Flux Power(FLUX) - 2025 Q4 - Annual Results

Overview and Business Highlights 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 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] - 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] - 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] Fourth Quarter and Recent Business Highlights 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] - Secured an additional $1.2 million order with another airline for G80 lithium-ion energy solutions with the SkyEMS software platform[5] - Awarded a new patent covering a breakthrough approach to battery charge balancing to optimize performance, extend battery life, and reduce downtime[5] - Recognized among Financial Times' fastest growing companies in the Americas 2025[5] - Released SkyEMS 2.0 software platform as a beta with an airline customer, with plans for broader rollout[5] - Closed a $5 million private placement of prefunded warrants and common warrants[5] Financial Performance 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 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][27] Adjusted EBITDA | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :------------- | :---------- | :---------- | :----- | | Adjusted EBITDA | $0.6 million | ($1.2 million) | Improved | Full Year Fiscal 2025 Financial Results 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][12][27] Adjusted EBITDA | Metric | FY2025 | FY2024 | Change | | :------------- | :----------- | :----------- | :----- | | Adjusted EBITDA | ($0.1 million) | ($4.0 million) | Improved | Financial Position 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 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] - 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] Additional Information 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 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] - Key application areas include material handling, airport ground support equipment (GSE), and stationary energy storage[17] - 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] Conference Call Details 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] - A telephone replay was available until October 9, 2025, and a webcast replay on the Investor Relations website for approximately 90 days[16] Forward-Looking Statements 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] - 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] - 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] Condensed Consolidated Financial Statements 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) 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) 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 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 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 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 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 |