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 unaudited financial results for the three months ended March 31, 2026.

Revenue for the first quarter of 2026 was $14,646,354, a 36.2 percent increase from revenue of $10,756,162 for the first quarter of 2025. This growth was primarily driven by a 70 percent increase in sales to OEM partners and a 64 percent increase in KBS Graphite Shaft sales, led by the successful launch of the KBS TGBlack Driver Shaft.

Net income for the first quarter was $1,877,568, or $0.04 per share, compared to a net loss of $2,798,018, or $(0.06) per share, in the same period of 2025. This improvement was mainly the result of the Company's increase in revenue and its rise in gross profit margin to 51.6 percent from 46.1 percent in Q1 2025, driven by economies of scale in manufacturing, which generated lower per-unit costs. The Company's bottom line was also boosted by a $99,723 improvement in foreign exchange compared to Q1 of last year.

These improvements were offset in part by the absence of unrealized loss on change in fair value of OET derivative liability compared to a charge of $1,884,824 for this item in the year-ago quarter, and to a lesser extent by an increase in income tax expenses of $301,407 compared to Q1 2025.

Total costs and operating expenses declined 7.2 percent to $5,378,269 from $5,795,505 in the prior-year period, led by a reduction in general and administrative expenses of $408,579, primarily driven by lower listing-related expenses.

Operating income was $2,178,202, compared to an operating loss of $839,759 in the first quarter of 2025.

As of March 31, 2026, and December 31, 2025, the Company had cash and cash equivalents of $7,367,184 and $7,179,800, total assets of $62,339,531 and $60,921,557, total liabilities of $45,310,186 and $45,370,369, and total shareholders' equity of $17,029,345 and $15,551,188, 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 are very pleased to report a strong start to 2026, with robust revenue growth, significant gross margin improvement, and a decisive return to profitability," said FST Chairman and Chief Executive Officer David Chuang.

"Revenue growth across both our OEM and KBS Graphite Shaft businesses was substantial, the latter of which reflects the continued strength and recognition of the KBS brand at both the professional and consumer levels. We're also proud of the results of our disciplined expense management initiatives, which enabled us to more efficiently control the cost of sales and significantly boost our gross margin."

During Q2, added Mr. Chuang, FST remains focused on executing several key initiatives, including:

• Expansion of sales in both domestic and export markets, including Europe and Asia;
• Pursuing additional OEM business with strategic business partners;
• Continued growth of KBS Graphite Shafts;
• Implementation of additional cost control measures to further improve margins; and
• Increased marketing of the Company's KBS Open and other events designed to promote the KBS brand.

"We are excited about the opportunities ahead and look forward to continuing the momentum and progress achieved thus far in 2026."