Flux Power Reports Fiscal Year 2025 Third Quarter Financial Results

About this update from Flux Power Holdings, Inc.

Q3 Revenue up 16% to $16.7 Million on Continued Demand Across Innovative Product Portfolio New SkyEMS Platform and Software Strategy to Create Complete Solution and Build Recurring Revenue Stream VISTA, Calif., May 08, 2025 --( BUSINESS WIRE )-- Flux Power Holdings, Inc. (NASDAQ: FLUX ), a leading developer of advanced lithium-ion energy storage solutions for electrification of commercial and industrial equipment, has reported its financial and operational results for the third fiscal quarter ended March 31, 2025. Key Financial and Operational Highlights and Business Updates Key Q3 2025 & Subsequent Operational Highlights CEO Commentary "The third quarter of fiscal 2025 was underscored by revenue and margin momentum as we expanded products and software to support the new orders reflecting an industry wide shift to lithium-ion solutions," said Krishna Vanka, Flux Power’s CEO. "Increasing demand in material handling and ground support markets drove unit growth of 10% and 25% respectively during the quarter. At a longer time horizon, over the last calendar year, six new large North American airlines have placed purchase orders totaling over $6 million with more orders expected this year, and approximately $20 million in total GSE orders. Further fueled by an open order backlog of $16.9 million as of March 31, 2025, we are well positioned to benefit from the transition to a cleaner, more efficient lithium-ion powered solutions. "As the shift toward electrification across a range of industrial and commercial sectors continues, we are ideally positioned with higher performance lithium-ion battery packs and software solutions to meet customer needs and fuel our growth. We are shaping the future of intelligent energy solutions, where every battery functions as part of a connected, self-optimizing network. This evolution allows us to deliver software-driven value that is going to extend beyond the traditional energy storage today, unlocking operational insights, predictive maintenance, and long-term efficiencies for our customers. "We have a growing product portfolio for multiple customer segments and adjacent markets. We recently launched the new G-Series G96 High Voltage lithium-ion energy solution for the GSE industry. The higher voltage and higher capacity solution is a game-changer for essential airline ground support equipment such as tractors that require more power for heavier equipment. The G-Series G96 provides extended running time and power for the most demanding GSE applications without compromising on efficiency or sustainability. We continue to meet the evolving demands of our customers with new and innovative solutions, as well as enhancing our current products and capabilities, that are filling market gaps and opening new opportunities that offer true value creation to our fleet customers. "We continue to develop and expand our SkyEMS AI platform to support the full life cycle of an intelligent battery, and we are currently in pilot with select customers. With the data collected through the platform, we utilize AI and machine learning to support fleet and infrastructure planning, operation, optimization, maintenance and to provide recycling and second life options. These innovations with our SkyEMS software will play a central role for us to achieve this vision, and we are planning to have every battery we ship to be cloud connected. "Most recently, we were awarded a patent for our Intelligent Battery Cycle Life Maximization, a proprietary AI-based algorithm, accelerating our evolution from a battery manufacturer to a technology-driven energy solutions provider. The Intelligent Battery Cycle Life Maximization Algorithm leverages machine learning to monitor and adjust battery behavior in real time. By dynamically optimizing the maximum charge value of each battery pack based on field usage, the system ensures longer cycle life and improved operational efficiency, moving beyond conventional battery management. "Taken together, we are building a complete solution for our customers, who want more than hardware. They want insight, control, and adaptability. We believe our software will create a significant recurring revenue stream. Combined with strong orders for our battery products, we are well positioned to achieve sustainable positive cash flow this calendar year. We look forward to providing further updates on our full software strategy in the months to come," Vanka concluded. Quarterly Orders and Shipments: The backlog status is a point in time measure but in total reflects the underlying pacing of orders: As of April 30, 2025, order backlog was approximately $15.1 million. Q3’25 Financial Results Revenue for the third fiscal quarter of 2025 increased 16% to $16.7 million compared to $14.5 million in the third fiscal quarter of 2024, due to higher demand in both material handling and ground support markets, with unit growth of 10% and 25%, respectively. Gross Profit for the third fiscal quarter of 2025 increased 31% to $5.3 million compared to a gross profit of $4.0 million in the third fiscal quarter of 2024. Gross margin increased to 32% in the third fiscal quarter of 2025 as compared to 28.0% in the third fiscal quarter of 2024. Gross profit margin increased by 374 basis points as a result a decrease in warranty-related expenses, partially offset by the slightly higher material costs. Selling & Administrative expenses increased to $5.7 million in the third fiscal quarter of 2025 as compared to $5.3 million in third fiscal quarter of 2024, primarily attributable to professional fees of approximately $0.5 million associated with the multi-year restatement of previously filed financial statements , partially offset by lower severance costs and stock-based compensation. Research & Development expenses decreased to $1.1 million in the third fiscal quarter of 2025 compared to $1.3 million in the third fiscal quarter of 2024, mainly driven by lower salaries and severance costs. Adjusted EBITDA was a loss of $1.1 million in the third fiscal quarter of 2025 as compared to a loss of $1.7 million in the third fiscal quarter of 2024. Net Loss for the third fiscal quarter of 2025 was $1.9 million, compared to a loss of $3.0 million in the third fiscal quarter of 2024, primarily attributable to the increase in gross profit, partially offset by the increase in selling and administrative expenses related to costs associated with the multi-year restatement of previously filed financial statements. Cash was $0.5 million on March 31, 2025, as compared to $0.6 million at June 30, 2024, reflecting changes in working capital management. Available working capital