Flux Power reported a bifurcated QQ1 2025 performance characterized by revenue stability and margin expansion, offset by ongoing restatement-related costs and near-term profitability headwinds. In the fiscal first two quarters of 2025, Flux generated revenue of $16.1 million (Q1) and $16.8 million (Q2), marking a YoY progression in Q1 (+9% vs. F1 2024) and a YoY decline in Q2 (-8% vs. Q2 2024) with a positive sequential trend from Q1 to Q2. Gross margins expanded meaningfully from 27% in FY2024 Q4 to 32% in Q1 2025 and 33% in Q2 2025, driven by price increases, cost reductions, and favorable mix, while operating losses persisted due to restatement remediation costs and higher SG&A in Q2. The company reports a solid backlog and improving demand signals: open order backlog was $19.5 million as of Feb 28, 2025, with interim backlogs of $17.5 million as of Dec 31, 2024, suggesting a favorable long-term trajectory if the revenue cadence stabilizes. Management emphasizes transformative growth levers, including expanded product lines, heavier-duty models, and a software-enabled telemetry ecosystem (SkyBMS) with a potential recurring software revenue model. Management also underscored strategic OEM partnerships, UL EE-certified products, and a growing installation base (over 25,000 Flux-powered packs across North America). Near-term profitability remains contingent on sustaining higher gross margins, rationalizing costs post-restatement, and realizing scale in software-enabled solutions. The outlook combines modest Q3 revenue alignment with Q2 and a projected 5-10% QoQ uplift in Q4, with adjusted EBITDA breakeven to modest positive cash flow in Q4, signaling a potential path to profitability if demand stabilizes and cost controls persist.