Fluence (FLC) Q2 2025 earnings summary

Executive summary

• Strategic shift toward high-margin Smart Product Solutions and recurring revenue, supported by a refreshed leadership team and global integration under the One Fluence approach.

• H1 2025 revenue reached $33.1M, up 65% year-over-year, driven by the Ivory Coast Addendum Project and SPS growth.

• EBITDA for H1 2025 was $0.1M, an increase of $3.6M year-over-year, with all business units except Industrial Water & Reuse improving.

• Over 1,000 global installations and strong ESG impact, leveraging energy-efficient technologies.

• Large addressable markets and regulatory drivers support long-term growth.

Financial highlights

• H1 2025 revenue was $33.1M, up 65% year-over-year, with SPS revenue growing 19.3%.

• Gross margin for H1 2025 was 26.5%, down 4.1 percentage points due to the Ivory Coast Addendum mix, but industrial wastewater and biogas margins improved by 5.9%.

• SG&A and R&D costs reduced by $1.0M (-10.5%) year-over-year.

• EBITDA for H1 2025 was $0.1M, up $3.6M year-over-year.

• Cash at end of Q2 2025 was $12.7M, with $4.1M in security deposits.

Outlook and guidance

• FY2025 revenue guidance maintained at $80–95M, with EBITDA expected between $3–5M.

• Strong revenue and EBITDA growth expected in H2 2025, with backlog and recent order bookings supporting guidance.

• Q3 2025 operating cash flow expected to be negative due to payment timing, but YTD Q3 2025 cash flow forecasted to remain positive.

• Downside risks include potential tariff-related project delays and continued weakness in China.