FLXS

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Flexsteel Industries, Inc. Reports Fiscal First Quarter 2027 Results; Continued Sales and Order Growth Driven by Strategic Initiatives

Dubuque, Iowa – October 26, 2026 – Flexsteel Industries, Inc. (NASDAQ: FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers, and marketers of residential furniture products in the United States, today reported first quarter fiscal 2027 results.

Key Results for the First Quarter Ended September 30, 2026

• Net sales for the quarter of $114.0 million compared to $110.4 million in the prior year quarter, an increase of 3.2%. Sales of Flexsteel branded product grew 5.1% versus the prior year quarter.

• GAAP operating income of $6.9 million or 6.0% of net sales for the first quarter compared to $9.0 million or 8.1% of net sales in the prior year quarter.

• GAAP net income per diluted share of $1.24 for the current quarter compared to net income per diluted share of $1.31 in the prior year quarter.

• Share repurchases of $2.2 million and dividends paid of $1.1 million in the quarter.

Management Commentary

“I'm pleased with our first quarter results and the continued momentum of our growth strategies despite a challenging macroeconomic environment,” said Derek Schmidt, CEO of Flexsteel Industries, Inc. “Net sales increased 3.2 percent compared to the prior year, toward the upper end of our guidance range, marking our twelfth consecutive quarter of year-over-year growth. Sales of Flexsteel branded products grew approximately 5 percent, while sales in our Homestyles ready-to-assemble category, which we are exiting, were down $1.9 million or 57% compared to the prior year quarter. Encouragingly, orders increased 5 percent and our ending backlog grew 8.2 percent versus the prior year period, reinforcing our confidence in the underlying strength of our business. New product introductions, strategic account share gains, and continued expansion in health and wellness remain strong contributors to our growth, providing further evidence that our strategic investments are strengthening our competitive position.”

Mr. Schmidt continued, “From a profitability standpoint, we delivered a GAAP operating margin of approximately 6 percent, which included a $0.8 million or 70 bps unfavorable foreign currency translation impact related to our peso-denominated asset exposure in Mexico. Excluding this impact, operating margin was in line with our expectations for the quarter and reflected solid operating performance considering the significant inflationary pressures currently impacting our industry. Ocean transportation rates have nearly doubled over the last six months, while sharply higher fuel prices and rising material costs continue to pressure margins. Our teams have mitigated a meaningful portion of these headwinds through cost savings initiatives, productivity improvements, and disciplined product portfolio management. Looking ahead, we expect the operating environment to remain

challenging as consumer confidence, affordability constraints, geopolitical uncertainty, and evolving tariff policies continue to weigh on industry demand and costs.”

Mr. Schmidt concluded, “What gives me the greatest confidence in Flexsteel's future is the progress we're making strengthening our competitive advantages through consumer insights, innovation, and disciplined execution. These capabilities are increasingly working together as an integrated system, enabling us to translate consumer needs into differentiated products and compelling growth opportunities. Our recent Fall High Point Market introductions demonstrate this progress, including our next-generation SixFlexTM seating technology and Comfort ChoiceTM program, expansion of our wellness portfolio across multiple consumer life stages, continued innovation in our Flexsteel PulseTM immersive sound seating platform, and new offerings within our Flexsteel StatementsTM casegoods collection. While the external environment may remain difficult, we are not standing still. We are strengthening the core capabilities that have made Flexsteel a trusted brand for generations while creating new reasons for consumers and retailers to choose us. With a strong balance sheet, disciplined operating model, and clear strategic priorities, we remain confident in our ability to continue gaining share and creating sustainable long-term shareholder value.”

Operating Results for the first Quarter Ended September 30, 2026

Net sales were $114.0 million for the first quarter compared to net sales of $110.4 million in the prior year quarter, an increase of $3.5 million, or 3.2%. The increase was driven by growth in Flexsteel branded soft seating products of $5.5 million, partially offset by a decline of $1.9 million in Homestyles ready-to-assemble products. Sales of Flexsteel branded casegoods products were relatively flat compared to the prior year period.

