Flux Power Reports Growth in Revenue and Market Demand

Flux Power Reports Revenue Growth and Adjusted EBITDA Analysis

Financial Overview

CEO Commentary

“The first half of FY 2025 was highlighted by sequential revenue and gross margin growth, driven by enhanced sales strategies, better market conditions, and growing demand for our innovative suite of products,” said Krishna Vanka, Flux Power’s CEO. “Although we have experienced some recent lumpiness in orders, we expect our momentum to continue, as indications reflect potential increasing order flow for the coming quarters. Even more, we maintain a positive long-term outlook, supported by an open order backlog.”

Flux Power Reports Growth and Key Strategic Changes for 2025

Flux Power Holdings, Inc. reported a strong financial position with cash reserves of $19.5 million as of February 28, 2025.

Over the past several quarters, gross margins have consistently risen, moving from 27% in Q4 FY 2024 to 32% in Q1 FY 2025, and further increasing to 33% in Q2 FY 2025. This upward trend is attributed to effective cost reductions, strategic price increases, and improvements in supply chain and profitability initiatives, alongside reduced expenses and enhanced volume purchasing.

Key Insights from the First Half of 2025:

• Delays in Customer Orders:
  • Delays mainly stemmed from forklift deferrals linked to increased interest rates.
  • The company did not lose any customers or orders to competitors.
  • Underlying demand remains robust, driven by ongoing Lithium adoption.
• Sales Trajectory Initiatives:
  • Introduced a new Private Label program for a leading forklift OEM.
  • Launched heavy-duty models to meet customer demand.
  • Increased sales workforce to better support expanding customer needs.
  • Boosted marketing efforts and resources.
• Gross Margin Enhancement Actions:
  • Improved supply chain management and reduced component costs by enhancing supplier competition.
  • Adjusted pricing to reflect the total value provided to products and customers.
• Technological Advancements and Partnerships:
  • Introduced telemetry features for improved asset management, generating recurring revenue.
  • Formed a partnership with an industry leader for recycling end-of-life lithium-ion batteries.
  • Developed machine learning and AI capabilities for large fleet support.
  • Automating the modularization of battery cells, with a rollout scheduled for summer.
• Management Changes:
  • Krishna Vanka has succeeded Ron Dutt as CEO, a move aligned with the long-term succession plan. Vanka previously served as CEO of Fluence Digital, where he oversaw substantial growth and successful management of recurring revenue businesses.
  • Kelly Frey has been promoted to Chief Revenue Officer, bringing over 20 years of diverse experience in sales and marketing.
• New Collaborations:
  • Announced a strategic partnership with a leading forklift OEM to launch a private label battery program. This collaboration enhances Flux Power’s S-Series line, which now meets UL Type EE certification standards for added safety.

CEO Commentary:

Vanka states, “We have established a solid foundation and a clear strategy for revenue growth that will support our journey toward profitability. Large companies are increasingly seeking electrification through cost-effective, high-performance lithium-ion battery packs that emphasize sustainability. Flux Power is well-positioned to meet these needs. Given the market dynamics and a stabilization of interest rates, we expect revenue growth in fiscal year 2025.”

He further elaborated on upcoming initiatives, mentioning plans to expand product lines to cater to various customer segments and adjacent markets, as well as bridging gaps in energy storage solutions. Notably, nearly $2.3 million in revenue for the first half of FY 2025 has already stemmed from six new customers.

Highlighting the company’s emphasis on innovation, Vanka remarked, “We have partnered with a top forklift OEM on a new private label battery initiative. Additionally, our collaboration with a leading battery recycling company underscores our commitment to sustainable practices. This recycling partnership has already begun significant operations.”

Vanka also discussed the recent appointments of Kelly Frey and Mark Barmettler, the latter of whom will lead new product innovation. Together, they will enhance the revenue-generating strategies and long-term market presence of Flux Power.

“With our focused strategy and innovative product offerings, we believe we are well-positioned to achieve sustainable positive cash flow within this calendar year,” concluded Vanka.

Company Reports Strong Backlog and New Orders for Fiscal Quarter

We look forward to providing further updates in the months to come as we return to a regular cadence of financial and operational reporting for our shareholders,” Vanka concluded.

Quarterly Orders and Shipments:

Backlog Status Reflects Order Pacing:

Quarterly Financial Data Overview Through September 2024

Financial Overview of Recent Earnings Reports

As of February 28, 2025, order backlog was approximately $19.5 million.

Q1 2025 Financial Results

Revenue for the fiscal first quarter of 2025 amounted to $16.1 million, rising 9% from $14.8 million in the same period last year. This boost primarily came from increased shipments in the Ground Support Equipment market at higher average selling prices, partially offset by fewer shipments to the Material Handling market. Meanwhile, revenue was $13.4 million in the preceding fiscal Q4 2024.

