FLUX earnings analysis
What we found in FLUX's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Flux retains a potentially attractive position in industrial lithium-ion storage through its modular platform, proprietary BMS, three patents and OEM relationships, and fiscal 2026 included a new forklift OEM approval and product-cost initiatives. However, the financial trajectory deteriorated materially: revenue declined 37% to $42.132 million, net loss widened to $7.448 million, operating margin fell to negative 15%, and operating cash use reached $5.9 million. The company’s $305,000 cash balance, GBC covenant default, substantial doubt about going-concern status, concentrated customers and China-based cell supply create significant near-term financing and execution risk.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Large electrification market opportunity
- Flux targets large forklift and ground-support-equipment fleets and aims to become a supplier of choice through expanded R&D, sales, customer support and production efficiency. Its material-handling opportunity is described as a multi-billion-dollar addressable market, while global lift-truck demand is expected to grow at approximately 7.0% CAGR from 2025 through 2030.
- Proprietary BMS and modular platform
- The company has three issued U.S. patents covering battery-life optimization, battery-health monitoring and AI-based predictive cell balancing. Its modular architecture and proprietary BMS are intended to support multiple pack sizes, chemistries and applications.
- Product roadmap supports margin recovery
- Fiscal 2026 product development included a new forklift OEM approval, higher-capacity designs, improved service access and greater part commonality. Management expects these design and serviceability initiatives to improve manufacturing efficiency and gross margins.
- Meaningful cost and interest reduction
- Operating expenses declined 28% year over year to $19.191 million, including SG&A down 27% to $16.377 million and R&D down 37% to $2.814 million. Interest expense also declined 45% to $853,000 as average borrowings decreased.
- Equity financing restored positive equity
- The balance sheet improved from a $5.404 million stockholders’ deficit at June 30, 2025 to $2.558 million of equity at June 30, 2026, supported by approximately $9.760 million of net public-offering proceeds and $4.348 million of net private-placement proceeds.
- Debt balance materially reduced
- The company reduced its GBC revolving-credit balance by $7.3 million during fiscal 2026, ending with approximately $6.3 million outstanding and $9.7 million of stated availability, subject to borrowing-base limitations.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Going-concern and liquidity shortfall
- The auditor and management identified substantial doubt about continuing as a going concern. Cash was only $305,000 at June 30, 2026, the company used $5.9 million in operating cash and management says existing cash and expected funding will not cover planned operations for the next twelve months.
- GBC covenant default threatens financing
- Flux notified GBC on March 31, 2026 that it breached the minimum EBITDA covenant, creating an event of default. Although GBC has allowed continued borrowing, it may discontinue availability or demand repayment of the approximately $6.3 million outstanding balance and has security over substantially all tangible and intangible assets.
- Demand decline and customer concentration
- Revenue fell 37% to $42.132 million in fiscal 2026 from $66.434 million in fiscal 2025, while net loss widened 12% to $7.448 million and operating margin deteriorated to negative 15% from negative 8%. The largest material-handling customer significantly reduced its capital-expenditure budget, and two customers still represented 71% of fiscal 2026 revenue.
- Single-source China and tariff exposure
- All lithium-ion battery cells are sourced from a single manufacturer in China, with no qualified alternative source currently available. The company temporarily paused imports from that supplier amid tariff uncertainty, and one supplier represented approximately $7.002 million, or 20%, of fiscal 2026 purchases.
- Tariffs pressure margins and demand
- Tariffs increased per-unit costs and contributed to lower margins; fiscal 2026 gross margin declined to 30% from 33% despite pricing and supply-chain actions. Management states that further tariff changes are difficult to forecast and could further affect revenues, profitability and cash flows.
- Nasdaq minimum-bid-price deficiency
- The company received a Nasdaq notice on July 24, 2026 after its bid price remained below $1.00 for 30 consecutive business days. It has 180 calendar days to regain compliance, and failure could lead to delisting and reduced access to capital markets.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.38
- Gross margin
- 30.0%
- Operating margin
- -15.0%
- Segment
- Single operating and reporting segment: lithium-ion energy storage solutions for material handling, airport ground support equipment and stationary energy storage; fiscal 2026 revenue was $42.132 million versus $66.434 million in fiscal 2025.
- Segment
- Geography: revenues and net losses were solely generated from operations in the United States; all long-lived assets are held in the United States.
What they said about what is next.
No formal numeric revenue or EPS guidance was provided. Management expects increased revenues, gross-margin improvement and lower operating expenses to move the Company closer to profitability, but states that existing cash and expected funding sources will not be sufficient for planned operations over the next twelve months.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 7, 2026
- Flux Power Holdings, Inc. reported significant challenges in Q3 2026, with revenues declining 61% year-over-year to $6.6 million, resulting in a net loss of $3.2 million, compared to a $1.9 million loss in the prior…
- 10-Q · February 12, 2026
- Flux reported quarterly revenue of $14,121,000 and GAAP net income of $601,000 (basic/diluted EPS $0.03) for the three months ended December 31, 2025. Gross profit improved to $4,895,000 (≈34.7% gross margin) and…
- 10-K · September 17, 2025
- Flux Power positions itself as a supplier of modular lithium‑ion energy storage for material handling, GSE and other mobile applications, emphasizing telemetry (SkyBMS), OEM partnerships and product certifications to…
- 10-Q · March 20, 2025
- Flux reported three months ended December 31, 2024 revenue of $16.83M, down from $18.20M a year earlier, with gross profit essentially flat at $5.463M and a wider operating loss of $1.479M (vs. $0.447M). Liquidity…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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