Flexsteel delivered a solid start to fiscal year 2026 (QQ1) with continued top-line momentum and accelerating profitability, despite a challenging macro environment and meaningful tariff headwinds. First-quarter net sales reached $110.4 million, up 6.2% year over year, marking the eighth consecutive quarter of YoY growth. GAAP operating income was $9.0 million (8.1% of sales), beating the guided range on fixed-cost leverage and favorable foreign exchange translation, underscoring the company’s operating discipline and scale benefits. Net income totaled $6.49 million with a 5.9% net margin, supported by higher gross margins (22.9%) and ongoing cost controls. The quarter benefited from a roughly $2.4 million tariff-related pricing impact, and management noted that tariffs, pricing actions, and demand dynamics will remain a near-term challenge as the industry adjusts to a higher 232 tariff regime on upholstered furniture.