Flux Power Holdings Reports 16% Revenue Decline but Achieves Net Income Turnaround in Q2 Fiscal 2025

Flux Power Holdings, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a revenue of $14.1 million, a decrease of 16% from $16.8 million in the same quarter of the previous year. For the six months ending December 31, 2025, total revenues were $27.3 million, down from $33.0 million year-over-year. The company achieved a net income of $601,000 for the quarter, a significant turnaround from a net loss of $1.9 million in the prior year, while the six-month net loss narrowed to $1.96 million from $3.56 million.

The decline in revenue was attributed to a shift in sales mix towards lower-priced products and reduced volumes in the material handling market, partially offset by increased sales in the ground support equipment sector. The company noted that customer order patterns were affected by economic uncertainties, including higher interest rates and global tariff impacts. Despite these challenges, Flux Power managed to improve its gross profit margin to 35% for the quarter, up from 32% a year earlier, primarily due to lower warranty costs and a favorable sales mix.

In terms of operational developments, Flux Power has been actively expanding its product offerings and customer base. The company has introduced a second tier-one OEM private label battery program and achieved UL Type EE certification for its S-Series line, enhancing its product safety and durability. The order backlog as of December 31, 2025, stood at approximately $3.8 million, reflecting a decrease due to customer deferrals and shorter order lead times. The company is focusing on cost control measures and strategic sourcing to mitigate the impact of tariffs on its operations.

Flux Power's financial position remains precarious, with a cash balance of $928,000 and $11.3 million available under its credit facility, subject to borrowing base limitations. The company has incurred an accumulated deficit of $108.3 million and utilized $4.3 million in cash for operating activities in the first half of the fiscal year. Management has indicated that it may face a compliance breach under its credit facility in February 2026, necessitating negotiations for an amendment to maintain access to funds. The company is actively exploring additional capital sources to support its operations and growth initiatives.

Looking ahead, Flux Power remains committed to addressing the growing demand for lithium-ion energy storage solutions, particularly in the material handling sector. The company plans to invest in research and development to enhance its product mix and improve customer support. However, ongoing uncertainties related to tariffs and economic conditions may continue to pose challenges to its revenue growth and operational stability.