tiprankstipranks
Trending News
More News >
Flexsteel Industries, Inc. (FLXS)
:FLXS
US Market
Advertisement

Flexsteel (FLXS) AI Stock Analysis

Compare
188 Followers

Top Page

FLXS

Flexsteel

(NASDAQ:FLXS)

Select Model
Select Model
Select Model
Neutral 70 (OpenAI - 4o)
Rating:70Neutral
Price Target:
$40.00
▲(16.99% Upside)
Flexsteel's strong financial performance and attractive valuation are offset by bearish technical indicators and challenges from new tariffs and consumer sentiment volatility. The company's ability to maintain growth and manage leverage will be crucial for sustaining its financial health.

Flexsteel (FLXS) vs. SPDR S&P 500 ETF (SPY)

Flexsteel Business Overview & Revenue Model

Company DescriptionFlexsteel Industries, Inc., together with its subsidiaries, operates as a manufacturer, importer, and online marketer of upholstered and wooden furniture for residential and contract markets in the United States. It offers upholstered furniture, such as sofas, loveseats, chairs, reclining and rocker-reclining chairs, swivel rockers, sofa beds, convertible bedding units, occasional tables, desks, dining tables and chairs, and bedroom furniture. The company distributes its products through e-commerce channels and dealer network. Flexsteel Industries, Inc. was founded in 1893 and is based in Dubuque, Iowa.
How the Company Makes MoneyFlexsteel generates revenue primarily through the sale of its furniture products to retailers and directly to consumers. The company’s revenue model is predominantly based on the wholesale distribution of its products, where it sells to furniture retailers and dealers across the United States and internationally. Key revenue streams include sales from upholstered and wood furniture collections as well as accessories. Additionally, Flexsteel benefits from long-term partnerships with various retailers, which help expand its market reach. The company also engages in special projects and contracts with commercial clients, contributing to its revenue. Factors such as brand reputation, product quality, and customer service are critical in driving sales and maintaining profitability.

Flexsteel Earnings Call Summary

Earnings Call Date:Oct 21, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Feb 09, 2026
Earnings Call Sentiment Neutral
The earnings call highlights Flexsteel Industries, Inc.'s strong sales growth and profitability improvement, alongside significant product innovation and a healthy financial position. However, the introduction of new tariffs and volatile consumer sentiment pose challenges, leading to uncertainty in demand and potential margin compression.
Q1-2026 Updates
Positive Updates
Consistent Sales Growth
Flexsteel Industries, Inc. reported an eighth consecutive quarter of year-over-year sales growth with a 6.2% increase in sales for the first quarter of fiscal year 2026.
Profitability Improvement
The operating margin increased to 8.1%, up 230 basis points from the previous year, marking the tenth consecutive quarter of year-over-year adjusted operating margin improvement.
Strong Product Innovation
Introduction of 26 new product groups and 226 unique SKUs, including the new sub-brand Pulse and the Zen series, aimed at enhancing consumer experience and capturing market share.
Healthy Financial Position
The company ended the quarter with a cash balance of $38.6 million and no bank debt, highlighting strong financial health and effective working capital management.
Negative Updates
New Section 232 Tariffs Impact
The introduction of new tariffs on imported timber and furniture, which are expected to increase to 30% by the end of the year, poses a significant risk to the company and the broader U.S. furniture industry.
Uncertain Demand Due to Tariffs
The implementation of tariff surcharges and the resulting price increases could lead to a demand decline and compressed industry margins in the short term.
Volatile Consumer Sentiment
Weekly consumer traffic and sales were uneven, indicating fragile consumer sentiment due to concerns about inflation and employment growth.
Company Guidance
In the first quarter of fiscal year 2026, Flexsteel Industries, Inc. reported a 6.2% increase in sales, reaching $110.4 million, marking their eighth consecutive quarter of year-over-year sales growth. The company achieved an operating margin of 8.1%, which is a 230 basis point improvement from the previous year's quarter and exceeded their guidance range. Despite macroeconomic challenges and new tariffs impacting the furniture industry, Flexsteel has implemented a 15% tariff surcharge on their products to offset increased costs. The company introduced 26 new product groups and 226 SKUs, aiming for long-term growth and market share gains. With a net sales backlog of $66.7 million and a cash balance of $38.6 million, Flexsteel remains strategically positioned to navigate the challenging economic landscape while continuing investments in innovation and marketing.

