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FLUX
Earnings call · Jun 2026 (Q4 FY26)

Flux Power Holdings Q4 FY26 earnings call FLUX

Aug 20, 2026 Source

Executive summary

Flux Power Q4 FY26 — Sequential Revenue Growth and New Robotics Vertical

Flux Power reported sequential revenue growth in Q4 FY26, driven by improving order patterns and strategic initiatives to diversify its customer base and optimize costs. The company successfully entered the robotics vertical and secured a key OEM certification, positioning it for future growth. While facing headwinds from a major customer's capital freeze, tariffs, and fuel costs, management is focused on operational efficiencies and new market opportunities to drive renewed growth and profitability in FY27.

Highlights

5

  • Q4 FY26 revenue increased 25% sequentially to $8.2 million, exceeding expectations.

  • Operating expenses reduced by 33% year-over-year in Q4 FY26 and 28% for full-year FY26.

  • Entered new robotics vertical, deploying 70 batteries with a large global technology platform company for testing.

  • OEM white-label customer increased yearly order commitment by 50%.

  • Received official Hyster-Yale Materials Handling certification for all Class 1, 2, and 3 forklifts, representing a $3.5 billion market opportunity.

Concerns

5

  • Q4 FY26 revenue of $8.2 million was below $16.7 million in Q4 FY25 due to a significant material handling customer's capital freeze.

  • Gross margin for Q4 FY26 was 27.4%, only a 0.1 percentage point sequential improvement despite 25% higher revenue, impacted by product mix, tariffs, and lower volumes.

  • Full-year FY26 revenue decreased to $42.1 million from $66.4 million in FY25.

  • Net loss for Q4 FY26 was $2.3 million, or $0.11 per share, compared to a net loss of $1.2 million, or $0.07 per share, in Q4 FY25.

  • Adjusted EBITDA for Q4 FY26 was negative $1.6 million, down from positive $0.5 million in Q4 FY25.

Guidance & targets

CategoryTargetConfidence
Q1 FY27 Revenue
$6 million to $7 million
high materiality
Medium
Q2 FY27 Revenue
$8 million to $9 million
high materiality
Medium
Gross Margin
above 30%
medium materiality
Medium
Airline Business Demand
pick up
low materiality
Medium

Product announcements

ProductTypeDetails
AI-driven SkyBMS 3.0launch

Deals & partnerships

Hyster-Yale Materials Handling, Inc. Official certification for Class 1, 2, and 3 forklifts

Flux Power received official certification for all of Hyster-Yale's Class 1, 2, and 3 forklifts. This validates Flux Power's technology and strengthens credibility with OEMs and dealers, reducing adoption barriers for large enterprise fleets. Flux Power now sells to the top four OEMs, accounting for over 60% of the North American market.

Large global technology platform company Collaboration for robotics vertical entry and battery deployment potential multi-year contracts

Flux Power entered the robotics vertical in close collaboration with this company. Over 70 batteries have been deployed for testing, with full-scale production anticipated to start in 1-2 quarters. This is a significant emerging market opportunity.

Risks & headwinds

Significant material handling customer's capital freeze Ongoing, impacted Q4 FY26 and full-year FY26

Contributed to Q4 FY26 revenue being below Q4 FY25 ($8.2M vs $16.7M) and full-year FY26 revenue decline ($42.1M vs $66.4M in FY25).

Mitigation:Close communication with customer, expecting business to resume in the future; diversifying customer base and launching new marketing programs.

Broader economic disruptions related to tariffs and higher fuel prices Ongoing, full-year impact in FY26

Impacted business and contributed to year-over-year decline in gross profit percentage (30.2% in FY26 vs 32.7% in FY25).

Mitigation:Aggressively working to improve margins through near-term supply chain optimization, vendor pricing negotiations, and product redesign efforts; evaluating component costs in low-cost regions.

Loss in operating leverage due to lower volumes Ongoing, full-year impact in FY26

Resulted in higher unabsorbed labor and overhead, contributing to gross margin decline (30.2% in FY26 vs 32.7% in FY25).

Mitigation:Cost containment, headcount reductions, broader efficiency measures; expecting renewed growth and profitability as broader economic conditions improve.

What to watch in Q1 FY27

Largest Customer Order Resumption

Very soon / next fiscal/calendar year planning
Current Capital freeze ongoing, business below historic levels
Target Resumption of orders and business activity

Why it matters

This customer significantly impacts revenue; resumption is key to overall revenue recovery and growth.

As far as we heard, they are now working on planning for the next fiscal or the calendar year, I would say. So it's in good progress. And we are literally awaiting. We are seeing the positive signs, and we are awaiting to hear some good news very soon.

Q&A highlights

How will SkyBMS 3.0 contribute to revenue in the coming quarters, and is there a pipeline for existing customers?

SkyBMS 3.0 is built with AI for managing energy matrices, including charger data. It's currently deployed with airline customers as a default option for new batteries and is being introduced to significant material handling customers. The intent is 100% deployment across both verticals and new ones like robotics. It's currently adding value on top of hardware sales, not yet a standalone software product.

“At this point, it is being deployed, as I mentioned, again, with the airline customers. All of our batteries since a quarter or quarter and a half are going with SkyBMS as a default option for airlines.”

asked by Sameer Joshi · answered by Krishna Vanka

2 min read 5 chapters

Detailed narrative

Strategic Initiatives and Cost Optimization

Flux Power has implemented decisive actions to lower product and operating costs, resulting in a 33% year-over-year reduction in operating expenses for Q4 FY26 and a 28% decrease for the full year 2026 compared to 2025. These measures include headcount reductions, cost containment, and broader efficiency improvements. The company is also aggressively working to improve margins through supply chain optimization, vendor pricing negotiations, and product redesign efforts, including evaluating component costs in low-cost regions.

Entry into Robotics Vertical

The company announced its entry into the new and growing robotics vertical, collaborating with a large global technology platform company. Flux Power has already deployed over 70 batteries for robotics testing with this partner, with expectations for full-scale production to commence in one to two quarters. This initiative leverages existing UL-certified standard battery offerings and represents a significant emerging market opportunity for multi-year contracts and deployments.

Sales Team Enhancement and Customer Diversification

Flux Power has optimized its sales team, including the addition of Stu Jakover as VP of Sales for Material Handling, who brings 25 years of industry experience. The company is launching aggressive new marketing programs to diversify its customer base and reduce dependency on any single customer. A hybrid sales strategy is being implemented, combining the existing dealer network with a direct enterprise sales engine targeting large fleet operators with hundreds or thousands of forklifts.

Hyster-Yale OEM Certification

Flux Power received official certification from Hyster-Yale Materials Handling, Inc., a global leader in lift truck manufacturing, for all their Class 1, 2, and 3 forklifts. These classes represented $3.5 billion in Hyster-Yale's revenue in FY25, signifying a major growth opportunity for Flux Power by expanding market share across the largest segments of the electric material handling industry. This certification validates Flux Power's technology and strengthens credibility with OEMs and dealers.

Launch of AI-driven SkyBMS 3.0

The company launched AI-driven SkyBMS 3.0, a fundamental redesign of its battery management system, incorporating AI-powered intelligence, predictive analytics, and customizable dashboards. This platform enhances customer engagement, expands value beyond hardware sales, and positions Flux Power as a technology company. It provides 15% to 40% faster awareness of battery issues and improves fleet uptime by 10% to 30%, with 100% of GSE batteries now including SkyBMS access.

AI-generated summary of the company's earnings call. Not investment advice.