Flux Power Holdings, Inc. has reported financial and operational results for the 2026 fiscal second quarter ended December 31, 2025.
 
Second Quarter and Recent Business Highlights

• Increased revenue 7.2% sequentially to $14.1 million
• Achieved positive GAAP net income for the first time in its history
• Secured more than $3.6 million in additional purchase orders to support a long-standing airline customer
• Awarded U.S. Patent for determining the State of Health (SoH) of a battery pack, which uses advanced algorithms for predictive diagnostics to extend the overall battery lifespan
• Introduced next-gen telematics hardware SkyLNK device with significant advancements that deliver a competitive advantage with 4x more sensors and new machine learning capabilities
• Added AI driven Intelligent Alerting to SkyEMS, improving the customer experience and potential fleet uptime by 10 to 30%
• Released new Mobile UI that enables on-the-go monitoring and faster decision-making driving greater uptime and possible productivity improvements between 15 to 40%
• Strengthened sales leadership with a new Director of OEM Business Development with more than 20 years of material handling experience

CEO Commentary

“Our second quarter results reflected evidence of the continued progress on our strategic initiatives of implementing operational efficiencies and achieving profitability for the first time in the Company’s history,” said Krishna Vanka, Flux Power’s CEO. “Revenue increased sequentially as orders rebounded after a pause last quarter due to tariffs and pricing. Notably, we reduced core operating expenses approximately 31% sequentially, excluding the benefit from an accrual reversal, as a result of our implemented cost reductions. We also increased gross margin 610 basis points from the prior quarter, collectively contributing to our achievement of GAAP profitability.

“Additionally, we made further progress on our initiatives to build the right products and expand our software offerings with the introduction of our next-generation telematics hardware device called SkyLNK, a new mobile user interface for SkyEMS, as well as getting a full patent for our State of Health technology. Our commitment to provide complete solutions to our customers and align our offerings to meet their specific needs remains a top priority for the Flux Power team.
 
“While I am pleased with the progress we made in the quarter, especially as it relates to our reduced cost structure and profitability, we are approaching our fiscal third quarter with the expectation of a sequential decline in revenues as we navigate prevailing uncertainty related to tariff changes and dynamic customer order patterns. Despite this limited near-term visibility, we remain focused on executing our strategic initiatives and the transformation of our business toward driving future growth.”

Second Quarter Fiscal 2026 Financial Results
Revenue for the second fiscal quarter of 2026 rose 7.2% to $14.1 million from $13.2 million in the prior quarter. Gross profit for the second fiscal quarter of 2026 was $4.9 million, or 34.7% of revenue, compared to $3.8 million, or 28.6% of revenue, in the prior quarter.

Operating expenses for the second quarter were $4.1 million, compared to $5.9 million in the prior quarter. The significant reduction in operating expenses is largely due to previously implemented cost reduction actions as well as an approximately $0.5 million benefit related to a reversal of accrued employee bonus awards.

Operating income for the second quarter was $0.8 million, compared to an operating loss of $2.2 million in the prior quarter. Excluding costs associated with the multi-year restatement of previously issued financial statements and stock-based compensation, second quarter non-GAAP operating income was $1.2 million, compared to a non-GAAP operating loss of $1.7 million in the prior quarter.

Net income for the second quarter was $0.6 million, or $0.03 per share, compared to a net loss of $2.6 million, or ($0.15) per share, in the prior quarter. On a non-GAAP basis, second quarter net income was $1.0 million, or $0.04 per fully diluted share, which excludes the above-referenced costs, compared to a net loss of $2.0 million, or ($0.12) per share, in the prior quarter.

Adjusted EBITDA for the second quarter was $1.5 million, compared to an adjusted EBITDA loss of $1.4 million in the prior period.

Balance Sheet
Cash as of December 31, 2025 was $0.9 million compared to $1.3 million as of June 30, 2025. Additional sources of working capital include a revolving line of credit under a $16.0 million credit facility with Gibraltar Business Capital (“Gibraltar”). The current borrowing capacity under the Gibraltar line of credit is subject to available collateral as defined by the credit agreement and satisfaction of certain financial covenants.

Conference Call
Flux Power will host a conference call on Thursday, February 12, 2026 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time to discuss its fiscal second quarter 2026 financial results. To access the call, please use the following information:

Date: Thursday, February 12, 2026
Time: 1:30 p.m. Pacific Time | 4:30 p.m. Eastern Time
Toll-free dial-in number: 1-833-630-1956
International dial-in number: +1-412-317-1837
 
Additionally, this conference call will be broadcast live over the Internet and can be accessed by all interested parties on the News & Events section of the Company’s Investor Relations website.

For those unable to participate during the live broadcast of the conference call, a telephone replay will be available approximately two hours after the conference call and accessible through February 19, 2026. The replay dial-in number is 1-855-669-9658, and the access code 9780783. International callers should dial +1-412-317-0088 and enter the same pass code. Additionally, a replay of the webcast will be available on Flux’s Investor Relations website for approximately 90 days.