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Flux Power Holdings (FLUX)
NASDAQ:FLUX
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Flux Power Holdings
(NASDAQ:FLUX)
Rating:51Neutral
Price Target:
$1.50
▼(-9.09%Downside)
Positive Factors
Financial Performance
The company improved its financial position by ending the second quarter of fiscal year 2025 with $0.9M in cash and reducing debt to $9.7M.
Leadership
The appointment of Krishna Vanka as CEO, who has experience leading a major energy company, is seen as a positive leadership change.
Market Valuation
The company is trading at a lower EV/revenue multiple compared to its peers, indicating potential undervaluation.
Negative Factors
Macroeconomic Risks
FY24 results were impacted by higher interest rates and macroeconomic concerns that postponed orders.
Order Performance
Orders of $50.3M in FY24 were down 16% y/y, resulting in a book-to-bill of 0.8x for the year.
Revenue Performance
FY24 revenue of $60.8M, down 8.5% y/y, missed analyst's estimate and consensus.
Flux Power Holdings (FLUX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.75M
Dividend YieldN/A
Average Volume (3M)43.26K
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth-1.45%
EPS Growth-15.76%
CountryUS
Employees119
SectorIndustrials
Sector Strength92
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.12
Shares Outstanding16,818,642
10 Day Avg. Volume66,626
30 Day Avg. Volume43,256
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)-11.52
Price to Sales (P/S)0.00
P/FCF Ratio7.48
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit2.38
Enterprise Value/Ebitda-2.01
Forecast
1Y Price Target
$5.75Price Target Upside248.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Flux Power Holdings Business Overview & Revenue Model
Company DescriptionFlux Power Holdings, Inc. (FLUX) is a company that specializes in the design, development, and sale of advanced lithium-ion energy storage solutions for industrial applications. The company's core products include lithium-ion batteries and battery management systems tailored for use in forklifts, airport ground support equipment, and other industrial vehicles and machinery. Flux Power Holdings is positioned in the energy storage and industrial equipment sectors, focusing on providing sustainable and efficient power solutions to enhance operational efficiency and reduce environmental impact.
How the Company Makes MoneyFlux Power Holdings makes money primarily through the sale of its lithium-ion battery packs and battery management systems. These products are sold directly to original equipment manufacturers (OEMs) and end-users in various industrial sectors. The company's revenue model revolves around the manufacturing and distribution of custom battery solutions to meet the specific needs of industrial customers, such as those in the material handling, airport ground support, and other sectors requiring reliable and efficient energy storage systems. Key revenue streams include product sales and service contracts, and the company may also engage in partnerships with OEMs to integrate its technology into their industrial vehicles and equipment. Significant factors contributing to its earnings include the growing demand for environmentally friendly and efficient energy solutions and the company's ability to deliver high-quality, reliable products.
Flux Power Holdings Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q3-2025)
| % Change Since: -16.24%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive with strong revenue growth, improved gross margins, and successful product launches. However, challenges such as tariff impacts and increased administrative costs were noted. The overall sentiment is that the company is well-positioned to leverage its competitive advantages and continue growing despite external challenges.Q3-2025 Updates
Positive Updates
Revenue and Gross Margin Growth
Revenue for the third fiscal quarter increased 16% to $16.7 million compared to $14.5 million in the third fiscal quarter of 2024. Gross profit for the third fiscal quarter of 2025 increased 32.5% to $5.3 million compared to $4 million in the third fiscal quarter of 2024. Gross margin increased to 32% from 28% in the previous year.
Product Innovation and Strategic Initiatives
The company launched the G96 battery solution, advancing electrification in the airline drone support equipment market. The Sky EMS platform is being expanded to support full life cycle management of intelligent batteries, with plans to make all batteries cloud-connected.
Improved Financial Position
Adjusted EBITDA loss reduced to $1.1 million in the third fiscal quarter of 2025 from $1.7 million in the same quarter of 2024. Net loss decreased to $1.9 million from $3 million the previous year.
Positive Customer Feedback and Market Position
Increased demand in material handling and ground support equipment markets with unit growth of 10% and 25% respectively. The company is perceived as having a competitive advantage due to lower exposure to tariffs compared to competitors.
Negative Updates
Tariff Challenges
Geopolitical complexities and new tariffs impacting the global supply chain are presenting challenges. The company is adapting by evaluating new suppliers and focusing on supplier diversification.
Increased Selling and Administrative Expenses
Selling and administrative expenses increased to $5.7 million in the third fiscal quarter of 2025 from $5.3 million in the previous year, partly due to professional fees related to the restatement of financial statements.
