Flux Power (NASDAQ:FLUX) Releases Earnings Results, Meets Estimates

Flux Power (NASDAQ:FLUX) posted its quarterly earnings data on Tuesday. The company reported ($0.14) earnings per share for the quarter, meeting the consensus estimate of ($0.14), FiscalAI reports. The company had revenue of $6.76 million during the quarter, compared to analysts’ expectations of $6.25 million. Flux Power had a negative return on equity of 231.21% and a negative net margin of 17.68%.

Here are the key takeaways from Flux Power’s conference call:

• Order momentum improved as a previously paused major customer resumed purchases, while 25 orders from first-time customers represented approximately $750,000 in new revenue.
• Management expects fiscal second-quarter revenue of $7 million–$8 million and fiscal third-quarter revenue of $9 million–$10 million, supported by a combination of new and existing customers with high-probability opportunities.
• Flux Power is advancing three major OEM programs, five white-label evaluations, and dealer-network initiatives; management expects some new OEM orders toward the end of fiscal 2027 and sees potential growth in robotics and fleet-replacement markets.
• First-quarter revenue fell to $6.8 million from $13.2 million a year earlier, while gross margin declined to 24.8% and adjusted EBITDA deteriorated to negative $2.6 million due to lower volume, product mix, and higher warranty costs.
• Liquidity remains a significant concern, with only $0.4 million in cash at quarter-end; the company said its lender requires at least $4 million of net capital and that it is evaluating an equity facility, financing alternatives, and strategic partnerships.

Flux Power Trading Down 2.8%

FLUX traded down $0.01 during mid-day trading on Wednesday, hitting $0.43. The stock had a trading volume of 54,998 shares, compared to its average volume of 1,099,402. The stock’s fifty day simple moving average is $0.50 and its 200-day simple moving average is $0.92. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.03 and a quick ratio of 0.30. The firm has a market capitalization of $9.38 million, a price-to-earnings ratio of -1.14 and a beta of 1.63. Flux Power has a 1-year low of $0.39 and a 1-year high of $2.57.

Analysts Set New Price Targets

Several research firms recently issued reports on FLUX. Zacks Research raised shares of Flux Power from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 7th. Roth Capital set a $1.60 price objective on Flux Power in a report on Friday, August 21st. Lake Street Capital downgraded Flux Power from a “buy” rating to a “hold” rating and set a $1.00 target price for the company. in a research report on Wednesday. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Flux Power in a research note on Wednesday, August 12th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $1.30.

About Flux Power

Flux Power Holdings, Inc develops, manufactures and sells lithium-ion battery systems for commercial and industrial applications. The company focuses primarily on energy solutions for material-handling equipment, including electric forklifts, pallet jacks, reach trucks and other warehouse vehicles.

Its product portfolio includes modular lithium-ion battery packs, battery-management systems, chargers and related software and monitoring capabilities. These systems are designed to support fleet electrification, improve energy efficiency and reduce the maintenance requirements associated with traditional lead-acid batteries.

Flux Power serves customers in the material-handling, warehousing, distribution, manufacturing and airport ground-support markets.