includes: our line of credit as of March 31, 2025, under our $16.0 million credit facility from Gibraltar Business Capital ("Gibraltar"), with a remaining available balance of $5.0 million subject to borrowing base limitations and satisfaction of certain financial covenants; and $1.0 million available under the subordinated line of credit with Cleveland Capital. Our credit line with Gibraltar, subject to eligible accounts receivables and inventory borrowing base, provides for expansion up to $20 million. Kevin Royal, Chief Financial Officer of Flux Power, commented, "Our third quarter financials were highlighted by robust orders and backlog, and revenue and gross margin expansion. With strategic supply chain and profitability improvement initiatives, cost reduction, higher volume purchasing, and increasing the price of our products for new orders, we are targeting continued margin improvement. While tariffs are adding uncertainty in the market, with our focus on cost containment and customer engagement, we believe we are well-positioned to navigate these pressures. We are optimistic that growth momentum will continue in 2025, reflecting our investment in expanding our software and battery product offerings and strengthening business fundamentals." Third Quarter Fiscal Year 2025 Results Conference Call Flux Power CEO Krishna Vanka, CFO Kevin Royal and Flux Power VP of Operations will host a conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here . To access the call, please use the following information: Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235. The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1715371&tp_key=2be769407a and via the investor relations section of the Company's website here . A replay of the webcast will be available after 7:30 p.m. Eastern Time through August 8, 2025. Note about Non-GAAP Financial Measures A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results. In addition to financial results presented in accordance with GAAP, this press release presents adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is determined by taking net loss and adding interest, taxes, depreciation, amortization, and stock-based compensation expenses. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides additional information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company’s internal reporting to evaluate its operations and the performance of senior management. A reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies. About Flux Power Holdings, Inc. Flux Power (NASDAQ: FLUX) designs, manufactures, and sells advanced lithium-ion energy storage solutions for electrification of a range of industrial and commercial sectors including material handling, airport ground support equipment (GSE), and stationary energy storage. Flux Power’s lithium-ion battery packs, including the proprietary battery management system (BMS) and telemetry, provide customers with a better performing, lower cost of ownership, and more environmentally friendly alternative, in many instances, to traditional lead acid and propane-based solutions. Lithium-ion battery packs reduce CO2 emissions and help improve sustainability and ESG metrics for fleets. For more information, please visit www.fluxpower.com . Forward-Looking Statements This release contains projections and other "forward-looking statements" relating to Flux Power’s business, that are often identified using "believes," "expects" or similar expressions. Forward-looking statements involve several estimates, assumptions, risks, and other uncertainties that may cause actual results to be materially different from those anticipated, believed, estimated, expected, etc. Accordingly, statements are not guarantees of future results. Some of the important factors that could cause Flux Power’s actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to: risks and uncertainties related to Flux Power’s business, results and financial condition; plans and expectations with respect to access to capital and outstanding indebtedness; Flux Power’s ability to comply with the terms of the existing credit facilities to obtain the necessary capital from such credit facilities; Flux Power’s ability to raise capital; Flux Power’s ability to continue as a going concern. The development and success of new products, projected sales, cancellation of purchase orders, deferral of shipments, Flux Power’s ability to improve its gross margins, or achieve breakeven cash flow or profitability, Flux Power’s ability to fulfill backlog orders or realize profit from the contracts reflected in backlog; Flux Power’s ability to fulfill backlog orders due to changes in orders reflected in backlog, Flux Power’s ability to obtain the necessary funds under the credit facilities, Flux Power’s ability to timely obtain UL Listing for its products, Flux Power’s ability to fund its operations, distribution partnerships and business opportunities and the uncertainties of customer acceptance and purchase of current and new products, and changes in pricing. Actual results could differ from those projected due to numerous factors and uncertainties. Although Flux Power believes that the expectations, opinions, projections, and comments reflected in these forward-looking statements are reasonable, they can give no assurance that such statements will prove to be correct, and that the Flux Power’s actual results of ‎operations, financial condition and performance will not differ materially from the ‎results of operations, financial condition and performance reflected or implied by these forward-‎looking statements. Undue reliance should not be placed on the forward-looking statements and Investors should refer to the risk factors outlined in our Form 10-K, 10-Q and other reports filed with the SEC and available at www.sec.gov/edgar . These forward-looking statements are made as of the date of this news release, and Flux Power assumes no obligation to update these statements or the reasons why actual results could differ from those projected. Flux, Flux Power, and associated logos are trademarks of Flux Power Holdings, Inc. All other third-party brands, products, trademarks, or registered marks are the property of and used to identify the products or services of their respective owners. Follow us at: Blog: Flux Power Blog News: Flux Power News Twitter: @Flux__Power LinkedIn: Flux Power   View source version on businesswire.com: https://www.businesswire.com/news/home/20250508328044/en/ Contacts Media & Investor Relations: [email protected] [email protected] External Investor Relations: Chris Tyson , Executive Vice President MZ Group - MZ North America 949-491-8235 [email protected] www.mzgroup.us

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