Fluence Energy (FLNC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $431.6M–$432M, down 31% year-over-year, mainly due to U.S. tariff-driven project pauses and lower Gridstack volumes.

• Adjusted gross profit margin remained stable at 10.4% for Q2, marking the seventh consecutive quarter in double digits.

• Net loss for Q2 was $41.9M, up from the prior year, with adjusted EBITDA at negative $30.4M.

• Backlog stood at $4.9B as of March 31, 2025, with a pipeline exceeding $22B.

• Long-term growth is expected from Smart Stack/Smartstack product innovation and a robust U.S. supply chain strategy.

Financial highlights

• Q2 revenue: $431.6M–$432M; year-to-date revenue: $618M–$618.4M, both down over 30% year-over-year.

• Adjusted gross profit: $44.9M–$45M; adjusted gross margin: 10.4%.

• Adjusted EBITDA: negative $30.4M in Q2; GAAP net loss: $41.9M.

• Free cash flow for the six months was negative $263.9M, mainly due to increased inventory.

• Liquidity exceeded $1.1B, with $610M in cash and additional credit facilities.

Outlook and guidance

• FY2025 revenue guidance lowered to $2.6B–$2.8B (midpoint $2.7B), down from $3.1B–$3.7B, reflecting $700M in deferred U.S. revenue.

• Adjusted EBITDA guidance reduced to $0–$20M (midpoint $10M), down from $70M–$100M, due to tariff headwinds and lower revenue.

• 95% of FY25 revenue guidance is covered by backlog and revenue recognized to date.

• Annual recurring revenue (ARR) guidance reaffirmed at $145M.

• Free cash flow expected to turn positive in 2026, with no significant CapEx planned.