Group 1 - The article highlights the performance of the analyst team, which has achieved an annualized return of almost 40% over the past decade, with a long-only model portfolio return exceeding 23 times [1] - The focus is on providing income-oriented investment options for those preferring lower-risk firms with consistent dividend payouts [1] - The research covers sectors such as energy, shipping, and offshore markets, indicating a comprehensive approach to market analysis [1] Group 2 - The article serves as an update on Flux Power Holdings Inc., suggesting ongoing interest and developments in the company [2] - The author has expanded coverage to include the offshore drilling and supply industry, as well as the shipping industry, indicating a broadening of investment focus [3] - The author has a background in auditing and trading, which adds credibility to the research provided [3]

Group 1 - The article highlights the performance of the analyst team, which has achieved an annualized return of almost 40% over the past decade, with a long-only model portfolio return exceeding 23 times [1] - The focus is on providing income-oriented investment options for those preferring lower-risk firms with consistent dividend payouts [1] - The research covers sectors such as energy, shipping, and offshore markets, indicating a comprehensive approach to market analysis [1] Group 2 - The article serves as an update on Flux Power Holdings Inc., suggesting ongoing interest and analysis of the company [2] - The author has a background in trading, particularly in tech stocks, and has expanded coverage to include offshore drilling, supply, and shipping industries [3] - The author has experience as an auditor and has navigated significant market events, indicating a depth of market understanding [3]

分组1 - Flux Power Holdings, Inc. reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07 per share, and showing improvement from a loss of $0.11 per share a year ago, resulting in an earnings surprise of +161.54% [1] - The company posted revenues of $14.12 million for the quarter ended December 2025, which was 10.77% below the Zacks Consensus Estimate and a decrease from year-ago revenues of $16.83 million [2] - Flux Power shares have increased approximately 11% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $18.13 million, and for the current fiscal year, it is -$0.23 on revenues of $66.12 million [7] - The Zacks Industry Rank for Electronics - Miscellaneous Products is in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 was $14.1 million, an increase from $13.2 million in the prior quarter but a decrease from $16.8 million in the same quarter last year [16] - Gross margin improved to 34.7% from 28.6% in the prior quarter and 32.5% in the prior year, reflecting a 610 basis point sequential increase due to improved product mix and cost-saving initiatives [16] - Operating expenses decreased to $4.1 million from $5.9 million in the prior quarter and $6.9 million in Q2 2025, marking a 31% sequential decrease [17] - Net income for Q2 was $0.6 million, or $0.03 per share, compared to a net loss of $2.6 million in the prior quarter and a net loss of $1.9 million in Q2 2025 [17] - Non-GAAP net income was $1 million, or $0.04 per share, compared to a net loss of $2 million in the prior quarter [18] Business Line Data and Key Metrics Changes - The company achieved net profitability for the first time in its history, attributed to expense optimization and revenue growth [4][5] - The introduction of the SkyLink telematics device is expected to enhance product offerings and customer engagement [9][10] Market Data and Key Metrics Changes - The lithium-ion forklift battery segment is projected to grow at an 8.8% CAGR through 2035, indicating strong long-term market opportunities [15] - The company is experiencing a capital freeze from its most significant customer, which may impact revenue for a significant portion of calendar year 2026 [14] Company Strategy and Development Direction - The company is focused on five strategic initiatives: profitable growth, operational efficiencies, solution selling, building the right products, and integrating value-added software [5] - The company is enhancing its product line and energy system software using AI to improve operational efficiencies [20] - There is a strong emphasis on solution-based selling, moving beyond just battery sales to energy management solutions [7][10] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are challenges due to tariffs and a capital freeze from a key customer, they remain optimistic about the long-term market potential [14][15] - The company is taking proactive measures to reduce expenses and is well-positioned to respond to customer needs despite short-term pressures [15][20] Other Important Information - The company has made significant progress in product development, including the release of the next-generation SkyLink telematics device and the GAT 315 battery [10][11] - The SkyEMS software has been upgraded to include new features that enhance fleet management and productivity [11] Q&A Session Summary Question: Is the capital freeze unique to one customer or widespread in the industry? - Management confirmed that the capital freeze is specific