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Flux Power Holdings (FLUX)
NASDAQ:FLUX
US Market
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Flux Power Holdings (FLUX) AI Stock Analysis

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FLUX

Flux Power Holdings

(NASDAQ:FLUX)

Rating:45Neutral
Price Target:
$1.50
▼(-14.77% Downside)
The stock's overall score is primarily impacted by its weak financial performance and valuation, despite some positive momentum from earnings growth. Significant risks include potential Nasdaq delisting and ongoing profitability issues.
Positive Factors
Bookings
Bookings reached $32.6M in the first half of fiscal year 2025, significantly increasing compared to $15.6M in the second half of fiscal year 2024.
Leadership
The appointment of Krishna Vanka as CEO, who has experience leading a major energy company, is seen as a positive leadership change.
Valuation
The company is trading at a lower EV/revenue multiple compared to its peers, indicating potential undervaluation.
Negative Factors
Macroeconomic Conditions
FY24 results were impacted by higher interest rates and macroeconomic concerns that postponed orders.
Orders
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)

Flux Power Holdings Business Overview & Revenue Model

Company DescriptionFlux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the United States. It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift. The company also provides 24-volt onboard chargers for its Class 3 Walkie LiFT packs; and smart wall mounted chargers to interface with its BMS. The company sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors. Flux Power Holdings, Inc. was incorporated in 1998 and is based in Vista, California.
How the Company Makes MoneyFlux Power Holdings generates revenue primarily through the sale of its lithium-ion battery packs to industrial customers. These battery packs replace traditional lead-acid batteries, offering a more efficient and longer-lasting energy solution. Key revenue streams include direct sales to equipment manufacturers and end-users in the material handling and airport ground support sectors. The company also benefits from partnerships with major equipment manufacturers and distributors, which help expand its market reach. Additionally, Flux Power offers repair and maintenance services for its battery systems, providing another source of income. The company's focus on innovation and meeting the growing demand for sustainable energy solutions are significant factors contributing to its earnings.

Flux Power Holdings Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2025)
|
% Change Since: -10.66%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue and gross profit growth driven by increased demand and strategic innovation. However, challenges from tariffs, increased administrative expenses, and a low cash position were noted. Overall, the company is navigating these challenges with strategic initiatives and technological advancements.
Q3-2025 Updates
Positive Updates
Revenue and Gross Profit Growth
Revenue for the third fiscal quarter increased by 16% to $16.7 million compared to $14.5 million in the same quarter of 2024. Gross profit increased by 32.5% to $5.3 million, with a gross margin increase from 28% to 32%.
Sky EMS Platform Advancements
The Sky EMS platform is being piloted with select customers and has received a patent for intelligent battery life cycle maximization. This platform is key to Flux Power's transition to a tech-driven energy solutions provider.
Reduced Net Loss
Net loss for the third fiscal quarter of 2025 was reduced to $1.9 million from $3 million in the same quarter of 2024, attributed to increased gross profit.
Increase in Demand
Higher demand was reported in the material handling and ground support equipment markets, with unit growth of 10% and 25%, respectively.
Strategic Initiatives and Innovation
Five strategic initiatives were outlined, focusing on profitable growth, operational efficiencies, solution selling, product innovation, and software-driven recurring revenue.
Negative Updates
Tariff Challenges
Products containing partial made-in-China content are impacted by new tariffs, prompting changes in supply chain strategies and potential price adjustments.
Increased Selling and Administrative Expenses
Expenses increased to $5.7 million due to professional fees related to the multiyear restatement of previously filed financial statements.
Low Cash Position
Cash was reported at $500,000 as of March 31, 2025, down from $600,000 at June 30, 2024, reflecting changes in working capital management.
Company Guidance
In the fiscal third quarter of 2025, Flux Power Holdings, Inc. reported significant progress across various metrics and initiatives. Revenue increased by 16% to $16.7 million, up from $14.5 million in the same period of the previous year, driven by a 10% unit growth in the material handling market and a 25% growth in ground support equipment markets. Gross profit rose by 32.5% to $5.3 million, with a gross margin increase to 32%, up from 28% the previous year, primarily due to reduced warranty costs. Despite an increase in selling and administrative expenses to $5.7 million, net loss improved to $1.9 million from $3 million a year earlier. The company highlighted its strategic focus on profitable growth, operational efficiencies, solution selling, product innovation, and software-driven recurring revenue. Flux Power is advancing its Sky EMS platform to bolster its transition from a battery manufacturer to a tech-driven energy solutions provider, with every battery set to be cloud-connected in the future. The company also navigated tariff challenges by adapting its supply chain and price strategies, aiming to maintain optimal margins and sustain growth.

