Flux Power Holdings, Inc.

What they do

Flux Power, incorporated in Nevada in 1998 and operating through subsidiary Flux Power, Inc., designs, develops, manufactures and sells modular lithium-ion battery packs paired with a proprietary wireless battery management system, positioned as a replacement for lead-acid and propane solutions. Its largest market is material handling (forklift fleets), with additional use in airport ground support equipment and other mobile energy storage applications. The company also sells the SkyEMS telemetry and fleet management software layer across its battery portfolio.

Revenue drivers

• Material handling (forklift) battery packs — The company's stated largest sector of penetration and a multi-billion-dollar addressable market; sales are made to customers with large forklift fleets and remain the core of reported revenue.
• Airport ground support equipment (GSE) — A second named vertical served with the same modular lithium-ion packs and battery management system, sold to fleet operators alongside material handling.
• Other industrial / mobile energy storage — Applications of the modular packs outside material handling and GSE, which the 10-Q describes as providing additional current growth.
• SkyEMS software and telemetry — Value-add fleet telemetry software integrated across the battery portfolio; the company launched SkyEMS 3.0 in the June 2026 quarter with AI-powered insights and predictive analytics.

Recent performance

Fiscal 2026 revenue was $42.1 million, down from $66.4 million in fiscal 2025, with a full-year net loss of $7.4 million and diluted EPS of ($0.38). Fourth-quarter fiscal 2026 revenue was $8.2 million, up 25% sequentially from $6.6 million in the March 2026 quarter but down from $16.7 million a year earlier. Fourth-quarter gross margin was 27.4%, compared with 27.3% sequentially and 34.5% in the prior-year quarter; full-year gross margin was 30.2% versus 32.7% in fiscal 2025. Fourth-quarter operating expenses fell to $4.4 million from $6.5 million a year ago, and the full-year operating loss was $6.5 million versus $5.0 million in fiscal 2025. Order backlog was approximately $5.3 million at March 31, 2026.

Strategy

Management's stated near-term priority is achieving profitability through supply chain improvements, product redesign, cost reductions and gross margin expansion. The company is pursuing a solutions-selling approach, expanding OEM relationships (including a new major OEM certification during the June 2026 quarter), and building products jointly with customers. It added Stu Jacover as Vice President of Sales for Material Handling and launched new marketing programs to diversify the customer base. It also released SkyEMS 3.0 with AI-driven fleet management features to differentiate its offering.

Risks

• Going concern — The auditor's report includes an explanatory paragraph on going-concern doubt, and management states existing cash, forecasted gross margin and the Committed Equity Facility will not be sufficient to fund planned operations for the next twelve months.
• Credit facility dependence — Continued operations are partially contingent on availability of the GBC Credit Facility, which the company says may become unavailable due to a covenant breach.
• Customer order slowdown — Backlog fell to about $5.3 million at March 31, 2026 from $21.2 million at December 31, 2024, reflecting certain significant customers reducing orders and others shifting to shorter lead times amid tariff and economic uncertainty.
• Tariffs and supply chain — Since January 2025 the U.S. raised or added import tariffs across many countries including China, and the company states tariffs have negatively impacted its revenues, profitability and cash flows despite supply chain adjustments and price increases.

Outlook

Management says it expects a leaner cost structure, refreshed sales leadership, expanding OEM relationships and upgraded offerings to support renewed growth and accelerate the path to profitability in fiscal 2027 and beyond. It attributes the fiscal 2026 decline partly to headwinds during the CEO's first eighteen months and to customer deferrals of forklift purchases tied to lower capital spending and interest rate variability. The company notes it reassessed business priorities and implemented changes it expects to benefit future periods, while cautioning that broader economic conditions need to improve.