Driven by a Vision to Deliver Smarter, Longer-Lasting Energy Solutions, Flux Power Integrates AI and Software Intelligence to Meet the Growing Demand for Adaptive, Data-Driven ElectrificationVISTA, Calif., Nov. 20, 2025 (GLOBE NEWSWIRE) -- Flux Power Holdings, Inc. (NASDAQ: FLUX), a leading developer of advanced lithium-ion energy storage solutions and software-driven electrification for commercial and industrial equipment, today announced that the United States Patent and Trademark Office has issued U.S. P ...

Core Insights - Flux Power Holdings, Inc. reported a quarterly loss of $0.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -250.00% [1] - The company's revenues for the quarter ended September 2025 were $13.18 million, missing the Zacks Consensus Estimate by 20.1%, and down from $16.13 million a year ago [2] - The stock has increased approximately 50% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] Financial Performance - Over the last four quarters, Flux Power has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $17.59 million, and for the current fiscal year, it is -$0.03 on revenues of $73.08 million [7] Market Outlook - The company's earnings outlook will be crucial for future stock performance, with management's commentary on the earnings call being a key factor [4] - The Zacks Rank for Flux Power is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] - The Electronics - Miscellaneous Products industry, to which Flux Power belongs, is currently in the top 14% of Zacks industries, suggesting a favorable industry outlook [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $13.2 million, down from $16.1 million in the same quarter last year, primarily due to a pause in customer orders related to tariff uncertainty and macroeconomic concerns [10] - Gross margin decreased to 28.6% from 32.4% in the prior year, attributed to lower sales and a shift towards lower energy capacity products with lower gross margins [10] - Net loss for the quarter was $2.6 million, or $0.15 per share, compared to a net loss of $1.7 million, or $0.10 per share in Q1 2025 [11] - Adjusted EBITDA was negative $1.7 million, worsening from negative $0.4 million in the same quarter a year ago [11] - Cash and cash equivalents at the end of the quarter were $1.6 million, up from $0.6 million a year ago [11] Business Line Data and Key Metrics Changes - The company secured multi-million dollar orders totaling $2.4 million from top material handling customers, indicating a rebound in order activity [4] - The customer base in the airline sector doubled, now serving eight major North American airlines [5] Market Data and Key Metrics Changes - The company received UL 1973 listing for its 80-volt intelligent batteries, unlocking new opportunities in various industries including agriculture, oil and gas, and pharmaceuticals, representing a total addressable market of around $1 billion [7][8] Company Strategy and Development Direction - The company has established five strategic initiatives: profitable growth, operational efficiencies, solution selling, building the right products, and integrating value-added software to generate recurring revenue streams [5] - Recent capital raises totaling $13.8 million will be used for working capital and to accelerate product development, aiming to improve margins [6][12] Management's Comments on Operating Environment and Future Outlook - Management noted a temporary pause in customer orders due to tariff uncertainty but indicated a rebound in order activity in the second fiscal quarter [4] - The company is optimistic about achieving profitable growth in the coming quarters, supported by recent operational efficiencies and capital raises [13] Other Important Information - The company retained its NASDAQ listing and is committed to maintaining compliance for broad access to its common stock [6] - The Sky MS 2.0 SaaS platform has graduated to paying customers, with plans to add new AI-driven operational features [9] Q&A Session Summary Question: Order trends post-quarter and strength into the fourth quarter - Management acknowledged a rebound in orders, highlighting $2.4 million in orders from the material handling industry and a significant airline order, while noting ongoing headwinds from tariffs and a government shutdown [18] Question: Ground support equipment market investment and further penetration - Management reported continued adoption of clean energy solutions in the ground support equipment market, with no pushback from airlines on transitioning to lithium, and expressed optimism for increased orders as airlines deploy lithium solutions [19]

