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Flexible Solutions International
(FSI)
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Rating:50Neutral
Price Target:
$6.00
▲(19.76% Upside)
Action:Reiterated
Date:08/18/26
FSI’s score is held back primarily by weak recent financial performance (TTM loss, margin compression, and negative free cash flow) despite a comparatively sturdy balance sheet. Technicals also lean bearish given price levels below key longer-term moving averages and a negative MACD. Offsetting these negatives, the earnings call provided credible near-term catalysts and profitability guidance tied to ramping food-grade contracts and Panama, which lifts the overall score to a mid-range level.
Positive Factors
Food-grade contract pipeline
The food-grade contracts provide visible recurring demand and a sizable growth path beyond the current base. If production ramps successfully, they could improve scale, revenue mix, and profitability over the next several quarters.
Negative Factors
Profitability and revenue deterioration
The recent reversal from profitability indicates meaningful execution, pricing, mix, or input-cost pressure. Until new contracts mature, weak margins and losses may constrain reinvestment and make earnings recovery dependent on successful scaling.
Read all positive and negative factors
Positive Factors
Negative Factors
Food-grade contract pipeline
The food-grade contracts provide visible recurring demand and a sizable growth path beyond the current base. If production ramps successfully, they could improve scale, revenue mix, and profitability over the next several quarters.
Read all positive factors
Flexible Solutions International (FSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.06M
Dividend YieldN/A
Average Volume (3M)24.32K
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth-4.66%
EPS Growth-201.32%
CountryUS
Employees78
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.24
Shares Outstanding12,772,498
10 Day Avg. Volume18,371
30 Day Avg. Volume24,317
Financial Highlights & Ratios
PEG Ratio-1.46
Price to Book (P/B)2.19
Price to Sales (P/S)2.21
P/FCF Ratio-143.86
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$8.50Price Target Upside69.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.26
Revenue Forecast (FY)$52.93M
Flexible Solutions International Business Overview & Revenue Model
Company Description
Flexible Solutions International, Inc., headquartered in Taber, Canada, operates as a global enterprise focused on the development, manufacturing, and distribution of specialized chemicals primarily aimed at reducing water evaporation. The company...
How the Company Makes Money
FSI generates revenue primarily from selling its specialty chemical products used in water conservation and water treatment. Its revenue model is product-sales driven: (1) sales of water-evaporation mitigation products (polymer-based formulations ...
Flexible Solutions International Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: meaningful near-term challenges (Q2 sales down 14%, a $1.91M net loss, inventory build, tariff and raw-material cost pressures, and operational inefficiencies during scale-up) are balanced by substantial strategic wins and visible revenue catalysts (two major food-grade contracts with a $6.5M/year minimum on one contract, potential combined food contract revenue >$50M/year over 4–6 quarters, Panama production momentum, and recovered Florida LLC rights with $5M–$7M/year recovery potential). Management expects a return to profitability in Q3 and accelerating profits in Q4, and the company reports adequate working capital and no immediate need for equity financing. Given the sizable growth opportunities that are already ramping but countered by clear near-term operational and macro headwinds, the tone is cautiously optimistic but balanced.Positive Updates
Major Food-Grade Contracts in Production
Company commercialized two food-grade products and has two major food-grade contracts (one 5-year contract with minimum revenue of $6.5M/year and the largest contract announced Jan 2025). Volume production for the largest contract began late in Q2 and is ramping weekly; significant revenue expected in Q3 and rapid increase in Q4.
Negative Updates
Quarterly Sales Decline
Sales decreased 14% year-over-year in Q2 2026: $7.60M versus $8.87M in Q2 2025. Note: Q2 2025 included a $2.5M irregular R&D revenue item that did not recur; management states recurring revenue was higher year-over-year when that item is removed.
Read all updates
Q2-2026 Updates
Positive
Negative
Major Food-Grade Contracts in Production
Company commercialized two food-grade products and has two major food-grade contracts (one 5-year contract with minimum revenue of $6.5M/year and the largest contract announced Jan 2025). Volume production for the largest contract began late in Q2 and is ramping weekly; significant revenue expected in Q3 and rapid increase in Q4.