Flux Power Holdings Financial Statement Overview

Summary
Flux Power Holdings faces financial challenges with negative net income and EBIT, and a negative equity ratio indicating solvency concerns. Despite these, there is improvement in gross profit margin and free cash flow.
Income Statement
45
Neutral
The company has shown some revenue growth, with TTM revenue increasing from the previous year. However, persistent negative net income and EBIT indicate ongoing profitability challenges. The gross profit margin has improved to 30.3% in TTM, but the net profit margin remains negative, reflecting continued losses. EBITDA margin also remains negative, indicating insufficient operating efficiency.
Balance Sheet
30
Negative
Flux Power Holdings exhibits high financial leverage, with a negative stockholders' equity in the TTM period, indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, posing significant financial risk. The equity ratio has deteriorated to negative, further highlighting financial instability.
Cash Flow
55
Neutral
The company's cash flow position shows improvement, with a positive free cash flow in the TTM period. However, the operating cash flow to net income ratio suggests that cash operations are not yet fully covering net losses. Despite improved free cash flow, the company still faces challenges in sustaining positive cash flows over time.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue60.82M66.34M42.33M26.26M16.84M
Gross Profit17.23M17.10M6.29M5.79M2.19M
EBITDA-5.57M-4.50M-15.65M-11.50M-12.41M
Net Income-8.33M-6.74M-16.47M-12.79M-14.34M
Balance Sheet
Total Assets32.30M35.70M30.88M26.26M13.97M
Cash, Cash Equivalents and Short-Term Investments643.00K2.38M485.00K4.71M726.00K
Total Debt16.16M13.03M7.75M3.30M12.26M
Total Liabilities32.11M26.16M16.95M13.26M20.39M
Stockholders Equity4.40M9.55M13.93M13.01M-6.42M
Cash Flow
Free Cash Flow-5.65M-4.61M-24.69M-19.46M-8.67M
Operating Cash Flow-4.80M-3.57M-23.89M-18.36M-8.34M
Investing Cash Flow-853.00K-1.02M-797.00K-1.10M-323.00K
Financing Cash Flow3.92M6.49M20.46M23.45M9.29M

Flux Power Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.76
Price Trends
50DMA
1.75
Positive
100DMA
1.70
Positive
200DMA
1.74
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
52.06
Neutral
STOCH
45.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUX, the sentiment is Positive. The current price of 1.76 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.75, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.06 is Neutral, neither overbought nor oversold. The STOCH value of 45.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLUX.

Flux Power Holdings Risk Analysis

Flux Power Holdings disclosed 33 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 0 New Risks

Flux Power Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$10.71B16.037.42%2.02%2.57%-16.39%
59
Neutral
$41.72M-43.18%-19.60%-483.35%
51
Neutral
$1.97B-68.46%60.04%52.49%
50
Neutral
$22.19M-62.16%-14.52%-4.40%
45
Neutral
$28.45M-1582.76%-1.45%-15.76%
45
Neutral
$42.15M-64.46%-86.56%20.19%
43
Neutral
$22.62M-207.48%-16.98%2.43%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLUX
Flux Power Holdings
1.76
-1.61
-47.77%
OESX
Orion Energy Systems
6.21
-2.50
-28.70%
IPWR
Ideal Power
5.00
-3.18
-38.88%
PPSI
Pioneer Power Solutions
3.74
0.46
14.02%
GWH
ESS Tech
1.65
-6.61
-80.02%
ENVX
Enovix
10.51
-0.06
-0.57%