Financial Performance - Revenues for the three months ended September 30, 2025, were $13,175,000, a decrease of 18.1% compared to $16,125,000 for the same period in 2024[17] - Gross profit for the same period was $3,765,000, down 27.8% from $5,218,000 year-over-year[17] - Operating loss increased to $2,178,000 for Q1 2025, compared to a loss of $1,212,000 in Q1 2024[17] - Net loss for the three months ended September 30, 2025, was $2,562,000, compared to a net loss of $1,669,000 in the prior year, representing a 53.4% increase in losses[17] - Adjusted EBITDA for the quarter was a loss of $1,718,000, compared to a loss of $372,000 in the prior year[174] - The net loss for the quarter ended September 30, 2025, was $2,562,000, compared to a net loss of $1,669,000 for the same quarter in 2024[173] Assets and Liabilities - Total current assets decreased to $26,957,000 as of September 30, 2025, down from $31,804,000 at June 30, 2025, a decline of 15.4%[15] - Total liabilities decreased to $33,015,000 as of September 30, 2025, down from $40,156,000 at June 30, 2025, a reduction of 17.7%[15] - Cash at the end of the period increased to $1,588,000 from $1,334,000 at the end of the previous quarter, an increase of 19.0%[21] - The Company had a cash balance of $1.6 million and $6.1 million available under the Gibraltar Business Capital Credit Facility as of September 30, 2025[41] Capital Raising Activities - The company raised $3,227,000 from the issuance of prefunded preferred stock warrants and common stock warrants under a private placement[21] - The Company completed a Public Offering in October 2025, raising $9.2 million in cash proceeds[46] - The Company completed a Private Placement on September 15, 2025, raising approximately $5.0 million through the sale of Prefunded Preferred Stock Warrants and Common Stock Warrants[70] - The net proceeds from the Private Placement, after issuance costs of approximately $400,000, were approximately $4,400,000[72] Operational Focus and Strategy - The company continues to focus on the development of advanced lithium-ion energy storage solutions, targeting growth in the material handling sector[27] - Management is implementing price increases and cost-saving initiatives to improve profitability and cash flow from operations[44] - The Company aims to expand its sales and marketing efforts and improve production efficiencies to meet the growing demand for lithium-ion energy solutions[141] Legal and Compliance Matters - The Company is currently involved in multiple legal proceedings, including a class action and a derivative action, but intends to vigorously defend against these claims[114] - The Company expects to establish a $1.75 million escrowed settlement fund to cover payments related to a class action litigation settlement[103] - The Company anticipates its liability insurers will directly fund approximately $1.15 million of the settlement fund, with an estimated contribution of $600,000 from the Company[106] - The Company reached an agreement to resolve the derivative complaint on July 11, 2025, involving corporate governance reforms[213] Stock and Equity Information - The company reported a weighted average number of common shares outstanding of 16,835,698 for the three months ended September 30, 2025[17] - Basic and diluted loss per share for the three months ended September 30, 2025, were calculated based on 16,835,698 weighted-average common shares outstanding[39] - The 2021 Equity Incentive Plan allows for the issuance of awards for up to 2,000,000 shares of common stock, with 164,899 shares available for future grants as of September 30, 2025[81] - The Company approved the 2025 Equity Incentive Plan, authorizing the issuance of up to 1,000,000 shares of common stock for various awards as of September 30, 2025[82] Inventory and Supply Chain - Inventories decreased from $17.231 million as of June 30, 2025, to $15.726 million as of September 30, 2025, with raw materials accounting for $12.321 million[48] - The Company had one supplier accounting for approximately $1,686,000 or 15% of total purchases during the three months ended September 30, 2025, down from $3,986,000 or 31% in 2024[99] Market Conditions and Challenges - The Company is evaluating the impact of new tariffs on imported products, which are expected to negatively affect revenues and profitability[33] - The Company temporarily paused imports from a battery cell supplier in China due to tariff uncertainties, but operations were not materially affected[35] - New orders for energy storage solutions experienced delays in the second half of fiscal 2025, with some customers deferring orders to fiscal 2026 due to lower capital spending and interest rate variability[146] Internal Controls and Governance - Management has identified material weaknesses in internal controls over financial reporting as of September 30, 2025, due to insufficient technical accounting expertise[197] - The company has engaged external financial consulting firms to assist in strengthening internal controls and procedures[200] - The company has not identified any changes in internal controls over financial reporting that materially affect its operations during the fiscal quarter ended September 30, 2025[202]