to one customer [23] Question: How is the overall demand environment looking? - Management indicated that demand is stable but affected by lingering tariff effects [24] Question: What is the rollout strategy for the SkyLink product? - The SkyLink telematics will be offered across the product line, with positive initial feedback from beta tests [25][26] Question: Will cost savings and warranty costs remain low? - Management expects continued positive trends in warranty and repair costs, contributing to improved gross margins [30][31] Question: How does the company plan to fill the revenue gap from the capital freeze? - The company is actively hiring new sales personnel and focusing on increasing adoption of lithium batteries [36][37] Question: Will new SkyLink features be sold at a premium? - Management plans to offer a tiered software package, with premium features expected to have significantly higher gross margins [38][39] Question: Can you elaborate on the State of Health patent and its revenue potential? - The patent includes algorithms for battery health insights, which will be part of a premium software package, generating potential revenue [41][42]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 was $14.1 million, an increase from $13.2 million in the prior quarter but a decrease from $16.8 million in the same quarter last year [16] - Gross margin improved to 34.7% from 28.6% in the prior quarter and 32.5% in the same quarter last year, reflecting a 610 basis point sequential increase due to improved product mix and cost-saving initiatives [16] - Operating expenses decreased to $4.1 million from $5.9 million in the prior quarter and $6.9 million in the same quarter last year, a 31% sequential decrease [17] - Net income for Q2 was $0.6 million, or $0.03 per share, compared to a net loss of $2.6 million in the prior quarter and a net loss of $1.9 million in the same quarter last year [17] - Adjusted EBITDA was positive $1.5 million, compared to a loss of $1.4 million in the prior quarter and positive $130,000 in the same quarter a year ago [18] Business Line Data and Key Metrics Changes - The company achieved net profitability for the first time in its history, attributed to expense optimization and sequential revenue growth [4][5] - The introduction of the SkyLink telematics device is expected to enhance product offerings and customer engagement, with positive feedback from beta tests [9][10] Market Data and Key Metrics Changes - The lithium-ion forklift battery segment is projected to grow at an 8.8% CAGR through 2035, indicating strong long-term market opportunities [15] - The company is experiencing a capital freeze from its most significant customer, which may impact revenue for a significant portion of calendar year 2026 [14] Company Strategy and Development Direction - The company is focused on five strategic initiatives: profitable growth, operational efficiencies, solution selling, building the right products, and integrating value-added software [5] - The company is enhancing its product line and energy system software using AI to improve operational efficiencies and customer solutions [20] Management's Comments on Operating Environment and Future Outlook - Management noted that while the business is performing well, the capital freeze from a major customer may lead to materially lower revenue in the third quarter [14] - Despite short-term market pressures, management remains optimistic about the long-term growth potential in the lithium-ion battery market [15] Other Important Information - The company has implemented AI-driven tools in engineering design and operations to further improve efficiencies [7] - A new GAT 315 battery was released in response to customer demand, expanding the product line for the GSE segment [10] Q&A Session Summary Question: Is the capital freeze unique to one customer or seen across the industry? - Management confirmed that the capital freeze is specific to one individual customer [23] Question: How is the overall demand environment looking? - Management indicated that while there are lingering tariff effects, customers still need to purchase batteries to operate their businesses [24] Question: What is the rollout strategy for the SkyLink product? - The SkyLink telematics will be offered across the product line, with initial positive feedback from customers [25][26] Question: Will cost savings and warranty costs remain low to improve gross margins? - Management expects continued positive trends in warranty and repair costs, but gross margins may vary based on product mix [30][31] Question: What is the strategy for filling the revenue gap from the capital freeze? - The company is actively hiring new sales personnel and focusing on increasing adoption of lithium batteries [36] Question: Will new SkyLink features be sold at a premium? - Management plans to offer a standard and a premium version of the software, with higher gross margins expected from premium sales [39] Question: Can you elaborate on the State of Health patent and its revenue potential? - The patent includes algorithms for battery health insights, which will be part of a premium software package aimed at generating revenue [42]