Cash Position
Cash decreased to $500,000 on March 31, 2025, compared to $600,000 at June 30, 2024. The company maintains available working capital through credit facilities.
Company Guidance
During the fiscal third quarter of 2025, Flux Power Holdings, Inc. provided guidance centered around five strategic initiatives aimed at driving the company's growth and efficiency. The company emphasized "profitable growth" as a top priority, aiming for consistent quarterly profitability. A focus on "operational efficiencies" involves optimizing the supply chain and internal processes to reduce costs amidst tariff uncertainties. The "solution selling" strategy, led by Chief Revenue Officer Kelly Frey, is transforming sales processes to better align offerings with customer needs. In terms of product innovation, the company is committed to "building the right products" that expand margins and meet customer needs, highlighted by the launch of the G96 solution for the electrification of airline drone support equipment. Lastly, the "software and recurring revenue" initiative is advancing with the Sky EMS platform, which is central to their recurring revenue strategy and intelligent battery management. Financially, the company reported a 16% increase in revenue to $16.7 million, with a notable improvement in gross profit and margin, despite challenges such as tariff impacts and increased selling and administrative expenses.Flux Power Holdings Financial Statement Overview
Summary
Flux Power Holdings has demonstrated strong revenue growth but faces challenges with profitability and financial stability. Despite improvements in cash flow metrics, the company has ongoing net losses and negative equity, indicating a need for better cost management and profitable growth.Income Statement
Flux Power Holdings has shown robust revenue growth from $16.8M in 2020 to $60.6M in TTM 2024. However, profitability remains a challenge, with negative EBIT and Net Income across the periods. The Gross Profit Margin is improving, reaching approximately 30% in TTM 2024, but Net Profit Margin is still negative, indicating that costs need to be managed better to achieve profitability.65
Positive
Balance Sheet
The company's financial leverage is concerning, with a negative Stockholders' Equity of $-2.74M in TTM 2024, leading to a negative Debt-to-Equity Ratio. This indicates potential financial instability. The Equity Ratio has also declined, suggesting increased reliance on debt financing which poses a risk if revenue growth does not translate into profitability.45
Neutral
Cash Flow
Flux Power Holdings has improved its Free Cash Flow in TTM 2024 to $4.24M from negative numbers in prior periods, indicating better cash management. The Operating Cash Flow to Net Income ratio is positive in TTM 2024, showing operational cash generation despite net losses. However, reliance on financing activities in previous years highlights ongoing liquidity challenges.60
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 60.64M | 60.82M | 66.34M | 42.33M | 26.26M | 16.84M | Gross Profit |
| 18.20M | 17.23M | 17.10M | 7.30M | 5.79M | 2.19M | EBIT |
| -7.23M | -6.62M | -5.41M | -15.36M | -13.48M | -12.55M | EBITDA |
| -6.46M | -5.57M | -4.50M | -14.78M | -11.50M | -12.41M | Net Income Common Stockholders |
| -8.96M | -8.33M | -6.74M | -15.86M | -14.45M | -16.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.25M | 643.00K | 2.38M | 485.00K | 4.71M | 726.00K | Total Assets |
| 36.78M | 32.30M | 35.70M | 30.88M | 26.26M | 13.97M | Total Debt |
| 16.17M | 16.16M | 13.03M | 7.75M | 3.30M | 12.26M | Net Debt |
| 14.92M | 15.51M | 10.65M | 7.27M | -1.41M | 11.54M | Total Liabilities |
| 31.37M | 32.11M | 26.16M | 16.95M | 13.26M | 20.39M | Stockholders Equity |
| 5.42M | 4.40M | 9.55M | 13.93M | 13.01M | -6.42M |
| Cash Flow | Free Cash Flow | ||||
| 4.24M | -5.65M | -4.61M | -24.69M | -19.46M | -8.67M | Operating Cash Flow |
| 4.49M | -4.80M | -3.57M | -23.89M | -18.36M | -8.34M | Investing Cash Flow |
| -832.00K | -853.00K | -1.02M | -797.00K | -1.10M | -323.00K | Financing Cash Flow |
| -2.89M | 3.92M | 6.49M | 20.46M | 23.45M | 9.29M |
Flux Power Holdings Technical Analysis
Negative
1.65
Price Trends
1.72
Negative
1.66
Negative
2.17
Negative
Market Momentum
0.02
Positive
42.95
Neutral
11.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUX, the sentiment is Negative. The current price of 1.65 is below the 20-day moving average (MA) of 1.83, below the 50-day MA of 1.72, and below the 200-day MA of 2.17, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 11.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLUX.
