Flexsteel Industries Swings to $6.4M Profit in Q3 FY2025, Reversing Year-Ago Loss
Flexsteel Industries, a furniture manufacturer, posted net income of $6.4 million for the quarter ending March 31, 2026, compared to a $3.7 million loss in the same period last year. Revenue for the quarter rose 1% to $115.1 million.
Flexsteel Industries, a furniture manufacturer, reported net income of $6.4 million for the quarter ending March 31, 2026, reversing a $3.7 million net loss in the same quarter a year earlier. Diluted earnings per share came in at $1.14, compared to a loss of $0.71 per share in the prior-year period. Read more earnings reports.
Revenue for the three months ending March 31 reached $115.1 million, up slightly from $114.0 million in the same quarter of fiscal 2025. For the nine-month period ending March 31, 2026, revenue climbed 5.3% to $343.8 million from $326.5 million in the prior-year period.
Operating income for the third quarter totaled $8.2 million, a sharp turnaround from an operating loss of $5.1 million in the year-ago quarter. For the nine-month period, operating income more than doubled to $26.2 million from $12.6 million.
Gross profit for the quarter was $26.0 million, yielding a gross margin of 22.6%, compared to $25.3 million and a 22.2% margin in the prior-year quarter. For the nine-month period, gross profit expanded to $78.8 million from $70.5 million, reflecting improved profitability.
Selling, general and administrative expenses increased to $17.8 million in the third quarter from $17.1 million a year earlier. For the nine-month period, SG&A expenses rose to $52.6 million from $49.5 million.
The company generated $27.2 million in cash from operations during the nine months ending March 31, 2026, up from $21.4 million in the prior-year period. Cash and cash equivalents stood at $57.3 million as of March 31, 2026, compared to $40.0 million at the end of fiscal 2025.
Total assets increased to $290.2 million as of March 31, 2026, from $282.5 million at the end of the prior fiscal year. Stockholders' equity rose to $185.3 million from $167.9 million over the same period.
Inventory declined to $80.6 million as of March 31, 2026, from $89.1 million at the end of fiscal 2025. Accounts receivable increased to $41.5 million from $35.2 million.
Financial Summary
| Metric | Q3 FY2025 (Mar 31, 2026) | Q3 FY2024 (Mar 31, 2025) |
|---|---|---|
| Revenue | $115.1 million | $114.0 million |
| Operating Income (Loss) | $8.2 million | ($5.1 million) |
| Net Income (Loss) | $6.4 million | ($3.7 million) |
| Diluted EPS | $1.14 | ($0.71) |
| Gross Profit | $26.0 million | $25.3 million |
Nine-Month Performance
| Metric | 9M FY2025 (Jul 1, 2025 - Mar 31, 2026) | 9M FY2024 (Jul 1, 2024 - Mar 31, 2025) |
|---|---|---|
| Revenue | $343.8 million | $326.5 million |
| Operating Income | $26.2 million | $12.6 million |
| Net Income | $20.4 million | $9.5 million |
| Diluted EPS | $3.63 | $1.70 |
| Cash from Operations | $27.2 million | $21.4 million |