10 Percent Revenue Increase Year-over-Year;
Operating Income and Bottom-Line Improvements Year-over-Year;
Board Approves Share Repurchase Program of up to $3 million.
BOULDER, Colo., July 28, 2026 (GLOBE NEWSWIRE) -- FST Corp. (Nasdaq: KBSX) ("FST" or the "Company"), a leading manufacturer and marketer of steel and graphite golf shafts and a provider of other golf-related services, today announced its unaudited financial results for the second quarter ended June 30, 2026.
Revenue for second quarter was $12,552,012, a 9.7 percent increase from revenue of $11,437,270 for the second quarter of 2025. This increase was mainly the result of additional aftermarket sales in both the Company's steel and graphite lines.
Net loss for the second quarter was $1,046,379, or ($0.02) per share, compared to a net loss of $3,029,029, or $(0.07) per share, in the same period of 2025. This improvement was primarily the result of a $752,673 improvement in gross profit driven by increased revenue and a change in product mix, a decline in total costs and operating expenses of $196,714, and a $2,394,387 improvement in foreign exchange loss.
These improvements were offset in part by an unrealized loss on change in fair value of warrant liability of $721,171 compared to no such charge in the second quarter of last year, an income tax expense of $282,578 compared to an income tax benefit of $128,747 in the year ago period, and by a decrease in other income of $224,370 compared to Q2 2025.
Operating income in Q2 2026 was $259,899, an improvement of $949,387 compared to an operating loss of $689,488 in the second quarter of 2025.
For the first six months of 2026, the Company was profitable, reporting net income of $831,189, or $0.02 per share, a $6,658,236 improvement from a net loss of $5,827,047, or $(0.13) per share, in the first half of 2025.
The weighted average number of shares outstanding for the second quarter of 2026 and 2025 was 44,766,003.
As of June 30, 2026, and December 31, 2025, the Company had cash and cash equivalents of $8,221,962 and $7,179,800, total assets of $62,890,586 and $60,921,557, total liabilities of $46,940,722 and $45,370,369, and total shareholders' equity of $15,949,864 and $15,551,188, respectively.
For the first six months of 2026, net cash provided by operating activities was $1,148,290 compared with net cash used in operating activities of $4,315,501 for the first six months of 2025. For the first six months of 2026 and 2025, net cash used in investing activities was $1,053,088 and $241,198, and net cash provided by financing activities was $1,739,975 and $3,435,609, respectively.
Management believes that its current liquidity, together with cash flows from operations and available credit facilities, will be sufficient to fund operating requirements for the next 12 months.
"We're pleased to report that our strong start to the year has continued throughout the second quarter, during which we've grown aftermarket revenue in both our steel and graphite lines and improved gross margins while reducing our operating expenses," said FST Chairman and Chief Executive Officer David Chuang. "In addition, the flexibility utilized in our capital structure has enabled us to lay the foundation for providing greater long-term value for our shareholders."
"Looking forward, we anticipate continued revenue growth through the end of the year via expanding sales in both domestic and export markets." Mr. Chuang said these strategic initiatives include:
-- Launch of new steel shaft product in Q3
-- Launch of new programs at OEM partners where KBS is the stock shaft;
-- Expansion of regional sales coverage, development of new customer
relationships and increased support provided to existing customers by the
Company's European office, allowing it to contribute incremental revenue
across the European market;
-- Hosting the second annual KBS Open in Taiwan, thereby providing
additional marketing exposure, enhancing brand awareness, and
strengthening engagement with customers and industry participants in
Taiwan and other key Asian markets.
-- Implement additional cost-control measures focused on production
efficiency, inventory management, logistics and discretionary operating
expenses.
Share Repurchase Plan
The Company's Board of Directors (the "Board") has authorized a stock repurchase program under which the company may repurchase up to $3.0 million of its outstanding ordinary shares. Shares may be repurchased from time to time through open-market transactions, privately negotiated transactions or other legally permissible means. The timing, manner, price, and actual number of shares repurchased will be determined at management's discretion, based on various factors, including stock price, market and business conditions, the Company's capital position and liquidity requirements, applicable legal and regulatory requirements, and other relevant considerations.
This authorization reflects the Board's confidence in the Company's long-term strategy and growth trajectory and provides the Company the flexibility to repurchase shares when balanced against the Company's operating, liquidity and growth requirements.
