FGI Industries reported second-quarter 2025 revenue of $31.0 million, a 5.5% increase year-over-year, driven by growth in Sanitaryware, Bath Furniture, and Covered Bridge cabinetry. Gross profit decreased by 2.9% to $8.7 million, with gross margin compressing by 240 basis points to 28.1% due to the ongoing tariff environment.
The company posted an operating loss of $0.8 million for the quarter, compared to an operating income of $0.5 million in Q2 2024. GAAP net loss attributable to shareholders was $1.2 million, or $0.64 per diluted share, a decline from net income of $0.2 million, or $0.08 per diluted share, in the prior-year period.
Operating expenses increased by 1.3% to $9.5 million, reflecting continued investments in the BPC growth strategy, Isla Porter, and India. As of June 30, 2025, FGI had $2.5 million in cash and cash equivalents, total debt of $12.6 million, and total liquidity of $16.4 million.
FGI reiterated its fiscal 2025 guidance, maintaining revenue projections between $135 million and $145 million, adjusted operating income between negative $2.0 million and positive $1.5 million, and adjusted net income between negative $1.9 million and positive $1.0 million. The company also announced that a reverse share split of its preference and ordinary shares at a ratio of 1-for-5 became effective on July 31, 2025.
The reverse stock split was implemented to address the Nasdaq Capital Market's minimum bid price requirement, for which the company had received an extension until September 1, 2025. This action aims to maintain the company's listing on the exchange, indicating efforts to comply with regulatory standards.
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