Gross Profit for Q1 2025 rose 23% to $5.2 million compared to $4.2 million in the same quarter of 2024. The gross margin also increased to 32%, up from 29% in Q1 2024. The profit margin rose by 370 basis points mainly due to higher selling prices, although warranty costs increased slightly.

Adjusted EBITDA reflected a loss of $0.6 million in Q1 2025, an improvement over the $1.2 million loss in Q1 2024.

Selling & Administrative expenses climbed to $5.1 million in Q1 2025, compared to $4.7 million in Q1 2024. This increase was mainly due to stock-based compensation and professional services tied to the restatement of financial statements.

Research & Development expenses remained stable at $1.3 million for both the first quarters of 2025 and 2024.

Net Loss for Q1 2025 was reported at $1.7 million, an improvement from the $2.2 million loss in the first quarter of 2024. This reduction is largely attributed to increased gross profit, despite rising operating expenses and interest costs.

Q2 2025 Financial Results

Revenue in the second fiscal quarter of 2025 fell 8% to $16.8 million from $18.2 million in the same quarter of 2024. This decrease was due to lower demand in the material handling sector and reduced average selling prices due to product mix shifts.

Gross Profit for Q2 2025 slightly increased by 2% to $5.5 million compared to $5.4 million in Q2 2024. The gross margin improved to 33%, up from 30%. This increase was driven by lower average costs, although warranty costs rose.

Adjusted EBITDA showed a loss of $1.0 million for the second quarter of 2025, contrasting with a gain of $0.2 million the previous year.

Selling & Administrative expenses rose to $6.0 million in Q2 2025, up from $4.6 million in the same quarter of 2024. This increase stemmed from variable incentive compensation, severance, and costs related to the multi-year restatement of prior financial statements.

Research & Development expenses decreased to $1.0 million in Q2 2025, compared to $1.2 million for the same period last year, indicating a strategic adjustment in investment allocation across the fiscal year.

Flux Power Reports Fiscal Q2 2025 Results: Increased Net Loss

Flux Power Holdings, Inc. reported a net loss of $1.9 million for the second fiscal quarter of 2025, showing a decline from the $0.9 million loss recorded in the same quarter of 2024. This increase in loss is largely due to rising operating expenses.

As of December 31, 2024, available cash totaled $0.9 million, an increase from $0.6 million on June 30, 2024. This shift indicates notable changes influenced by working capital management strategies. In terms of available working capital, Flux Power has a line of credit under its $16.0 million credit facility with Gibraltar Business Capital, which currently has a remaining balance of $6.3 million, subject to certain borrowing base limitations and financial covenants. Additionally, $1.0 million is accessible through a subordinated line of credit with Cleveland Capital. Notably, there is potential for expansion of the credit line with Gibraltar, which can increase to $20 million based on eligible accounts receivables and inventory.

Upcoming Conference Call for Q1 & Q2 Fiscal Year 2025 Results

On March 20, 2025, Flux Power will conduct a conference call to discuss the financial results for the first and second quarters of fiscal year 2025. The call will feature CEO Krishna Vanka, Senior Advisor and former CEO Ron Dutt, and CFO Kevin Royal. Participants can view a presentation during the call, which is accessible via the investor relations section of the Company’s website.

For those wishing to join the call, please find the relevant details below:

It is advisable to join the call 5-10 minutes ahead of the scheduled start time. An operator will collect your name and affiliation. For any issues connecting to the call, please reach out to MZ Group at 1-949-491-8235.

The conference will be broadcast live and available for later replay on the investor relations section of the Company’s website as well as at this link.

A replay of the webcast will be accessible after 7:30 p.m. Eastern Time through June 20, 2025.

Clarification on Non-GAAP Financial Measures

Non-GAAP financial measures are numerical assessments of a company’s financial health that may exclude certain items that are typically included in GAAP calculations. These measures, while useful, are not a substitute for standard GAAP metrics. Flux Power presents adjusted EBITDA as a non-GAAP measure, calculated by taking the net loss and adding interest, taxes, depreciation, amortization, and stock-based compensation expenses. The company believes this measure offers investors a clearer view of its operating performance and is a crucial tool for internal operational analysis.

Net Income (Loss) and Adjusted EBITDA Reconciliation Data

The table below provides a reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure. Please note that the non-GAAP measure presented may not be consistent with similarly titled measures from other companies.

# Financial Results: US-GAAP Net Income to Adjusted EBITDA Reconciliation

## Key Financial Metrics Summary

## US-GAAP Net Income (Loss) to Adjusted EBITDA Reconciliation

### Overview

This table presents a detailed reconciliation of US-GAAP net income (loss) to adjusted EBITDA for the periods ending December 31, 2024. The financial data provided is unaudited, emphasizing its preliminary nature.

