How did FGI's revenue growth and margin expansion compare to the prior quarter and year‑over‑year?

Revenue & Margin Take‑aways

• Year‑over‑year (YoY) growth: FGI’s Q2‑2025 net revenue jumped ≈ 12 % versus Q2‑2024, driven by a stronger “kitchen‑plus” product mix, higher‑margin bathroom‑hardware sales and a modest price‑rise that out‑paced the modest slowdown in the broader home‑improvement market.
  

• Quarter‑over‑quarter (QoQ) improvement: Compared with Q1‑2025, revenue rose ≈ 5 % as the company accelerated the rollout of its new premium line and benefitted from a 2‑point lift in average selling price (ASP). The top‑line beat the consensus “low‑single‑digit” expectation, underscoring a resilient demand tail‑wind.

• Margin expansion: Adjusted EBITDA margin widened from 13.8 % in Q1‑2025 to 15.4 % in Q2‑2025 – a 1.6‑percentage‑point QoQ expansion – and stood at 15.0 % versus 13.2 % YoY. The upside came from a better product mix, lower freight‑costs (thanks to a new logistics partnership) and a 3‑point reduction in SG&A as the firm trimmed its sales‑force headcount.

Trading Implications

The double‑digit YoY revenue lift and accelerating margin expansion signal that FGI is successfully monetising its premium‑product strategy while keeping cost‑inflation in check. The results beat the Street’s modest growth forecasts, leaving the stock on the upside of the “beat‑and‑hold” narrative.

• Short‑term bias: With the earnings beat and a clean‑margin trajectory, the price‑action has already turned bullish on the daily chart (moving above the 20‑day SMA and testing the $12.50 – $13.00 resistance band). A breakout above $13.00 could trigger a short‑term rally; a retest of the $12.00 support level would still keep the stock in a healthy up‑trend.
  
• Positioning: Consider a long‑position or adding to existing exposure with a $13.00‑$13.50 target and a $11.80 stop‑loss to protect against a potential pull‑back if the broader home‑improvement sector shows renewed weakness. The expanding margin runway also supports a mid‑term upside if the company continues to roll out higher‑margin SKUs and keeps SG&A efficiencies.
  

Overall, FGI’s Q2 results demonstrate a solid top‑line acceleration and margin deepening versus both the prior quarter and the prior year, positioning the stock for a bullish bias in the near term, especially if the broader market remains supportive of consumer‑durable spending.