Flux Power(US:FLUX)2025-09-16 21:32Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $16.7 million, up from $13.4 million in Q4 2024, while full-year revenue increased to $66.4 million from $60.8 million [15] - Gross margin for Q4 2025 improved to 34.5% from 26.8% in Q4 2024, and full-year gross margin rose to 32.7% from 28.3% [15] - 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 [16] - The net loss for Q4 2025 was $1.2 million, or $0.07 per share, compared to a net loss of $2.2 million, or $0.13 per share in Q4 2024 [16] - Non-GAAP net loss for Q4 2025 was $30,000, or $0.00 per share, compared to a non-GAAP net loss of $1.9 million, or $0.11 per share in the prior period [17] Business Line Data and Key Metrics Changes - Increased sales for the full year 2025 were driven by higher volume in both material handling and ground support equipment markets, with higher average selling prices in the GSE market [15] - The company shipped more than 28,000 battery packs, indicating significant market penetration [10] Market Data and Key Metrics Changes - The company received a significant purchase order for 120 units of the G80 420 lithium-ion battery pack worth over $2 million from a major North American airline [9] - An additional order of over $1.2 million was received from another airline for a G80 lithium-ion energy solution along with the SkyEMS software platform [9] Company Strategy and Development Direction - The company is focused on five strategic initiatives: achieving profitable growth, executing operational efficiency, implementing a solution selling approach, building the right products for customer needs, and integrating value-added software across the battery portfolio [5] - The management team is committed to a vision of intelligent energy solutions, where lithium-ion batteries function as part of a connected, self-optimizing network [4] Management's Comments on Operating Environment and Future Outlook - The current tariff and macroeconomic environment create uncertainty, but the growth of sales opportunities and strategic initiatives provide optimism for the latter part of the fiscal year [19] - Management acknowledges the need for continued work to achieve profitability and cash flow breakeven, but initial progress is being demonstrated [6] Other Important Information - The company has implemented operational efficiencies, including a 15% reduction in headcount across all segments except Sales and Marketing to reduce ongoing operating expenses [7] - The SkyEMS AI platform is progressing well, with beta testing access provided to an airline customer [8] Q&A Session Summary Question: Can you discuss the strong gross margin expansion in the quarter? - Management noted that initiatives to improve product input costs contributed to about 60% of the improvement, along with lower warranty costs [22] Question: How has the beta rollout of SkyEMS 2.0 been received? - The new version was designed with customer feedback in mind, focusing on efficiency and usability, and has received positive feedback from beta testers [23][24] Question: What does the pipeline look like, and what is the backlog number? - The current backlog is approximately $9 million, with increased quoting activity expected to drive future growth [30] Question: What is driving the recent airline orders? - The orders are driven by a redesigned battery that is more efficient and a package that includes the SkyEMS software [38] Question: Can you elaborate on the quoting activity and its dynamics? - There was a pullback in capital expenditures due to economic uncertainty, but recent quoting activity indicates a release of capital for purchases [42]