FGI Industries Ltd. (Nasdaq: FGI) reported financial results for the third quarter ended September 30, 2026, in a Form 8-K filed on November 12, 2026. The company reported total revenue of $31.7 million for the quarter, which represents a year-over-year decrease of 11.6%.
Despite the decline in sales, the company achieved a gross profit of $8.7 million, a decrease of 8.0% year-over-year. However, the gross margin expanded to 27.6% from 26.5% in the prior year, attributed to product mix management and cost discipline.
On the income statement, the company reported an operating loss of $0.5 million and a net loss attributable to shareholders of $0.9 million, or $0.49 per diluted share. Adjusted figures showed an adjusted operating loss of $0.5 million and an adjusted net loss of $0.7 million, or $0.36 per diluted share.
Revenue performance varied by region and product category. Revenue in the U.S. decreased 11.9%, in Canada decreased 9.0%, and in Europe decreased 21.8%. Specific product categories saw declines in sanitaryware (down 16.6%) and shower systems (down 22.9%), while other revenue, primarily from the Covered Bridge custom kitchen cabinetry business, grew 32.8% year-over-year.
Regarding liquidity, FGI reported total available liquidity of $6.3 million as of September 30, 2026. This figure is comprised of $2.0 million in cash and $4.3 million of availability under its credit facilities net of letters of credit. The company also noted total debt of $12.4 million.
FGI has revised its fiscal 2026 guidance. The company now expects total net revenue of $120 million to $127 million, down from the previous guidance of $134 million to $141 million. The adjusted operating income guidance is now expected to be a loss of $1.8 million to $0.2 million, compared to the previous outlook of $0.7 million to $2.5 million. Adjusted net income is expected to be a loss of $2.6 million to $1.0 million, compared to the prior guidance of a loss of $0.3 million to $1.1 million.
