Core Insights - Fluence Energy, Inc. has launched Smartstack™, a high-density, AC-based energy storage platform designed for grid-scale applications, with deliveries expected to start in Q4 2025 [1][2] - Smartstack offers approximately 30% higher energy density compared to existing AC-based systems, achieving up to 7.5 MWh energy density with 300 Ah generation batteries [2][5] - The platform's modular design allows for flexible configurations, catering to various market needs with storage durations of 2, 4, 6, and 8 hours available for sale [3][5] Product Features - Smartstack's design splits battery storage systems into easily transportable units, reducing shipping constraints and installation complexity [2][4] - The system includes a Smart Skid base platform that integrates advanced cooling, power control, and monitoring capabilities, while battery pods can be swapped for maintenance or upgrades [4][5] - Smartstack guarantees up to 99% availability through a long-term service agreement, enhancing revenue generation for customers [5][7] Market Positioning - The product addresses critical industry challenges such as supply chain constraints, performance, and land use, making it suitable for previously constrained sites [1][6] - Fluence has a strong track record, having deployed over 37.7 GWh of storage projects globally, including the first grid-connected system [7][9] - The modular design supports a localized supply chain strategy, optimizing availability and cost while enhancing resilience against geopolitical disruptions [6][9] Safety and Compliance - Smartstack incorporates advanced safety features, including multi-layer protection systems and large-scale fire testing certification, ensuring high safety standards [7] - The platform maintains Fluence's commitment to cybersecurity and safety, crucial for operational integrity in energy storage solutions [7]

Core Insights - Fluence Energy, Inc. has launched Smartstack™, a high-density, AC-based energy storage platform designed for grid-scale applications, with customer deliveries expected to start in Q4 2025 [1][2] - Smartstack addresses industry challenges such as performance, transportation logistics, and land use, providing a modular design that enhances scalability and operational efficiency [1][3] Product Features - The Smartstack system features a patent-pending design that splits battery storage into easily transportable units, improving shipping and installation processes [2] - It offers an energy density of up to 7.5 MWh, which is approximately 30% higher than existing AC-based systems, allowing for more energy generation within limited project footprints [2] - The platform supports various storage durations, including 2-hour, 4-hour, 6-hour, and 8-hour options, catering to diverse market needs [3] Operational Efficiency - Smartstack is designed to maximize system availability during peak demand, with a guaranteed availability of up to 99% through a long-term service agreement [3][6] - The modular architecture allows for regional sourcing and manufacturing of components, optimizing costs and enhancing supply chain resilience [5] Safety and Cybersecurity - The platform incorporates advanced safety features, including multi-layer protection systems and large-scale fire testing certification, ensuring high safety standards [6] - Fluence maintains a strong commitment to cybersecurity, integrating robust protection measures within the Smartstack system [6] Company Background - Fluence Energy has deployed over 37.7 GWh of storage projects globally, establishing itself as a leader in intelligent energy storage solutions [6][8] - The company operates in nearly 50 markets, focusing on creating a more resilient grid and maximizing the potential of renewable energy portfolios [8]

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Financial Data and Key Metrics Changes - The company generated $187 million in revenue for Q1 2025, a decrease of 49% compared to the same quarter last year, primarily due to a back-end weighted revenue plan [42][11] - Adjusted gross margins were reported at 12.5%, marking the sixth consecutive quarter of double-digit gross profit margins [42] - Annual recurring revenue (ARR) increased to $106 million, up $6 million from the previous quarter, with a target of $145 million by the end of the fiscal year [13][47] - The company ended the quarter with over $650 million in total cash, positioning it strongly for future investments [13][51] Business Line Data and Key Metrics Changes - The backlog reached a record $5.1 billion, reflecting a year-over-year increase of 38% in value and more than double in terms of volume [26] - The company reported over $770 million in order intake during the quarter, contributing to the backlog growth [12] - The revenue guidance for fiscal year 2025 was revised to between $3.1 billion and $3.7 billion, with a midpoint of $3.4 billion, representing a $600 million reduction from prior guidance [14][45] Market Data and Key Metrics Changes - The U.S. battery storage market continues to show strong demand, with installations increasing by 83% year-over-year to over 45 gigawatt hours in 2024 [31] - The company noted that nearly half of its $21.4 billion pipeline is in the U.S. market, with significant contributions from Germany, Australia, Canada, and Chile [29] Company Strategy and Development Direction - The company