ZACKS·2025-11-26 17:01Core Insights - Plug Power Inc. (PLUG) and Flux Power Holdings, Inc. (FLUX) are key players in the clean energy market, focusing on advanced energy storage solutions for commercial and industrial applications [2] - PLUG is experiencing growth in the green hydrogen market, while FLUX is facing challenges due to declining customer orders and rising costs [3][9] Plug Power Analysis - PLUG's revenues increased by 2% year over year in Q3, with a 10.8% surge in the first nine months of the year, driven by its electrolyzer product line [4] - The company signed a deal in October 2025 to deliver up to two GW of GenEco PEM electrolyzer systems, increasing its total contracted capacity to five GW [5] - PLUG's Project Quantum Leap aims to enhance cash flow and reduce cash burn, focusing on sales growth and inventory management [6] - Despite growth, PLUG reported a negative gross margin of 67.9% in Q3 2025 and an operating cash outflow of $387.2 million in the first nine months [7] - Revenues from equipment and related products declined by 9.7% year over year to $96.8 million in Q3 2025 [8] Flux Power Analysis - FLUX's revenues declined by 18% year over year in Q1 fiscal 2026 due to lower customer orders and a shift to lower-priced products [9] - The company faced a 2.5% increase in cost of sales and a 12.2% rise in total operating expenses in fiscal 2025 [11] - FLUX's liquidity issues led to reliance on debt and equity financing, exiting Q1 with an accumulated deficit of $108.9 million and a net loss of approximately $2.6 million [12] - Despite challenges, FLUX is focused on launching new products and upgrading existing ones to align with industry trends [13] Financial Estimates - The Zacks Consensus Estimate for PLUG's 2025 sales is $701.8 million, indicating an 11.6% year-over-year growth, with a projected loss of 80 cents per share [14] - For FLUX, the fiscal 2026 sales estimate is approximately $66.1 million, reflecting a 0.5% decline year over year, with a projected loss of 23 cents per share [15] Stock Performance - Over the past six months, PLUG's shares have increased by 145.8%, while FLUX's stock has decreased by 6.1% [16] - Both companies are currently trading at a negative forward price-to-earnings ratio [17] Conclusion - PLUG's strategic partnerships, innovative product offerings, and strong position in the green hydrogen market suggest a more favorable long-term outlook compared to FLUX, which is hindered by declining orders and rising costs [18][19]