Flexsteel reported a solid start to fiscal 2025 (QQ1) with a 9.9% year-over-year sales increase to $104.0 million and a notable improvement in profitability. The quarter featured a GAAP operating income of $6.0 million and an operating margin of 5.8%, up from 2.0% in the prior-year period, marking the fifth consecutive quarter of year-over-year margin improvement. The company highlighted broad-based growth across core operations and growth initiatives, supported by robust product introductions and strategic account expansion. Management emphasized disciplined capital allocation, ongoing investments in product development, and a favorable, albeit mixed, demand environment driven by macro headwinds, including housing and consumer spending softness. Looking ahead, Flexsteel provided modest quarterly guidance for Q2 and reiterated an optimistic long-term growth plan underpinned by new product launches and expanded channels, while noting volatility from freight costs and macroeconomic conditions. The combination of growing top-line momentum, improving margins, cash generation, and a clear growth agenda underpins an investment thesis built on continued profitable growth through 2025 and beyond.