Fluence Energy(US:FLNC)2026-02-04 21:12Financial Performance - Total revenue for Q4 2025 reached $475.234 million, a significant increase from $186.788 million in Q4 2024, representing a growth of 154% year-over-year[16] - Gross profit for the quarter was $23.049 million, compared to $21.201 million in the same quarter last year, showing a slight increase of 8.7%[16] - Net loss for Q4 2025 was $62.588 million, compared to a net loss of $57.013 million in Q4 2024, indicating a deterioration in profitability[18] - Revenue for the three months ended December 31, 2025, was $182.2 million, a significant increase from $70.6 million in the same period of 2024, representing a growth of approximately 158%[144] - Net loss for the three months ended December 31, 2025, was $62.588 million, compared to a net loss of $57.013 million for the same period in 2024, representing an increase of approximately 9.1%[22] - The company reported a net loss of $45.1 million for the three months ended December 31, 2025, compared to a net loss of $41.5 million in the same period of 2024[83] - Net loss increased by $5.6 million, or 10%, for the three months ended December 31, 2025, attributed to higher general and administrative and sales and marketing expenses[213] Cash and Liquidity - Cash and cash equivalents decreased to $452.563 million from $690.768 million as of September 30, 2025, reflecting a decline of 34.4%[15] - Cash, cash equivalents, and restricted cash as of December 31, 2025, totaled $477.774 million, down from $654.409 million at the end of the same period in 2024, indicating a decrease of approximately 27%[22] - The company’s restricted cash increased to $25.2 million as of December 31, 2025, from $23.9 million on September 30, 2025[38] - The 2024 Credit Agreement requires the Company to maintain Total Liquidity of no less than $150 million through December 31, 2025, and no less than $100 million thereafter[100] - As of December 31, 2025, the Company had $121.7 million in outstanding letters of credit under the 2024 Revolver, with remaining availability of $378.3 million[101] Expenses - Research and development expenses increased to $18.541 million from $17.195 million, reflecting a rise of 7.8%[16] - Sales and marketing expenses rose to $22.031 million from $18.202 million, an increase of 21.5%[16] - General and administrative expenses increased by $5.1 million, or 14%, for the three months ended December 31, 2025, largely due to higher legal and consulting services[207] - Cost of goods and services for the same period was $7.2 million, up from $2.9 million in 2024, indicating a rise of about 150%[144] - Stock-based compensation expense totaled $5.3 million for the three months ended December 31, 2025, slightly down from $5.3 million in 2024[155] Assets and Liabilities - Total current assets decreased to $1.986 billion from $2.064 billion, a reduction of 3.8%[15] - Total liabilities decreased to $1.781 billion from $1.808 billion, a decrease of 1.5%[15] - Total stockholders' equity decreased to $488.224 million from $548.848 million, a decline of 11%[15] - The company's total lease liabilities decreased to $12.9 million as of December 31, 2025, from $15.3 million at the end of September 2025[94] - Accruals increased to $278.0 million as of December 31, 2025, compared to $246.2 million at the end of September 2025[95] Revenue Recognition and Deferred Revenue - Revenue is primarily generated from energy storage products and solutions, operational services, and digital applications, with revenue recognition based on the percentage of completion method[39][40] - The company reported a deferred revenue of $163.257 million for the three months ended December 31, 2025, compared to $316.723 million in the same period of 2024, indicating a decrease of about 48%[22] - Deferred revenue at the end of the period increased to $804.5 million from $572.7 million year-over-year, reflecting a growth of approximately 40%[86] - As of December 31, 2025, the company had $5.5 billion in remaining performance obligations, with an expected revenue recognition of 57% to 62% within the next 12 months[88] Stock and Equity - The company reported a loss per share of Class A common stock of $0.34 for Q4 2025, compared to a loss of $0.32 in Q4 2024[16] - Basic loss per share for Class A common stock is calculated by dividing net loss attributable to Class A common stockholders by the weighted average number of shares outstanding[81] - The Company has two classes of common stock, Class A and Class B-1, with Class B-1 shares not entitled to distributions or dividends[81] - As of December 31, 2025, there were 1,739,395 stock options outstanding under the 2020 Unit Option Plan with no unrecognized stock compensation expense[147] - The 2021 Incentive Award Plan had 2,081,778 restricted stock units (RSUs) outstanding as of December 31, 2025, with an unrecognized stock compensation expense of $21.1 million[149] Financing and Debt - The Company issued $400.0 million aggregate principal amount of 2.25% convertible senior notes due 2030[71] - The interest expense for the 2030 Convertible Senior Notes for the three months ended December 31, 2025, was $2.7 million, compared to $571,000 for the same period in 2024[110] - The initial conversion rate for the 2030 Convertible Senior Notes is 46.8472 shares per $1,000 principal amount, equating to an initial conversion price of approximately $21.35 per share[103] - The Company entered into capped call transactions to offset potential dilution from the conversion of the 2030 Convertible Senior Notes[73] Market and Growth - The global utility-scale battery storage market is projected to add approximately 3,201 GWh between 2024 and 2035, driven by the transition to renewable energy[170] - The contracted backlog for energy storage products rose to 9.7 GW, reflecting a 7% increase from 9.1 GW[175] - The pipeline for energy storage products expanded to 41.8 GW, a significant 17% increase from 35.7 GW[175] - Contracted order intake for digital contracts reached 4.3 GW, a 34% increase from 3.2 GW in the same period last year[175] - Assets under management for services increased to 6.2 GW, an 11% rise from 5.6 GW[175] Legal and Compliance - The Company is involved in ongoing litigation seeking approximately $37.0 million in damages related to an energy storage facility, with a cross-complaint against it for $25.0 million[132] - The Company has received limited treasury services from The AES Corporation, recorded in "General and administrative expenses"[140]