Third Quarter and Recent Business Highlights
- Third quarter revenue was
$6.6 million - Implemented additional cost reduction actions, resulting in quarterly operating expenses decreasing 30% year-over-year
- Won Innovation in Sustainability Award at MODEX 2026 from a distinguished panel of industry experts, highlighting Flux Power’s leadership in clean energy solutions for the material handling industry
- Engaging with more OEMs and optimized OEM pricing structure for white-label products improving competitiveness and securing increased volume commitments
- Added new large cargo airline customer with a
$1.2 million battery order for its material handling equipment
CEO Commentary
“As expected, third quarter revenue was impacted mainly by our most significant material handling customer implementing a capital freeze and dynamic order patterns across the business,” said
“In response to these near-term challenges, we promptly implemented additional expense reduction actions to maintain our lean cost structure and to enhance future operating leverage. We have also taken steps to optimize our pricing structure to drive OEM volume purchases, enhance our sales organization with new leadership focused on OEM growth and expand our marketing outreach initiatives and brand awareness. We also had an extremely successful MODEX trade show winning a coveted industry Sustainability Award, while also meeting with many customers, partners and OEMs in our booth.
“As a result of these proactive efforts, we have seen other positive indications of increased order activity across the business that we believe point to renewed sequential revenue growth of about 20% in our fourth quarter. Looking longer-term, we remain focused on executing our strategic initiatives and capitalizing on the many opportunities in the global lithium-ion battery industry, which continues to grow at an increasing rate across the markets we serve.”
2026 Fiscal Third Quarter Financial Results
Revenue for the third fiscal quarter of 2026 was
Operating expenses for the third quarter were
Operating loss for the third quarter was
Net loss for the third quarter was
Adjusted EBITDA for the third quarter was negative
Balance Sheet
Cash as of
Conference Call
Date:
Time:
Toll-free dial-in number: 1-833-630-1956
International dial-in number: +1-412-317-1837
Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the News & Events section of the Company’s Investor Relations website.
For those unable to participate during the live broadcast of the conference call, a telephone replay will be available approximately two hours after the conference call and accessible through
Non-GAAP Financial Measures
Management believes that these non-GAAP financial measures, when viewed with Flux Power’s results under GAAP and the accompanying reconciliations, provide useful information about Flux Power’s period-over-period results. These non-GAAP financial measures are presented because management believes they provide additional information with respect to the performance of Flux Power’s fundamental business activities and adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies.
These non-GAAP financial measures should not be considered in isolation from, or construed as a substitute for, financial measures determined in accordance with GAAP for the purpose of analyzing Flux Power’s operating performance or financial position. Reconciliations of these non-GAAP financial measures are included in the tables at the end of this release.
About
Forward-Looking Statements
This release contains projections and other "forward-looking statements" relating to Flux Power’s business, that are often identified using "believes," "expects" or similar expressions. Forward-looking statements include, but are not limited to, statements regarding Flux Power’s revenue growth expectations and quotes from management. Forward-looking statements involve several estimates, assumptions, risks, and other uncertainties that may cause actual results to be materially different from those anticipated, believed, estimated, expected, etc. Accordingly, forward-looking statements are not guarantees of future results. Some of the important factors that could cause Flux Power’s actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to: Flux Power’s ability to amend the terms of its agreement with
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| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues | $ | 6,588,000 | $ | 16,742,000 | $ | 33,884,000 | $ | 49,697,000 | |||||||
| Cost of sales | 4,788,000 | 11,455,000 | 23,424,000 | 33,729,000 | |||||||||||
| Gross profit | 1,800,000 | 5,287,000 | 10,460,000 | 15,968,000 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling and administrative | 4,168,000 | 5,717,000 | 12,638,000 | 16,817,000 | |||||||||||
| Research and development | 623,000 | 1,147,000 | 2,196,000 | 3,419,000 | |||||||||||
| Total operating expenses | 4,791,000 | 6,864,000 | 14,834,000 | 20,236,000 | |||||||||||
| Operating loss | (2,991,000 | ) | (1,577,000 | ) | (4,374,000 | ) | (4,268,000 | ) | |||||||
| Interest expense, net | (184,000 | ) | (362,000 | ) | (762,000 | ) | (1,227,000 | ) | |||||||
