Fluence Energy (FLNC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $186.8–$187 million, down 49% year-over-year, reflecting back-end loaded revenue and contract timing.

• Net loss widened to $57 million, driven by lower gross profit and higher expenses.

• Backlog reached a record $5.1 billion, up 38% year-over-year, with strong order intake and about 60% expected to convert to revenue in 12 months.

• Annual Recurring Revenue (ARR) increased to $106 million, targeting $145 million by fiscal year-end.

• $400 million in convertible notes issued, boosting liquidity and supporting growth initiatives.

Financial highlights

• Q1 2025 revenue was $186.8–$187 million, a 49% decrease year-over-year.

• Gross profit margin improved to 11.4%–12.5%, marking the sixth consecutive quarter of double-digit margins.

• Adjusted EBITDA was negative $49.7–$50 million.

• Free cash flow was negative $213.3 million, down from positive $17.9 million a year ago.

• Total cash at quarter-end was $654–$654.4 million, with liquidity further supported by new convertible notes and revolver.

Outlook and guidance

• FY2025 revenue guidance lowered to $3.1–$3.7 billion (midpoint $3.4 billion), mainly due to Australian contract delays.

• 85% of updated FY2025 revenue guidance midpoint is covered by backlog and YTD revenue.

• Adjusted EBITDA guidance midpoint reduced to $85 million, reflecting lower revenue and margins.

• Gross margin guidance narrowed to 10%–12% due to competitive pressures and tariffs.

• FY2026 revenue expected to grow 30%+ from the updated 2025 guidance midpoint.