Flux Power(US:FLUX)2025-09-16 21:30Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $16.7 million, up from $13.4 million in Q4 2024, representing a year-over-year increase of approximately 24.6% [14] - Full-year 2025 revenue increased to $66.4 million from $60.8 million in 2024, reflecting a growth of about 9.2% [14] - Gross margin in Q4 2025 improved to 34.5% from 26.8% in Q4 2024, while full-year gross margin rose to 32.7% from 28.3% [14] - Operating expenses for Q4 2025 were $6.5 million, compared to $5.4 million in Q4 2024, with full-year operating expenses increasing to $26.8 million from $23.8 million [15] - The net loss for Q4 2025 was $1.2 million, or $0.07 per share, an improvement from a net loss of $2.2 million, or $0.13 per share in Q4 2024 [15] - Full-year net loss was $6.7 million, or $0.40 per share, compared to a net loss of $8.3 million, or $0.50 per share in 2024 [15] - Adjusted EBITDA for Q4 was positive $600,000, compared to negative $1.2 million in the same quarter a year ago [16] Business Line Data and Key Metrics Changes - Increased sales in both material handling and ground support equipment markets contributed to revenue growth [14] - A significant purchase order for 120 units of the G80 420 lithium-ion battery pack was received, valued at over $2 million, indicating strong demand in the ground support equipment sector [8] - An additional order of over $1.2 million for a G80 lithium-ion energy solution along with the SkyEMS software platform was secured, showcasing the success of the solution selling strategy [8] Market Data and Key Metrics Changes - The company is focusing on expanding its market presence in North and Central America, leveraging its strong foothold in the United States [11] - The quoting activity has increased significantly, indicating a positive trend in customer engagement and potential future orders [12] Company Strategy and Development Direction - The company is committed to achieving profitable growth, operational efficiency, and integrating value-added software across its battery portfolio [5] - The strategic initiatives include implementing a solution selling approach and building products tailored to customer needs [5] - The management team is focused on enhancing partnerships with customers, dealers, and OEM sales teams to drive long-term growth [10] Management's Comments on Operating Environment and Future Outlook - The current macroeconomic environment and tariffs create uncertainty, but the growth in sales opportunities and strategic initiatives provide optimism for future performance [18] - Management acknowledges the need for continued improvement in profitability and cash flow breakeven, but initial progress has been made [5] Other Important Information - The company ended the quarter with cash and cash equivalents of $1.3 million, up from $600,000 a year ago [17] - The current backlog stands at $9 million, indicating a solid pipeline for future revenue [29] Q&A Session Summary Question: Can you discuss the strong gross margin expansion in the quarter? - Management indicated that initiatives to improve product input costs and lower warranty costs contributed to the gross margin improvement [20][21][22] Question: How has the beta rollout of SkyEMS 2.0 been received by customers? - The upgraded product has received positive feedback, with improvements based on customer pain points, and is being packaged with battery sales [23][24] Question: What does the pipeline look like, and what is the current backlog? - The current backlog is $9 million, with increased quoting activity expected to drive future growth [29] Question: What is driving the recent airline orders? - The orders are driven by the introduction of redesigned, more efficient products and the integration of software solutions [38][41] Question: What is the outlook for quoting activity in the material handling and ground support equipment markets? - There has been an uptick in quoting activity, particularly in the material handling market, as customers are now more willing to release capital for purchases [42][43]