Fluence (FLC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached AUD 17.2 million (or $17.2M), up 3.6% year-over-year, with EBITDA improving to AUD 0.5 million ($0.5M) from AUD 0.1 million ($0.1M), driven by strong execution, cost discipline, and core business unit growth.

• Gross margin expanded to 29.2%, a 3.0% increase year-over-year, reflecting better execution and a strategic focus on higher-margin Smart Product Solutions (SPS) and Recurring Revenue (RR) segments.

• Backlog at quarter-end was AUD 64.4 million ($64.4M), up nearly 20% year-over-year in core business units, supporting strong pipeline visibility for FY2026.

• New orders for Q1 2026 were AUD 7.5 million ($7.5M), down year-over-year due to project delays, but a significant rebound is expected in Q2 2026.

• Management maintains confidence in double-digit revenue growth and margin expansion for fiscal 2026, supported by SPS and RR momentum.

Financial highlights

• Q1 2026 revenue was AUD 17.2 million ($17.2M), up 3.6% year-over-year, with combined business units delivering 9.4% growth.

• EBITDA improved to AUD 0.5 million ($0.5M) from AUD 0.1 million ($0.1M) year-over-year.

• Gross margin increased to 29.2%, up 3.0 percentage points from Q1 2025.

• Cash at quarter-end was AUD 8 million ($8.0M), with an additional AUD 4 million ($4.0M) in restricted/security deposits.

• Q1 operating cash burn was AUD 8.2 million ($8.2M), mainly due to timing of large project payments and delayed collections.

Outlook and guidance

• Double-digit revenue growth expected for fiscal 2026, driven by SPS and recurring revenue segments.

• Q2 2026 orders forecasted at AUD 18–20 million, with a significant increase in new orders anticipated as delayed projects are booked.

• Positive operating cash flow anticipated for the remainder of the year, though quarterly volatility may persist.