Financial Performance - Revenue for Q1 FY2026 was $13.2 million, a decrease of 18% from $16.1 million in Q1 FY2025[7] - Gross profit for Q1 FY2026 was $3.8 million, representing 28.6% of revenue, down from 32.4% in the prior year[7] - Operating loss for Q1 FY2026 was $2.2 million, compared to a loss of $1.2 million in Q1 FY2025[8] - Net loss for Q1 FY2026 was $2.6 million, or ($0.15) per share, compared to a net loss of $1.7 million, or ($0.10) per share, in the prior year[9] - Adjusted EBITDA for Q1 FY2026 was ($1.7) million, compared to ($0.4) million in the prior year[10] - Net loss for the three months ended September 30, 2025, was $2,562,000, compared to a net loss of $1,669,000 for the same period in 2024, representing an increase in losses of 53.4%[26] - Adjusted EBITDA for the three months ended September 30, 2025, was $(1,718,000), compared to $(372,000) for the same period in 2024, indicating a significant deterioration in operational performance[26] Capital and Funding - The company raised $13.8 million in new capital through public equity offerings and private placements during the quarter[5] - Cash as of September 30, 2025, was $1.6 million, with an additional $12.6 million raised from recent offerings[11] Assets and Liabilities - Total current assets decreased from $31,804,000 in June 2025 to $26,957,000 in September 2025, a decline of approximately 15.3%[24] - Total liabilities decreased from $40,156,000 in June 2025 to $33,015,000 in September 2025, a reduction of approximately 17.7%[24] - Current liabilities decreased from $39,618,000 in June 2025 to $32,169,000 in September 2025, a decline of about 18.8%[24] - Total stockholders' equity improved from a deficit of $(5,404,000) in June 2025 to a deficit of $(3,320,000) in September 2025, indicating a positive change of approximately 38.5%[24] Cash Flow and Inventory - Cash increased from $1,334,000 in June 2025 to $1,588,000 in September 2025, reflecting a growth of 19.0%[24] - Accounts receivable decreased from $11,374,000 in June 2025 to $7,497,000 in September 2025, a decline of approximately 34.1%[24] - Inventories decreased from $17,231,000 in June 2025 to $15,726,000 in September 2025, a reduction of about 8.7%[24] Business Developments - Flux Power secured a large order from a major airline customer, increasing the number of North American airlines served to eight[6] - The SkyEMS 2.0 SaaS platform graduated from beta to production with multiple paying customers[6] - The company received UL EE Listing across its material handling portfolio, opening a new $1 billion total addressable market[6] Depreciation and Amortization - The company reported a depreciation and amortization expense of $251,000 for the three months ended September 30, 2025, consistent with the previous year's expense of $252,000[26]

Core Insights - Flux Power Holdings, Inc. reported a temporary decline in customer orders due to tariff uncertainties and macroeconomic caution, but anticipates a rebound in orders in the second quarter, including significant contracts with major airline customers [3][4]. Financial Performance - Revenue for the first fiscal quarter of 2026 was $13.2 million, down from $16.1 million in the same quarter of 2025, representing a decrease of approximately 18% [5]. - Gross profit for the quarter was $3.8 million, or 28.6% of revenue, compared to $5.2 million, or 32.4% of revenue, in the prior year [5]. - Operating loss increased to $2.2 million from a loss of $1.2 million year-over-year [6]. - Net loss for the quarter was $2.6 million, or ($0.15) per share, compared to a net loss of $1.7 million, or ($0.10) per share, in the first quarter of 2025 [7]. Business Highlights - The company secured $13.8 million in new capital through public equity offerings and private placements, enhancing its financial position [4][9]. - Flux Power graduated its SkyEMS 2.0 SaaS platform from beta to production, attracting multiple paying customers [8]. - The company received UL EE Listing for its material handling portfolio, opening a new $1 billion total addressable market across various industries [8]. Balance Sheet Overview - As of September 30, 2025, cash was reported at $1.6 million, with additional capital raised post-quarter-end amounting to approximately $12.6 million [9][21]. - Total current assets decreased to $26.96 million from $31.80 million in the previous quarter [21]. - Total liabilities were reported at $33.02 million, down from $40.16 million [21]. Market Position - Flux Power now supplies eight major North American airline carriers, doubling its customer base in the airline sector [8]. - The company continues to focus on cost reductions and operational efficiencies to achieve profitability [4][8].

