AI-extracted from the 10-K filed 2026-08-19 — FY2026 (year ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net sales grew 4.1% to $459.2M and gross margin expanded 250bps to 24.7% (aided by IEEPA tariff refunds), lifting net income to $33.1M ($6.07 diluted EPS) even as new Section 232/301 tariffs on Vietnam- and Mexico-sourced products threaten future margins.
Biggest Revenue Drivers
Soft seating products+$28.0M YoY
Primary driver of the $18.1M net sales increase, per unit volume/mix growth in soft seating.
Modest decline in Flexsteel branded casegoods sales.
Largest Expense Items
Cost of goods sold$345.7M75.3% of net sales, down from 77.8%
Gross margin rose 250bps to 24.7%, driven by a 200bps benefit from IEEPA tariff refunds and favorable product/customer mix from portfolio optimization.
Selling, general and administrative expenses$70.9M+$4.2M YoY (15.4% of net sales)
70bps fixed-cost leverage benefit from higher sales was offset by a 70bps increase in consumer insights, new product and marketing investment and a 30bps rise in incentive compensation.
Margins: Gross margin increased 250bps to 24.7%, primarily from a 200bps IEEPA tariff refund benefit and favorable mix from product/customer portfolio optimization. SG&A ticked up 30bps to 15.4% of sales as growth investments and higher incentive compensation outpaced fixed-cost leverage.
Watch Items from the Filing
Section 232 tariffs of 25% on seating products sourced from Vietnam/manufactured in Mexico are scheduled to rise to 30% effective January 1, 2027, and new Section 301 tariffs of 10-12.5% now apply to Vietnam-sourced casegoods.
Retail partners, suppliers or distributors may assert claims seeking reimbursement of some or all of the IEEPA tariff refunds the Company has received, which contributed 200bps to FY2026 gross margin.
The Company's Central States SE and SW Areas multi-employer pension fund remains in 'Red Zone' status (implemented rehabilitation plan) as of the December 31, 2025 measurement date.
On April 26, 2026 the Company repurchased 1,279,870 shares for $60.2 million ($47.00/share) directly from a board member and immediate family in a privately negotiated related-party transaction.
The new August 2026 credit facility cuts maximum borrowing capacity from $55M to $30M and adds covenants requiring a 2.00:1 Asset Coverage Ratio and minimum $15.0M trailing four-quarter EBITDA.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About FLEXSTEEL INDUSTRIES INC (FLXS): stock profile, AI score and financials
FLEXSTEEL INDUSTRIES INC (FLXS) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores FLXS at 58.4/100 on a composite quality score built from its SEC filings, placing it at rank #1,018 of 2,925 stocks — the top half of the AI-ranked universe. FLXS scores in the top quartile across institutional flow (95.8), balance sheet strength (89.3). Areas of concern include revenue scale (35.8), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q4 2026), FLEXSTEEL INDUSTRIES INC reports quarterly revenue of $115.4M, net income of $12.7M, an operating margin of 14.2%. Top institutional holders of FLXS by reported 13-F value include DIMENSIONAL FUND ADVISORS, BlackRock, AMERICAN CENTURY COMPANIES, based on the most recent SEC filings. FLXS trades on the Nasdaq exchange and files with the SEC under CIK 37472. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate FLXS daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for FLEXSTEEL INDUSTRIES INC directly from SEC EDGAR.