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Flexsteel Industries, Inc. Reports Fourth Quarter and Fiscal Year 2026 Results; Continued Net Sales Growth and Record Diluted Earnings Per Share

Dubuque, Iowa – August 17, 2026 – Flexsteel Industries, Inc. (NASDAQ: FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers, and marketers of residential furniture products in the United States, today reported fourth quarter and fiscal year 2026 results.

Key Results for the Fourth Quarter and Fiscal Year Ended June 30, 2026

• Net sales for the quarter of $115.4 million compared to $114.6 million in the prior year quarter, an increase of 0.7%. For the year, net sales increased 4.1% to $459.2 million compared to $441.1 million in the prior year.

• GAAP operating income of $16.3 million or 14.2% of net sales for the fourth quarter and $42.6 million or 9.3% of net sales for the year compared to $14.0 million or 12.2% of net sales in the prior year quarter and $26.6 million or 6.0% of net sales for the prior year.

o Adjusted operating income of $8.2 million or 7.1% of net sales for the fourth quarter and $34.4 million or 7.5% of net sales for the year compared to $10.3 million or 9.0% of net sales in the prior year quarter and $31.3 million or 7.1% of net sales for the prior year.

• GAAP net income per diluted share of $2.58 for the current quarter and $6.07 for the year compared to net income per diluted share of $1.89 for the prior year quarter and net income per diluted share of $3.55 for the prior year.

o Adjusted net income per diluted share of $1.33 for the quarter and $4.94 for the year compared to adjusted net income per diluted share of $1.40 for the prior year quarter and $4.17 for the prior year.

• The Company generated $24.3 million of cash flow from operations and completed $62.6 million of share repurchases in the fourth quarter.

GAAP to non-GAAP reconciliations follow the financial statements in this press release

Management Commentary

“Fiscal year 2026 was a year of strong financial performance and meaningful strategic progress despite increasingly difficult industry conditions,” said Derek Schmidt, CEO of Flexsteel Industries, Inc. “For the year, we delivered sales growth of approximately 4 percent to $459 million, expanded adjusted operating margin to 7.5 percent, generated record adjusted earnings per diluted share of $4.94, and produced more than $47.5 million of free cash flow. Our strong cash generation and balance sheet enabled us to repurchase approximately $64 million of stock during the year and recently increased our dividend by 25 percent. These results were achieved despite a challenging demand environment, evolving tariff policies, geopolitical uncertainty, and rising inflationary pressures, demonstrating the resilience of our business model and the agility of our organization.”

Mr. Schmidt continued, “While fourth quarter sales were only modestly above the prior year period, it was our eleventh consecutive quarter of year-over-year growth, driven by our key growth initiatives which continue to

perform well. Our health and wellness category, strategic account relationships, and recent product introductions all delivered positive contributions during the quarter despite softer overall industry demand. Consumer demand for furniture remains pressured by weak confidence, affordability constraints, and macroeconomic uncertainty related to the ongoing conflict in the Middle East. Even consumers shopping at higher price points have become increasingly value-conscious in today's environment. Despite these headwinds, we delivered strong adjusted operating margin of approximately 7.1 percent in the quarter, reflecting disciplined product portfolio management, operational productivity improvements, and prudent management of selling and administrative expenses while continuing to fund critical growth investments.”

Mr. Schmidt concluded, “Beyond the financial results, we made significant progress strengthening the long-term competitive position of the Company. We continued to expand our capabilities in consumer insights, innovation, product development, and marketing, enabling us to bring more relevant products to market and drive stronger engagement with both consumers and retail partners. Looking ahead, we remain measured in our outlook as macroeconomic uncertainty, elevated inflation, rising energy costs, and trade policy uncertainty continue to pressure industry demand and profitability. While near-term conditions may remain challenging, our strategy and priorities are unchanged. We will continue to operate with agility, maintain disciplined cost control, and invest in the capabilities that we believe will drive long-term growth, market share gains, and shareholder value creation. With a strong balance sheet, a resilient operating model, and clear strategic priorities, we believe Flexsteel is well positioned to successfully navigate the current environment and emer

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Flexsteel Industries, Inc. Reports Fiscal Third Quarter 2026 Results

Dubuque, Iowa – April 20, 2026 – Flexsteel Industries, Inc. (NASDAQ: FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers, and marketers of residential furniture products in the United States, today reported third quarter fiscal 2026 results.