is focusing on a U.S. domestic content strategy to mitigate geopolitical risks and enhance competitiveness [10][18] - A new product platform is set to launch, aimed at improving density and reducing costs for customers, expected to benefit the company starting in fiscal 2026 [20][24] - The company is committed to continuous innovation in technology to maintain its competitive edge in the market [19][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resolution of project delays in Australia, expecting to sign contracts later in the year with revenue recognition in fiscal 2026 [15][82] - The competitive landscape is intensifying, particularly from Chinese players, but the company believes its domestic content strategy will help mitigate these pressures [18][19] - The company anticipates a 30% growth in revenue for fiscal 2026, starting from the revised fiscal 2025 guidance midpoint [46][62] Other Important Information - The company has a strong liquidity position with total liquidity exceeding $1.1 billion, reflecting the issuance of $400 million in convertible notes [52] - The company is actively managing potential tariff impacts, with less than 15% of its backlog exposed to the recently announced tariffs on Chinese imports [34][35] Q&A Session Summary Question: Comments on 2026 revenue guidance despite project delays - Management indicated a conservative view for 2026, with a current backlog of $1.2 billion for that year, and plans to provide more clarity as the year progresses [60][62] Question: Insights on Moss Landing events - Management stated they have no direct information regarding Moss Landing and do not anticipate any liability from the events reported [64][65] Question: Margins on new bookings and Australia projects - Management noted that margins for new bookings are expected to be at the lower end of the 10% to 15% range, with a temporary margin reduction due to project mix changes [68][70] Question: Confidence in Australian contracts being signed - Management expressed confidence that two of the three delayed contracts would be signed soon, with minor issues causing the delays [78][82] Question: Impact of tariffs on margins - Management confirmed that the $10 million impact from tariffs is reflected in the guidance, with competitive pressures primarily affecting international margins [74][76] Question: Deferred revenue and cash flow - Management expects the deferred revenue of over $300 million to reverse within the next quarter [92][94] Question: Measures on graphite supply amid investigations - Management is accelerating graphite imports to prepare for potential duties, emphasizing that any duties would create a level playing field for domestic and imported batteries [96][99] Question: Domestic content demand and pricing - Management confirmed that domestic content margins remain within the 10% to 15% range, with no significant premium pricing observed [106][107] Question: Cost trajectory from the Utah facility - Management expressed satisfaction with the performance of the Utah facility, indicating that it is operating well and competitively [108][111] Question: Impact of government policy and trade on operations - Management reported no significant impact from recent government policy changes, with all permitting freezes reportedly lifted [115] Question: New product launch and competitive positioning - Management believes the new product will be industry-leading, allowing for higher capacity and competitive pricing, while maintaining targeted margins [119][124]

Core Viewpoint - Fluence Energy reported a larger-than-expected loss in the fourth quarter and has lowered its revenue outlook for 2025, leading to a significant drop in its stock price by over 40% [1][3][4] Company Performance - Fluence experienced a loss of $0.32 per share on sales of $186.8 million, which was below Wall Street's expectations of a $0.22 loss on sales of $373 million [3] - Revenue declined by 49% year-over-year, attributed to delays in starting new projects [3][4] Outlook and Market Conditions - The company has revised its 2025 revenue outlook to a range of $3.1 billion to $3.7 billion, down from the previous estimate of $3.6 billion to $4.4 billion, while Wall Street had anticipated $3.9 billion in sales for the year [4] - CEO Julian Nebreda noted customer-driven delays in contract signings and competitive pressures as factors influencing the outlook [4] Market Demand and Investor Sentiment - Despite the current challenges, there remains a robust global market for utility-scale battery storage, with strong interest in Fluence's U.S. domestic content product [4] - The recent stock price decline may present a buying opportunity, but concerns about the company's execution and credibility in the financial community persist [5] Long-term Considerations - Questions regarding long-term pricing power for battery storage solutions may arise, especially if these solutions become commoditized as capacity expands [6] - A cautious approach is recommended for potential investors as the company works to regain credibility [6]

1Q FY2025 Earnings Presentation Disclaimer Forward-Looking Statements The statements herein and referenced on the Company's earnings call that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In particular, these forward-looking statements include, without limitation, statements regarding the Company's fu ...

