FGI Industries Returns to Profitability in Second Quarter

The company’s return to profitability was driven by a 22.5% surge in gross profit, which reached $10.7 million. Gross margin improved to 33.4%, up from 28.1% in the prior-year period. Operational efficiency played a key role in these results, as selling and distribution costs decreased, leading to an operating income of $1.4 million compared to an operating loss of $0.8 million in the second quarter of 2025.

Performance varied significantly by region and category. While U.S. revenue grew by 20.3%, the company faced softer demand in Canada and Europe, where revenues fell by 24.5% and 21.0% respectively. CEO Dave Bruce attributed the mixed results to an uncertain industry environment, citing ongoing tariff pressures and shifting consumer purchasing patterns. Despite these headwinds, FGI continues to pursue its strategy of diversifying geographic sourcing and expanding its dealer network, particularly in India. The company ended the quarter with $7.9 million in total liquidity and has reaffirmed its full-year 2026 financial guidance.