Flux Power Holdings, Inc.

Revenue for fiscal Q3 2026 was $6.6 million, down from $16.7 million in the same quarter last year. Gross margin was 27.3% versus 32% in the prior-year period, and operating expenses were $4.8 million compared with $6.9 million last year. Net loss was $3.2 million, or $0.15 per share, versus a net loss of $1.9 million, or $0.12 per share, and adjusted EBITDA was negative $2.5 million versus negative $0.5 million a year ago. Cash and cash equivalents ended at $400,000, down from $1.3 million at the end of fiscal 2025. For Q4, management expects sequential revenue growth of approximately 20%; no full-year guidance was given.

Krishna Vanka said the quarter was hurt by two main headwinds: the largest material handling customer’s capital freeze and dynamic ordering patterns, with geopolitical tensions and higher fuel prices adding pressure late in the quarter. He stressed that customer commitment remains strong in both ground service equipment and material handling, and said order activity should recover once those near-term issues ease. His tone was cautious but constructive, emphasizing a leaner cost structure, new marketing efforts, OEM expansion, and a focus on returning to growth and profitability.

Kevin Royal reported the hard numbers for the quarter: revenue of $6.6 million, gross margin of 27.3%, operating expenses of $4.8 million, net loss of $3.2 million, adjusted EBITDA of negative $2.5 million, and cash and cash equivalents of $400,000. He said the gross-margin decline was driven by product mix and lower volumes that created higher unabsorbed labor and overhead, while lower operating expenses reflected headcount reductions and streamlining. On the balance sheet, he noted good collections helped reduce receivables, and he said payment terms were not changed.

Analysts focused on whether Flux can grow faster than the 17.2% CAGR Brian McKenzie cited for the forklift market, and management said the plan is to gain share with existing OEMs while adding new OEM relationships and certifications. Questions also centered on the capital freeze, with management saying there are indications it could eventually lift, but not this calendar year. On margins and balance sheet quality, Krishna said supply-chain actions and product redesigns should help, while Kevin said receivables improved thanks to strong collections and that terms were not changed.