Financial Performance - Flux reported an adjusted loss of $0.03 per share, beating the consensus estimate of a $0.09 loss [1] - The company achieved sales of $16.73 million, surpassing the consensus estimate of $16.46 million [1] Business Developments - The company secured a purchase order valued at over $2 million from a major North American airline for its redesigned G80-420 lithium-ion battery pack [2] - An additional order worth $1.2 million was obtained from another airline for G80 energy solutions supported by the SkyEMS software platform [2] Innovations and Recognition - Flux announced a new patent for battery charge balancing technology aimed at enhancing performance and reducing downtime [3] - The company launched the SkyEMS 2.0 software platform in beta with an airline customer, with plans for a broader rollout [3] - Flux was recognized among the Financial Times' fastest growing companies in the Americas for 2025 [3] - The company closed a $5 million private placement of prefunded and common warrants to strengthen its balance sheet [3] Stock Performance - Flux shares closed 11.75% lower at $2.78 [4]

Flux Power (FLUX) stock has achieved its sixth consecutive day of gains, resulting in total returns of 113% for this time frame. The gains come after the company posted strong Q4 2025 results with revenue rising 25% year-over-year and gross margins improving significantly to 34.5% from 26.8% last year. The microcap stock is now 99.4% higher than its price at the close of 2024. In comparison, the year-to-date returns for the S&P 500 stand at 12.3%.This photo taken on March 12, 2021 shows a worker with car ba ...

Core Viewpoint - Flux Power Holdings, Inc. has shown a notable improvement in its financial performance despite reporting a negative EPS, indicating a positive shift in its financial trajectory and strong market demand for its products [1][2][4]. Financial Performance - The company reported an earnings per share (EPS) of -$0.07, which was better than the estimated EPS of -$0.10, marking a significant improvement from the previous year's loss of $0.17 per share [1][2][6]. - Revenue reached approximately $16.7 million, slightly below the estimated $17.1 million, but this figure represents a 25% growth compared to the $13.23 million reported in the same quarter last year [3][6]. Market Demand and Orders - Flux Power secured significant purchase orders, including one exceeding $2 million from a major North American airline for its G80-420 lithium-ion battery pack, and a $1.2 million order from another airline for its G80 lithium-ion energy solutions [4][6]. - These orders highlight the strong market demand for Flux Power's innovative product offerings [4]. Financial Challenges - The company has a price-to-earnings (P/E) ratio of approximately -6.36, indicating negative earnings, and a debt-to-equity ratio of about -3.13, suggesting more liabilities than equity [5]. - Additionally, the current ratio of approximately 0.80 indicates potential liquidity challenges in covering short-term liabilities with current assets [5].

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides key details about the company's annual report filing and stock market information [Registrant Details](index=1&type=section&id=Registrant%20Details) FLUX POWER HOLDINGS, INC. filed its annual report on Form 10-K for the fiscal year ended June 30, 2025. The company's common stock is traded on the Nasdaq Capital Market under the symbol FLUX. It is classified as a non-accelerated filer and a smaller reporting company - **FLUX POWER HOLDINGS, INC.** filed its annual report on Form 10-K for the fiscal year ended June 30, **2025**[2](index=2&type=chunk) Title of Each Class | Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, par value \$0.001 per share | FLUX | Nasdaq Capital Market | - The registrant is classified as a **non-accelerated filer** and a **smaller reporting company**[3](index=3&type=chunk) [Market Value and Shares Outstanding](index=2&type=section&id=Market%20Value%20and%20Shares%20Outstanding) As of December 31, 2024, the aggregate market value of voting and non-voting common stock held by non-affiliates was approximately **\$19.565 million**. As of September 12, 2025, there were **16,835,698 shares** of common stock outstanding Market Value and Shares Outstanding | Metric | Value | | :----- | :---- | | Aggregate market value of voting and non-voting common stock held by non-affiliates (as of Dec 31, 2024) | ~\$19,565,000 | | Shares of common stock outstanding (as of Sep 12, 2025) | 16,835,698 | [Introductory Information](index=4&type=section&id=Introductory%20Information) This section outlines important disclaimers regarding forward-looking statements and defines key terms [Special Note Regarding Forward-Looking Statements](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section highlights that the report contains forward-looking statements, particularly in the Business, Risk Factors, and MD&A sections. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially, and readers are cautioned not to place undue reliance on them. Key risks include the ability to continue as a going concern, compliance with credit facility terms, legal proceedings, meeting revenue targets, remediating material weaknesses, and maintaining Nasdaq listing - **Forward-looking statements** are contained principally in the sections entitled 'Description of Business,' 'Risk Factors,' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations.'