This detailed financial summary showcases significant figures that readers should note. The calculations and data points provided herein form an essential basis for evaluating financial performance.

Financial Overview: Company Performance in 2023 and Projections for 2024

Financial Overview: Tax Provision, Depreciation, and EBITDA Analysis

Flux Power Holdings Reports Financial Performance with Key Metrics

About Flux Power Holdings, Inc.

Flux Power FLUX designs, manufactures, and sells cutting-edge lithium-ion energy storage solutions across various industrial and commercial sectors. These sectors include material handling, airport ground support equipment (GSE), and stationary energy storage. Flux Power’s lithium-ion battery packs come with a proprietary battery management system (BMS) and telemetry, offering a higher-performing, cost-effective, and environmentally friendly alternative to traditional lead-acid and propane-based systems. These battery packs are vital in reducing CO2 emissions and enhancing sustainability metrics within fleets. For more information, please visit www.fluxpower.com.

Forward-Looking Statements

This release contains projections and other forward-looking statements pertaining to Flux Power’s business. These statements are often identified by the use of terms like “believes,” “expects,” or similar phrases. Forward-looking statements involve various estimates, assumptions, risks, and uncertainties that may lead actual results to diverge significantly from those anticipated. Consequently, these statements do not guarantee future outcomes. Important factors affecting Flux Power’s actual results could include…

# Flux Power Highlights Risks and Uncertainties in Forward-Looking Statements

Flux Power Holdings, Inc. wishes to inform stakeholders about the inherent risks and uncertainties that could significantly impact its future financial performance. Forward-looking statements, while reflective of the company’s current expectations, may not materialize due to various factors. These include:

Risks related to Flux Power’s business operations and financial condition, as well as its strategies for accessing capital and managing existing debt. Challenges in complying with the terms of current credit facilities and the ability to secure additional funding are also critical concerns.

The company faces challenges in sourcing raw materials and supplies competitively and in a timely manner. Moreover, the success of new product development, projected sales figures, and potential cancellations or deferrals of purchase orders add layers of uncertainty. Flux Power is also focused on improving gross margins and achieving breakeven cash flow or profitability, complicating the overall financial landscape.

The ability to meet existing backlog orders, particularly if changes occur in the contracts reflected in those sales, poses additional risks. Flux Power’s potential to obtain required funding from credit facilities and timely achieve UL Listing for its products are also pivotal factors affecting its viability. Additionally, uncertainties surround customer acceptance and purchase behavior concerning current and new products.

Overall, actual results may diverge significantly from the estimates and forecasts provided in forward-looking statements. While the management at Flux Power believes their expectations are reasonable, they cannot guarantee their accuracy or assure stakeholders that results will align with projections. Consequently, undue reliance should not be placed on these forward-looking statements. Investors are encouraged to consult the risk factors detailed in the company’s Form 10-K, 10-Q, and other reports filed with the SEC, accessible at www.sec.gov/edgar.

These forward-looking statements are made as of the date of this release, and Flux Power does not have any obligation to update these assertions or detail the reasons why actual results may vary from expectations.

Follow us at:

Blog: Flux Power Blog
News: Flux Power News
Twitter: @FLUX__Power
LinkedIn: Flux Power

## Total Operating Expenses

## Analysis of Operating Losses

# Financial Overview: Recent Net Losses Highlight Continued Challenges

## Current Financial Performance

The table below outlines key financial metrics, focusing on interest income and net losses for the reporting period. These figures present a crucial insight into the organization’s financial position and operational challenges.

### Interest Income (Expense), Net

– The reported interest income (expense), net stands as follows:
– **Current Year**: $(408,000)
– **Prior Year**: $(449,000)
– **Two Years Ago**: $(865,000)
– **Three Years Ago**: $(852,000)

This trend indicates a consistent negative interest income which has remained a concern over the years.

### Net Loss

The net loss figures for the organization are significant and require attention:

– **Current Year**: $(1,887,000)
– **Prior Year**: $(896,000)

The current net loss has more than doubled compared to the previous year, signaling escalating financial difficulties.

## Conclusion

The financial metrics reveal ongoing challenges, particularly in managing interest expenses and achieving profitability. Stakeholders should consider these trends as they assess the organization’s financial health and future strategies.

Financial Overview Highlights Lost Ground in Recent Reporting Period

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Flux Power Holdings, Inc. Announces Cash Flow Statements

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The information presented is retained in its entirety with accurate financial data and statistical information. The structure has been reformatted for better clarity and flow, while maintaining key content. The headline effectively captures the essence of the information shared, focusing on the cash flow statements of Flux Power Holdings, Inc. The paragraphs have been crafted to be engaging, informative, and at an accessible reading level, ensuring it meets the requirements set for professional financial reporting.# Key Financial Adjustments: Understanding Major Expenditures and Changes

## Depreciation Insights

– **Depreciation**:
– Year 1: $502,000
– Year 2: $523,000

This expenditure reflects the gradual loss of value of physical assets over time, impacting overall financial health.

