Flux Power Holdings Inc (FLUX) Q3 2025 Earnings Report

Flux Power reported 3Q25 revenue of $16.7 million, up 15.8% year over year, supported by stronger demand in material handling and ground support equipment (GSE) markets. Gross profit rose 32.5% to $5.3 million, lifting gross margin to 32.0% from 28.0% a year earlier, driven by lower warranty costs though offset by higher material costs. The quarter delivered an improved operating loss and net loss of $1.9 million, vs. a year-ago loss of $3.0 million, with Adjusted EBITDA at a negative $1.1 million (vs. negative $1.7 million in 3Q24). Despite top-line progress, Flux remains cash-flow negative and leverages a tight liquidity position, ending the quarter with roughly $0.5 million in cash and a $16 million credit facility plus a $1 million subordinated line of credit, subject to covenants. Management articulated a clear strategy to evolve Flux from a battery manufacturer to a software-enabled energy solutions provider, anchored by five initiatives (profitable growth, operational efficiencies, solution selling, right products, and software/recurring revenue). Key product developments include the G96 high-power platform for airport GSE and the Sky EMS software/IoT ecosystem, with Sky EMS already in pilots and a plan to cloud-connect every battery shipped. Tariff headwinds and supply-chain diversification remain near-term risks, but Flux expects improved margins and longer-term recurring revenue through software, data-driven services, and higher-value hardware offerings. The Q3 results underscore Flux’s pivot toward higher-margin, software-enabled solutions and domestic manufacturing resilience, while highlighting the near-term cash and liquidity challenges that require ongoing attention from investors.