The Company remains committed to maintaining a disciplined capital-allocation strategy that balances investments in growth with opportunities to return capital to shareholders.
About FST Corp.
Founded in 1989, FST Corp. manufactures and sells golf club shafts, along with other golf-related items, to golf equipment brands, OEMs, distributors, and consumers via the company's KBS Golf Experience retail outlets. FST's equipment, marketed under the KBS brand, is utilized by golfers at all levels, including many professional players participating in the PGA and other major golf associations. The company's product portfolio, retail presence, and golf-related services are part of a vertically integrated business model that has established the KBS brand on a global scale and created significant competitive advantages over peer brands. The company's growth strategies currently position it for expansion into under-tapped golf shaft markets.
Forward-Looking Statements
This press release contains forward-looking statements regarding future expectations, plans, and prospects, and the Company's belief with respect to its ability to capture growth opportunities and the impact of hosting the second annual KBS Open in Taiwan, as well as statements that are not historical facts. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, including foreign exchange fluctuations, changes in market demand, competitive pressures, and other factors listed in the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2025, which are beyond the Company's control. Forward-looking statements can often be identified by terms such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely," and similar expressions.
The Company assumes no obligation to update or revise these statements to reflect new events or changes in expectations, except as required by law. While these statements reflect reasonable expectations, actual results may differ materially. Investors are encouraged to review the Company's registration statement and SEC filings for additional information on factors that may impact future results.
Company Contact:
FST Corp.
1801 13th Street, Suite 306,
Boulder, CO 80302
Office: 303-444-2226
Email: investorrelations@fstshafts.com
Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: ir@skylineccg.com
FST Corp.
CONSOLIDATED BALANCE SHEETS
(In U.S. dollars, except for share data, or otherwise
noted)
As of As of
June 30, December 31,
2026 2025
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents 8,221,962 7,179,800
Restricted cash 486,702 158,865
Accounts and notes receivable, net 6,301,127 6,979,725
Prepaid tax - 93,589
Inventories, net 12,463,255 11,812,740
Amounts due from a related party 77,267 73,820
Prepaid expenses and other current
assets 2,218,321 1,188,451
Total current Assets 29,768,634 27,486,990
Non-current assets
Property, plant and equipment, net 18,343,684 19,044,954
Intangible assets, net 4,679,797 4,832,114
Long-term investments 737,978 551,628
Right-of-use assets 5,796,388 5,761,176
Deferred tax assets, net 1,677,753 1,692,802
Prepayment and other non-current
assets 1,886,352 1,551,893
Total non-current assets 33,121,952 33,434,567
Total assets 62,890,586 60,921,557
LIABILITIES
Current liabilities
Short-term bank borrowings 20,867,343 18,199,806
Accounts payables 2,554,719 3,032,860
Operating lease liabilities, current 1,698,015 2,328,227
Amounts due to related parties 163,751 137,548
Current tax liabilities 696,642 367,902
Accrued expenses and other current
liabilities 5,776,163 6,355,964
Total current Liabilities 31,756,633 30,422,307
Non-current liabilities
Long-term bank borrowings 9,584,042 10,963,881
Operating lease liabilities,
non-current 4,874,565 3,974,560
OET derivative liability - 5,310
Warrant liabilities 725,482 4,311
Total non-current liabilities 15,184,089 14,948,062
Total Liabilities 46,940,722 45,370,369
SHAREHOLDERS' EQUITY
Ordinary share (par value of
US$0.0001 per share; 500,000,000
shares authorized; 44,766,003
shares issued and outstanding) 4,477 4,477
Additional paid in capital 15,443,336 15,396,434
Retained earnings 2,381,596 1,566,364
Accumulated other comprehensive loss (2,017,338) (1,537,922)
Total FST Corp. shareholder's equity 15,812,071 15,429,353
Non-controlling interests 137,793 121,835
Total shareholder's equity 15,949,864 15,551,188
Total liabilities and shareholders'
equity 62,890,586 60,921,557
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND
COMPREHENSIVE LOSS