Fluence Energy, Inc. (FLNC) came out with a quarterly loss of $0.32 per share versus the Zacks Consensus Estimate of a loss of $0.17. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -88.24%. A quarter ago, it was expected that this company would post earnings of $0.27 per share when it actually produced earnings of $0.34, delivering a surprise of 25.93%.Over the last four quarters, the company ha ...

Fluence Energy struggled with revenue shortfall and increased losses in Q1, but it maintained a high order backlog and financial flexibility.Intelligent energy storage solutions specialist Fluence Energy (FLNC 4.31%) reported fiscal year 2025 first-quarter results on Monday, Feb. 10, that fell well short of analysts' consensus estimates. Revenue in Q1 fell 49% year over year to $186.8 million, far below the analyst estimate of $362 million. Earnings per share also missed expectations, with a loss of $0.32 p ...

Financial Performance - Total revenue for Q4 2024 was $186.8 million, a decrease of 48.6% compared to $364.0 million in Q4 2023[16]. - Gross profit for Q4 2024 was $21.2 million, down from $36.4 million in the same quarter last year, representing a decline of 41.8%[16]. - Net loss for Q4 2024 was $57.0 million, compared to a net loss of $25.6 million in Q4 2023, indicating an increase in losses of 122.5%[16]. - The company reported a loss per share of $0.32 for Q4 2024, compared to a loss per share of $0.14 in Q4 2023[16]. - The company experienced a comprehensive loss of $54.1 million in Q4 2024, compared to a comprehensive loss of $23.9 million in Q4 2023, reflecting an increase of 126.5%[18]. - For the three months ended December 31, 2024, the net loss was $57,013,000 compared to a net loss of $25,556,000 for the same period in 2023, representing an increase in loss of 123%[23]. - Operating cash flow for the three months ended December 31, 2024, was a net cash used of $211,232,000, a significant decrease from the net cash provided of $19,363,000 in the same period of 2023[23]. - Total revenue for the three months ended December 31, 2024, was $186.788 million, a decrease of approximately 48.6% from $363.956 million in the same period of 2023[87]. - Revenue from energy storage products and solutions was $169.752 million in Q4 2024, down from $356.941 million in Q4 2023, indicating a decline of about 52.5%[87]. Assets and Liabilities - Cash and cash equivalents increased to $607.4 million as of December 31, 2024, up from $448.7 million at the end of Q3 2024, reflecting a growth of 35.4%[14]. - Total assets rose to $2.21 billion as of December 31, 2024, compared to $1.90 billion at the end of Q3 2024, marking an increase of 16.4%[14]. - Total current liabilities were $1.26 billion, slightly up from $1.26 billion in Q3 2024, indicating a marginal increase of 0.4%[14]. - Total stockholders' equity decreased to $529.3 million as of December 31, 2024, down from $607.1 million at the end of Q3 2024, a decline of 12.8%[14]. - The company’s total liabilities included a deferred revenue increase of $316,723,000 for the three months ended December 31, 2024, compared to $99,051,000 in the same period of 2023[23]. - The company’s inventory as of December 31, 2024, was valued at $543.415 million, compared to $182.601 million as of September 30, 2024, reflecting a substantial increase[93]. - The company’s total accruals increased to $476.985 million as of December 31, 2024, up from $338.311 million as of September 30, 2024[99]. Cash Flow and Financing - The company raised $400,000,000 from the issuance of 2030 Convertible Senior Notes during the financing activities[23]. - As of December 31, 2024, the cash, cash equivalents, and restricted cash totaled $654,409,000, an increase from $476,557,000 at the end of the previous period[23]. - The Company issued $400.0 million in aggregate principal amount of 2.25% convertible