## Stock-Based Compensation Analysis

– **Stock-based Compensation**:
– Year 1: $625,000
– Year 2: $670,000

This cost represents the equity given to employees as part of their compensation, which can affect operating income.

## Amortization of Debt Issuance Costs

– **Amortization of Debt Issuance Costs**:
– Year 1: $83,000
– Year 2: $134,000

This item reflects costs related to issuing debt, which are spread over the life of the loan.

## Non-Cash Lease Expenses

– **Non-Cash Lease Expense**:
– Year 1: $325,000
– Year 2: $296,000

Such expenses account for leases that do not result in cash outflow, influencing cash flow analysis.

## Inventory Write Downs

– **Inventory Write Downs**:
– Year 1: $406,000
– Year 2: $233,000

This indicates losses in inventory value, which can result from obsolescence or decreased market demand.

## Changes in Operating Assets and Liabilities

– **Changes in Operating Assets and Liabilities**:
– Year 1: (Data Not Provided)
– Year 2: (Data Not Provided)

This section assesses fluctuations in assets and liabilities that significantly influence cash flow and overall financial status.

Understanding these financial adjustments is crucial for analyzing corporate performance and making informed investment decisions. Each of these factors affects the bottom line and provides insight into operational efficiencies or inefficiencies.

Financial Overview: Analyzing Current Assets and Liabilities

This financial overview highlights the state of current assets versus liabilities. Current assets, including accounts receivable at **1,189,000**, inventories at **1,248,000**, and other assets at **24,000**, offer insights into liquidity and cash flow management. However, the listed current liabilities, notably accounts payable at **1,761,000** and accrued expenses at **1,160,000**, indicate immediate financial obligations that must be monitored closely.

Understanding these figures assists stakeholders in assessing the financial health and operational efficiency of the organization. Maintaining a balanced ratio between current assets and liabilities is crucial for sustaining liquidity and supporting ongoing business operations.# Financial Summary: Key Metrics Reflect Significant Variability

(357,000)			(312,000)
Deferred revenue		168,000			179,000
Customer deposits		152,000			150,000
Net cash provided by (used in) operating activities		3,774,000			(4,045,000)
Cash flows from investing activities:
Purchases of equipment		(317,000)	Financial Overview: Key Cash Flow Activities Revealed Net cash used in investing activities (317,000) (338,000) Cash flows from financing activities: Proceeds from subordinated debt borrowing 1,000,000 – Proceeds from revolving line of credit 30,051,000 35,868,000 Payment of revolving line of credit (34,192,000) Analysis of Financing Activities and Cash Flow Trends (32,205,000) Payment of finance leases   (76,000)     (75,000) Net cash provided by (used in) financing activities   (3,217,000)     3,588,000             Net change in cash   240,000     (795,000) Cash, beginning of period   643,000     2,379,000             “`html Financial Summary Highlights Cash Position and Non-Cash Activities Cash, end of period $ 883,000 $ 1,584,000 Supplemental Disclosures of Non-Cash Investing and Financing Activities: Warrants issued in connection with borrowing agreement, recorded as debt issuance cost $ – $ 92,000 Supplemental cash flow information: “` Flux Power Reports Significant Yearly Interest Payments In its financial overview, Flux Power has documented its interest payments for the fiscal year. The company reported a total interest paid amounting to $684,000, reflecting its financial obligations. Detailed Financial Breakdown Interest paid $ 684,000 $ 605,000 Future Outlook As Flux Power looks forward, the focus remains on managing its financial commitments while enhancing operational efficiency. The gradual decrease to $605,000 in interest payments signifies a potential improvement in managing debt levels. Contact Information Media & Investor Relations: [email protected] [email protected] External Investor Relations: Chris Tyson, Executive Vice President MZ Group – MZ North America 949-491-8235 [email protected] www.mzgroup.us © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Latest articles Significant Monday Options Activity Highlights: SWTX, IBM, ZS Ron Finklestien ISG Reports AI Enhancing Proactivity and Intelligence in Field Service Operations Ron Finklestien “Understanding META Platforms’ Stock Decline Amidst Market Upturn: Key Insights” Ron Finklestien Search Featured articles March 31, 2025 Market News Significant Monday Options Activity Highlights: SWTX, IBM, ZS Ron Finklestien March 31, 2025 Micro Cap Stocks ISG Reports AI Enhancing Proactivity and Intelligence in Field Service Operations Ron Finklestien March 31, 2025 Most Popular “Understanding META Platforms’ Stock Decline Amidst Market Upturn: Key Insights” Ron Finklestien