Flux Power Holdings, Inc. (FLUX): Results of Operations and Financial Condition
Flux Power Holdings, Inc. (FLUX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Flux Power Reports 2026 Fiscal Fourth Quarter and Full Year Financial Results Vista, CA — August 20, 2026 — Flux Power Holdings, Inc. (NASDAQ: FLUX) (“Flux Power” or the “Company”), a leading developer of advanced lithium-ion energy storage solutions and fleet intell
How this was made
The 30-second read
Why it matters
The earnings miss and low cash balance suggest near‑term downside risk, but cost cuts and product rollout could be catalysts for a turnaround.
Market read
Micro‑cap earnings release with material revenue decline; likely to move FLUX stock in the short term.
What to watch
Recent OEM certification and cost‑reduction initiatives may improve margins in FY2027.
Flux Power reports $8.2 million fourth-quarter revenue, up 25% sequentially, while full-year revenue declined to $42.1 million and cash was $0.3 million.
Fourth-quarter revenue, operating loss, net loss and adjusted EBITDA improved sequentially, supported by increased customer orders and shipments into a new vertical market, but revenue, gross margin, profitability and adjusted EBITDA remained materially below the prior-year quarter. Full-year revenue and profitability also declined, and cash was $0.3 million at June 30, 2026.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, fiscal fourth quarterGAAP | $8.2 million | increased 25% sequentially | – |
| Revenue, fiscal year 2026GAAP | $42.1 million | – | – |
| Cost of sales, fiscal fourth quarterGAAP | $6.0 million | – | – |
| Cost of sales, fiscal year 2026GAAP | $29.4 million | – | – |
| Gross profit, fiscal fourth quarterGAAP | $2.3 million, or 27.4% of revenue | – | – |
| Gross profit, fiscal year 2026GAAP | $12.7 million, or 30.2% of revenue | – | – |
| Selling, general and administrative expense, fiscal fourth quarterGAAP | $3.7 million | – | – |
| Research and development expense, fiscal fourth quarterGAAP | $0.6 million | – | – |
| Operating expenses, fiscal fourth quarterGAAP | $4.4 million | – | decreased by approximately 33% from the 2025 fiscal fourth quarter |
| Operating expenses, fiscal year 2026GAAP | $19.2 million | – | – |
| Operating loss, fiscal fourth quarterGAAP | $2.1 million | – | – |
| Operating loss, fiscal year 2026GAAP | $6.5 million | – | – |
| Non-GAAP operating loss, fiscal fourth quarternon-GAAP | $1.9 million | – | – |
| Non-GAAP operating loss, fiscal year 2026non-GAAP | $5.5 million | – | – |
| Net loss, fiscal fourth quarterGAAP | $2.3 million, or ($0.11) per share | – | – |
| Net loss, fiscal year 2026GAAP | $7.4 million, or ($0.38) per share | – | – |
| Non-GAAP net loss, fiscal fourth quarternon-GAAP | $2.1 million, or ($0.10) per share | – | – |
| Non-GAAP net loss, fiscal year 2026non-GAAP | $6.5 million, or ($0.33) per share | – | – |
| Adjusted EBITDA, fiscal fourth quarternon-GAAP | negative $1.6 million | – | – |
| Adjusted EBITDA, fiscal year 2026non-GAAP | negative $4.5 million | – | – |
| Interest expense, net, fiscal fourth quarterGAAP | $0.2 million | – | – |
| Interest expense, net, fiscal year 2026GAAP | $0.9 million | – | – |
What drove it
- Fourth-quarter revenue increased 25% sequentially due to increased customer orders and shipments into a new vertical market.
- The company said operating-expense reductions reflected earlier headcount reductions and streamlining of its operating model.
- The company said it aggressively optimized its supply chain, lowered product costs and advanced product redesign efforts aimed at improving margins.
- Flux Power released SkyEMS® 3.0 with AI-powered insights, predictive analytics and customizable dashboards.
- The company achieved certification with a new major OEM during the quarter.
- Flux Power appointed Stu Jacover as Vice President of Sales for Material Handling and launched new marketing programs intended to diversify the customer base.
Concerns
- Fourth-quarter revenue was $8.2 million versus $16.7 million in the same quarter a year ago, and fiscal 2026 revenue was $42.1 million versus $66.4 million in fiscal 2025.
- Fourth-quarter gross margin was 27.4% versus 34.5% in the same quarter a year ago, while fiscal-year gross margin was 30.2% versus 32.7% in fiscal 2025.
- The company remained unprofitable, with a fiscal fourth-quarter GAAP operating loss of $2.1 million, GAAP net loss of $2.3 million and adjusted EBITDA of negative $1.6 million.
- Cash was $0.3 million at June 30, 2026. The filing identifies continued access to its credit facility, securing sufficient funding and the ability to continue as a going concern among risks.
- The filing identifies risks related to Nasdaq continued-listing standards, tariffs, sourcing, customer concentration, component delays, competitive pressure and the expense, timing and outcome of legal proceedings related to accounting practices and financial disclosures.
What to watch
- Whether increased customer orders, shipments into a new vertical market, the new Material Handling sales leadership and new marketing programs translate into revenue growth.
- Progress in supply-chain optimization, lower product costs and product redesign efforts intended to improve gross margin.
- The effect of certification with a new major OEM on the company's addressable market within Material Handling.
