Executive Summary
Flux Power Holdings posted Q2 2025 revenue of $16.83 million, up 4.37% QoQ but down 8.25% YoY. The company delivered a gross profit of $5.463 million and a gross margin of 32.46%, modestly improving on a year-over-year basis but with negative operating leverage evident in an EBIT of -$1.479 million and EBITDA of -$1.229 million. Net income declined to -$1.889 million, or -$0.11 per share, underscoring sustained profitability challenges despite positive cash generation from operations. Cash flow from operations stood at $4.30 million for the quarter, contributing to a free cash flow of $4.56 million and ending cash of $0.883 million. While the cash story is positive in the near term, Flux carries a weak balance sheet signature: total assets of $28.96 million against total liabilities of $31.70 million and negative shareholders’ equity of -$2.74 million, resulting in a net debt position of approximately $11.7 million and a current ratio of 0.83. These dynamics imply a liquidity risk profile that could constrain growth initiatives absent strategic financing or working capital optimization.
Key Performance Indicators
QoQ: -22.03% | YoY:-230.87%
QoQ: -13.06% | YoY:-110.60%
QoQ: -10.00% | YoY:-83.33%
Key Insights
Revenue: $16.83m in QQ2 2025; YoY -8.25%, QoQ +4.37%.
Gross Profit: $5.463m; Gross Margin 32.46%; YoY +1.05%, QoQ +4.70%.
Operating Income: -$1.479m; Operating Margin -8.79%; YoY -230.87%, QoQ -22.03%.
Net Income: -$1.889m; Net Margin -11.21%; YoY -110.60%, QoQ -13.06%.
EPS: -$0.11; YoY -83.33%, QoQ -10.00%.
Cash Flow: Operating Cash Flow $4.298m; Capex $0.265m; Free Cash Flow $4.563m; Net Change in Cash $0.324m; Cash at End $0.883m.
Balance Sheet: Total Assets $28.959m; Total Liabilities $31.69...
Financial Highlights
Revenue: $16.83m in QQ2 2025; YoY -8.25%, QoQ +4.37%.
Gross Profit: $5.463m; Gross Margin 32.46%; YoY +1.05%, QoQ +4.70%.
Operating Income: -$1.479m; Operating Margin -8.79%; YoY -230.87%, QoQ -22.03%.
Net Income: -$1.889m; Net Margin -11.21%; YoY -110.60%, QoQ -13.06%.
EPS: -$0.11; YoY -83.33%, QoQ -10.00%.
Cash Flow: Operating Cash Flow $4.298m; Capex $0.265m; Free Cash Flow $4.563m; Net Change in Cash $0.324m; Cash at End $0.883m.
Balance Sheet: Total Assets $28.959m; Total Liabilities $31.696m; Shareholders’ Equity -$2.737m; Net Debt $11.70m; Current Ratio 0.830; Quick Ratio 0.331; Cash Ratio 0.0287.
Efficiency/Leverage: DSO 45.25 days; DIO 121.32 days; DPO 103.20 days; CCC 63.37 days; Asset Turnover 0.581; Inventory Turnover 0.742; Receivables Turnover 1.989; Debt/Equity -4.60 (reflecting negative equity); Price/Sales 1.57; Enterprise Value Multiple -30.97.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
16.83M |
-8.25% |
4.37% |
| Gross Profit |
5.46M |
1.05% |
4.70% |
| Operating Income |
-1.48M |
-230.87% |
-22.03% |
| Net Income |
-1.89M |
-110.60% |
-13.06% |
| EPS |
-0.11 |
-83.33% |
-10.00% |
Key Financial Ratios
operatingProfitMargin
-8.79%
operatingCashFlowPerShare
$0.26
freeCashFlowPerShare
$0.27
Management Commentary
No earnings call transcript data was provided for QQ2 2025. Consequently, no management quotes or theme-based highlights can be extracted from a transcript in this report. If a transcript becomes available, we will extract themes by: 1) strategy (growth initiatives, product mix), 2) operations (cost controls, manufacturing/fulfillment efficiency), and 3) market conditions (demand for industrial energy storage, competitive dynamics).
Forward Guidance
Formal forward guidance was not disclosed in the QQ2 2025 filing. In the absence of explicit targets, the near-term growth trajectory will hinge on: 1) improving gross margin discipline and operating leverage, 2) managing working capital to support free cash flow generation, 3) reducing debt and restoring equity value, and 4) sustaining demand in industrial electric storage for lift trucks and related equipment. Investors should monitor quarterly progress on receivables and inventory turns, cash conversion cycles, and any capital-raising actions or debt restructuring that could alter Flux’s liquidity and leverage profile. Given current metrics, achievability of meaningful profitability improvements will likely depend on cost containment and scale effects realized through a higher mix of high-margin products and potential efficiency gains in manufacturing and distribution.