FLXS

• Fiscal year 2026 net sales increased 4.1% to $459.2 million from $441.1 million in the prior year.
• GAAP diluted EPS was $2.58 for the quarter and $6.07 for the year, compared to $1.89 and $3.55 in the prior year periods.
• The company generated $24.3 million of cash flow from operations and completed $62.6 million of share repurchases in the fourth quarter.
• For Q1 fiscal 2027, the company expects sales growth of 1% to 4% and GAAP operating margin of 6.5% to 7%.

2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• The purchase price is $47.00 per share, a 2.5% discount to the April 24, 2026 closing price, for a total of approximately $60.2 million.
• The shares represent about 24% of the company's outstanding common stock and the transaction closed on April 28, 2026.
• The purchase was funded through cash and borrowings under the company's revolving credit facility, and is supplemental to the existing stock repurchase program.
• F. Brooks Bertsch resigned from the Board effective April 28, 2026, and the transaction was approved by a special committee of independent directors.

1.01 Entry into a Material Definitive Agreement · 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• GAAP operating income was $8.2 million (7.1% of net sales) versus an operating loss of ($5.1) million in the prior year quarter.
• GAAP net income was $6.4 million, or $1.14 per diluted share, compared to a net loss of ($3.7) million, or ($0.71) per diluted share, in the prior year quarter.
• Adjusted operating income was $8.2 million (7.1% of net sales) versus $8.3 million (7.3%) in the prior year quarter; adjusted net income per diluted share was $1.14 versus $1.13.
• Management expects fourth quarter sales to be flat to prior year levels and operating margins similar to third quarter performance.
• The company ended the quarter with cash of $57.3 million and working capital of $142.2 million.

2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• GAAP operating income was $9.0 million (7.6% of net sales), down from $11.7 million (10.7%) in the prior year quarter; adjusted operating income was $9.0 million (7.6%) versus $6.7 million (6.1%).
• GAAP net income was $6.6 million, or $1.18 per diluted share, compared to $9.1 million, or $1.62 per diluted share, in the prior year quarter; adjusted net income was $6.6 million, or $1.18 per diluted share, versus $5.3 million, or $0.95 per diluted share.
• Gross margin improved to 22.7% from 21.0% in the prior year quarter, an increase of 170 basis points.
• The company ended the quarter with $36.8 million in cash, $126.0 million in working capital, and approximately $54.1 million available under its secured line of credit.
• Management expects near-term pressure on demand and margins due to tariffs but is actively managing pricing, costs, and supply chain to mitigate impact.

2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• Creekmuir received 3,908,107 votes for and 216,248 withheld; Culbreth received 3,931,970 votes for and 192,385 withheld.
• Shareholders approved an amendment to the 2022 Equity Incentive Plan, increasing authorized shares by 150,000, with 3,803,550 votes for and 312,696 against.
• The advisory vote on executive compensation passed with 3,963,794 votes for and 120,529 against.
• The Board determined future advisory votes on executive compensation will be held annually, based on the frequency vote result of 3,759,569 votes for 1 year.

5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements · 5.07 Submission of Matters to a Vote of Security Holders · 9.01 Financial Statements and Exhibits

• GAAP operating income was $9.0 million (8.1% of net sales) versus $6.0 million (5.8% of net sales) in the prior year quarter.
• GAAP diluted EPS was $1.31, compared to $0.74 in the prior year quarter.
• Gross margin expanded 200 basis points to 23.5% from 21.5% year-over-year.
• Management cited new section 232 tariffs on imported upholstered furniture (25% effective October 14, 2025, rising to 30% on January 1, 2026) as a material near-term risk to sales and profitability.

2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• Thomas M. Levine notified the Board on October 8, 2025, of his intent to resign effective at the conclusion of the December 10, 2025 board meeting.
• Levine has served on the board since December 2010 and has been Chair of the Board since 2018.
• Concurrent with Levine's retirement, the board size will be reduced from eight to seven directors, and Jeanne McGovern will assume the role of Chair of the Board.
• The Company issued a press release on October 9, 2025, announcing the change, furnished as Exhibit 99.1.

5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits

• Q4 GAAP operating income was $14.0 million (12.2% of sales); FY2025 GAAP operating income was $26.6 million (6.0% of sales).
• Q4 GAAP diluted EPS was $1.89; FY2025 GAAP diluted EPS was $3.55, a record.
• Company ended FY2025 with $40.0 million cash and no line of credit borrowings.
• Q1 FY2026 outlook: sales growth of 1% to 6% and GAAP operating margin of 5.5% to 7%.

2.02 Results of Operations and Financial Condition · 7.01 Regulation FD Disclosure · 9.01 Financial Statements and Exhibits