Flux Power Holdings Reports 37% Revenue Decline and Increased Net Loss for Fiscal Year Ending June 30, 2026

Flux Power Holdings, Inc. reported a significant decline in financial performance for the fiscal year ending June 30, 2026, with revenues dropping 37% to $42.1 million from $66.4 million in the previous year. The company attributed this decrease primarily to reduced capital spending by its largest customer in the material handling sector, increased competition, and pricing pressures exacerbated by tariffs on imported goods. The gross profit also fell to $12.7 million, resulting in a gross margin of 30%, down from 33% the previous year. The net loss for the year increased to $7.4 million, compared to a loss of $6.7 million in fiscal 2025.

In response to the challenging market conditions, Flux Power has implemented various strategic initiatives aimed at improving operational efficiency and profitability. The company has focused on cost reduction measures, including workforce adjustments and supply chain optimization, which have led to a decrease in selling, general, and administrative expenses by 27% to $16.4 million. Research and development expenses also fell by 37% to $2.8 million, reflecting a strategic shift in resource allocation amid declining revenues. Despite these efforts, the company continues to face challenges, including an event of default under its credit facility with Gibraltar Business Capital, which could impact its liquidity and operational flexibility.

Operationally, Flux Power's backlog as of June 30, 2026, stood at approximately $3.7 million, a decrease from previous periods, indicating potential difficulties in converting orders into revenue. The company has been actively working to expand its customer base and enhance its product offerings, particularly in the airport ground support equipment sector. However, the ongoing impact of tariffs and economic uncertainties has created a challenging environment for securing new orders. The company is also exploring additional financing options to support its operations, including a Committed Equity Facility with Roth Principal Investments, which allows for the sale of up to $40 million in common stock.

Looking ahead, Flux Power's management remains cautious about the future, emphasizing the need for continued operational flexibility and strategic adjustments to navigate the evolving market landscape. The company is focused on improving its gross margins and cash flow while addressing the uncertainties posed by tariffs and economic conditions. The outlook remains uncertain, with management acknowledging the potential for further challenges in meeting revenue targets and generating sufficient cash from operations.