Read all positive updates
Company Guidance
Management's guidance is that the company expects a return to profitability in Q3 2026 with rapidly increasing profits in Q4; Q2 sales fell 14% to $7.60M (vs $8.87M in Q2 2025, which included $2.5M of one‑time R&D revenue), and Q2 recorded a loss of $1.91M ($0.15/share) versus a $2.03M gain ($0.16/share) a year earlier; the two major food contracts (Jan. and Aug. 2025) are ramping — one carries a minimum of $6.5M/year and management targets growing the two contracts to >$50M/year within 4–6 quarters with food‑grade gross margins of roughly 22%–25% before tax (15%–17% net after tax for the newer contracts), while the wine product is expected to top ~$3–4M/year at ~25%–26% margin; Panama and ENP are expected to contribute meaningfully in Q3 and beyond, Panama’s shift to full legacy production and NCS’s move to 100% food‑grade are to be completed by end of 2026, inventory rose (~$4M buildup) and receivables declined (~$9M cleared), potential additional R&D fees up to $3M exist, tariffs on China imports run ~15%–58%, and management believes existing capital (one small term loan and a small mortgage remaining, credit lines in place) is sufficient without equity issuance.Flexible Solutions International Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
72
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.58M | 38.52M | 38.23M | 38.32M | 45.84M | 34.42M |
| Gross Profit | 5.78M | 8.70M | 13.24M | 10.34M | 13.87M | 11.40M |
| EBITDA | -307.46K | 5.85M | 7.52M | 5.86M | 9.48M | 8.08M |
| Net Income | -3.12M | 786.89K | 3.04M | 2.78M | 7.02M | 3.45M |
Balance Sheet | ||||||
| Total Assets | 58.97M | 61.83M | 59.97M | 55.47M | 51.59M | 39.55M |
| Cash, Cash Equivalents and Short-Term Investments | 7.20M | 8.01M | 10.03M | 7.71M | 6.82M | 6.74M |
| Total Debt | 10.16M | 10.81M | 10.81M | 10.04M | 9.14M | 4.88M |
| Total Liabilities | 18.08M | 19.00M | 18.60M | 17.20M | 16.35M | 11.85M |
| Stockholders Equity | 37.03M | 38.91M | 38.03M | 35.20M | 32.63M | 25.10M |
Cash Flow | ||||||
| Free Cash Flow | -3.48M | -591.71K | 603.61K | 2.00M | -504.40K | 3.75M |
| Operating Cash Flow | 2.54M | 3.78M | 5.57M | 6.99M | 1.48M | 4.54M |
| Investing Cash Flow | -24.31K | 890.86K | -2.45M | -5.67M | -2.22M | -659.54K |
| Financing Cash Flow | -2.78M | -5.94M | -978.33K | -437.95K | 848.33K | -1.71M |
Flexible Solutions International Technical Analysis
Positive
5.01
Price Trends
5.66
Positive
5.95
Negative
6.09
Negative
Market Momentum
-0.01
Negative
63.87
Neutral
79.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSI, the sentiment is Positive. The current price of 5.01 is below the 20-day moving average (MA) of 5.16, below the 50-day MA of 5.66, and below the 200-day MA of 6.09, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 63.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSI.
Flexible Solutions International Risk Analysis
Flexible Solutions International disclosed 15 risk factors in its most recent earnings report. Flexible Solutions International reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Flexible Solutions International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $316.09M | 5.99 | 21.15% | ― | 1.09% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $223.35M | 29.05 | 4.64% | ― | -7.88% | -20.75% | |
54 Neutral | $77.02M | -62.75 | -1.60% | 0.50% | 7.70% | -139.19% | |
50 Neutral | $73.06M | -24.20 | -8.12% | ― | -4.66% | -201.32% | |
40 Underperform | $28.64M | -2.20 | 142.32% | ― | -96.04% | 9.12% |
* Basic Materials Sector Average
FSI
Flexible Solutions International
5.93
-4.90
-45.24%
CMT
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25.00
6.02
31.72%
NTIC
Northern Technologies International
8.07
0.71
9.69%
ALTO
Alto Ingredients
4.09
2.95
258.77%
LOOP
Loop Industries
0.56
-0.97
-63.59%
Flexible Solutions International Corporate Events
Business Operations and StrategyFinancial Disclosures
Flexible Solutions Q2 Loss Highlights Panama Growth Strategy
Negative
Aug 18, 2026
On August 14, 2026, Flexible Solutions International reported second-quarter 2026 results for the period ended June 30, 2026, showing product sales of $7.61 million, down about 14% from $8.87 million a year earlier. The company posted a GAAP net l...
Private Placements and FinancingRegulatory Filings and Compliance
Flexible Solutions Launches New At-The-Market Equity Program
Neutral
Jul 1, 2026
On June 30, 2026, Flexible Solutions International entered into an at-the-market (ATM) sales agreement with Bancroft Capital, allowing the sale and issuance of up to $18.5 million of its common stock under an effective Form S-3 shelf registration....
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.