Financial Data and Key Metrics Changes - Revenue for the second fiscal quarter of 2026 was $14.1 million, up from $13.2 million in the prior quarter, but down from $16.8 million in the same quarter last year [16] - Gross margin increased to 34.7% from 28.6% in the prior quarter and 32.5% in the prior year, reflecting improved product mix and cost-saving initiatives [16] - Operating expenses decreased to $4.1 million from $5.9 million in the prior quarter and $6.9 million in the same quarter of 2025, a 31% sequential decrease [17] - Net income for the second quarter was $0.6 million, or $0.03 per share, compared to a net loss of $2.6 million in the prior quarter [17] - Adjusted EBITDA for the second quarter was positive $1.5 million, compared to an adjusted EBITDA loss of $1.4 million in the prior quarter [18] Business Line Data and Key Metrics Changes - The company achieved net profitability for the first time in its history, attributed to expense optimization and sequential revenue growth [4][12] - The product development team made significant progress, particularly with the launch of the next-generation SkyLink telematics device [9] - The new GAT 315 battery was released in response to customer demand in the GSE segment, expanding the product line to four with multiple configurations [10] Market Data and Key Metrics Changes - The lithium-ion forklift battery segment is projected to grow at an 8.8% CAGR through 2035, indicating strong long-term market opportunities [15] - The company is experiencing a capital freeze from its most significant customer, which may impact revenue for a significant portion of calendar year 2026 [13] Company Strategy and Development Direction - The company focuses on five strategic initiatives: profitable growth, operational efficiencies, solution selling, building the right products, and integrating value-added software [5] - The integration of AI-driven tools in engineering design and operations aims to improve operational efficiencies and productivity [6] - The company is expanding its sales leadership and hiring experienced personnel to enhance customer engagement and drive growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market pressures and restore profitable growth despite the capital freeze from a key customer [14] - The management team is focused on reducing expenses and optimizing operations to maintain profitability [15] - There is cautious optimism regarding demand, with customers needing to purchase batteries to sustain their operations despite tariff impacts [24] Other Important Information - The company recorded a $0.5 million reversal of previously accrued employee bonus awards, which will not impact future quarters [17][45] - The SkyEMS software was upgraded to include intelligent alerting features, which are expected to improve fleet management and productivity [11] Q&A Session Summary Question: Is the capital freeze unique to one customer or indicative of broader industry trends? - Management confirmed that the capital freeze is specific to one customer [23] Question: How is the overall demand environment characterized? - Management noted that while tariff effects linger, customers still need to purchase batteries to run their businesses [24] Question: What is the rollout strategy for the SkyLink product? - The SkyLink telematics will be offered across the product line, with positive initial feedback from beta tests [25][26] Question: Will cost savings and warranty costs remain low to support gross margins? - Management indicated that they are taking steps to lower product costs and expect positive trends in warranty and repair costs [29][31] Question: What is the strategy for filling the revenue gap from the significant customer? - The company is actively hiring new sales personnel and focusing on material handling to replace lost revenue [36] Question: Will new SkyLink features be sold at a premium? - Management plans to offer a standard and a premium version of the software, with higher gross margins expected from premium sales [38][39] Question: Can you elaborate on the State of Health patent and its revenue potential? - The patent includes algorithms for battery health insights, which will be part of the premium software package, generating potential revenue [40][41]

Financial Performance - Total revenues for the three months ended December 31, 2025, were $14,121,000, a decrease of 16.1% compared to $16,830,000 for the same period in 2024[18]. - Gross profit for the six months ended December 31, 2025, was $8,660,000, down 18.9% from $10,681,000 in 2024[18]. - Operating income for the three months ended December 31, 2025, was $795,000, compared to a loss of $1,479,000 in the same period of 2024[18]. - Net income for the three months ended December 31, 2025, was $601,000, a significant improvement from a net loss of $1,887,000 in 2024[18]. - Revenues for the six months ended December 31, 2025, were $27,296,000, a decrease of $5,659,000 or 17% compared to $32,955,000 for the same period in 2024[181]. - Net loss for the six months ended December 31, 2025, was $1,961,000, an improvement from a net loss of $3,556,000 for the same period in 2024[187]. - Adjusted EBITDA for the quarter ended December 31, 2025, was a gain of $1,463,000, an increase of $1,333,000 compared to $130,000 for the same quarter