| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 115.13 | 2.6% | 1.0% |
| Total Income | 115.13 | 2.6% | 1.0% |
| Expenditure | 106.90 | 2.1% | 10.2% |
| PBT | 8.58 | 8.2% | 273.0% |
| Net Profit | 6.45 | 2.9% | 272.5% |
| OPM | 7.14% | 0.47pp | 11.58pp |
| NPM | 5.60% | 0.02pp | 8.88pp |
| EPS | 1.20 | 3.2% | 269.0% |
Flexsteel Reports Q3 FY2026 Net Sales of $115.1 Million, Up 1.0% YoY
21 Apr 2026 · 21 Apr, 1:45 am
Summary
Flexsteel Industries reported a 1.0% increase in net sales for the third quarter, reaching $115.1 million. GAAP operating income improved significantly to $8.2 million, or 7.1% of net sales, compared to an operating loss in the prior year. The company's net income per diluted share was $1.14, a substantial improvement from the net loss of $(0.71) per share in the same quarter last year. Management noted stable sales performance and a healthy operating margin despite a challenging operating environment and softening demand.
Key Highlights
- 1
Flexsteel's net sales for the third quarter increased by 1.0% to $115.1 million compared to the prior year quarter.
- 2
GAAP operating income was $8.2 million, representing 7.1% of net sales, compared to an operating loss of ($5.1) million in the prior year quarter.
- 3
The company reported GAAP net income per diluted share of $1.14 for the current quarter, compared to a net loss of ($0.71) in the prior year quarter.
- 4
Gross margin increased by 40 basis points to 22.6% due to favorable sales composition of higher margin products.
- 5
The company ended the quarter with a cash balance of $57.3 million and working capital of $142.2 million.
- 6
Availability under its secured line of credit was approximately $54.1 million at the end of the quarter.
Management Comments
Derek Schmidt
I’m encouraged by how our team continues to execute in a challenging and dynamic operating environment. During the third quarter, we delivered relatively stable year-over-year sales performance and maintained a healthy operating margin of approximately 7 percent. While demand softened as the quarter progressed, particularly following the onset of the conflict in the Middle East, our results reflect the operating discipline we’ve built into the business and our ability to respond with agility as conditions evolve. Importantly, our core growth drivers, including new product introductions, strategic account relationships, and our health and wellness category, continued to perform well, albeit at more moderate growth levels than in prior quarters.
Derek Schmidt
Looking ahead, we expect near-term demand and profitability to remain under pressure, with fourth quarter sales likely flat to prior year levels and operating margins similar to third quarter performance. The duration and severity of these pressures will depend largely on macroeconomic conditions and geopolitical developments. Despite this uncertainty, our strategy and focus remain unchanged. We will continue to operate with agility, maintain disciplined cost control, and invest in the capabilities that support long-term growth, including consumer insights, innovation, product development, marketing, and customer experience. With a strong balance sheet and a resilient operating model, we believe Flexsteel is well positioned to navigate this period while continuing to strengthen our competitive position and drive long-term shareholder value.
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