Flexsteel Q1 EPS Falls to $1.24 as Gross Margin Slips 150 bps and Cash Drops to $4.4M
FLXS has more than doubled off its 52-week low of $34.
Summary
Flexsteel's fiscal Q1 sales rose 3.2% to $114.0 million, but EPS fell to $1.24 from $1.31 as gross margin compressed 150 bps and cash dropped to $4.4 million on negative operating cash flow.
Key Events · Earnings and Guidance · FLXS
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Q1 Sales Up, Profit Down
Net sales rose 3.2% to $114.0 million from $110.4 million, but net income fell to $5.4 million, or $1.24 per diluted share, from $7.3 million, or $1.31.
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Gross Margin Down 150 bps
Gross margin fell to 22.0% from 23.5%, with 130 bps attributed to unfavorable peso translation of Mexican assets plus higher energy and fuel costs; SG&A rose $1.2 million to $18.2 million.
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Cash Falls to $4.4 Million
Cash and equivalents dropped from $16.7 million at June 30, 2026 to $4.4 million, as operating activities used $1.5 million and $6.5 million went to tax withholding on vested shares.
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Backlog Up 8.2%
Sales order backlog was $77.7 million versus $71.8 million a year earlier, and the quarterly dividend was raised to $0.25 per share from $0.20.
Analysis · FLXS · Manufacturing
Profit fell even as sales grew 3.2% to $114.0 million: net income of $5.4 million ($1.24 diluted) versus $7.3 million ($1.31) a year ago. Margin is the culprit — gross margin fell 150 bps to 22.0%, with 130 bps of that from unfavorable peso translation on Mexican assets plus higher energy and fuel costs, and SG&A rose $1.2 million on demand-generation spending. The sharper change sits on the balance sheet: cash fell from $16.7 million to $4.4 million as the quarter consumed $1.5 million of operating cash and $6.5 million went out for tax withholding on vested shares. No debt is drawn on the new $30 million Wells Fargo facility, so liquidity rests on that revolver plus $80.5 million of working capital. Offsetting the weakness, backlog of $77.7 million rose 8.2%.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.7% of the 1698 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FLXS was trading at $73.96 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $307.9M. The 52-week trading range was $34.00 to $90.65. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.