in 2024[188]. Cash and Liquidity - Cash and cash equivalents at the end of the period were $928,000, down from $1,334,000 at the end of June 2025[16]. - The company reported a net cash used in operating activities of $4,274,000 for the six months ended December 31, 2025[22]. - As of December 31, 2025, the company had a cash balance of $0.9 million and $11.3 million of available funding under the Gibraltar Business Capital Credit Facility[44]. - Net cash provided by financing activities for the six months ended December 31, 2025, was $4,153,000, primarily from net cash proceeds of $12,942,000 from the Public Offering and Private Placement[202]. Debt and Liabilities - Total current liabilities decreased to $22,126,000 as of December 31, 2025, from $39,618,000 as of June 30, 2025, representing a reduction of 44.4%[16]. - The outstanding balance under the GBC Credit Facility was approximately $4.7 million as of December 31, 2025, with up to $11.3 million available for future borrowings[69]. - The Company secured a revolving loan facility of up to $16.0 million with Gibraltar Business Capital, increasing from the previous $15.0 million commitment[59]. - The company expects to face a compliance covenant breach under the GBC Credit Facility in late February 2026, raising concerns about its ability to continue as a going concern[51]. Inventory and Assets - Total assets decreased to $30,112,000 as of December 31, 2025, from $34,752,000 as of June 30, 2025, a decline of 13.5%[16]. - The company’s total inventories as of December 31, 2025, amounted to $15.7 million, a decrease from $17.2 million as of June 30, 2025[52]. - Other current assets totaled $2,486,000, an increase from $1,865,000 as of June 30, 2025, representing a growth of approximately 33.2%[53]. Stock and Equity - The company issued 4,416,000 shares of common stock in a public offering, raising $9,760,000 net of offering costs[20]. - The Company completed a Public Offering of 3,840,000 shares at a price of $2.50 per share, resulting in net proceeds of approximately $9,760,000 after offering costs[158]. - The Company issued five-year warrants in connection with the Private Placement, allowing the purchase of 1,214,766 shares at an exercise price of $1.715 per share[90]. - As of December 31, 2025, the Company had 2,496,198 outstanding and exercisable common stock warrants with a weighted average exercise price of $4.06[91]. Operational Challenges - The company believes that ongoing global tariff uncertainties have negatively impacted its revenues, profitability, and cash flows[36]. - The company is actively evaluating strategies to mitigate the impacts of tariffs and improve cash flow from operations[47]. - The company has implemented cost reduction strategies and increased selling prices of energy storage solutions to improve profitability[47]. - The order backlog as of December 31, 2025, was approximately $3.8 million, reflecting a decrease due to significant customers reducing order patterns and shifting to shorter lead times[149]. Internal Controls and Compliance - Management has identified material weaknesses in internal controls over financial reporting as of December 31, 2025, due to insufficient personnel resources and inadequately designed controls[213]. - The Company disclosed that its disclosure controls and procedures were not effective as of June 30, 2024, due to material weaknesses in internal controls over financial reporting[214]. - The previously issued audited consolidated financial statements for the fiscal year ended June 30, 2023, and the unaudited consolidated financial statements for the quarters ended September 30, 2023, December 31, 2023, and March 31, 2024, should no longer be relied upon due to errors in inventory accounting[214]. Customer and Supplier Relationships - The Company had two major customers during the three months ended December 31, 2025, representing approximately $11,038,000 or 78% of total revenues[111]. - The Company had one supplier that accounted for approximately $4,184,000 or 34% of total purchases during the three months ended December 31, 2025[114]. - The Company had one supplier that accounted for approximately $7,518,000 or 28% of total purchases during the six months ended December 31, 2024[115].

Financial Performance - Revenue increased 7.2% sequentially to $14.1 million from $13.2 million in the prior quarter[8] - Achieved positive GAAP net income of $0.6 million, or $0.03 per share, compared to a net loss of $2.6 million, or ($0.15) per share, in the prior quarter[11] - Gross profit for the second quarter was $4.9 million, representing 34.7% of revenue, up from 28.6% in the prior quarter[8] - Non-GAAP net income for the second quarter was $1.0 million, or $0.04 per fully diluted share, compared to a non-GAAP net loss of $2.0 million, or ($0.12) per share, in the prior quarter[11] - Net income for the three months ended December 31, 2025, was $601,000, compared to a net loss of $1,887,000 for the same period in 2024, indicating a significant turnaround[28] - Adjusted EBITDA for the three months ended December 31, 2025, was $1,463,000, a substantial increase from $130,000 in the same period of 2024[28] Operating Expenses and Assets - Operating expenses decreased approximately 31% sequentially