FLUX POWER HOLDINGS INC (NASDAQ:FLUX) Reports Q4 Earnings Beat, Revenue Slightly Misses Estimates

FLUX POWER HOLDINGS INC (NASDAQ:FLUX) reported its fourth-quarter and full-year fiscal 2025 results, delivering a mixed performance relative to analyst expectations. The company, which specializes in lithium-ion energy storage systems for industrial applications, demonstrated notable revenue growth but fell slightly short on sales projections while exceeding earnings estimates.

Earnings and Revenue Performance

For the fourth quarter, Flux Power posted revenue of $16.7 million, marking a 25% increase compared to the same period last year. However, this figure came in just below the analyst consensus estimate of $16.8 million. On the earnings front, the company reported a non-GAAP net loss of $0.00 per share, significantly outperforming the estimated loss of $0.09 per share. This improvement reflects enhanced operational efficiencies and cost management.

Key financial highlights from the quarter include:

• Gross margin expansion to 34.5%, up 760 basis points year-over-year
• Gross profit increased by 61% to $5.8 million
• Adjusted EBITDA turned positive at $0.6 million, compared to negative $1.2 million in Q4 2024

Market Reaction and Price Action

Following the earnings release, the market has responded positively, with shares rising approximately 3.2% in after-hours trading. This upward movement suggests investor approval of the company's improved profitability metrics and forward-looking optimism. Over recent periods, the stock has shown:

• Weekly performance: +37.1%
• Bi-weekly performance: +36.2%
• Monthly performance: +12.5%

The positive momentum indicates growing confidence in Flux Power's operational turnaround and future prospects, particularly given the better-than-expected bottom-line results despite the slight revenue miss.

Business Highlights and Strategic Initiatives

During the quarter, Flux Power secured several significant contracts, including a $2 million order from a major North American airline for its G80-420 lithium-ion battery packs and an additional $1.2 million order from another airline. The company also advanced its technology portfolio with a new patent for battery charge balancing and released the SkyEMS 2.0 software platform in beta.

CEO Krishna Vanka emphasized the company's focus on achieving profitable growth through operational efficiencies and diversified revenue streams. He noted that while macroeconomic uncertainties persist, recent capital infusion and strategic initiatives position the company for stronger performance in the latter part of the fiscal year.

Balance Sheet and Liquidity

As of June 30, 2025, Flux Power reported cash of $1.3 million. Subsequent to quarter-end, the company raised approximately $5 million through a private placement, enhancing its liquidity position. The company maintains access to a $16 million credit facility, with $2.4 million available, and a $1 million subordinated line of credit.

Forward Outlook and Analyst Comparisons

Looking ahead, analysts project full-year fiscal 2026 revenue of $76.1 million and a non-GAAP EPS loss of $0.08. For the first quarter of 2026, estimates call for revenue of $17.8 million and an EPS loss of $0.06. While Flux Power did not provide specific forward guidance in its release, the company's expressed optimism about future growth aligns broadly with these projections, particularly given recent contract wins and product developments.

The company's improved margin profile and cost controls suggest potential for better-than-expected earnings in coming quarters, though revenue growth will need to accelerate to meet analyst sales forecasts.

Conclusion

Flux Power's fourth-quarter results demonstrate meaningful progress toward profitability, with earnings outperforming expectations despite a slight revenue shortfall. The market's positive reaction reflects confidence in management's strategic direction and operational improvements. Investors should monitor the company's ability to convert its growing sales pipeline into sustained revenue growth while maintaining its enhanced profitability metrics.

For detailed earnings estimates and historical performance data, visit FLUX Earnings and Estimates.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.