Key Results for the Third Quarter Ended March 31, 2026

• Net sales for the quarter of $115.1 million compared to $114.0 million in the prior year quarter, an increase of 1.0%.

• GAAP operating income of $8.2 million or 7.1% of net sales compared to an operating loss of ($5.1) million or (4.4%) of net sales in the prior year quarter.

o Adjusted operating income of $8.2 million or 7.1% of net sales for the third quarter compared to $8.3 million or 7.3% of net sales in the prior year quarter.

• GAAP net income per diluted share of $1.14 for the current quarter compared to net loss of ($0.71) in the prior year quarter.

o Adjusted net income per diluted share of $1.14 for the quarter compared to $1.13 in the prior year quarter.

GAAP to non-GAAP reconciliations follow the financial statements in this press release

Management Commentary

“I’m encouraged by how our team continues to execute in a challenging and dynamic operating environment,” said Derek Schmidt, CEO of Flexsteel Industries, Inc. “During the third quarter, we delivered relatively stable year-over-year sales performance and maintained a healthy operating margin of approximately 7 percent. While demand softened as the quarter progressed, particularly following the onset of the conflict in the Middle East, our results reflect the operating discipline we’ve built into the business and our ability to respond with agility as conditions evolve. Importantly, our core growth drivers, including new product introductions, strategic account relationships, and our health and wellness category, continued to perform well, albeit at more moderate growth levels than in prior quarters.”

Mr. Schmidt continued, “Order trends were choppy throughout the quarter, with early-quarter performance impacted by severe weather and a more pronounced slowdown emerging more recently as macroeconomic uncertainty increased with current developments in Iran. Retail partners are taking a more cautious approach to inventory, and consumer demand remains inconsistent as confidence has been affected by inflation concerns, rising energy costs, and stock market volatility. At the same time, we are beginning to see cost pressures increase across our supply chain, driven largely by higher fuel and petrochemical-related input costs stemming from the Middle East conflict. While we continue to evaluate pricing and other actions to mitigate these pressures, the current environment requires a thoughtful and measured approach given the price sensitivity of the consumer.”

Mr. Schmidt concluded, “Looking ahead, we expect near-term demand and profitability to remain under pressure, with fourth quarter sales likely flat to prior year levels and operating margins similar to third quarter performance. The duration and severity of these pressures will depend largely on macroeconomic conditions and geopolitical developments. Despite this uncertainty, our strategy and focus remain unchanged. We will continue to operate with agility, maintain disciplined cost control, and invest in the capabilities that support long-term growth, including consumer insights, innovation, product development, marketing, and customer experience. With a strong balance sheet and a resilient operating model, we believe Flexsteel is well positioned to navigate this period while continuing to strengthen our competitive position and drive long-term shareholder value."

Operating Results for the Third Quarter Ended March 31, 2026

Net sales were $115.1 million for the third quarter compared to net sales of $114.0 million in the prior year quarter, an increase of $1.1 million, or 1.0%. The increase was driven by higher pricing from tariff surcharges, offset by lower unit volume.

Gross margin for the quarter ended March 31, 2026, was 22.6%, compared to 22.2% for the prior-year quarter, an increase of 40 basis points (“bps”). The 40-bps increase was primarily driven by favorable sales composition of higher margin products.

Selling, general and administrative (SG&A) expenses were 15.5% of net sales in the third quarter of fiscal 2026 compared with 15.0% of net sales in the prior year quarter. The 50-bps increase was primarily due to investments in growth initiatives.

Operating income for the quarter ended March 31, 2026, was $8.2 million compared to loss of ($5.1) million in the prior-year quarter. Adjusted operating income for the quarter ended March 31, 2026, was $8.2 million compared to $8.3 million in the prior year quarter, a decrease of 1%.

The Company reported income tax expense of $2.1 million, or an effective rate of 24.9%, during the thir