[15](index=15&type=chunk) - Key risks include: ability to continue as a going concern, compliance with GBC credit facility terms, expense and outcome of legal proceedings, ability to meet projected revenue targets due to order delays and tariff uncertainties, ability to remediate material weaknesses in internal controls, ability to regain and maintain Nasdaq listing standards, and ability to secure sufficient funding[16](index=16&type=chunk) - Other risks include managing working capital, obtaining raw materials, maintaining market share, achieving profitability, fulfilling backlog, keeping up with technology, dependence on major customers, and impact of tariffs[18](index=18&type=chunk) [Use of Certain Defined Terms](index=5&type=section&id=Use%20of%20Certain%20Defined%20Terms) This section defines key terms used throughout the report, such as 'Company,' 'Flux,' 'we,' 'us,' and 'our' referring to Flux Power Holdings, Inc. and its subsidiary, and standard SEC-related acronyms like 'Exchange Act,' 'SEC,' and 'Securities Act.' - The 'Company,' 'Flux,' 'we,' 'us,' and 'our' refer to the combined business of Flux Power Holdings, Inc. and its wholly owned subsidiary, Flux Power, Inc.[19](index=19&type=chunk) - 'Exchange Act' refers to the Securities Exchange Act of 1934, as amended[19](index=19&type=chunk) - 'SEC' refers to the Securities and Exchange Commission[19](index=19&type=chunk) - 'Securities Act' refers to the Securities Act of 1933, as amended[19](index=19&type=chunk) - This 'Annual Report', 'Form 10-K' and 'Current Report' refer to this Annual Report on Form 10-K[19](index=19&type=chunk) [PART I](index=6&type=section&id=PART%20I) This part covers the company's business operations, risk factors, properties, and legal proceedings [Business Overview](index=6&type=section&id=ITEM%201.%20BUSINESS) Flux Power Holdings, Inc. designs, develops, manufactures, and sells advanced lithium-ion energy storage solutions for industrial and commercial sectors, primarily material handling and airport ground support equipment (GSE). The company's strategy focuses on meeting growing demand, expanding product mix through R&D, improving sales and customer support, and enhancing production efficiencies. Recent developments include order delays due to economic uncertainties and tariffs, but also improvements in supply chain and new OEM partnerships. The company is actively addressing Nasdaq listing compliance issues and has undertaken significant financial and corporate actions, including a private placement and settlement of class action litigation - **Flux Power** designs, develops, manufactures, and sells advanced lithium-ion energy storage solutions for industrial and commercial sectors, including material handling and airport ground support equipment (GSE)[21](index=21&type=chunk) - **Long-term strategy**: Meet rapidly growing demand for lithium-ion solutions, be the supplier of choice for large companies, invest in R&D, expand sales/marketing, improve customer support, and enhance production efficiencies[22](index=22&type=chunk) - **Near-term priority**: Achieve profitability within capital constraints through supply chain improvements, gross margin expansion, and cost reductions[23](index=23&type=chunk) [Company Overview](index=6&type=section&id=Overview) This section provides a general description of the company's business and product offerings - The company designs, develops, manufactures, and sells advanced lithium-ion energy storage solutions for industrial and commercial sectors, including material handling and airport ground support equipment (GSE)[21](index=21&type=chunk) - These solutions offer a reliable, high-performing, cost-effective, and environmentally friendly alternative to traditional lead-acid and propane-based solutions[21](index=21&type=chunk) - Modular and scalable design with proprietary wireless battery management system (BMS) provides real-time monitoring[21](index=21&type=chunk) [Strategic Vision and R&D Focus](index=6&type=section&id=Our%20Strategy) This section outlines the company's long-term strategic goals and research and development priorities - **Long-term strategy** is to be the supplier of choice for large companies with energy storage needs, focusing on the material handling sector (multi-billion-dollar market)[22](index=22&type=chunk) - R&D efforts focus on adaptable, reliable, and cost-effective solutions[22](index=22&type=chunk) - Patented technology aims to increase battery life, improve battery health understanding, and apply AI for predictive cell balancing[24](index=24&type=chunk) [Near-Term Strategic Initiatives](index=6&type=section&id=Strategic%20Initiatives) This section details the company's immediate strategic priorities for achieving profitability and growth - **Near-term priority** is to achieve profitability within capital constraints[23](index=23&type=chunk) - Pursue supply chain improvements, gross margin expansion, and cost reductions[23](index=23&type=chunk) - Expand business by leveraging customer relationships, entering new markets, enhancing 'SkyBMS' telemetry, expanding manufacturing/service capacities, capitalizing on leadership with new high-power offerings, and supporting other lithium chemistries[25](index=25&type=chunk) [Recent Business and Corporate Developments](index=8&type=section&id=Recent%20Developments) This section summarizes recent operational, financial, and corporate actions and challenges - **Experienced delays in new orders** due to lower capital spending by large customer fleets, higher interest rates, geopolitical uncertainty, and global tariff impacts[26](index=26&type=chunk) - **Improved sourcing and purchasing activity**, expanding vendor strategy, and adding a second 'tier one' OEM private label battery program[28](index=28&type=chunk) - Partnered with the largest critical battery components