Flux Power(FLUX) - 2026 Q2 - Quarterly Results

Financial Performance - Revenue increased 7.2% sequentially to $14.1 million from $13.2 million in the prior quarter[8] - Achieved positive GAAP net income of $0.6 million, or $0.03 per share, compared to a net loss of $2.6 million, or ($0.15) per share, in the prior quarter[11] - Gross profit for the second quarter was $4.9 million, representing 34.7% of revenue, up from 28.6% in the prior quarter[8] - Non-GAAP net income for the second quarter was $1.0 million, or $0.04 per fully diluted share, compared to a non-GAAP net loss of $2.0 million, or ($0.12) per share, in the prior quarter[11] - Net income for the three months ended December 31, 2025, was $601,000, compared to a net loss of $1,887,000 for the same period in 2024, indicating a significant turnaround[28] - Adjusted EBITDA for the three months ended December 31, 2025, was $1,463,000, a substantial increase from $130,000 in the same period of 2024[28] Operating Expenses and Assets - Operating expenses decreased approximately 31% sequentially to $4.1 million from $5.9 million in the prior quarter[9] - Total current assets decreased from $31,804,000 on June 30, 2025, to $27,625,000 on December 31, 2025, a decline of approximately 13.2%[26] - Cash as of December 31, 2025, was $0.9 million, down from $1.3 million as of June 30, 2025[13] - Cash reserves decreased from $1,334,000 on June 30, 2025, to $928,000 on December 31, 2025, a decline of about 30.4%[26] - Accounts receivable decreased from $11,374,000 on June 30, 2025, to $8,506,000 on December 31, 2025, a reduction of approximately 25.3%[26] - Inventories decreased from $17,231,000 on June 30, 2025, to $15,705,000 on December 31, 2025, a decline of about 8.8%[26] Liabilities and Equity - Total liabilities decreased from $40,156,000 on June 30, 2025, to $22,576,000 on December 31, 2025, representing a reduction of approximately 43.7%[26] - The company reported a decrease in accounts payable from $16,295,000 on June 30, 2025, to $10,194,000 on December 31, 2025, a reduction of approximately 37.5%[26] - The accumulated deficit increased from $(106,386,000) on June 30, 2025, to $(108,347,000) on December 31, 2025[26] - Total stockholders' equity improved from $(5,404,000) on June 30, 2025, to $7,536,000 on December 31, 2025[26] Product Development and Innovation - Introduced next-generation telematics hardware device SkyLNK, featuring 4x more sensors and new machine learning capabilities[7] - Added AI-driven Intelligent Alerting to SkyEMS, improving potential fleet uptime by 10% to 30%[7] - Released a new Mobile UI for on-the-go monitoring, potentially improving productivity by 15% to 40%[7] - Secured over $3.6 million in additional purchase orders to support a long-standing airline customer[7]