Earnings release
Page 1
FST Corp. Revenue Up 47 Percent in Q3 2025; Improved Gross Margin and Bottom Line BOULDER, CO, Nov. 19, 2025 (GLOBE NEWSWIRE) -- FST Corp. (Nasdaq: KBSX), a leading manufacturer and marketer of steel and graphite golf shafts and a provider of other golf-related services, today announced that, for the third quarter ended September 30, 2025, the Company had revenue of $12,554,939, a 47 percent improvement compared with revenue of $8,527,875 for the third quarter ended September 30, 2024. This increase was primarily the result of wider wholesale market acceptance of KBS graphite shafts and increases in both U.S. OEM sales and higher margin KBS branded programs, compared to the third quarter of last year Gross profit margin for the third quarter of 2025 improved to 39.2 percent, compared with 38.8 percent in the prior-year period. This increase was attributable to increased KBS-branded programs and wider wholesale acceptance of KBS graphite shafts. The Company had a net loss of $715,955, or $(0.02) per share, for the third quarter of 2025, compared with a net loss of $1,757,891, or $(0.03) per share, for the same period a year earlier. This improvement was primarily due to the increase in quarterly revenue and the corresponding improvement in gross profit, and secondarily to a foreign exchange gain of $705,508, compared to a foreign exchange loss of $403,710 in the third quarter of 2024. These improvements were partially offset by an increase in total costs and operating expenses of $1,244,159, mainly due to increased general and administrative expenses, compared with the same quarter last year.For the first nine months ended September 30, 2025, the Company had revenue of $34,748,371, a 32 percent improvement compared with revenue of $26,357,620 for the first nine months ended September 30, 2024. This increase was primarily due to additional sales in the Company’s OEM business across both its steel and graphite lines.Gross profit margin for the first nine months of 2025 improved to
Page 2
43.6 percent, compared with 41.9 percent in the prior-year period. This increase was attributable to additional sales of higher-margin products and improved operational efficiency. The Company had a net loss of $6,543,002, or $(0.15) per share, for the first three quarters of 2025, compared with a net loss of $1,680,274, or $(0.03) per share, for the same period in 2024. This decline in bottom-line performance was primarily due to a $4,601,968, or 35 percent, increase in total costs and operating expenses, mainly comprised of increased personnel costs and added marketing spending, as well as to approximately $2,020,000 in listing-related expenses. Bottom line results for the first three quarters of 2025 were also impacted by both an OTE derivative loss of $1,884,824, compared to no such charge for the year-ago nine-month period, as well as by a foreign exchange loss of $1,510,145 compared with a foreign exchange gain of $563,430 for the first three quarters of 2024. FST’s operating loss for the first nine months of 2025 was $2,475,956. When adjusting for listing expenses, however, the Company’s operating loss would be approximately $460,000, or an improvement of about $1.5 million compared with the prior-year period.Weighted average number of shares outstanding for both the three- and nine-month periods ending September 30, 2025, and September 30, 2024, were 44,766,003 and 54,554,395, respectively.As of September 30, 2025, FST had cash and cash equivalents of $7,965,284, an increase of $1,162,916 during the third quarter and an improvement of $2,866,864 compared with cash and cash equivalents of $5,098,420 at December 31, 2024. Total current assets as of September 30, 2025, and December 31, 2024, was $29,438,582 and $26,655,003, respectively. Total current liabilities at September 30, 2025, was $32,607,033, a decrease of $1,544,881 during the third quarter, compared with total current liabilities at December 31, 2024, of $22,113,495.Net cash provided by operating activities was $3,356,566 for the first three quarters of 2025 and $548,567 for the corresponding period in 2024. Net cash used in investing activities was $429,350 in the first nine months of 2025 compared with $2,542,132 in the same period in 2024. Net cash used in financing activities was $2,274,960 in the first three quarters of 2025 compared with $429,881 in the same period last year. “We are excited to report our excellent revenue growth for the third quarter, ”
Page 3
said FST chief executive David Chuang. “This growth is the result of increased demand for our OEM and other products across multiple geographic markets, and encompasses both our steel and graphite shafts. " “During the current quarter, we are engaged in additional initiatives to accelerate our growth further. These include the launch of a new product line, the signing of strategic partnerships to augment our OEM sales, the expansion of our distribution channels in Asia and Europe, and the implementation of additional cost-control measures to improve margins. "“Finally, we expect that all listing expenses relating to our merger will be accounted for by the end of this year, thus giving a boost to our bottom line in 2026 and beyond. ” 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, as well as statements that are not historical facts. These statements involve known and unknown risks, uncertainties, and assumptions based on the Company’s current expectations about events that may impact its financial condition, results, strategy, and needs. 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
Page 4
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 80302Office: 303-444-2226Email: investorrelations@fstshafts.com Investor Relations Inquiries:Skyline Corporate Communications Group, LLCScott Powell, President1177 Avenue of the Americas, 5th FloorNew York, New York 10036Office: (646) 893-5835Email: info@skylineccg.com