Flexsteel Financial Statement Overview

Summary
Flexsteel's financial performance is solid, with strong revenue and profit growth, a stable balance sheet, and robust cash flow generation. However, operational efficiency and cash flow optimization need improvement.
Income Statement
75
Positive
Flexsteel's income statement shows a positive trajectory with consistent revenue growth over the past few years, highlighted by a significant 86.6% increase in the most recent year. Gross profit margins have improved to 22.2%, and net profit margins have increased to 4.6%, indicating enhanced profitability. However, the negative EBITDA margin suggests potential issues with operational efficiency that need addressing.
Balance Sheet
70
Positive
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.35, indicating moderate leverage. Return on equity has improved to 12%, showcasing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.
Cash Flow
80
Positive
Cash flow analysis reveals a healthy free cash flow growth of 30.8%, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio of 0.60 suggests adequate cash flow relative to net income, though there is room for improvement. The free cash flow to net income ratio of 0.91 indicates efficient conversion of income into cash.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue446.67M441.07M412.75M393.69M544.28M478.93M
Gross Profit100.69M97.94M87.24M70.95M72.68M96.73M
EBITDA33.09M30.69M21.10M15.13M11.91M36.69M
Net Income22.50M20.15M10.53M14.78M1.85M23.05M
Balance Sheet
Total Assets281.47M282.49M274.46M290.55M268.74M296.78M
Cash, Cash Equivalents and Short-Term Investments38.59M40.01M4.76M3.37M2.18M1.34M
Total Debt57.81M59.37M70.42M100.43M78.09M33.65M
Total Liabilities109.29M114.62M124.09M148.93M137.18M128.81M
Stockholders Equity172.18M167.86M150.37M141.62M131.56M167.97M
Cash Flow
Free Cash Flow34.51M33.72M27.11M18.20M4.14M-35.27M
Operating Cash Flow38.70M36.98M31.88M22.99M7.99M-32.69M
Investing Cash Flow7.35M9.43M-593.00K-4.45M-1.92M16.06M
Financing Cash Flow-13.20M-11.17M-29.89M-17.36M-5.24M-30.23M

Flexsteel Technical Analysis

Technical Analysis Sentiment
Negative
Last Price34.19
Price Trends
50DMA
43.86
Negative
100DMA
40.02
Negative
200DMA
39.52
Negative
Market Momentum
MACD
-2.67
Positive
RSI
28.41
Positive
STOCH
2.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLXS, the sentiment is Negative. The current price of 34.19 is below the 20-day moving average (MA) of 38.91, below the 50-day MA of 43.86, and below the 200-day MA of 39.52, indicating a bearish trend. The MACD of -2.67 indicates Positive momentum. The RSI at 28.41 is Positive, neither overbought nor oversold. The STOCH value of 2.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLXS.

Flexsteel Risk Analysis

Flexsteel disclosed 19 risk factors in its most recent earnings report. Flexsteel reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Flexsteel Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$182.59M8.3314.28%2.16%6.00%64.58%
$128.11M16.524.70%5.42%-2.74%
$615.04M13.099.96%7.06%-4.61%-25.66%
$1.31B14.529.09%2.78%2.18%-22.35%
$18.38B12.79-2.54%3.03%1.52%-15.83%
$1.07B-1.18%4.39%5.37%-127.27%
$97.61M-6.33%10.13%-6.46%-1110.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLXS
Flexsteel
34.19
-20.82
-37.85%
BSET
Bassett Furniture
14.75
0.49
3.44%
ETD
Ethan Allen
24.17
-2.27
-8.59%
MLKN
MillerKnoll
15.62
-6.73
-30.11%
HOFT
Hooker Furniture
9.08
-6.30
-40.96%
LZB
La-Z-Boy Incorporated
31.70
-6.22
-16.40%

Flexsteel Corporate Events

Navigating Flexsteel Industries’ Risks: Uncertainty in Forward-Looking Statements and Market Volatility
Oct 24, 2025

Flexsteel Industries, Inc. faces significant business risks due to its reliance on forward-looking statements, which, while protected under the Private Securities Litigation Reform Act of 1995, are inherently uncertain. These statements, which aim to project the company’s long-term goals and anticipated results, are vulnerable to numerous factors that could cause actual outcomes to deviate materially. Key risks include the volatile nature of the furniture industry, supply chain disruptions, and economic fluctuations, among others. Investors are advised to consider these uncertainties carefully, as outlined in the company’s filings, to make informed decisions.

Flexsteel Industries Reports Strong Q1 2026 Results
Oct 22, 2025

Flexsteel Industries, Inc. is a leading manufacturer, importer, and marketer of residential furniture products in the United States, known for its innovative designs and unique steel drop-in seat springs.