to $4.1 million from $5.9 million in the prior quarter[9] - Total current assets decreased from $31,804,000 on June 30, 2025, to $27,625,000 on December 31, 2025, a decline of approximately 13.2%[26] - Cash as of December 31, 2025, was $0.9 million, down from $1.3 million as of June 30, 2025[13] - Cash reserves decreased from $1,334,000 on June 30, 2025, to $928,000 on December 31, 2025, a decline of about 30.4%[26] - Accounts receivable decreased from $11,374,000 on June 30, 2025, to $8,506,000 on December 31, 2025, a reduction of approximately 25.3%[26] - Inventories decreased from $17,231,000 on June 30, 2025, to $15,705,000 on December 31, 2025, a decline of about 8.8%[26] Liabilities and Equity - Total liabilities decreased from $40,156,000 on June 30, 2025, to $22,576,000 on December 31, 2025, representing a reduction of approximately 43.7%[26] - The company reported a decrease in accounts payable from $16,295,000 on June 30, 2025, to $10,194,000 on December 31, 2025, a reduction of approximately 37.5%[26] - The accumulated deficit increased from $(106,386,000) on June 30, 2025, to $(108,347,000) on December 31, 2025[26] - Total stockholders' equity improved from $(5,404,000) on June 30, 2025, to $7,536,000 on December 31, 2025[26] Product Development and Innovation - Introduced next-generation telematics hardware device SkyLNK, featuring 4x more sensors and new machine learning capabilities[7] - Added AI-driven Intelligent Alerting to SkyEMS, improving potential fleet uptime by 10% to 30%[7] - Released a new Mobile UI for on-the-go monitoring, potentially improving productivity by 15% to 40%[7] - Secured over $3.6 million in additional purchase orders to support a long-standing airline customer[7]

Core Insights - Flux Power Holdings, Inc. reported a 7.2% increase in revenue for the second fiscal quarter of 2026, reaching $14.1 million, marking a recovery from previous quarter challenges due to tariffs and pricing [6][9] - The company achieved GAAP profitability for the first time in its history, with a net income of $0.6 million or $0.03 per share, compared to a net loss of $2.6 million or ($0.15) per share in the prior quarter [9][10] - Significant operational improvements were noted, including a 31% reduction in core operating expenses and a 610 basis point increase in gross margin from the prior quarter [3][6] Financial Performance - Revenue for the second fiscal quarter of 2026 rose to $14.1 million from $13.2 million in the prior quarter [6] - Gross profit increased to $4.9 million, representing 34.7% of revenue, compared to $3.8 million or 28.6% of revenue in the prior quarter [6] - Operating expenses decreased to $4.1 million from $5.9 million in the prior quarter, largely due to cost reduction measures [7] - Operating income was $0.8 million, a turnaround from an operating loss of $2.2 million in the previous quarter [8] - Non-GAAP operating income for the second quarter was $1.2 million, compared to a non-GAAP operating loss of $1.7 million in the prior quarter [8][10] Product and Technology Developments - The company introduced the next-generation telematics hardware device, SkyLNK, which features advanced capabilities including four times more sensors and new machine learning functionalities [4][9] - Flux Power received a U.S. patent for its State of Health technology, which utilizes advanced algorithms for predictive diagnostics to enhance battery lifespan [9] - The company enhanced its software offerings with AI-driven Intelligent Alerting in SkyEMS, potentially improving fleet uptime by 10% to 30% [9] Strategic Outlook - Despite the positive results, the company anticipates a sequential decline in revenues for the upcoming fiscal third quarter due to uncertainties related to tariff changes and fluctuating customer order patterns [5] - The focus remains on executing strategic initiatives aimed at driving future growth and operational efficiency [5]

Core Viewpoint - Flux Power Holdings, Inc. is set to report its fiscal second quarter 2026 results on February 12, 2026, with a conference call scheduled to discuss the financial outcomes [1]. Group 1: Financial Reporting - The fiscal second quarter 2026 results will be reported after market close on February 12, 2026 [1]. - The conference call will be hosted by CEO Krishna Vanka and CFO Kevin Royal at 4:30 p.m. ET [1]. Group 2: Conference Call Details - Analysts and investors can join the conference call on February 12, 2026, at 4:30 p.m. ET, with the call number being 1-833-630-1956 for domestic and +1-412-317-1837 for international participants [2]. - A replay of the conference call will be available approximately two hours after the live event and can be accessed until February 19, 2026, with the replay dial-in number being 1-855-669-9658 [3]. Group 3: Company Overview - Flux Power Holdings, Inc. specializes in advanced lithium-ion energy storage solutions for various industrial and commercial sectors, including material handling and airport ground support equipment [4]. - The company's lithium-ion battery packs offer a more efficient, cost-effective, and environmentally friendly alternative to traditional lead-acid and propane-based solutions, contributing to reduced CO2 emissions and improved sustainability metrics [4].