Executive Summary

Q2 2025 net sales were $25.525M, up 3.7% year over year (vs $24.620M in Q2 2024), while EPS was $0.41, down from $0.45, reflecting unit volume softness despite top-line growth .
Sequentially, revenue improved versus Q1 2025 ($23.330M) and EPS rose from $0.35, indicating some stabilization amid housing-start headwinds .
Management attributed pressure to lower sales unit volumes as the overall market remained suppressed by a decline in housing starts; no formal forward guidance was provided .
The Board continued its capital return posture, later declaring a regular quarterly dividend of $0.34 per share (post-quarter, Sept. 12, 2025), reinforcing cash discipline amid macro uncertainty .

What Went Well and What Went Wrong

What Went Well

Net sales grew 3.7% YoY to $25.525M, signaling resilience despite a soft housing backdrop (“Net Sales for the three months ended June 30, 2025 were 3.7% higher than the second quarter of 2024.”) .
Sequential improvement from Q1 2025 in both revenue ($23.330M → $25.525M) and EPS ($0.35 → $0.41) suggests demand stabilization through the quarter .
Management maintained a disciplined shareholder-return approach, consistent with later dividend declaration, underscoring confidence in liquidity and cash generation .

What Went Wrong

Net income declined 7.6% YoY in Q2 ($4.156M vs $4.496M), with EPS down to $0.41 from $0.45, evidencing margin pressure from lower unit volumes .
Management cited a continued decline in housing starts as the primary headwind, suppressing overall market demand (“The decrease in net sales and net income was mainly due to lower sales unit volumes… decline in housing starts.”) .
No formal guidance was issued, limiting near-term visibility for investors despite mixed signals between YoY and sequential trends .

Financial Results

Sequential Trend (Q4 2024 → Q1 2025 → Q2 2025)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$26.965	$23.330	$25.525
Net Income ($USD Millions)	$4.682	$3.568	$4.156
EPS (Basic & Diluted) ($USD)	$0.46	$0.35	$0.41
Weighted Avg Shares (Basic & Diluted)	10,094,322	10,094,322	10,094,322

QoQ change (Q2 2025 vs Q1 2025): Revenue +9.4%, Net Income +16.4%, EPS +17.1%.
Sequential trend shows improvement from Q1 levels, though still below Q4 seasonality.

Year-over-Year Comparison (Q2 2024 → Q2 2025)

Metric	Q2 2024	Q2 2025
Revenue ($USD Millions)	$24.620	$25.525
Net Income ($USD Millions)	$4.496	$4.156
EPS (Basic & Diluted) ($USD)	$0.45	$0.41

YoY change: Revenue +3.7% (bolded growth), Net Income -7.6%, EPS -8.9%.
Mixed profile: top-line expansion but earnings compression.

Profitability and Cost Metrics

Metric	Q4 2024	Q1 2025	Q2 2025
Gross Margin %	N/A*	60.3%*	60.4%*
EBITDA ($USD Millions)	N/A*	$4.391*	$5.063*
EBITDA Margin %	N/A*	18.8%*	19.8%*
EBIT ($USD Millions)	N/A*	$4.050*	$4.722*
EBIT Margin %	N/A*	17.4%*	18.5%*
Net Income Margin %	N/A*	15.3%*	16.3%*

Notes: Values marked with * retrieved from S&P Global.

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Weighted Avg Shares	10,094,322	10,094,322	10,094,322
Total Operating Expenses ($USD Millions)	N/A*	$19.280*	$20.803*

Notes: Values marked with * retrieved from S&P Global.

Segment Breakdown

Segment	Q2 2025 Revenue	Notes
Company-wide	$25.525M	No segment reporting provided in the press releases

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	Not provided	Not provided	Maintained (no guidance)
Margins	FY 2025	Not provided	Not provided	Maintained (no guidance)
OpEx	FY 2025	Not provided	Not provided	Maintained (no guidance)
Tax Rate	FY 2025	Not provided	Not provided	Maintained (no guidance)
Dividend	Regular quarterly	$0.34 per share (declared 9/12/2025)	$0.34 per share payable 10/8/2025	Maintained capital return posture

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was found; themes are drawn from company press releases.

Topic	Previous Mentions (Q-2: Q4 2024; Q-1: Q1 2025)	Current Period (Q2 2025)	Trend
Macro/Housing Starts	“Overall market… suppressed because of… decline in housing starts” (repeat message)	Same driver cited for lower unit volumes	Persistent headwind
Unit Volumes	Lower volumes cited as key reason for sales/net income declines	Continued volume pressure despite YoY revenue growth	Mixed: volumes soft, revenue improved
Costs/OpEx	Higher salary and travel impacted FY 2024 net income	No new cost detail disclosed	Neutral (no update)
Product Performance	No granularity; company-wide figures only	No granularity; company-wide figures only	Unchanged
Regulatory/Legal	Not discussed	Not discussed	No change
Technology/AI Initiatives	Not discussed	Not discussed	No change
Supply Chain	Not discussed	Not discussed	No change

Management Commentary

“Net Sales for the three months ended June 30, 2025 were 3.7% higher than the second quarter of 2024.” — Dean W. Rivest, CEO .
“The decrease in net sales and net income was mainly due to lower sales unit volumes as the overall market continued to be suppressed because of, among other factors, a decline in housing starts.” — Dean W. Rivest, CEO .
FY 2024 context (for trend): “The decrease in net income for 2024 is mainly due to the decrease in net sales, higher salary related expenses and travel.” .

Q&A Highlights

No Q2 2025 earnings call transcript was available; therefore, no Q&A highlights or guidance clarifications were disclosed via a call .

Estimates Context

S&P Global consensus estimates were unavailable for OFLX in Q2 2025 (no published counts for EPS or Revenue; tool returned actuals only). As a result, there is no formal beat/miss assessment versus Street expectations.*
Given limited small-cap coverage, investors should rely on reported results and management disclosures until coverage improves .

Notes: *Values retrieved from S&P Global.

Key Takeaways for Investors

Mixed quarter: revenue growth (+3.7% YoY to $25.525M) alongside EPS decline to $0.41 underscores volume pressure amid a soft housing market .
Sequential improvement (Q1 → Q2) in revenue and EPS suggests some stabilization despite persistent macro headwinds .
Management continues to point to lower unit volumes tied to housing starts decline; demand recovery is the key lever for earnings reacceleration .
Lack of formal guidance and limited Street coverage reduce visibility; monitor macro housing indicators and any distributor/contractor demand signals .
Capital return remains intact with a regular quarterly dividend of $0.34 per share declared post-quarter, reinforcing balance sheet discipline .
Margins remained firm around ~60% gross margin in H1 2025 despite volume softness, indicating pricing and cost control; watch for operating expense normalization as volumes recover.*
Near-term trading: stock likely reacts to macro data (housing starts) and any signs of unit volume inflection; medium-term thesis hinges on end-market recovery and steady cash returns .