Flux Power Holdings Reports 16% Revenue Growth in Q3 Fiscal 2025

Flux Power Holdings, Inc. reported its financial results for the third quarter of fiscal year 2025, revealing a revenue increase of 16% to $16.7 million compared to $14.5 million in the same period last year. For the nine months ending March 31, 2025, total revenues reached $49.7 million, up from $47.4 million in the prior year. The company’s gross profit also improved, rising to $5.3 million (32% of revenue) for the quarter, compared to $4.0 million (28% of revenue) in the previous year. Despite these gains, Flux Power recorded a net loss of $1.9 million for the quarter, a reduction from a loss of $3.0 million in the same period last year.

The company’s financial performance reflects a strategic focus on expanding its market presence, particularly in the material handling and ground support equipment sectors. The increase in revenue was attributed to higher demand in these markets, with unit growth of 10% in material handling and 25% in ground support. However, the company faced challenges, including delays in new orders for energy storage solutions due to reduced capital spending by customers and interest rate variability affecting large customer fleets. As a result, the order backlog as of March 31, 2025, was approximately $16.9 million, indicating a cautious outlook for future revenue recognition.

Operationally, Flux Power has made significant strides in enhancing its product offerings and customer engagement. The company has introduced a second "tier one" OEM private label battery program and is expanding its telemetry solutions to improve asset management for customers. Additionally, Flux Power is actively pursuing partnerships to enhance its recycling processes for end-of-life lithium-ion batteries, demonstrating a commitment to environmental sustainability. The company’s employee headcount has also seen changes, with the appointment of Krishna Vanka as the new CEO following the retirement of Ronald Dutt.

Despite the positive developments, Flux Power faces ongoing challenges, particularly related to its financial health. As of March 31, 2025, the company reported a cash balance of $0.5 million and total liabilities of $34.9 million, resulting in a stockholders' equity deficit of $4.4 million. The company has relied on credit facilities to fund operations, with $5.0 million available under its revolving line of credit and $1.0 million under a subordinated line of credit. However, management has expressed concerns about the sufficiency of these resources to meet anticipated capital needs over the next twelve months, particularly in light of recent tariff increases affecting imported materials.

Looking ahead, Flux Power is focused on improving profitability through cost reduction initiatives and potential price increases for its products. The company is also evaluating additional funding options to support its operations and growth strategies. However, uncertainties related to tariffs, supply chain disruptions, and market conditions may impact its ability to achieve these goals. Management remains committed to navigating these challenges while striving for operational improvements and market expansion.