20260819-Greenridge_Global-Q2_Results_Not_As_Bad_As_Headline_Numbers_Indicate_6页_814kb

Summary of Flexible Solutions International, Inc. (FSI)

Core Information

• Company Name: Flexible Solutions International, Inc.
• Stock Exchange: NYSE American
• Stock Symbol: FSI
• Current Rating: Buy
• Target Price: $8.50
• Date of Report: August 19, 2026

Market Data

• Share Price: $5.37
• Market Cap: $68.57 million
• 52-Week Range: $4.85 - $11.48
• Average Volume: 20,000 shares
• Basic Shares Outstanding (S/O): 12.77 million
• Diluted Shares Outstanding: 14.45 million
• Float: 8.36 million
• Institutional Ownership: 12%
• Insider Ownership: 36%

Financial Data (Most Recent Quarter)

• Cash: $7.85 million
• Short-Term Debt: $2.12 million
• Long-Term Debt: $3.81 million
• Book Value: $40.88 million
• EBITDA (TTM): $0.70 million
• CFFO (TTM): $2.54 million

Q2 Performance Highlights

• Revenue: $7.61 million (a sharp decline from the year-ago period, which included a one-time $2.5 million R&D fee)
• Food Revenue: $2.49 million, mostly from August 2025 customer
• ENP Revenue: $1.25 million, up 14.6% year-over-year
• Specialty Chemical Segment: Down 46% to $3.87 million, due to lost sales from the Florida LLC and Ag market weakness
• Gross Margins: Slipped into negative territory due to production start-up and scale-up costs
• Net Loss: $1.91 million or $0.15 per share

Key Developments

• Florida LLC Settlement: FSI relinquished its 19.9% equity interest and forgave A/R in exchange for perpetual, royalty-free license to market products in Latin America.
• ATM Agreement: Signed an $18.5 million agreement with Bancroft Capital for potential acquisitions.
• Model Update: Adjustments reflect expected growth from food contracts and Panama facility efficiency, though revenue estimates remain largely unchanged.

Business Overview

• Operations: FSI operates a food division in Illinois and industrial/specialty chemicals in Panama.
• Subsidiary: Holds a 65% equity stake in ENP Investments, a specialty fertilizer company.
• Product Range: Specializes in environmentally-friendly chemicals for applications such as water evaporation, agriculture, and oil fields.
• Competitive Edge: Strong patents and proprietary knowledge provide limited direct competition.

Risks and Challenges

• Food Product Sales: Uncertainty around performance of recent food contracts.
• Customer Concentration: Top three customers accounted for 54% of sales, with a shift in the customer mix due to ENP and food contracts.
• CEO Influence: Dan O'Brien holds 34% of shares and is involved in multiple key roles, though George Murray is taking on more operational duties.
• Commodity Prices: High oil prices negatively impact TPA margins and reduce demand for oil services.
• Tariffs: TPA raw materials are imported from China, which has been affected by trade tensions.
• Illiquid Common Stock: Average daily trading volume is less than $1 million.

Financial Projections

Analyst Note

• Analyst: William Gregozeski, CFA
• Rating Justification: Despite challenges, FSI is seen as a compelling company with significant growth potential. The target price is based on an EV/EBITDA multiple of ~7x and a P/E multiple of 14x.

Analyst Certification

• William Gregozeski, CFA, certifies that all views in the report reflect his personal views and that no compensation is tied to the recommendations.

Disclosures

• Analyst Financial Interest: None
• Analyst Compensation: Based on investment-banking revenues
• Public Offering: Greenridge Global or affiliate managed or co-managed a public offering in the past 12 months
• Client Relationship: FSI is a client of Greenridge Global
• Market Making: Greenridge Global was making a market in FSI's securities at the time of the report