Flux Power Holdings Risk Analysis
Flux Power Holdings disclosed 32 risk factors in its most recent earnings report. Flux Power Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We are not currently in compliance with the continued listing requirements for the Nasdaq Stock Market. If we fail to regain compliance or to meet the continued listing requirements, our common stock may be delisted, which could affect the market price of our common stock, hurt your ability to sell your shares and negatively impact our ability to access the capital markets Q2, 2024
2.
Our independent registered public accounting firm has included an explanatory paragraph relating to our ability to continue as a going concern in its report on our audited financial statements included in this report. Our audited financial statements at June 30, 2024, and for the year then ended, were prepared assuming that we will continue as a going concern. Q2, 2024
3.
The restatement of our previously issued financial statements has had a material adverse impact on us, including increased costs, loss of investor confidence, the increased possibility of legal or administrative proceedings and non-compliance with the Nasdaq listing rules. Q2, 2024
Flux Power Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $4.41B | 12.06 | 5.22% | 249.80% | 4.09% | -12.16% | |
55 Neutral | $29.91M | ― | -43.18% | ― | -19.60% | -483.35% | |
54 Neutral | $22.75M | ― | -41.45% | ― | -0.63% | 60.93% | |
51 Neutral | $27.75M | ― | -1582.76% | ― | -1.45% | -15.76% | |
50 Neutral | $43.24M | ― | -57.21% | ― | -93.03% | 24.28% | |
49 Neutral | $1.49B | ― | -85.86% | ― | 77.59% | 2.01% | |
39 Underperform | $23.84M | ― | -172.05% | ― | -58.05% | -6.90% |
* Industrials Sector Average
Performance Comparison
FLUX
Flux Power Holdings
1.65
-1.35
-45.00%
OESX
Orion Energy Systems
0.69
-0.28
-28.87%
IPWR
Ideal Power
5.18
-2.41
-31.75%
PPSI
Pioneer Power Solutions
2.71
-0.44
-13.97%
GWH
ESS Tech
1.97
-9.19
-82.35%
ENVX
Enovix
8.03
-2.28
-22.11%
Flux Power Holdings Corporate Events
Product-Related AnnouncementsExecutive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Flux Power Holdings Reports 16% Revenue Increase
Positive
May 8, 2025
On May 8, 2025, Flux Power Holdings reported a 16% increase in revenue for the third fiscal quarter of 2025, reaching $16.7 million, driven by strong demand for its lithium-ion solutions. The company launched new products, including the G-Series G96 High Voltage lithium-ion energy solution for the airline industry’s ground support equipment, and introduced the SkyEMS software platform to enhance battery life management. Flux Power also received significant orders from airlines and medical equipment suppliers, and announced leadership changes with Krishna Vanka as the new CEO. The company’s strategic focus on software-driven energy solutions and AI-based innovations positions it for sustainable growth and recurring revenue streams.
Executive/Board Changes
Flux Power Holdings Finalizes CEO Separation Agreement
Neutral
Apr 2, 2025
On March 31, 2025, Flux Power Holdings, Inc. finalized a separation and release agreement with Ronald F. Dutt, its former CEO, President, and Director, following his departure from the company. The agreement includes severance benefits comprising a cash payment of $386,250.02 distributed in twelve installments and a monthly health insurance payment for a year, reflecting standard industry practices for executive transitions.
Business Operations and StrategyFinancial Disclosures
Flux Power Holdings Reports Strong H1 2025 Results
Positive
Mar 20, 2025
Flux Power Holdings reported financial results for the first half of fiscal year 2025, showing revenue and gross margin growth driven by increased demand for their innovative products. Despite some delays in customer orders due to higher interest rates, the company maintains a positive outlook with a significant order backlog and ongoing strategic initiatives to enhance sales and profitability. Key developments include launching a private label program with a major forklift OEM, expanding product lines, and forming partnerships to improve battery recycling processes.
Executive/Board ChangesShareholder Meetings
Flux Power Holdings Announces Leadership Changes in 2025
Neutral
Mar 10, 2025
On March 10, 2025, Flux Power Holdings announced the retirement of Ronald F. Dutt from his roles as director, Chairman, CEO, and President, with Dale T. Robinette and Krishna Vanka appointed as the new Chairman and CEO, respectively. Vanka, with extensive experience in renewable energy and technology sectors, is expected to lead the company towards growth and innovation. The company also set May 28, 2025, for its Annual Meeting of Stockholders, advancing the date by more than 30 days from the previous year, and outlined new deadlines for stockholder proposals.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.