- Cash liquidity, access to the Gibraltar Business Capital, LLC credit facility and the company's ability to secure sufficient funding.
- Whether the leaner cost structure can further reduce operating losses and advance the path to profitability.
Balance sheet and cash flow
- Cash was $0.3 million as of June 30, 2026, compared to $0.4 million as of March 31, 2026 and $1.3 million as of June 30, 2025.
- Accounts receivable, net was $4.9 million as of June 30, 2026, compared to $11.4 million as of June 30, 2025.
- Inventories, net were $14.8 million as of June 30, 2026, compared to $17.2 million as of June 30, 2025.
- Line of credit was $6.3 million as of June 30, 2026, compared to $13.6 million as of June 30, 2025.
- Total current liabilities were $20.0 million as of June 30, 2026, compared to $39.6 million as of June 30, 2025.
- Total liabilities were $21.6 million as of June 30, 2026, compared to $40.2 million as of June 30, 2025.
- Total stockholders' equity (deficit) was $2.6 million as of June 30, 2026, compared to stockholders' deficit of $5.4 million as of June 30, 2025.
- Operating cash flow and free cash flow were not reported.
Analysis
Flux Power's fourth quarter showed a sequential recovery but a materially weaker year-over-year revenue base. Revenue was $8.2 million, compared with $6.6 million in the prior quarter and $16.7 million in the same quarter a year ago. Management attributed the sequential increase to higher customer orders and shipments into a new vertical market. For fiscal 2026, revenue was $42.1 million, compared with $66.4 million in fiscal 2025.
Margins stabilized sequentially but remained below the prior-year period. Fourth-quarter gross profit was $2.3 million, or 27.4% of revenue, versus $1.8 million, or 27.3% of revenue, in the prior quarter and $5.8 million, or 34.5% of revenue, a year earlier. Full-year gross margin was 30.2%, compared with 32.7% in fiscal 2025. The company highlighted supply-chain optimization, lower product costs and product redesign efforts as initiatives aimed at improving margins.
Cost actions drove improved sequential profitability. Fourth-quarter operating expenses were $4.4 million, down from $4.8 million in the prior quarter and $6.5 million a year ago. Flux Power said the reduction primarily reflected headcount reductions and a streamlined operating model, while fiscal 2025 also included $2.9 million of restatement-related costs. The sequentially improved expense base reduced the GAAP operating loss to $2.1 million from $3.0 million and improved adjusted EBITDA to negative $1.6 million from negative $2.5 million. However, each fourth-quarter profitability measure was weaker than the prior-year quarter.
The balance sheet and liquidity remain central considerations. Cash was $0.3 million at June 30, 2026, compared with $0.4 million at March 31, 2026. The company reported $6.3 million of line-of-credit borrowings and $21.6 million of total liabilities. The filing specifically cites continued access to its credit facility, the ability to secure sufficient funding and the ability to continue as a going concern as risk factors.
Flux Power provided no quantitative fiscal 2027 outlook. Operationally, the release points to SkyEMS® 3.0, a new major OEM certification, a new Vice President of Sales for Material Handling and marketing programs to diversify the customer base as growth enablers. Investors will need to assess whether these actions can sustain revenue recovery, restore gross margin and reduce losses while the company manages its funding requirements.
Management, verbatim
Fourth quarter revenue increased 25% sequentially, slightly ahead of the expectations we conveyed on last quarter’s call due to increased customer orders and shipments into a new vertical market.
Krishna Vanka, Chief Executive Officer
To improve our overall cost structure, we executed decisive expense reduction and efficiency initiatives over the past year that resulted in a 30% reduction in fourth quarter operating expenses compared to the prior year quarter.
Krishna Vanka, Chief Executive Officer
With a leaner cost structure, a refreshed sales leadership team, expanding OEM relationships and upgraded offerings in place, I believe we are well positioned to deliver renewed growth and accelerate our path to profitability as broader economic conditions improve.
Krishna Vanka, Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative forward guidance for revenue, gross margin, operating expenses, tax rate or other financial measures was not provided.
- Prior-quarter outlook was not provided.
- Segment revenue was not provided.
- Operating cash flow was not provided.
- Free cash flow was not provided.
- Capital returns, including share repurchases and dividends, were not provided.
- Debt maturity and credit-facility availability were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Flux Power Holdings (NASDAQ: FLUX) filed an 8‑K reporting its fiscal Q4 and full‑year 2026 results, highlighting revenue decline, operating losses, a new product launch, and a senior sales hire.
Ticker impact
SEC Form 8‑K discloses Flux Power's Q4 and full‑year 2026 financial results, including revenue decline, operating loss and new product launch.
potential downside pressure pending market reaction to earnings miss
Revenue fell 25% YoY and cash on hand is only $0.3 M, indicating liquidity concerns.
Market effects
Lithium‑ion storage and fleet‑intelligence sector may face scrutiny as a micro‑cap with weak earnings.
Limited to U.S. small‑cap investors; no broader regional effect.
Low global relevance beyond niche energy‑storage niche.
Counterpoint
If the new AI‑driven SkyEMS platform gains traction, the stock could rebound despite short‑term losses.
Key entities
- CompanyFlux Power Holdings, Inc.
Issuer of the 8‑K filing.
- ExecutiveKrishna Vanka
CEO providing commentary on results.
