Fluence (FLC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $16.6 million, up 65% year-over-year, driven by the Ivory Coast Addendum and growth in Smart Product Solutions and Recurring Revenue.

• EBITDA was $0.1 million, surpassing breakeven and improving by $1.6 million compared to Q1 2024, reflecting revenue growth and cost reductions.

• SG&A and R&D expenses were reduced by $0.8 million year-over-year, continuing the trend of cost savings and restructuring benefits.

• New orders totaled $12.1 million, up 21.8% year-over-year, with a strong sales pipeline and notable wins in the US, Italy, Argentina, and China.

• Leadership team refreshed with experienced executives, driving a strategic shift to higher-margin revenue segments and large, high-growth end markets.

Financial highlights

• Q1 2025 revenue was $16.6 million, up $6.5 million (64.5%) year-over-year; SPS and recurring revenue grew 13.4%.

• EBITDA improved by $1.6 million year-over-year, reaching $0.1 million.

• Gross margin was 26.2%, down 8.4 percentage points year-over-year due to the lower-margin Ivory Coast Addendum.

• Operating cash flow was -$0.2 million; capital investments totaled $293,000, mainly for US membrane manufacturing.

• Ended Q1 with $8.5 million in cash and $3.7 million in security deposits.

Outlook and guidance

• FY2025 revenue guidance remains $80–$95 million, with EBITDA expected between $3–$5 million.

• Q2–Q4 2025 revenue is expected to show solid sequential growth, with Q3 and Q4 typically being the strongest quarters.

• Backlog plus Q1 2025 revenue forecasted to be $66.0 million, representing 75% of the midpoint of FY2025 guidance.

• Sales pipeline increased by $283 million (+35%) since Q4 2023, with over 368 opportunities and average project size of $1.6 million.

• Modest positive operating cash flow anticipated in Q2, increasing in H2 2025.