Flexsteel Industries Earnings Call: Growth Amid Challenges
Oct 22, 2025

Flexsteel Industries, Inc. recently held its earnings call, revealing a positive sentiment overall, marked by strong sales growth and improved profitability. The company showcased significant product innovation and maintained a robust financial position. However, challenges such as new tariffs and volatile consumer sentiment were also highlighted, indicating potential uncertainties in demand and margin pressures.

Business Operations and StrategyFinancial Disclosures
Flexsteel Reports Strong Q1 2026 Financial Results
Positive
Oct 20, 2025

Flexsteel Industries reported strong fiscal first quarter 2026 results with net sales of $110.4 million, a 6.2% increase from the previous year, and a GAAP operating income of $9.0 million. Despite challenges such as uneven consumer demand and new tariffs on imported furniture, the company achieved its eighth consecutive quarter of year-over-year sales growth, driven by new products and market expansion efforts. However, the new tariffs are expected to disrupt consumer demand and margins in the short term, although Flexsteel remains financially strong and prepared to navigate these challenges.

The most recent analyst rating on (FLXS) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Flexsteel stock, see the FLXS Stock Forecast page.

Executive/Board Changes
Flexsteel Announces Board Changes with Levine’s Resignation
Neutral
Oct 9, 2025

Flexsteel Industries, Inc. announced that Thomas M. Levine will resign from the Board of Directors effective after the December 10, 2025, meeting to focus on personal interests. Levine’s departure is not due to any disagreements with the company, and he has been a significant contributor since joining the board in 2010. Concurrently, the board will reduce its size from eight to seven members, with Jeanne McGovern taking over as Chair of the Board. McGovern, who joined the board in 2022, brings extensive experience in audit and advisory services.

The most recent analyst rating on (FLXS) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Flexsteel stock, see the FLXS Stock Forecast page.

Flexsteel Industries Reports Strong Growth Amid Challenges
Sep 1, 2025

Flexsteel Industries, Inc. recently held its earnings call, revealing a generally positive sentiment despite facing some challenges. The company reported strong sales growth and improved operating margins, alongside significant achievements in cash flow and strategic market penetration. However, they acknowledged the hurdles presented by tariffs and an uncertain demand environment. Despite these obstacles, Flexsteel remains optimistic about its strategies to mitigate risks and continue its growth trajectory.

Flexsteel Industries Faces Profitability Challenges Amid New U.S. Tariffs on Vietnamese Imports
Aug 24, 2025

Flexsteel Industries, Inc. faces significant business risks due to recent changes in global trade policy, particularly with the imposition of country-specific tariffs by the United States. The executive orders issued in 2025 have introduced a 20% tariff on goods from Vietnam, a key sourcing country for Flexsteel, which could materially affect their net sales and profitability. Although their operations in Mexico are currently exempt, the volatile nature of trade negotiations leaves future tariff statuses uncertain. This uncertainty may lead to economic volatility, reduced consumer confidence, and inflation, potentially impacting Flexsteel’s operations and financial performance adversely.

Flexsteel Industries Reports Strong Fiscal Year 2025 Results
Aug 20, 2025

Flexsteel Industries, Inc. is a leading manufacturer, importer, and marketer of residential furniture products in the United States, known for its unique steel drop-in seat spring design. The company has reported its fourth quarter and fiscal year 2025 results, showcasing continued net sales growth and record diluted earnings per share. Flexsteel achieved a 3.4% increase in net sales for the fourth quarter, marking the seventh consecutive quarter of year-over-year sales growth. The company’s annual net sales rose by 6.9%, reaching $441.1 million. Operating income and net income per diluted share also saw significant improvements, with adjusted operating income for the year increasing by 71% to $31.3 million and adjusted net income per diluted share reaching $4.17. Flexsteel ended the year with a strong cash position and no line of credit borrowings. Looking ahead, Flexsteel’s management remains optimistic about the company’s growth prospects despite challenging industry conditions. They plan to focus on executing growth strategies and profitability improvement initiatives to continue delivering strong financial results in fiscal year 2026.

Business Operations and StrategyFinancial Disclosures
Flexsteel Reports Strong Q4 and FY 2025 Results
Positive
Aug 18, 2025

Flexsteel Industries, Inc. reported its fourth quarter and fiscal year 2025 results, showcasing continued net sales growth and record diluted earnings per share. The company achieved a 3.4% increase in net sales for the quarter and a 6.9% increase for the year, marking the seventh consecutive quarter of year-over-year sales growth. Despite challenging market conditions and macroeconomic uncertainties, Flexsteel’s strategies have driven strong results, with diversified growth across core and new markets. The company also improved its adjusted operating margin and generated significant cash flow, positioning itself well for future growth despite potential risks from tariffs and market conditions.

The most recent analyst rating on (FLXS) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Flexsteel stock, see the FLXS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 26, 2025