<span item_type="fundamental" item_id="9d78bc8a563491ad62e0778431607c0e" counter_id="ST/US/FLUX" env="prod"></span><span item_type="announcement" item_id="615413030522198401" env="prod"></span><p>Revenue: As of FY2026 Q2, the actual value is USD 14.12 M, missing the estimate of USD 15.55 M.</p><p>EPS: As of FY2026 Q2, the actual value is USD 0.03, beating the estimate of USD -0.08.</p><p>EBIT: As of FY2026 Q2, the actual value is USD 795 K.</p><p></p><p>Flux Power Holdings, Inc. operates as a single reportable segment focused on lithium-ion energy storage solutions for industrial and commercial sectors <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Revenue</h4><p>For the three months ended December 31, 2025, revenues were $14,121,000, a 16% decrease from $16,830,000 in the same period of 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. For the six months ended December 31, 2025, revenues were $27,296,000, down 17% from $32,955,000 in the prior year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. The decrease was due to a sales mix shift to lower-priced products and lower volume in the material handling market, partially offset by higher volumes in the ground support equipment market, along with business uncertainties affecting customers <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Cost of Sales</h4><p>Cost of sales for the three months ended December 31, 2025, was $9,226,000, or 65% of revenues, compared to $11,367,000, or 68% of revenues, for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. For the six months ended December 31, 2025, cost of sales was $18,836,000, or 68% of revenues, compared to $22,274,000, or 68% of revenues, for the six months ended December 31, 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Gross Profit</h4><p>Gross profit for the three months ended December 31, 2025, was $4,895,000, or 35% of revenues, an increase from $5,463,000, or 32% of revenues, for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. For the six months ended December 31, 2025, gross profit was $8,660,000, or 32% of revenues, compared to $10,681,000, or 32% of revenues, for the prior year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Operating Expenses</h4><p>Selling and administrative expenses decreased by $2,421,000, or 40%, to $3,564,000 for the three months ended December 31, 2025, from $5,985,000 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. For the six months ended December 31, 2025, these expenses decreased by $2,630,000, or 24%, to $8,470,000 from $11,100,000 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. Research and development expenses decreased by $421,000, or 44%, to $536,000 for the three months ended December 31, 2025, from $957,000 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. For the six months ended December 31, 2025, these expenses decreased by $699,000, or 31%, to $1,573,000 from $2,272,000 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. Total operating expenses for the three months ended December 31, 2025, were $4,100,000, down from $6,942,000 in 2024, and for the six months ended December 31, 2025, they were $10,043,000, down from $13,372,000 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Operating Income (Loss)</h4><p>Operating income for the three months ended December 31, 2025, was $795,000, a significant improvement from an operating loss of -$1,479,000 for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. For the six months ended December 31, 2025, the operating loss was -$1,383,000, an improvement from an operating loss of -$2,691,000 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Net Income (Loss)</h4><p>Flux Power Holdings, Inc. reported a net income of $601,000 for the three months ended December 31, 2025, compared to a net loss of -$1,887,000 for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. For the six months ended December 31, 2025, the net loss was -$1,961,000, an improvement from a net loss of -$3,556,000 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Adjusted EBITDA</h4><p>Adjusted EBITDA for the three months ended December 31, 2025, was $1,463,000, an increase of $1,333,000 compared to $130,000 for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. For the six months ended December 31, 2025, Adjusted EBITDA was $55,000, an improvement over a loss of -$242,000 for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Cash Flow</h4><p>Net cash used in operating activities was -$4,274,000 for the six months ended December 31, 2025, compared to net cash provided by operating activities of $3,774,000 for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. Net cash used in investing activities was -$285,000 for the six months ended December 31, 2025, compared to -$317,000 in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. Net cash provided by financing activities was $4,153,000 for the six months ended December 31, 2025, primarily from $12,942,000 in net cash proceeds from public and private offerings, partially offset by -$8,887,000 in net repayments under the working capital line of credit <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Backlog</h4><p>As of December 31, 2025, the order backlog was approximately $3.8 million, a decrease from $5,694,000 as of September 30, 2025, and $9,922,000 as of June 30, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. This decrease is attributed to certain significant customers reducing order patterns and others shifting to shorter order lead times due to economic uncertainty, higher costs from global tariffs, and broader geopolitical uncertainty <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Customer and Supplier Concentrations</h4><p>For the three and six months ended December 31, 2025, two major customers accounted for 78% of total revenues respectively, totaling approximately $11,038,000 and $21,180,000 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. For the three months ended December 31, 2025, one supplier accounted for 34% of total purchases, or approximately $4,184,000, and for the six months ended December 31, 2025, the same supplier accounted for 21% of total purchases, or approximately $4,839,000 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Liquidity and Financial Condition</h4><p>Flux Power Holdings, Inc. had an accumulated deficit of -$108.3 million as of December 31, 2025, and utilized -$4.3 million in operating activities during the six months ended December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. As of December 31, 2025, the company had a cash balance of $0.9 million and $11.3 million available under the Gibraltar Business Capital (GBC) Credit Facility <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. The company expects a compliance covenant breach under the GBC Credit Facility in late February 2026, which creates substantial doubt about its ability to continue as a going concern over the next 12 months <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p><h4>Future Outlook and Strategy</h4><p>Flux Power Holdings, Inc.’s long-term strategy involves investing in R&amp;D to expand its product mix, increasing sales and marketing efforts, improving customer support, and enhancing production efficiencies to meet growing demand <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. Management is evaluating strategies to further improve profitability, including driving down bill of material costs, and continues to execute cost reduction, sourcing, and pricing recovery initiatives to increase gross margins and improve cash flow from operations <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>. The company aims to provide adaptable, reliable, and cost-effective energy storage solutions, leveraging its modular and scalable design and proprietary wireless battery management system <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1083743/000149315226006414/form10-q.htm"></span>.</p>

Flux Power | 10-Q: FY2026 Q2 Revenue Misses Estimate at USD 14.12 M