senior notes due 2030 in December 2024[75]. - The Company has issued 2030 Convertible Senior Notes with a principal amount of $400 million, carrying an effective interest rate of 2.82%[123]. - As of December 31, 2024, the net carrying value of the 2030 Convertible Senior Notes is $389.1 million, with a fair value of $414.4 million[123]. - The Company recorded net interest income of $0.0 million for the three months ended December 31, 2024, compared to $0.1 million for the same period in 2023[115]. - The Company recognized total interest expense of $571,000 for the three months ended December 31, 2024, including $475,000 in coupon interest and $96,000 in amortization of debt issuance costs[125]. Research and Development - Research and development expenses for Q4 2024 were $17.2 million, an increase of 11.4% from $15.4 million in Q4 2023[16]. - The company expects operating expenses to increase in the near future due to investments in additional resources to support growth[208]. - Research and development expenses are anticipated to rise as the company invests in technology and product roadmap goals[209]. Revenue Recognition and Contracts - Revenue recognition is primarily derived from energy storage products and solutions, operational services, and digital applications, with significant contracts having lead times of 12 to 18 months[42][43]. - The company’s revenue from services includes long-term agreements for operational services related to battery-based energy storage products, recognized ratably over the service term[51]. - The company assesses variable consideration using an expected value method, which includes estimates of potential project delays and performance specifications[46]. - The company’s contracts may incur additional costs, which are typically recovered through change orders with customers, creating timing differences in revenue recognition[48]. - As of December 31, 2024, the company had $5.1 billion in remaining performance obligations, with an expectation to recognize approximately 60% of this amount in revenue over the next 12 months[91]. Legal and Regulatory Matters - The company is fully cooperating with an SEC investigation regarding its financial reporting[147]. - Fluence is seeking approximately $37.0 million in damages from Diablo Energy Storage, LLC due to nonpayment for an energy storage facility project[146]. - Diablo Energy Storage, LLC has filed a cross-complaint against Fluence, claiming at least $25.0 million in damages and seeking disgorgement of approximately $230.0 million[146]. Market and Competitive Landscape - The utility-scale battery storage market is projected to add approximately 2,529 GWh between 2024 and 2035, driven by the global transition towards renewable energy[186]. - The energy storage sector is highly competitive, with new entrants continuously emerging, necessitating the company to innovate and address customer needs effectively[192]. - Revenue growth is directly tied to the adoption of energy storage solutions and the company's ability to increase market share in competitive regions[204]. - The company anticipates continued growth in electricity demand, which is expected to increase demand for energy storage solutions globally[189]. Stock and Compensation - Fluence has 2,928,143 stock options outstanding under the 2020 Unit Option Plan with no unrecognized stock compensation expense[162]. - The 2021 Incentive Award Plan has reserved 9,500,000 shares of Class A common stock for issuance to management and employees[165]. - As of December 31, 2024, there are 2,914,001 restricted stock units (RSUs) outstanding with unrecognized stock compensation expense of $34.9 million[166]. - The company recorded total stock-based compensation expense of $5.308 million for the three months ended December 31, 2024, compared to $5.630 million for the same period in 2023[173].