| Net loss | $ | (3,175,000 | ) | $ | (1,939,000 | ) | $ | (5,136,000 | ) | $ | (5,495,000 | ) | |||
| Net loss per share - basic and diluted | $ | (0.15 | ) | $ | (0.12 | ) | $ | (0.27 | ) | $ | (0.33 | ) | |||
| Weighted average number of common shares outstanding - basic and diluted | 21,340,371 | 16,684,320 | 19,289,746 | 16,683,074 | |||||||||||
| NON-GAAP NET INCOME (LOSS) ADJUSTMENTS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| ? | Three months ended | ? | Nine months ended | ||||||||||||
| ? | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net loss | $ | (3,175,000 | ) | $ | (1,939,000 | ) | $ | (5,136,000 | ) | ? | $ | (5,495,000 | ) | ||
| ? | ? | ? | ? | ? | |||||||||||
| Non-GAAP adjustments to net loss: | |||||||||||||||
| Stock-based compensation | ? | 240,000 | ? | 206,000 | ? | 734,000 | ? | 831,000 | |||||||
| Restatement and related costs | - | 588,000 | - | ? | ? | 1,910,000 | |||||||||
| Total Non-GAAP adjustments | 240,000 | ? | 794,000 | ? | 734,000 | ? | 2,741,000 | ||||||||
| Non-GAAP net loss | (2,935,000 | ) | (1,145,000 | ) | (4,402,000 | ) | (2,754,000 | ) | |||||||
| Non-GAAP net loss per share - basic | $ | (0.14 | ) | $ | (0.07 | ) | $ | (0.23 | ) | ? | $ | (0.17 | ) | ||
| Non-GAAP net loss per share - diluted | $ | (0.14 | ) | $ | (0.07 | ) | $ | (0.23 | ) | $ | (0.17 | ) | |||
| NON-GAAP OPERATING INCOME (LOSS) ADJUSTMENTS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| ? | Three months ended | ? | Nine months ended | ||||||||||||
| ? | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Operating loss | $ | (2,991,000 | ) | $ | (1,577,000 | ) | $ | (4,374,000 | ) | ? | $ | (4,268,000 | ) | ||
| ? | ? | ? | ? | ? | |||||||||||
| Non-GAAP adjustments to operating loss: | |||||||||||||||
| Stock-based compensation | ? | 240,000 | ? | 206,000 | ? | 734,000 | ? | 831,000 | |||||||
| Restatement and related costs | - | 588,000 | - | ? | ? | 1,910,000 | |||||||||
| Total Non-GAAP adjustments | 240,000 | ? | 794,000 | ? | 734,000 | ? | 2,741,000 | ||||||||
| Non-GAAP operating loss | $ | (2,751,000 | ) | $ | (783,000 | ) | $ | (3,640,000 | ) | $ | (1,527,000 | ) | |||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| 2026 | 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash | $ | 372,000 | $ | 1,334,000 | |||
| Accounts receivable, net of allowance for credit losses of | 3,864,000 | 11,374,000 | |||||
| Inventories, net | 16,656,000 | 17,231,000 | |||||
| Other current assets | 2,539,000 | 1,865,000 | |||||
| Total current assets | 23,431,000 | 31,804,000 | |||||
| Right of use assets, net | 748,000 | 1,275,000 | |||||
| Property, plant and equipment, net | 1,331,000 | 1,554,000 | |||||
| Other assets | 92,000 | 119,000 | |||||
| Total assets | $ | 25,602,000 | $ | 34,752,000 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 8,268,000 | $ | 16,295,000 | |||
| Accrued expenses | 5,637,000 | 7,058,000 | |||||
| Line of credit | 5,722,000 | 13,627,000 | |||||
| Subordinated debt | - | 1,000,000 | |||||
| Deferred revenue | 142,000 | 459,000 | |||||
| Customer deposits | 62,000 | 38,000 | |||||
| Finance leases payable, current portion | 87,000 | 80,000 | |||||
| Office leases payable, current portion | 621,000 | 815,000 | |||||
| Accrued interest | 53,000 | 246,000 | |||||
| Total current liabilities | 20,592,000 | 39,618,000 | |||||
| Long term liabilities: | |||||||
| Finance leases payable, less current portion | 22,000 | 32,000 | |||||
| Office leases payable, less current portion | 83,000 | 506,000 | |||||
| Deferred revenue, less current portion | 292,000 | - | |||||
| Total liabilities | 20,989,000 | 40,156,000 | |||||
| Stockholders’ equity (deficit): | |||||||
| Preferred stock, | - | - | |||||
| Common stock, | 21,000 | 17,000 | |||||
| Additional paid-in capital | 116,114,000 | 100,965,000 | |||||
| Accumulated deficit | (111,522,000 | ) | (106,386,000 | ) | |||
| Total stockholders’ equity (deficit) | 4,613,000 | (5,404,000 | ) | ||||
| Total liabilities and stockholders’ equity (deficit) | $ | 25,602,000 | $ | 34,752,000 | |||
| ADJUSTED EBITDA RECONCILIATION | |||||||||||||||
| (Unaudited) | |||||||||||||||
| ? | Three Months Ended | ? | Nine Months Ended | ||||||||||||
| ? | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net loss | $ | (3,175,000 | ) | $ | (1,939,000 | ) | $ | (5,136,000 | ) | ? | $ | (5,495,000 | ) | ||
| Add/Subtract: | ? | ? | ? | ? | ? | ||||||||||
| Interest, net | 184,000 | 362,000 | 663,000 | ? | ? | 1,227,000 | |||||||||
| Income tax provision | - | - | - | ? | ? | - | |||||||||
| Depreciation and amortization | ? | 243,000 | ? | 248,000 | ? | 745,000 | ? | ? | 750,000 | ||||||
| EBITDA | (2,748,000 | ) | (1,329,000 | ) | (3,728,000 | ) | (3,518,000 | ) | |||||||
| Add/Subtract: | ? | ? | ? | ? | ? | ||||||||||
| Restatement and related costs | - | 588,000 | - | ? | ? | 1,910,000 | |||||||||
| Stock-based compensation | ? | 240,000 | ? | 206,000 | ? | 734,000 | ? | 831,000 | |||||||
| Adjusted EBITDA | $ | (2,508,000 | ) | $ | (535,000 | ) | $ | (2,994,000 | ) | $ | (777,000 | ) | |||
Contacts
Media:
media@fluxpower.com
info@fluxpower.com
External Investor Relations:
flux-ir@sheltongroup.com
