Flux Power Holdings ((FLUX)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Flux Power Holdings presented a mixed sentiment, highlighting both strategic achievements and financial hurdles. While the company has made significant strides in expanding its customer base and securing capital for growth, it faces challenges with declining revenue and increased net losses. The overall sentiment reflects a balance between strategic progress and financial performance concerns.
Multimillion-Dollar Orders and Customer Base Expansion
Flux Power Holdings has successfully secured multimillion-dollar orders totaling $2.4 million from top material handling customers, along with a substantial order from a major airline. This achievement has doubled the airline customer base compared to the previous year, showcasing the company’s ability to expand its market reach and strengthen its customer relationships.
Strategic Financial Improvements
The company completed two capital raises, netting $13.8 million in proceeds. These funds are earmarked for working capital and accelerating product development, reflecting Flux Power’s strategic focus on financial strengthening and innovation.
Key Certifications and New Market Opportunities
Flux Power Holdings received UL EE and UL 1973 certifications, unlocking new market opportunities in industries such as chemical, agriculture processing, oil and gas, and pharma. This opens up a total addressable market worth around a billion dollars, positioning the company for potential growth in these sectors.
NASDAQ Listing Retention
The company successfully retained its listing on the NASDAQ Capital Markets, ensuring continued broad access to common stock and maintaining investor confidence.
Software Expansion and New SaaS Customers
Flux Power graduated its SkyMS 2.0 SaaS platform, converting a major airline from beta testing to a paying customer. This transition marks a significant step in the company’s software expansion strategy, with multiple paying customers now onboard.
Revenue and Gross Margin Decline
The earnings call revealed a decline in revenue to $13.2 million from $16.1 million year-over-year, with gross margin dropping to 28.6% from 32.4%. This decline is attributed to lower sales and a shift towards lower-margin products, posing a challenge to the company’s profitability.
Increased Net Loss and Adjusted EBITDA
Flux Power reported an increased net loss of $2.6 million, up from $1.7 million, with adjusted EBITDA worsening to negative $1.7 million from negative $400,000 year-over-year. These figures highlight the financial challenges the company is currently facing.
Order Pause Due to Tariff Uncertainty
A temporary pause in customer orders was experienced due to uncertainties surrounding tariffs and macroeconomic concerns. This pause has impacted the company’s revenue, underscoring the external challenges affecting its operations.
Forward-Looking Guidance
During the Fiscal First Quarter 2026 Earnings Conference Call, Flux Power Holdings provided insights into its future strategies. Despite the revenue decline, the company aims to leverage its recent capital raises for working capital and product development. The achievement of key certifications is expected to open new market segments, while the expansion of its software offerings is anticipated to drive future growth.
In conclusion, the Flux Power Holdings earnings call reflects a balanced sentiment, with notable achievements in strategic initiatives offset by financial performance concerns. The company’s efforts to expand its customer base, secure capital, and explore new markets are promising, yet the challenges of declining revenue and increased losses remain significant hurdles to overcome.