(In U.S. dollars, except for share data, or otherwise
noted)
For the three Months For the six Months Ended
Ended June 30 June 30
------------------------ ------------------------
2026 2025 2026 2025
----------- ---------- ---------- -----------
Revenue 12,552,012 11,437,270 27,198,366 22,193,432
Cost of sales 6,539,950 6,177,881 13,629,833 11,978,297
---------- ---------- ---------- -----------
Gross profit 6,012,062 5,259,389 13,568,533 10,215,135
---------- ---------- ---------- -----------
COSTS AND
OPERATING
EXPENSES:
Selling expenses 3,166,484 3,315,626 6,034,397 6,232,888
General and
administrative
expenses 2,170,587 2,285,558 4,287,571 4,811,121
Research and
development
expenses 415,092 347,693 808,464 700,373
---------- ---------- ---------- -----------
Total costs and
operating
expenses 5,752,163 5,948,877 11,130,432 11,744,382
---------- ---------- ---------- -----------
GAIN (LOSS) FROM
OPERATIONS 259,899 (689,488) 2,438,101 (1,529,247)
---------- ---------- ---------- -----------
OTHER (EXPENSE)
INCOME
Interest expense,
net (218,175) (208,607) (444,591) (402,491)
Foreign exchange
gain(loss) (115,615) (2,510,002) 278,457 (2,215,654)
Other income, net 25,951 250,321 65,051 282,405
Unrealized
gain(loss) on
change in fair
value of OET
derivative
liability 5,310 - 5,310 (1,884,824)
Unrealized loss on
change in fair
value of Warrant
liability (721,171) - (721,171) -
---------- ---------- ---------- -----------
Total other loss,
net (1,023,700) (2,468,288) (816,944) (4,220,564)
---------- ---------- ---------- -----------
PROFIT (LOSS)
BEFORE INCOME TAX
EXPENSES (763,801) (3,157,776) 1,621,157 (5,749,811)
---------- ---------- ---------- -----------
INCOME TAX
EXPENSES 282,578 (128,747) 789,968 77,236
---------- ---------- ---------- -----------
NET INCOME (LOSS) (1,046,379) (3,029,029) 831,189 (5,827,047)
---------- ---------- ---------- -----------
Less: net
income(loss)
attributable to
non-controlling
interests 3,566 (19,992) 15,958 (38,459)
---------- ---------- ---------- -----------
Net income (loss)
attributable to
FST Corp.'s
shareholders (1,049,945) (3,009,037) 815,231 (5,788,588)
---------- ---------- ---------- -----------
OTHER
COMPREHENSIVE
INCOME(LOSS)
Foreign currency
translation
adjustment (408,157) 2,438,330 (479,416) 2,434,922
---------- ---------- ---------- -----------
TOTAL
COMPREHENSIVE
INCOME(LOSS) (1,454,536) (590,699) 351,773 (3,392,125)
---------- ---------- ---------- -----------
Less: total
comprehensive
income (loss)
attributable to
non-controlling
interests 4,036 (3,899) 15,958 (22,388)
---------- ---------- ---------- -----------
Comprehensive
income (loss)
attributable to
FST Corp.'s
shareholders (1,458,572) (586,800) 335,815 (3,369,737)
---------- ---------- ---------- -----------
Weighted average
number of
shares
outstanding,
basic and
diluted 44,766,003 44,766,003 44,766,003 44,766,003
Earnings per
share, basic and
diluted (0.02) (0.07) 0.02 (0.13)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In U.S. dollars)
For the Six Months Ended
June 30
---------------------------
2026 2025
------------- -----------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net cash provided by operating
activities 1,148,290 (4,315,501)
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property, plant and
equipment (831,405) (121,491)
Purchase of intangible assets (30,983) (21,996)
Disposal of property and equipment - 6,635
Purchase of long-term investments (190,700) (104,346)
Disposal of short-term
investments - -
------------ -----------
Net cash used in investing activities (1,053,088) (241,198)
------------ -----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from bank borrowings 25,422,785 21,975,236
Repayments of bank borrowings (23,682,810) (18,500,873)
Buy back treasury shares - (38,754)
------------ -----------
Net cash provided by financing
activities 1,739,975 3,435,609
------------ -----------
Effect of foreign exchange rate on
cash, cash equivalents and
restricted cash (465,178) 2,849,580
Net increase in cash and cash
equivalents 1,369,999 1,728,490
Cash, cash equivalents and restricted
cash at the beginning of period 7,338,665 5,302,199
------------ -----------
Cash, cash equivalents and restricted
cash at the end of period 8,708,664 7,030,689
------------ -----------
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Interest expenses paid 355,506 303,125
Income taxes paid 364,553 114,019
Right of use assets obtained in
exchange for operating lease
obligations 1,696,192 335,513