FST Corp, a manufacturer of steel and graphite golf shafts, reported a second-quarter net loss of $(0.02) per share for the period ended June 30, 2026, missing the analyst consensus estimate of $0.01 by 300 percent. The Boulder-based company posted revenue of $12.552 million, which missed the $13.113 million estimate by 4.28 percent but represented a 9.75 percent increase from $11.437 million in the prior year quarter. Despite missing estimates, the results signal operational improvement as the company narrowed its net loss to $1,046,379 from $3,029,029 last year and generated positive operating income.

The financial performance was driven by a $752,673 increase in gross profit, attributed to higher revenue and a favorable change in product mix, particularly in aftermarket sales. Total costs and operating expenses declined by $196,714, contributing to an operating income of $259,899, compared to an operating loss of $689,488 in the same period of 2025. However, these operational gains were partially offset by non-operating items, including an unrealized loss on the change in fair value of warrant liability of $721,171 and foreign exchange losses that improved by $2,394,387 year-over-year.

For the first six months of 2026, FST Corp reported net income of $831,189, or $0.02 per share, marking a significant turnaround from a net loss of $5,827,047 in the first half of 2025. Cash flow from operations reversed direction, with net cash provided by operating activities reaching $1,148,290 in the first half of 2026, compared to net cash used of $4,315,501 in the same period last year. As of June 30, 2026, the company held cash and cash equivalents of $8,221,962, up from $7,179,800 at the end of 2025.

Balance Sheet Highlights

The Board of Directors authorized a stock repurchase program allowing the company to buy back up to $3.0 million of its outstanding ordinary shares. Shares may be repurchased through open-market transactions, privately negotiated deals, or other legally permissible means. This authorization reflects the Board’s confidence in the company’s long-term strategy and provides flexibility to return capital to shareholders based on market conditions and liquidity requirements.

What the Numbers Show

The divergence between the quarterly net loss and the positive operating income highlights the impact of non-operating items on FST Corp’s bottom line. While core operations generated $259,899 in income, total other expenses amounted to ($1,023,700), largely driven by the $721,171 unrealized loss on warrant liability. This suggests that underlying business performance has improved significantly, but volatility in derivative liabilities continues to affect net profitability. Management’s focus on cost-control measures and expanding domestic and export markets aims to sustain this operational momentum into the second half of the year.

FST Corp has established an at-the-market equity offering program to issue and sell ordinary shares with an aggregate offering price of up to $10,400,000. The program provides the company with financial flexibility to access capital markets opportunistically, subject to market conditions. FST intends to use the net proceeds for working capital, general corporate purposes, and supporting continued business growth, including expanding global sales and distribution capabilities.

Sales of ordinary shares under the ATM Program will be made pursuant to a Sales Agreement dated June 28, 2026, with H.C. Wainwright & Co., LLC, acting as the company's sales agent or principal. Sales may be made through methods defined as an "at the market offering" under Rule 415(a)(4) of the Securities Act of 1933, including sales directly on the Nasdaq Global Market or negotiated transactions at prevailing market prices. H.C. Wainwright & Co., LLC will receive a fixed commission of 3.0% of the gross proceeds from any shares sold.

The company plans to allocate the capital toward new product development, commercialization, and enhancing marketing and brand initiatives. A portion of the proceeds may also support strategic business development initiatives, such as potential acquisitions, investments, joint ventures, or commercial partnerships that complement its long-term growth strategy. FST is not obligated to sell all or any shares under the program and may suspend or terminate it at any time.

Key Details of the ATM Program

"Establishing this ATM Program gives FST added financial flexibility to raise capital efficiently as we execute on our growth strategy," said FST Chief Executive Officer David Chuang. He added that the initiative strengthens the balance sheet and positions the company to build the KBS brand globally while creating long-term value for shareholders.

The ATM Program will be conducted pursuant to a prospectus supplement and an accompanying base prospectus filed with the U.S. Securities and Exchange Commission. The company has filed a registration statement on Form F-3 relating to the offering. FST Corp manufactures and markets steel and graphite golf shafts under the KBS brand, serving golf equipment brands, OEMs, distributors, and consumers.