recycling company in the U.S. for end-of-life lithium-ion batteries[28](index=28&type=chunk) - **Received multiple Nasdaq notices** regarding non-compliance with stockholders' equity and timely filing requirements. The company regained compliance with filing but faced delisting for equity deficit. Nasdaq granted an extension until October 31, **2025**, to demonstrate compliance[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - **Increased authorized common stock** from **30,000,000** to **75,000,000 shares** effective May 28, **2025**[33](index=33&type=chunk) - **Entered into a settlement term sheet** on July 11, **2025**, to resolve a federal securities class action for **\$1.75 million**, with insurers funding **\$1.15 million** and the company contributing **\$600,000**[34](index=34&type=chunk)[35](index=35&type=chunk)[39](index=39&type=chunk) - **Stockholders approved increasing authorized preferred stock** to **3,000,000 shares** and designating **1,000,000 shares** as Series A Convertible Preferred Stock on August 29, **2025**[40](index=40&type=chunk)[41](index=41&type=chunk) - **Completed a private placement** on September 15, **2025**, **raised approximately \$5.0 million** through Prefunded Warrants and Common Warrants, with proceeds for general corporate purposes and growth capital. Certain affiliates, including the CEO and CFO, participated[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) - The **GBC Credit Facility's maturity date was automatically extended** to July 31, **2027**, upon conversion of the Cleveland Note into equity. The company has received **multiple waivers** and amendments for non-compliance with financial covenants under the

Company Performance - Flux Power Holdings, Inc. (FLUX) reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.1, and improved from a loss of $0.17 per share a year ago, resulting in an earnings surprise of +100.00% [1] - The company posted revenues of $16.74 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.77%, and showing an increase from year-ago revenues of $13.23 million [2] - Over the last four quarters, Flux Power has surpassed consensus revenue estimates three times [2] Stock Movement and Outlook - Flux Power shares have increased approximately 31% since the beginning of the year, outperforming the S&P 500's gain of 12.5% [3] - The sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on $18 million in revenues, and for the current fiscal year, it is -$0.05 on $76.76 million in revenues [7] Industry Context - The Electronics - Miscellaneous Products industry, to which Flux Power belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Flux Power's stock performance [5][6]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $16.7 million, up from $13.4 million in Q4 2024, while full-year revenue increased to $66.4 million from $60.8 million [14] - Gross margin for Q4 2025 improved to 34.5% from 26.8% in Q4 2024, and full-year gross margin rose to 32.7% from 28.3% [14] - Operating expenses for Q4 2025 were $6.5 million, compared to $5.4 million in Q4 2024, with full-year operating expenses increasing to $26.8 million from $23.8 million [15] - Net loss for Q4 2025 was $1.2 million, or $0.07 per share, compared to a net loss of $2.2 million, or $0.13 per share in Q4 2024 [15] - Non-GAAP net loss for Q4 2025 was $30,000, or $0.00 per share, compared to a non-GAAP net loss of $1.9 million, or $0.11 per share in the prior period [16] - Cash and cash equivalents at the end of the quarter were $1.3 million, up from $600,000 a year ago [17] Business Line Data and Key Metrics Changes - Increased sales for the full year 2025 were driven by higher volume in both material handling and ground support equipment markets, with higher average selling prices in the GSE market [14] - A significant purchase order for 120 units of the G80-420 lithium-ion battery pack was received from a major North American airline, valued at over $2 million [9] - An additional purchase order of $1.2 million was received for a G80 lithium-ion energy solution along with the SkyEMS software platform [9] Market Data and Key Metrics Changes - The company is targeting expanded opportunities in North and Central America, leveraging its strong foothold in the United States [12] - The quoting activity has increased significantly, indicating a positive trend for future orders [13][41] Company Strategy and Development Direction - The company is focused on five strategic initiatives: achieving profitable growth, executing operational efficiency, implementing a solution selling approach, building the right products for customer needs, and integrating value-added software across its battery portfolio [5] - The management team is committed to a solutions-based sales approach to increase value provided to customers [18] Management's Comments on Operating Environment and Future Outlook - The current tariff and macroeconomic environment create uncertainty, but the growth of sales opportunities and strategic initiatives provide optimism for the latter part of the fiscal year [18] - Management acknowledged the need for ongoing improvements to achieve profitability and cash flow breakeven [6] Other Important Information - The company has shipped over 28,000 battery packs, representing a significant opportunity to add intelligence to existing equipment with the SkyEMS software [10] - A 15% reduction in headcount was implemented to lower ongoing operating expenses [7] Q&A Session Summary Question: Can you discuss the strong gross margin expansion in the quarter? - The improvement was driven by initiatives to reduce product input costs and lower warranty costs, contributing to