Boulder, Colorado--(Newsfile Corp. - April 21, 2026) - 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 its audited financial results for the fiscal year ended December 31, 2025.

Revenue was $47,969,791, a 31 percent increase from revenue of $36,499,644 for the year ended December 31, 2024. This improvement was primarily due to increased sales of the Company's steel shafts to OEM partners and the growth of its KBS graphite shafts. These shafts accounted for more than half of the Company's incremental revenue in 2025.

During that year, 97.2 percent of FST's revenue came from sales of golf shafts, 2.2 percent from sales of sports accessories, food and beverage, and 0.6 percent from software service, compared with 96.8, 2.6, and 0.6 percent, respectively, in 2024.

Gross profit margin for 2025 remained stable at 43.0 percent, with a gross profit of $20,633,374, compared with 43.1 percent, with a gross profit of $15,713,389, for 2024.

The Company had a net loss of $1,503,919, or $(.03) per share, for 2025, compared with a net loss of $3,235,175, or $(.09) per share, for 2024. This improvement in bottom-line performance was mainly the result of the Company's $11.5 million rise in revenue, offset in part by a $3.6 million, or 18.6 percent, increase in total costs and operating expenses during 2025.

This $3.6 million increase comprised rises of $1.75 million in selling expenses resulting from increased marketing efforts to enhance brand visibility and market penetration, including hosting the inaugural KBS Open Golf Tournament and other promotional events; $1.66 million in general and administrative expenses, primarily due to additional listing-related expenses following the Company's January 2025 business merger; and $195,000 in R&D expenses, primarily attributable to a payroll increase for R&D personnel.

Other factors contributing to an improved bottom line performance in 2025 were a $909,000 unrealized gain on change in fair value of OET derivative liability and a $599,000 gain on change in fair value of warrants versus no such gains in 2024, as well as a $730,000 income tax benefit compared with a $456,000 income tax expense during the previous year.

These improvements, however, were largely offset by a $852,000 foreign exchange loss, compared with a $197,000 gain in 2024; a $772,000 decrease in other income, net; a $302,000 increase in interest expense, net; and a $64,000 loss in long-term investments versus a gain of $87,000 in 2024.

The Company noted that its audited 2025 net loss of $1,503,919 represents a $5,659,635 differential from the unaudited 2025 net loss of $7,163,554 reported on February 12, 2026. This differential resulted from certain adjustments made in FST's audited 2025 financials, including:

• a $1,005,590 reduction in general and administrative expenses;

• the restatement of a change in fair value of OET derivative liability to a gain of $909,454 compared to a loss of $1,884,824 for this item in FST's unaudited financials;

• the restatement of income tax (benefit) expense to a benefit of $729,907 compared to an expense of $545,056 for this term in the Company's unaudited financials; and

• a gain on change in fair value of warrants of $599,255 that did not appear in FST's unaudited financials.

As of December 31, 2025, and December 31, 2024, FST had cash and cash equivalents of $7,179,800 and $5,098,420, total assets of $60,921,557 and $58,469,702, and total liabilities of $45,370,369 and $35,471,428, respectively.

For 2025 and 2024, net cash used in operating activities was $1,000,014 and $1,576,129; net cash used in investing activities was $799,196 and $4,453,899; and net cash provided by financing activities was $3,315,884 and $ 3,711,358, respectively.

Weighted average number of ordinary shares was 44,477,649 for 2025 and 37,749,381 for 2024.

For 2026, management is focused on expanding sales in both domestic and export markets, including launching several new product lines, securing additional OEM business with strategic partners, expanding distribution channels across multiple markets, and increasing exposure for the Company's KBS Open Golf Tournament.

FST is also implementing additional cost-control measures designed to improve margins and evaluating new strategies to mitigate currency risk.

The Company 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 are excited to see both our top and bottom-line performance improve sharply in 2025," said Chief Executive David Chuang. "Our robust revenue growth during the year is, we believe, a testament to the enduring quality and growing popularity of our products and our brand.

"Thus far in 2026, this growth has accelerated, driven by our significant inroads in several new geographic markets, including Japan and Europe, as well as by the increased sales being compiled by our expanded graphite product lines.

"We're also seeing our new cost-reduction initiatives begin to deliver operational efficiencies that, together with our ascending revenue, is currently generating major improvements in our gross profit margin, operating income and net income in Q1 2026."

The CEO said he expects the above trends to continue, and that the Company is currently planning to expand its production of graphite shafts to meet the increasing demand being seen in both the professional and amateur markets.

"We look forward to discussing these, and other operating developments, in our first quarter 2026 financial results next month."

Conference Call and Live Webcast Wednesday, April 22^nd at 8:00 am Eastern

The Company's management will host both an earnings conference call and live webcast on these results today at 8:00 AM U.S. Eastern Time. Participants who wish to join the conference call are invited to call one of the allocated dial-in numbers below and advise the Operator on the conference Name, "FST Corp. Fiscal Year 2025 Earnings Conference Call."

Those participants who wish to view the live webcast may register at https://www.gowebcasting.com/14691. 

An audio recording of the Event will be available via the Echo Replay platform. To access the platform by phone, please dial-in using one of the numbers listed above and input Playback ID: 6261208, followed by the # key. This replay will expire on Friday, May 22^nd, 2026, at 11:59 PM EDT.

Additionally, the audio recording and transcript of the Event will be available on the Company's investor relations website at https://fstcorp.com/.

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 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/293687

Source: FST Corp.