Executive Summary
Flux Power Holdings reported a materially negative quarterly result for QQ4 2024, underscoring a challenging near-term operating environment for smaller lithium-ion energy storage players focused on industrial applications. Revenue for the quarter was $13.226 million, down 18.6% year over year and 8.5% quarter over quarter, accompanied by a gross profit of $3.126 million and a gross margin of 23.6%. The company posted a net loss of $2.767 million, or $(0.13) per share, and an EBITDA of $(2.076) million, signaling ongoing operating deleverage despite some sequential margin improvements.
Liquidity and balance sheet metrics point to a tight near-term liquidity profile. Cash at period-end stood at about $0.643 million, with total cash and equivalents of roughly $1.584 million reported on the balance sheet, and net debt of $15.514 million. Working capital dynamics remained a concern, with a current ratio near 1.07 and a quick ratio of 0.53, reflecting elevated receivables and inventory relative to payables. Management commentary, where available, emphasized product development and customer engagement, but no formal earnings call transcript was provided in the data set, limiting the ability to extract direct management quotes for QQ4 2024.
Taken together, Flux Power remains in a high-leverage, growth-constrained phase. The company faces the dual challenge of generating sustainable profitability while stabilizing liquidity. The longer-term investment thesis hinges on Flux’s ability to monetize its lithium-ion energy storage platforms, optimize working capital, and grow volumes through OEM and end-market channels as industrial electrification and automated warehousing trends persist. Investors should weigh Flux’s niche position in BMS-enabled storage solutions against its current cash burn, debt burden, and margin compression.
Key Performance Indicators
QoQ: -8.51% | YoY:-18.62%
QoQ: -22.34% | YoY:-27.72%
QoQ: 9.25% | YoY:-110.65%
QoQ: 27.78% | YoY:-42.54%
Key Insights
Revenue: $13.226 million (Q4 2024). YoY: -18.62%, QoQ: -8.51%.
Gross Profit: $3.126 million; Gross Margin: 23.64%. YoY Gross Profit decline: -27.72%; QoQ decline: -22.34%.
Operating Income: -$2.334 million; Operating Margin: -17.647%. YoY: -110.65% (deepening loss); QoQ: +9.25% improvement from prior quarter though still negative.
Net Income: -$2.767 million; Net Margin: -20.92%. YoY: -87.47%; QoQ: +7.92% improvement in net loss.
EPS (Diluted): -$0.13; Weighted avg shares: 16.549 million.
EBITDA...
Financial Highlights
Revenue: $13.226 million (Q4 2024). YoY: -18.62%, QoQ: -8.51%.
Gross Profit: $3.126 million; Gross Margin: 23.64%. YoY Gross Profit decline: -27.72%; QoQ decline: -22.34%.
Operating Income: -$2.334 million; Operating Margin: -17.647%. YoY: -110.65% (deepening loss); QoQ: +9.25% improvement from prior quarter though still negative.
Net Income: -$2.767 million; Net Margin: -20.92%. YoY: -87.47%; QoQ: +7.92% improvement in net loss.
EPS (Diluted): -$0.13; Weighted avg shares: 16.549 million.
EBITDA: -$2.076 million; EBITDA Margin: -15.69%.
Cash Flow: Operating cash flow -$0.524 million; Capex -$0.265 million; Free Cash Flow -$0.789 million.
Balance Sheet (as of 2024-06-30): Cash & equivalents $1.584 million; Total assets $35.087 million; Total liabilities $32.107 million; Net debt $15.514 million; Long-term debt $2.387 million; Short-term debt $14.724 million; AR $12.726 million; Inventory $15.554 million; Current assets $30.806 million; Current liabilities $28.797 million; Total stockholders’ equity $4.401 million; Retained earnings negative $94.463 million.
Liquidity/Leverage: Current ratio 1.07; Quick ratio 0.53; Cash ratio 0.055; Debt to equity 3.67; Debt ratio 0.46; Long-term debt to capitalization 0.352; Free cash flow yield negative; Cash burn evident despite small quarterly capex.
Valuation/Multiples (where relevant): Price-to-sales 3.84; Price-to-book 11.54; Enterprise value multiple negative in current data due to net cash/ debt construct; Profitability metrics remain negative in QQ4 2024.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.23M |
-18.62% |
-8.51% |
| Gross Profit |
3.13M |
-27.72% |
-22.34% |
| Operating Income |
-2.33M |
-110.65% |
9.25% |
| Net Income |
-2.77M |
-87.47% |
7.92% |
| EPS |
-0.13 |
-42.54% |
27.78% |
Key Financial Ratios
operatingProfitMargin
-17.6%
operatingCashFlowPerShare
$-0.03
freeCashFlowPerShare
$-0.05
Management Commentary
Transcript not available in the provided dataset. No QQ4 2024 earnings call transcript or management quotes were supplied, so direct management quotes could not be extracted or quoted. If a transcript becomes available, we will extract key themes under strategy, operations, and market conditions, and map them to the financial outcomes (e.g., cost controls, order backlog, pricing, and capital allocation).
Transcript not available in the provided data.
— Management
Transcript not available in the provided data.
— Management
Forward Guidance
Management guidance for QQ4 2024 and near-term outlook is not included in the provided data. In the absence of explicit guidance, the forward view should rely on industry secular trends and Flux’s internal initiatives. Expected drivers include: (i) continued demand for lithium-ion energy storage solutions in lift trucks, airports, and other industrial applications; (ii) potential cost optimization through manufacturing efficiencies and supply chain improvements; (iii) potential OEM partnerships or expanded aftermarket channels to broaden revenue base. Risks to achievability include elevated working capital needs, ongoing depreciation of the modular storage solution, and the company’s leverage which could constrain capital expenditure and working capital flexibility. Near-term milestones to monitor: stabilization or expansion of revenue run-rate, reduction in days sales outstanding and days inventory, ongoing cost discipline in SG&A and OPEX, and any debt refinancing or covenant relief that could improve liquidity.