about 60% of the gross margin improvement [22] Question: How has the beta rollout of SkyEMS 2.0 been received by customers? - The new version addresses customer pain points and has received positive feedback during beta testing [23] Question: What does the pipeline look like, and what is the backlog number? - The current backlog is approximately $9 million, with an increase in quoting activity expected to materialize in future quarters [29] Question: What is driving the recent airline orders? - The orders are driven by redesigned products that are more efficient and the addition of software solutions [37] Question: Can you elaborate on the quoting activity and its dynamics? - The increase in quoting activity is attributed to customers releasing capital for purchases after understanding the tariff impacts [42]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $16.7 million, up from $13.4 million in Q4 2024, while full-year revenue increased to $66.4 million from $60.8 million [15] - Gross margin for Q4 2025 improved to 34.5% from 26.8% in Q4 2024, and full-year gross margin rose to 32.7% from 28.3% [15] - Operating expenses for Q4 2025 were $6.5 million, compared to $5.4 million in Q4 2024, with full-year operating expenses increasing to $26.8 million from $23.8 million [16] - The net loss for Q4 2025 was $1.2 million, or $0.07 per share, compared to a net loss of $2.2 million, or $0.13 per share in Q4 2024 [16] - Non-GAAP net loss for Q4 2025 was $30,000, or $0.00 per share, compared to a non-GAAP net loss of $1.9 million, or $0.11 per share in the prior period [17] Business Line Data and Key Metrics Changes - Increased sales for the full year 2025 were driven by higher volume in both material handling and ground support equipment markets, with higher average selling prices in the GSE market [15] - The company shipped more than 28,000 battery packs, indicating significant market penetration [10] Market Data and Key Metrics Changes - The company received a significant purchase order for 120 units of the G80 420 lithium-ion battery pack worth over $2 million from a major North American airline [9] - An additional order of over $1.2 million was received from another airline for a G80 lithium-ion energy solution along with the SkyEMS software platform [9] Company Strategy and Development Direction - The company is focused on five strategic initiatives: achieving profitable growth, executing operational efficiency, implementing a solution selling approach, building the right products for customer needs, and integrating value-added software across the battery portfolio [5] - The management team is committed to a vision of intelligent energy solutions, where lithium-ion batteries function as part of a connected, self-optimizing network [4] Management's Comments on Operating Environment and Future Outlook - The current tariff and macroeconomic environment create uncertainty, but the growth of sales opportunities and strategic initiatives provide optimism for the latter part of the fiscal year [19] - Management acknowledges the need for continued work to achieve profitability and cash flow breakeven, but initial progress is being demonstrated [6] Other Important Information - The company has implemented operational efficiencies, including a 15% reduction in headcount across all segments except Sales and Marketing to reduce ongoing operating expenses [7] - The SkyEMS AI platform is progressing well, with beta testing access provided to an airline customer [8] Q&A Session Summary Question: Can you discuss the strong gross margin expansion in the quarter? - Management noted that initiatives to improve product input costs contributed to about 60% of the improvement, along with lower warranty costs [22] Question: How has the beta rollout of SkyEMS 2.0 been received? - The new version was designed with customer feedback in mind, focusing on efficiency and usability, and has received positive feedback from beta testers [23][24] Question: What does the pipeline look like, and what is the backlog number? - The current backlog is approximately $9 million, with increased quoting activity expected to drive future growth [30] Question: What is driving the recent airline orders? - The orders are driven by a redesigned battery that is more efficient and a package that includes the SkyEMS software [38] Question: Can you elaborate on the quoting activity and its dynamics? - There was a pullback in capital expenditures due to economic uncertainty, but recent quoting activity indicates a release of capital for purchases [42]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $16.7 million, up from $13.4 million in Q4 2024, while full-year revenue increased to $66.4 million from $60.8 million [15] - Gross margin in Q4 2025 improved to 34.5% from 26.8% in Q4 2024, and full-year gross margin rose to 32.7% from 28.3% [15] - Net loss for Q4 2025 was $1.2 million, or $0.07 per share, compared to a net loss of $2.2 million, or $0.13 per share in Q4 2024 [16] - Full-year net loss was $6.7 million, or $0.40 per share, down from a net loss of $8.3 million, or $0.50 per share in 2024 [16] Business Line Data and Key Metrics Changes - Increased sales for full-year 2025 were driven by higher volume in both material handling and ground support equipment markets, with higher average selling prices in the GSE market [15] - The company shipped over 28,000 battery packs, indicating significant market penetration [10] Market Data and Key Metrics Changes - The company received a significant purchase order for 120 units of the G80 420 lithium-ion battery pack worth over $2 million from a major North American airline [9] - An additional