Fluence (FLC) Q4 2025 earnings summary

Executive summary

• Achieved a significant turnaround in FY 2025, with revenue up 52.3% to $78.4M and Q4 revenue of $26.0M, reflecting strategic realignment, operational improvements, and a shift to high-margin SPS and recurring revenue segments.

• Leadership transition completed, including new CEO, CFO, and key hires to drive commercial expansion and operational capabilities.

• Record new orders in Q4 2025 ($24.5M) and FY 2025 ($64.2M), with year-end backlog at $74.8M, positioning for continued growth in fiscal 2026.

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

• Focused on large, high-growth end markets, including North America, SEA & China, and industrial water reuse.

Financial highlights

• FY 2025 revenue reached $78.4M, up 52.3% year-over-year; Q4 revenue was $26.0M, up 22.7% from Q4 2024.

• EBITDA for FY 2025 was $4.0M, an $8.0M increase over FY 2024; Q4 EBITDA was $2.7M.

• Gross margin held steady at 29.9% despite increased low-margin project revenue.

• Operating cash flow for FY 2025 was $10.9M; year-end cash was $16.6M plus $4.1M in security deposits.

• Ivory Coast Addendum contributed $27.5M in revenue and $3.4M in EBITDA, up from $0.2M in FY 2024.

Outlook and guidance

• Expects double-digit revenue growth in FY 2026, even with reduced Ivory Coast Addendum revenue.

• Anticipates continued gross margin expansion and strong EBITDA growth, but will not issue discrete FY 2026 guidance; medium-term EBITDA margin target remains at 10%.

• Anticipates negative operating cash flow in Q1 2026 due to timing of Ivory Coast payables, with positive cash flow expected to resume in Q2-Q4 2026.