Flux Power Reports Fiscal Year 2026 Second Quarter Financial Results

Core Insights - Flux Power Holdings, Inc. reported a 7.2% increase in revenue for the second fiscal quarter of 2026, reaching $14.1 million, marking a recovery from previous quarter challenges due to tariffs and pricing [6][9] - The company achieved GAAP profitability for the first time in its history, with a 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 [9][10] - Significant operational improvements were noted, including a 31% reduction in core operating expenses and a 610 basis point increase in gross margin from the prior quarter [3][6] Financial Performance - Revenue for the second fiscal quarter of 2026 rose to $14.1 million from $13.2 million in the prior quarter [6] - Gross profit increased to $4.9 million, representing 34.7% of revenue, compared to $3.8 million or 28.6% of revenue in the prior quarter [6] - Operating expenses decreased to $4.1 million from $5.9 million in the prior quarter, largely due to cost reduction measures [7] - Operating income was $0.8 million, a turnaround from an operating loss of $2.2 million in the previous quarter [8] - Non-GAAP operating income for the second quarter was $1.2 million, compared to a non-GAAP operating loss of $1.7 million in the prior quarter [8][10] Product and Technology Developments - The company introduced the next-generation telematics hardware device, SkyLNK, which features advanced capabilities including four times more sensors and new machine learning functionalities [4][9] - Flux Power received a U.S. patent for its State of Health technology, which utilizes advanced algorithms for predictive diagnostics to enhance battery lifespan [9] - The company enhanced its software offerings with AI-driven Intelligent Alerting in SkyEMS, potentially improving fleet uptime by 10% to 30% [9] Strategic Outlook - Despite the positive results, the company anticipates a sequential decline in revenues for the upcoming fiscal third quarter due to uncertainties related to tariff changes and fluctuating customer order patterns [5] - The focus remains on executing strategic initiatives aimed at driving future growth and operational efficiency [5]