order of over $1.2 million was received for a G80 lithium-ion energy solution along with the SkyEMS software platform [9] Company Strategy and Development Direction - The company is focused on five strategic initiatives: achieving profitable growth, executing operational efficiency, implementing a solution selling approach, building the right products for customer needs, and integrating value-added software across the battery portfolio [5] - The management team is committed to a solutions-based sales approach to increase customer value [19] Management's Comments on Operating Environment and Future Outlook - The current tariff and macroeconomic environment create uncertainty, but the growth of sales opportunities and strategic initiatives provide optimism for the latter part of the fiscal year [19] - Management acknowledged the need for ongoing improvements to achieve profitability and cash flow breakeven [6] Other Important Information - The company has implemented operational efficiencies, including a 15% reduction in headcount across all segments except Sales and Marketing to reduce ongoing operating expenses [7] - The SkyEMS AI platform is progressing well, with beta testing access provided to an airline customer [8] Q&A Session Summary Question: Can you discuss the strong gross margin expansion in the quarter? - Management noted that initiatives to improve product input costs and lower warranty costs contributed to the gross margin improvement [22] Question: How has the beta rollout of SkyEMS 2.0 been received? - The new version was designed with customer feedback in mind, focusing on efficiency and usability, and initial feedback has been positive [23] Question: What does the pipeline look like and what is the backlog number? - The current backlog is approximately $9 million, with an increase in quoting activity expected to drive future growth [30] Question: What is driving the recent airline orders? - The orders are driven by redesigned products that are more efficient and the integration of software solutions [38] Question: What is the dynamics of the improving order activity? - The increase in quoting activity is attributed to customers releasing capital for purchases after understanding the tariff impacts [42]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $16.7 million, up from $13.4 million in Q4 2024, representing a year-over-year increase of approximately 24.6% [14] - Full-year 2025 revenue increased to $66.4 million from $60.8 million in 2024, reflecting a growth of about 9.2% [14] - Gross margin in Q4 2025 improved to 34.5% from 26.8% in Q4 2024, while full-year gross margin rose to 32.7% from 28.3% [14] - Operating expenses for Q4 2025 were $6.5 million, compared to $5.4 million in Q4 2024, with full-year operating expenses increasing to $26.8 million from $23.8 million [15] - The net loss for Q4 2025 was $1.2 million, or $0.07 per share, an improvement from a net loss of $2.2 million, or $0.13 per share in Q4 2024 [15] - Full-year net loss was $6.7 million, or $0.40 per share, compared to a net loss of $8.3 million, or $0.50 per share in 2024 [15] - Adjusted EBITDA for Q4 was positive $600,000, compared to negative $1.2 million in the same quarter a year ago [16] Business Line Data and Key Metrics Changes - Increased sales in both material handling and ground support equipment markets contributed to revenue growth [14] - A significant purchase order for 120 units of the G80 420 lithium-ion battery pack was received, valued at over $2 million, indicating strong demand in the ground support equipment sector [8] - An additional order of over $1.2 million for a G80 lithium-ion energy solution along with the SkyEMS software platform was secured, showcasing the success of the solution selling strategy [8] Market Data and Key Metrics Changes - The company is focusing on expanding its market presence in North and Central America, leveraging its strong foothold in the United States [11] - The quoting activity has increased significantly, indicating a positive trend in customer engagement and potential future orders [12] Company Strategy and Development Direction - The company is committed to achieving profitable growth, operational efficiency, and integrating value-added software across its battery portfolio [5] - The strategic initiatives include implementing a solution selling approach and building products tailored to customer needs [5] - The management team is focused on enhancing partnerships with customers, dealers, and OEM sales teams to drive long-term growth [10] Management's Comments on Operating Environment and Future Outlook - The current macroeconomic environment and tariffs create uncertainty, but the growth in sales opportunities and strategic initiatives provide optimism for future performance [18] - Management acknowledges the need for continued improvement in profitability and cash flow breakeven, but initial progress has been made [5] Other Important Information - The company ended the quarter with cash and cash equivalents of $1.3 million, up from $600,000 a year ago [17] - The current backlog stands at $9 million, indicating a solid pipeline for future revenue [29] Q&A Session Summary Question: Can you discuss the strong gross margin expansion in the quarter? - Management indicated that initiatives to improve product input costs and lower warranty costs contributed to the gross margin improvement [20][21][22] Question: How has the beta rollout of SkyEMS 2.0 been received by customers? - The upgraded product has received positive feedback, with improvements based on customer pain points, and is being packaged with battery sales [23][24] Question: What does the pipeline look like, and what is the current backlog? - The current backlog is $9 million, with increased quoting activity expected to drive future growth [29] Question: What is driving the recent airline orders? - The orders are driven by the introduction of redesigned, more efficient products and the integration of software solutions [38][41] Question: What is the outlook for quoting activity in the material handling and ground support equipment markets? - There has been an uptick in quoting activity, particularly in the material handling market, as customers are now more willing to release capital for purchases [42][43]