Flux Power Holdings Corporate Events

Delistings and Listing ChangesPrivate Placements and Financing
Flux Power Faces Nasdaq Delisting Due to Equity Deficit
Negative
Aug 1, 2025

Flux Power Holdings, Inc. has been notified by Nasdaq that it does not meet the minimum stockholders’ equity requirement for continued listing, with a deficit of $4,372,000 as of March 31, 2025. The company plans to appeal this decision and is taking steps to raise equity capital, including a private placement and workforce reduction, to regain compliance and avoid suspension of its stock on August 11, 2025.

The most recent analyst rating on (FLUX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Flux Power Holdings stock, see the FLUX Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Flux Power Holdings Amends Financial Agreements for Flexibility
Positive
Jul 22, 2025

On July 16, 2025, Flux Power Holdings, Inc. amended its financial agreements with Cleveland Capital, L.P. and Gibraltar Business Capital, LLC. The amendments extended the due date of a promissory note with Cleveland Capital and adjusted the maturity date of a loan agreement with Gibraltar Business Capital, potentially extending it to July 31, 2027, under certain conditions. These changes reflect strategic financial management aimed at enhancing the company’s liquidity and operational flexibility.

The most recent analyst rating on (FLUX) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Flux Power Holdings stock, see the FLUX Stock Forecast page.

Private Placements and Financing
Flux Power Holdings Enters $2.9M Securities Purchase Agreement
Neutral
Jul 21, 2025

On July 18, 2025, Flux Power Holdings, Inc. entered into a Securities Purchase Agreement with accredited investors for an initial amount of approximately $2.9 million, with plans to sell up to $5 million in Prefunded Warrants. The proceeds from this private placement will be used for general corporate purposes and growth capital. The agreement includes the issuance of Series A Convertible Preferred Stock and Common Warrants, with specific rights and preferences, including conversion rights, voting rights, and dividend provisions. The closing of the private placement is contingent upon customary conditions, including shareholder approval to amend the company’s articles of incorporation.

The most recent analyst rating on (FLUX) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Flux Power Holdings stock, see the FLUX Stock Forecast page.

Legal Proceedings
Flux Power Holdings Settles Class Action Lawsuit
Negative
Jul 16, 2025

On July 11, 2025, Flux Power Holdings, Inc. reached a settlement to resolve a class action lawsuit involving the company and its former executives. The settlement involves a $1.75 million escrowed fund to cover payments to the settlement class, with the company’s liability insurers expected to fund $1.15 million and the company contributing approximately $600,000. The settlement class includes individuals who purchased the company’s stock between November 15, 2021, and February 14, 2025. The settlement is subject to court approval, and if not approved, the settlement class will be decertified.

The most recent analyst rating on (FLUX) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Flux Power Holdings stock, see the FLUX Stock Forecast page.

Shareholder Meetings
Flux Power Holdings Concludes Annual Stockholder Meeting
Neutral
May 30, 2025

On May 28, 2025, Flux Power Holdings held its 2025 Annual Stockholder Meeting (ASM) where 81.5% of the company’s common stock was represented. During the meeting, all director nominees were elected, and most proposals passed, except for the amendment to increase preferred stock, which did not receive enough votes. The meeting also approved the 2025 Equity Incentive Plan, an increase in authorized common stock, and the ratification of Haskell & White LLP as the independent accounting firm for the fiscal year ending June 30, 2025.

The most recent analyst rating on (FLUX) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Flux Power Holdings stock, see the FLUX Stock Forecast page.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 02, 2025