic management of costs.

Feb 4, 2025, 2:01 PM

Transcript

Flexsteel Reports Strong Q2 2025 Results

FLXS

Earnings

Revenue Acceleration/Inflection

Guidance Update

Net sales climbed to $108.5M, marking an 8.4% increase over the prior year quarter with GAAP operating income rising from $4.6M to $11.7M.
Earnings improved significantly with GAAP net income per diluted share increasing to $1.62 from $0.57, and adjusted net income also showing robust gains.
The company recorded a pre-tax gain of $5.0M from the sale of its former manufacturing facility in Dublin, GA.
Positive cash flow was achieved with $6.7M generated from operations and all outstanding borrowings on the line of credit paid off.