FST Corp. Reports Second Quarter 2026 Financial Results

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, Colorado--(Newsfile Corp. - July 28, 2026) - 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 the 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 with 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.

FST Corp.
CONSOLIDATED BALANCE SHEETS
(In U.S. dollars, except for share data, or otherwise noted)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(In U.S. dollars, except for share data, or otherwise noted)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. dollars)

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306961

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