Flux Power (FLUX) Q4 2026 earnings summary

Executive summary

• Fourth quarter revenue rose 25% sequentially to $8.2M, driven by higher customer orders and entry into new verticals, though still below the prior year due to a major customer's capital freeze and broader economic headwinds like tariffs and fuel prices.

• Cost reduction initiatives led to a 33% decrease in quarterly operating expenses and a 28% reduction for the full year, improving operating efficiency.

• Diversification efforts included entry into the robotics vertical, strengthening of the sales team with a new VP, and expansion of OEM partnerships.

• Launched AI-driven SkyEMS 3.0 platform, enhancing software differentiation and customer retention.

• OEM partnerships expanded, including a 50% increase in annual order commitment from a white label customer and certification from Hyster-Yale for all forklift classes.

Financial highlights

• Q4 2026 revenue: $8.2M (up from $6.6M prior quarter, down from $16.7M YoY); FY 2026 revenue: $42.1M (down from $66.4M YoY).

• Q4 gross margin: 27.4% (27.3% prior quarter, 34.5% YoY); FY gross margin: 30.2% (32.7% YoY).

• Q4 operating expenses: $4.4M ($4.8M prior quarter, $6.5M YoY); FY operating expenses: $19.2M ($26.8M YoY).

• Q4 net loss: $2.3M or $0.11/share ($3.2M or $0.15/share prior quarter, $1.2M or $0.07/share YoY); FY net loss: $7.4M or $0.38/share ($6.7M or $0.40/share YoY).

• Q4 adjusted EBITDA: -$1.6M (-$2.5M prior quarter, $0.5M YoY); FY adjusted EBITDA: -$4.5M (-$0.1M YoY); cash and equivalents at quarter end: $0.3M.

Outlook and guidance

• Q1 2027 revenue expected between $6M-$7M, with Q2 2027 rebounding to $8M-$9M.

• Gross margin expected to exceed 30% when quarterly revenue surpasses $12M.

• Management expects renewed growth and accelerated path to profitability in fiscal 2027, supported by a leaner cost structure, expanded sales leadership, and upgraded offerings.

• Anticipates margin pressure in near term before revenue recovers.