Introduction
Flux Power Holdings, Inc. (NASDAQ: FLUX), renowned for its innovations in advanced lithium-ion energy storage solutions, has announced its financial performance for the first quarter of fiscal year 2026. The quarter ended on September 30, 2025, marks a significant period of transformation for the company as it navigates the dynamic landscape of the energy storage market.
Quarter Highlights
During this quarter, Flux Power achieved remarkable milestones that underline its operational prowess and readiness to tackle challenges. Here are some key highlights:
- Reception of $2.4 million in repeat orders from prominent clients in the food and beverage distribution sector, alongside an industrial equipment manufacturer.
- Secured a substantial order from a major airline, boosting its customer base to eight North American airlines from six in the previous year.
- Graduated its software platform, SkyEMS 2.0, from beta to production with multiple paying customers, indicating robust market interest in software solutions.
- Attained UL EE Listing for its material handling products, revealing a new $1 billion addressable market across various industries including chemicals and pharmaceuticals.
- Secured UL 1973 Listing for its G80-G2 lithium-ion product, facilitating entry into new markets within automated guided vehicles (AGVs) and autonomous mobile robots (AMRs).
- Regained compliance with Nasdaq’s listing requirements, providing a solid footing for future growth.
- Raised $13.8 million in new capital, demonstrating investor confidence and funding for growth initiatives.
- Continued efforts toward cost reductions to reach profitability.
CEO Insights
CEO Krishna Vanka reflected on the quarter, noting, "The first quarter revenue mirrored a momentary hold in customer orders due to underlying economic uncertainties, especially around tariffs. However, we are now observing a recovery in order activity, demonstrated by significant multi-million-dollar orders. Our SkyEMS SaaS platform is gaining traction, and we continue to make strategic capital decisions that bolster our market position and growth prospects."
Financial Overview
The financial data for the first fiscal quarter of 2026 indicates some fluctuations. Revenue recorded was $13.2 million, a decline from the $16.1 million seen during the same period last year.
Despite generating a gross profit of $3.8 million, constituting 28.6% of revenue, there were increases in operational expenses amounting to $5.9 million compared to $6.4 million in the prior fiscal year.
However, the operating loss for this quarter was $2.2 million, worsening from a loss of $1.2 million during the last year’s period. Excluding certain costs associated with restatements and stock-based compensation, the non-GAAP operating loss was reported at $2.0 million.
The net loss for the quarter was $2.6 million or ($0.15) per share, compared to a net loss of $1.7 million or ($0.10) per share the previous year. Adjusted EBITDA was reported at ($1.7) million, indicating an increase in losses compared to ($0.4) million last year.
Balance Sheet Insights
As of September 30, 2025, Flux Power had cash reserves of $1.6 million. Following the end of the quarter, additional capital of approximately $9.2 million was raised net of underwriter fees from a secondary public offering of its common shares. This strategic maneuver emphasizes the company’s need for flexibility in executing operational and product development plans.
Further, Flux Power has a revolving line of credit worth $16 million with Gibraltar Business Capital, which represents significant potential working capital as defined by their credit agreement.
Upcoming Conference Call
Flux Power will discuss these results further during a conference call, scheduled for November 13, 2025. Stakeholders can access details through investor relations for insights on financial performance and strategic directions.
About Flux Power
Flux Power is at the forefront of designing, manufacturing, and selling innovative lithium-ion energy storage solutions catering to various sectors like material handling and energy stationary storage. Their proprietary battery management systems offer significant improvements in performance and environmental footprint over traditional solutions.
Frequently Asked Questions
What were Flux Power's total revenues for this quarter?
Flux Power reported revenues of $13.2 million for the first quarter of fiscal 2026.
How did the company perform financially compared to last year?
Revenue decreased from $16.1 million in the first quarter of 2025 to $13.2 million in 2026.
What were some key contracts secured in this quarter?
Flux Power secured $2.4 million in repeat orders from leading clients and a large purchase order from a significant airline customer.
What is the significance of the UL Listings obtained?
The UL Listings open up new market opportunities valued at $1 billion in various industries, thereby enhancing future revenue potentials.
What is the company’s goal moving forward?
Flux Power aims to achieve sustained profitability through improved operational efficiency and product development initiatives.
