Flux Power Holdings, Inc.

Revenue for fiscal Q4 2026 was $8.2 million, up from $6.6 million in the prior quarter and down from $16.7 million in Q4 2025. Full-year 2026 revenue was $42.1 million versus $66.4 million in 2025. Gross margin was 27.4% in Q4 2026 versus 27.3% in Q3 and 34.5% in Q4 2025; full-year gross margin was 30.2% versus 32.7% in 2025. Net loss was $2.3 million, or $0.01 per share, in Q4 versus a loss of $3.2 million, or $0.15 per share, in the prior quarter, and a loss of $1.2 million, or $0.07 per share, in Q4 2025. Full-year net loss was $7.4 million, or $0.38 per share, versus $6.7 million, or $0.40 per share, in 2025. Adjusted EBITDA was negative $1.6 million in Q4 and negative $4.5 million for the full year. Cash and cash equivalents ended at $300 thousand, down from $400 thousand in the prior quarter. Guidance: Q1 2027 revenue is expected to be $6 million to $7 million, with Q2 2027 expected to rebound to $8 million to $9 million. Management said gross margins should move back above 30% once quarterly revenue is above a $12 million run rate, with 12 to 14 million cited as the range to get back into the low/mid-30s over time.

Krishna Vanka’s tone was optimistic but candid about the challenges. He said the company is seeing improved order patterns, has reduced costs materially, and is building multiple growth engines through marketing, direct enterprise sales, OEM relationships, and software. He emphasized strategic milestones like Hyster-Yale certification, SkyEMS 3.0, and the robotics opportunity, framing FY27 as a year where the lower-cost structure and diversified pipeline should help drive renewed growth.

Kevin Royal focused on the financial reset and near-term cadence. He said gross margin held at 27.4% in Q4 but fell to 30.2% for the year due to product mix, tariffs, and lower-volume underabsorption, while operating expenses were reduced to $4.4 million in Q4 and $19.2 million for the year. He also noted cash was only $300 thousand at quarter-end and guided Q1 revenue to $6 million to $7 million, with Q2 at $8 million to $9 million, adding that margins should improve once quarterly revenue exceeds a $12 million run rate.

Analysts focused on three issues: SkyEMS 3.0 monetization, the robotics opportunity, and gross margin leverage. Management said SkyEMS is being deployed alongside airline customers now and is being introduced to select material handling customers, but it is still an add-on to hardware sales rather than a standalone software product. On robotics, management said the opportunity started with about 70 batteries for prototype/testing at a large technology customer, with future scale potentially reaching hundreds per year if testing succeeds. On margins, Kevin Royal said improvement should come once quarterly revenue gets above $12 million, with a return above 30% expected in the 12 to 14 million range.