Revenue Performance - Revenue for the fiscal quarter ended December 31, 2024, was approximately $186.8 million, a decrease of approximately 49% compared to the same quarter last year[3] - Total revenue for Q4 2024 was $186.8 million, a decrease of 48.6% compared to $364.0 million in Q4 2023[28] - Total revenue decreased by 49% to $186,788,000 in Q4 2024 from $363,956,000 in Q4 2023, with a gross profit margin of 11.4%[51] Financial Guidance - The company has lowered its fiscal year 2025 total revenue guidance range to $3.1 billion to $3.7 billion, down from a prior range of $3.6 billion to $4.4 billion[3] - Adjusted EBITDA for the fiscal year 2025 is now projected to be in the range of $70 million to $100 million, significantly reduced from the previous guidance of $160 million to $200 million[3] - The fiscal year 2025 annual recurring revenue (ARR) guidance remains at approximately $145 million[3] Net Loss and Profitability - The company reported a net loss of approximately $57.0 million, an increase from a net loss of approximately $25.6 million for the same quarter last year[3] - Net loss for Q4 2024 was $57.0 million, compared to a net loss of $25.6 million in Q4 2023, resulting in a loss per share of $0.32[28] - Net loss for the three months ended December 31, 2024, was $57,013,000, compared to a net loss of $25,556,000 in the same period of 2023, representing a 123% increase in losses[49] - Adjusted EBITDA for Q4 2024 was $(49,676,000), a decline of 172% compared to $(18,287,000) in Q4 2023[49] - Free cash flow for the three months ended December 31, 2024, was $(213,341,000), a significant decrease from $17,895,000 in the same period of 2023[53] Cash and Liquidity - Total cash as of December 31, 2024, was approximately $654.4 million, reflecting an increase of approximately $135.7 million from September 30, 2024[3] - Cash and cash equivalents increased to $607.4 million as of December 31, 2024, up from $448.7 million at the end of September 2024[24] - Cash, cash equivalents, and restricted cash increased to $654,409,000 as of December 31, 2024, from $476,557,000 at the end of Q4 2023[1] - The company experienced a net cash used in operating activities of $(211,232,000) for the three months ended December 31, 2024, compared to $19,363,000 in the same period of 2023[53] Backlog and Orders - Quarterly order intake reached $778.0 million, contributing to a record backlog of approximately $5.1 billion as of December 31, 2024[3] - Contracted backlog for energy storage products rose by 4% to 7.8 GW as of December 31, 2024, compared to 7.5 GW as of September 30, 2024[37] - The pipeline of potential contracts increased by 17% to 30.3 GW as of December 31, 2024, from 25.8 GW as of September 30, 2024[37] Inventory and Assets - The company reported a significant increase in inventory, which rose to $543.4 million as of December 31, 2024, compared to $182.6 million at the end of September 2024[24] - Total assets rose to $2.21 billion as of December 31, 2024, compared to $1.90 billion at the end of September 2024[24] - Total liabilities increased to $1.68 billion as of December 31, 2024, up from $1.30 billion at the end of September 2024[24] Research and Development - Research and development expenses for Q4 2024 were $17.2 million, an increase of 11.4% from $15.4 million in Q4 2023[28] Currency and Translation - The company experienced a loss on foreign currency translation of $5.3 million in Q4 2024, compared to a gain of $1.8 million in Q4 2023[30] Strategic Initiatives - The company aims to maintain its leadership position in the utility-scale battery storage market and optimize its cost structure for improved financial performance in fiscal year 2026 and beyond[4] - The company issued $400.0 million of 2.25% Convertible Senior Notes due 2030 to enhance financial flexibility and support growth initiatives[5] Digital Contracts - The company reported a significant increase in digital contracts, with contracted intake rising by 700% to 3.2 GW in Q4 2024 compared to 0.4 GW in Q4 2023[37] Energy Storage Products - Deployed energy storage products increased by 16% to 5.8 GW as of December 31, 2024, up from 5.0 GW as of September 30, 2024[37]