[Overview and Business Highlights](index=1&type=section&id=Overview%20and%20Business%20Highlights) Flux Power reported solid year-over-year growth for both Q4 and the full fiscal year 2025, leading to bottom-line improvements and strategic initiatives for profitable growth [Executive Summary](index=1&type=section&id=Executive%20Summary) Flux Power reported solid year-over-year growth for both Q4 and the full fiscal year 2025, leading to bottom-line improvements. The CEO emphasized achieving profitable growth through operational efficiencies, enhanced customer value, and diversified revenue streams, while acknowledging near-term macroeconomic uncertainties - Flux Power finished fiscal year 2025 with solid year-over-year growth on both a quarterly and annualized basis, leading to improvements in the bottom line[3](index=3&type=chunk) - CEO Krishna Vanka's top strategic initiative is to achieve profitable growth through operational efficiencies, a reinvigorated sales approach, enhanced value delivery to customers, and more diverse revenue streams[3](index=3&type=chunk) - The company acknowledges uncertainty and near-term caution due to the current tariff and macroeconomic environment but remains optimistic for the latter part of the coming fiscal year, citing additional capital infusion and growth in sales opportunities[4](index=4&type=chunk) [Fourth Quarter and Recent Business Highlights](index=1&type=section&id=Fourth%20Quarter%20and%20Recent%20Business%20Highlights) During Q4 and recently, Flux Power secured significant purchase orders from major airlines, received a new patent for battery charge balancing, was recognized as one of the fastest-growing companies, released its SkyEMS 2.0 software platform beta, and closed a $5 million private placement - Secured a purchase order for over **$2 million** from a major North American airline for its newly redesigned G80-420 lithium-ion battery pack[5](index=5&type=chunk) - Secured an additional **$1.2 million** order with another airline for G80 lithium-ion energy solutions with the SkyEMS software platform[5](index=5&type=chunk) - Awarded a new patent covering a breakthrough approach to battery charge balancing to optimize performance, extend battery life, and reduce downtime[5](index=5&type=chunk) - Recognized among Financial Times' fastest growing companies in the Americas 2025[5](index=5&type=chunk) - Released SkyEMS 2.0 software platform as a beta with an airline customer, with plans for broader rollout[5](index=5&type=chunk) - Closed a **$5 million** private placement of prefunded warrants and common warrants[5](index=5&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) Flux Power demonstrated strong financial performance in Q4 and full fiscal year 2025, with significant revenue and gross profit growth, alongside improved operating and net loss figures across both GAAP and non-GAAP metrics [Fourth Quarter Fiscal 2025 Financial Results](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Results) Flux Power demonstrated strong Q4 FY2025 performance with significant revenue and gross profit growth, alongside improved operating and net loss figures. Non-GAAP metrics further highlighted operational improvements, including a positive non-GAAP operating income and a near break-even non-GAAP net loss GAAP Financials | Metric | Q4 FY2025 | Q4 FY2024 | Change (%) | | :----------------- | :---------- | :---------- | :--------- | | Revenue | $16.7 million | $13.4 million | +25% | | Gross Profit | $5.8 million | $3.6 million | +61% | | Gross Margin | 34.5% | 26.9% | +760 bps | | Operating Expenses | $6.5 million | $5.4 million | +20.4% | | Operating Loss | ($0.8 million) | ($1.8 million) | -55.6% | | Net Loss | ($1.2 million) | ($2.2 million) | -45.5% | | Net Loss per Share | ($0.07) | ($0.13) | -46.2% | Non-GAAP Adjustments | Metric | Q4 FY2025 (Non-GAAP) | Q4 FY2024 (Non-GAAP) | Change | | :-------------------------- | :------------------- | :------------------- | :----- | | Operating Income / (Loss) | $0.4 million | ($1.5 million) | Improved | | Net Loss | ($0.03 million) | ($1.9 million) | Improved | | Net Loss per Share | ($0.00) | ($0.11) | Improved | - Non-GAAP adjustments for Q4 FY2025 primarily exclude **$1.0 million** in restatement-related costs and **$0.148 million** in stock-based compensation[7](index=7&type=chunk)[27](index=27&type=chunk) Adjusted EBITDA | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :------------- | :---------- | :---------- | :----- | | Adjusted EBITDA | $0.6 million | ($1.2 million) | Improved | [Full Year Fiscal 2025 Financial Results](index=2&type=section&id=Full%20Year%20Fiscal%202025%20Financial%20Results) For the full fiscal year 2025, Flux Power achieved revenue growth and a significant improvement in gross margin. While operating and net losses persisted, both GAAP and non-GAAP figures showed substantial reductions compared to the prior year, indicating progress towards profitability GAAP Financials | Metric | FY2025 | FY2024 | Change (%) | | :----------------- | :---------- | :---------- | :--------- | | Revenue | $66.4 million | $60.8 million | +9% | | Gross Margin | 32.7% | 28.3% | +440 bps | | Operating Expenses | $26.8 million | $23.8 million | +12.6% | | Operating Loss | ($5.0 million) | ($6.6 million) | -24.2% | | Net Loss | ($6.7 million) | ($8.3 million) | -19.3% | | Net Loss per Share | ($0.40) | ($0.50) | -20% | Non-GAAP Adjustments | Metric | FY2025 (Non-GAAP) | FY2024 (Non-GAAP) | Change | | :-------------------------- | :------------------ | :------------------ | :----- | | Operating Loss | ($1.1 million) | ($5.0 million) | Improved | | Net Loss | ($2.8 million) | ($6.8 million) | Improved | | Net Loss per Share | ($0.17) | ($0.41) | Improved | - Non-GAAP adjustments for FY2025 primarily exclude **$2.9 million** in restatement-related costs and **$0.979 million** in stock-based compensation[10](index=10&type=chunk)[12](index=12&type=chunk)[27](index=27&type=chunk) Adjusted EBITDA | Metric | FY2025 | FY2024 | Change | | :------------- | :----------- | :----------- | :----- | | Adjusted EBITDA | ($0.1 million) | ($4.0 million) | Improved | [Financial Position](index=2&type=section&id=Financial%20Position) Flux Power's financial position as of June 30, 2025, shows increased cash and access to significant credit facilities, further bolstered by a post-quarter private placement [Balance Sheet](index=2&type=section&id=Balance%20Sheet) As of June 30, 2025, Flux Power reported increased cash and access to significant credit facilities. Post-quarter, the company raised additional capital through a private placement, bolstering its working capital position | Metric | June 30, 2025 | June 30, 2024 | Change | | :----- | :------------ | :------------ | :----- | | Cash | $1.3 million | $0.643 million | +107.8% | - Subsequent to quarter-end, the Company raised approximately **$5 million** in gross proceeds from a private placement of prefunded warrants and common warrants, with a net cash impact of approximately **$3.8 million**[14](index=14&type=chunk) - Additional working capital sources include a **$16.0 million** credit facility from Gibraltar Business Capital (with **$2.4 million** available) and a **$1.0 million** subordinated line of credit with Cleveland Capital[14](index=14&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) This section provides details about Flux Power's business, conference call information, and important disclosures regarding forward-looking statements and associated risks [About Flux Power](index=3&type=section&id=About%20Flux%20Power) Flux Power designs, manufactures, and sells advanced lithium-ion energy storage solutions for industrial and commercial sectors, including material handling and airport ground support equipment. Their proprietary battery management system (BMS) and telemetry offer superior performance, lower ownership costs, and environmental benefits over traditional solutions - Flux Power specializes in designing, manufacturing, and selling advanced lithium-ion energy storage solutions for electrification in industrial and commercial sectors[17](index=17&type=chunk) - Key application areas include material handling, airport ground support equipment (GSE), and stationary energy storage[17](index=17&type=chunk) - Their lithium-ion battery packs, featuring a proprietary battery management system (BMS) and telemetry, offer better performance, lower cost of ownership, and are more environmentally friendly than traditional lead-acid and propane-based solutions, contributing to reduced CO2 emissions and improved ESG metrics[17](index=17&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Flux Power hosted a conference call on September 16, 2025, to discuss its Q4 and FY2025 financial results. Replay options were available via telephone and webcast until October 9, 2025, and for 90 days on the investor relations website, respectively - A conference call was held on Tuesday, September 16, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss financial results[15](index=15&type=chunk) - A telephone replay was available until October 9, 2025, and a webcast replay on the Investor Relations website for approximately 90 days[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements subject to various estimates, assumptions, risks, and uncertainties that could cause actual results to differ materially. Investors are cautioned against undue reliance and advised to refer to risk factors outlined in SEC filings - The release includes forward-looking statements identified by terms like 'believes' or 'expects,' which involve estimates, assumptions, risks, and uncertainties[18](index=18&type=chunk) - Actual results may differ materially due to factors such as access to capital, compliance with credit facilities, ability to raise capital, raw material availability, new product success, sales projections, gross margin improvement, and customer acceptance[18](index=18&type=chunk) - Investors should not place undue reliance on these statements and should refer to risk factors in Form 10-K, 10-Q, and other SEC reports[18](index=18&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, including statements of operations, non-GAAP adjustments, Adjusted EBITDA reconciliation, and balance sheets for the reported periods [Condensed Consolidated Statements of Operations (Full Year)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Full%20Year)) The full-year consolidated statements of operations show Flux Power's revenue growth and improved gross profit for fiscal year 2025 compared to 2024, alongside a reduction in net loss | Metric | Year ended June 30, 2025 | Year ended June 30, 2024 | | :------------------------------------------ | :----------------------- | :----------------------- | | Revenues | $66,434,000 | $60,824,000 | | Cost of sales | $44,694,000 | $43,591,000 | | Gross profit | $21,740,000 | $17,233,000 | | Total operating expenses | $26,768,000 | $23,848,000 | | Operating loss | ($5,028,000) | ($6,615,000) | | Interest income (expense), net | ($1,646,000) | ($1,718,000) | | Net loss | ($6,674,000) | ($8,333,000) | | Net loss per share - basic and diluted | ($0.40) | ($0.50) | | Weighted average common shares outstanding | 16,717,761 | 16,548,533 | [Condensed Consolidated Statements of Operations (Quarter)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Quarter)) The condensed consolidated statements of operations for the fourth quarter of fiscal year 2025 highlight significant revenue and gross profit increases, coupled with a reduced net loss compared to the prior year's quarter | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Revenues | $16,737,000 | $13,377,000 | | Cost of sales | $10,965,000 | $9,785,000 | | Gross profit | $5,772,000 | $3,592,000 | | Total operating expenses | $6,532,000 | $5,403,000 | | Operating loss | ($760,000) | ($1,811,000) | | Interest income (expense), net | ($419,000) | ($433,000) | | Net loss | ($1,179,000) | ($2,244,000) | | Net loss per share - basic and diluted | ($0.07) | ($0.13) | | Weighted average common shares outstanding | 16,822,202 | 16,847,255 | [Non-GAAP Net Income Adjustments](index=7&type=section&id=Non-GAAP%20Net%20Income%20Adjustments) Non-GAAP net income adjustments for both the full year and fourth quarter of fiscal 2025 show a significant improvement in net loss when excluding stock-based compensation and restatement-related costs, indicating a stronger underlying operational performance | Metric | Year ended June 30, 2025 | Year ended June 30, 2024 | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | | :-------------------------------- | :----------------------- | :----------------------- | :-------------------------- | :-------------------------- | | Net Income / (Loss) (GAAP) | ($6,674,000) | ($8,333,000) | ($1,179,000) | ($2,244,000) | | Stock Based Compensation | $979,000 | $1,571,000 | $148,000 | $338,000 | | Restatement and related Costs | $2,900,000 | - | $1,000,000 | - | | Total Non-GAAP Adjustments | $3,879,000 | $1,571,000 | $1,148,000 | $338,000 | | Non-GAAP Net Income / (Loss) | ($2,795,000) | ($6,762,000) | ($31,000) | ($1,906,000) | | Non-GAAP loss per share | ($0.17) | ($0.41) | ($0.00) | ($0.11) | [Non-GAAP Operating Income Adjustments](index=8&type=section&id=Non-GAAP%20Operating%20Income%20Adjustments) The non-GAAP operating income adjustments reveal a substantial improvement in operating performance for both the full year and fourth quarter of fiscal 2025, with the fourth quarter showing a positive non-GAAP operating income after excluding specific non-recurring and non-cash expenses | Metric | Year ended June 30, 2025 | Year ended June 30, 2024 | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | | :------------------------------------ | :----------------------- | :----------------------- | :-------------------------- | :-------------------------- | | Operating Income / (Loss) (GAAP) | ($5,028,000) | ($6,615,000) | ($760,000) | ($1,811,000) | | Stock Based Compensation | $979,000 | $1,571,000 | $148,000 | $338,000 | | Restatement and related Costs | $2,900,000 | - | $1,000,000 | - | | Total Non-GAAP Adjustments | $3,879,000 | $1,571,000 | $1,148,000 | $338,000 | | Non-GAAP Operating Income / (Loss) | ($1,149,000) | ($5,044,000) | $388,000 | ($1,473,000) | [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) The Adjusted EBITDA reconciliation demonstrates a significant improvement for both the full year and fourth quarter of fiscal 2025, with Q4 2025 achieving positive Adjusted EBITDA, reflecting enhanced operational efficiency when excluding non-cash and non-recurring items | Metric | Year ended June 30, 2025 | Year ended June 30, 2024 | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | | :---------------------- | :----------------------- | :----------------------- | :-------------------------- | :-------------------------- | | Net loss | ($6,674,000) | ($8,333,000) | ($1,179,000) | ($2,244,000) | | Interest, net | $1,646,000 | $1,718,000 | $419,000 | $433,000 | | Depreciation and amortization | $1,002,000 | $1,045,000 | $252,000 | $258,000 | | EBITDA | ($4,026,000) | ($5,570,000) | ($508,000) | ($1,553,000) | | Restatement and related Costs | $2,900,000 | - | $1,000,000 | - | | Stock-based compensation | $979,000 | $1,571,000 | $148,000 | $338,000 | | Adjusted EBITDA | ($147,000) | ($3,999,000) | $640,000 | ($1,215,000) | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show an increase in total assets and current assets for Flux Power as of June 30, 2025, compared to the prior year, driven by higher cash, accounts receivable, and inventories. Total liabilities also increased, leading to a stockholders' deficit | Metric | June 30, 2025 | June 30, 2024 | | :------------------------------------ | :-------------- | :-------------- | | Cash | $1,334,000 | $643,000 | | Accounts receivable, net | $11,374,000 | $9,773,000 | | Inventories, net | $17,231,000 | $16,977,000 | | Total current assets | $31,804,000 | $28,338,000 | | Total assets | $34,752,000 | $32,301,000 | | Accounts payable | $16,295,000 | $11,395,000 | | Accrued expenses | $7,058,000 | $3,926,000 | | Line of credit | $13,627,000 | $13,834,000 | | Subordinated debt | $1,000,000 | - | | Total current liabilities | $39,618,000 | $30,674,000 | | Total liabilities | $40,156,000 | $32,107,000 | | Total stockholders' equity (deficit) | ($5,404,000) | $194,000 |