Fluence Energy(FLNC) - 2025 Q2 - Quarterly Report

Part I - Financial Information Item 1. Financial Statements (Unaudited) Unaudited consolidated financial statements and notes cover accounting policies, financial instruments, debt, and equity Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2025 | September 30, 2024 | | :-------------------------- | :------------- | :----------------- | | Total Assets | $2,273,146 | $1,902,188 | | Cash and cash equivalents | $568,622 | $448,685 | | Inventory, net | $698,277 | $182,601 | | Total Liabilities | $1,774,083 | $1,295,049 | | Deferred revenue | $648,090 | $274,499 | | Convertible senior notes, net | $389,912 | $— | | Total Stockholders' Equity | $499,063 | $607,139 | Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations (Three Months Ended March 31, in thousands) | Metric | 2025 | 2024 | Change (YoY) | Change % (YoY) | | :-------------------------- | :----- | :----- | :----------- | :------------- | | Total Revenue | $431,618 | $623,141 | $(191,523) | (30.7%) | | Gross Profit | $42,582 | $64,180 | $(21,598) | (33.7%) | | Net Loss | $(41,932) | $(12,876) | $(29,056) | 225.7% | | Basic Loss per Share | $(0.24) | $(0.07) | $(0.17) | 242.9% | Condensed Consolidated Statements of Operations (Six Months Ended March 31, in thousands) | Metric | 2025 | 2024 | Change (YoY) | Change % (YoY) | | :-------------------------- | :----- | :----- | :----------- | :------------- | | Total Revenue | $618,406 | $987,097 | $(368,691) | (37.3%) | | Gross Profit | $63,783 | $100,566 | $(36,783) | (36.6%) | | Net Loss | $(98,945) | $(38,432) | $(60,513) | 157.4% | | Basic Loss per Share | $(0.56) | $(0.21) | $(0.35) | 166.7% | Condensed Consolidated Statements of Other Comprehensive Income (Loss) Condensed Consolidated Statements of Other Comprehensive Income (Loss) (Three Months Ended March 31, in thousands) | Metric | 2025 | 2024 | Change (YoY) | Change % (YoY) | | :-------------------------- | :----- | :----- | :----------- | :------------- | | Net Loss | $(41,932) | $(12,876) | $(29,056) | 225.7% | | Total Other Comprehensive Income (Loss) | $8,180 | $(1,603) | $9,783 | (610.3%) | | Total Comprehensive Loss | $(33,752) | $(14,479) | $(19,273) | 133.1% | Condensed Consolidated Statements of Other Comprehensive Income (Loss) (Six Months Ended March 31, in thousands) | Metric | 2025 | 2024 | Change (YoY) | Change % (YoY) | | :-------------------------- | :----- | :----- | :----------- | :------------- | | Net Loss | $(98,945) | $(38,432) | $(60,513) | 157.4% | | Total Other Comprehensive Income (Loss) | $11,062 | $32 | $11,030 | 34468.8% | | Total Comprehensive Loss | $(87,883) | $(38,400) | $(49,483) | 128.9% | Condensed Consolidated Statements of Changes in Stockholders' Equity Changes in Stockholders' Equity (Six Months Ended March 31, 2025, in thousands) | Metric | September 30, 2024 | March 31, 2025 | Change | | :-------------------------- | :----------------- | :------------- | :----- | | Total Stockholders' Equity | $607,139 | $499,063 | $(108,076) | | Net loss attributable to Fluence Energy, Inc. | $(151,448) (Accumulated Deficit) | $(223,960) (Accumulated Deficit) | $(72,512) | | Additional Paid-In Capital | $634,851 | $615,996 | $(18,855) | | Accumulated Other Comprehensive Income (Loss) | $(1,840) | $6,083 | $7,923 | | Stock-based compensation | — | $9,092 | $9,092 | Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (Six Months Ended March 31, in thousands) | Activity | 2025 | 2024 | Change (YoY) | Change % (YoY) | | :-------------------------------- | :----- | :----- | :----------- | :------------- | | Net cash (used in) provided by operating activities | $(257,416) | $90,248 | $(347,664) | (385.2%) | | Net cash used in investing activities | $(12,760) | $(7,491) | $(5,269) | 70.3% | | Net cash provided by (used in) financing activities | $359,113 | $(6,631) | $365,744 | (5515.7%) | | Net increase in cash, cash equivalents, and restricted cash | $91,309 | $78,751 | $12,558 | 15.9% | - Net cash used in operating activities for the six months ended March 31, 2025, was primarily due to a net loss of $98.9 million, increases in inventory of $520.2 million, and decreases in accounts payable of $202.9 million; these outflows were partially offset by a $379.7 million increase in deferred revenue and a $247.1 million decrease in receivables[27][304] - Net cash provided by financing activities for the six months ended March 31, 2025, was primarily driven by $400.0 million in proceeds from the issuance of 2030 Convertible Senior Notes, partially offset by $29.0 million for Capped Calls and $10.6 million for debt issuance costs[27][307] Notes to Condensed Consolidated Financial Statements 1. Organization and Operations - Fluence Energy, Inc. is a holding company that conducts its business operations through Fluence Energy, LLC, a joint venture formed by Siemens Industry, Inc. and AES Grid Stability, LLC[29][30] - The company operates in one reportable segment, with its Chief Executive Officer reviewing financial information on a consolidated basis for operating decisions[32] - AES Grid Stability exercised its redemption right for 7,087,500 LLC Interests, increasing Fluence Energy, Inc.'s beneficial ownership to 71.12% as of December 8, 2023[34][35] 2. Summary of Significant Accounting Policies and Estimates - The financial statements are prepared in accordance with U.S. GAAP and SEC rules, consolidating Fluence Energy, Inc. and its subsidiaries, with all intercompany balances eliminated[36] - Fluence Energy, Inc. beneficially owns 71.70% of Fluence Energy, LLC as of March 31, 2025, and is considered the primary beneficiary, consolidating its results[37] - Revenue from energy storage products and solutions is recognized over time using the percentage-of-completion method, while services and digital applications revenue is recognized ratably over the service term or straight-line, respectively[47][55][58] - The company capitalizes internal-use software costs (amortized over 3-5 years), hosting arrangement costs (5-7 years), and external-