Core Insights - Flux Power Holdings, Inc. has achieved significant certification milestones, enhancing its reputation in safety, reliability, and innovation within the energy storage sector [1][4] - The company has received UL EE Listing for its entire material handling portfolio and UL 1973 Listing for its 80V G80-G2 solution for ground support equipment [1][2] Certification Achievements - The UL EE Listing confirms that Flux Power's battery packs (24V, 36V, 48V, and 80V) meet stringent safety standards, reinforcing its position as a reliable partner for high-demand operations [2][3] - The UL 1973 Listing for the G80-G2 solution is a notable achievement, marking it as the first 80V product in the aviation ground support equipment sector to receive this certification [3] Product and Technology Overview - Flux Power's certified products span various classes of material handling equipment and are integrated with proprietary SkyEMS energy management software, providing real-time visibility and predictive maintenance [5][6] - The company's lithium-ion battery packs offer a more environmentally friendly alternative to traditional lead-acid and propane solutions, contributing to reduced CO2 emissions and improved sustainability metrics [8] Strategic Vision - The certifications validate Flux Power's technology leadership and support its vision of creating a dynamic energy ecosystem that combines advanced battery systems with software intelligence [4][6] - The company aims to redefine energy management across industries, focusing on integrated, software-driven ecosystems that enhance operational efficiency and sustainability [6]

Core Insights - Flux Power Holdings, Inc. has announced new purchase orders totaling approximately $2.4 million, indicating strong demand for its lithium-ion energy storage solutions in material handling electrification [1][2][3] - The orders include $1.4 million from a leading global food and beverage distribution company and $1.0 million from a global industrial equipment manufacturing customer, highlighting the company's momentum in key industries [1][2] Company Performance - The repeat orders reflect strong customer satisfaction and ongoing trust in Flux Power's technology, service, and brand, contributing to consistent revenue growth [2][3] - Flux Power's Chief Revenue Officer emphasized that the recurring business demonstrates customers' reliance on the company's technology and the value derived from data insights provided by its intelligent lithium batteries [3] Industry Trends - The continued strength of recurring customer orders reinforces the steady transition of the industry toward electrification, as companies seek to enhance productivity, safety, and sustainability [3] - Flux Power's solutions are transforming material handling and other industrial operations by reducing emissions, increasing efficiency, and simplifying fleet energy management [3][4] Product Offering - Flux Power designs, manufactures, and sells advanced lithium-ion energy storage solutions for various industrial and commercial sectors, providing a more environmentally friendly alternative to traditional lead-acid and propane-based solutions [4] - The company's lithium-ion battery packs help reduce CO2 emissions and improve sustainability and ESG metrics for fleets [4]

Core Insights - Flux Power Holdings, Inc. will report its fiscal first quarter 2026 results on November 13, 2025, after market close [1] - The conference call to discuss the financial results will be hosted by CEO Krishna Vanka and CFO Kevin Royal at 4:30 p.m. ET [1] Company Overview - Flux Power designs, manufactures, and sells 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 better performance, lower cost of ownership, and more environmentally friendly alternatives to traditional lead-acid and propane-based solutions [4] - Flux Power's products contribute to reducing CO2 emissions and improving sustainability and ESG metrics for fleets [4]

Group 1 - The analyst team has a proven track record of outperforming across all market conditions, achieving an annualized return of almost 40% over the past decade with a long-only model portfolio return of over 23 times [1] - The focus includes income-oriented investments in lower-risk firms with steady dividend payouts, as well as extensive research in the energy, shipping, and offshore markets [1] - The analyst has expanded coverage to include the offshore drilling and supply industry, as well as the shipping industry, which encompasses tankers, containers, and dry bulk [2] Group 2 - The analyst has a background in auditing with PricewaterhouseCoopers and has experience navigating significant market events such as the dotcom bubble and the subprime crisis [2] - The analyst aims to provide high-quality research to the Seeking Alpha community despite language barriers [2]