Flux Power Holdings, Inc. (FLUX) Q4 2026: Revenue Decline and Operating Losses — Cautiously Disappointing

Flux Power Holdings, Inc. (NASDAQ: FLUX) reported its financial results for the fiscal fourth quarter and full year ended June 30, 2026, revealing a significant decline in revenue compared to the previous year. Revenue for Q4 2026 was $8.2 million, down from $16.7 million in Q4 2025, representing a decrease of $8.5 million or -51%. For the full fiscal year, revenue totaled $42.1 million, a decline of $24.3 million or -36.6% from $66.4 million in fiscal 2025.

This quarter's results are disappointing for shareholders, primarily due to the substantial year-over-year revenue decline and continued operating losses. While the company did manage to reduce operating expenses by approximately 33% from the prior year, the overall financial performance indicates ongoing challenges in achieving profitability.

Key Financial Metrics:

• Q4 2026 Revenue: $8.2 million (down from $16.7 million in Q4 2025)
• Full Year 2026 Revenue: $42.1 million (down from $66.4 million in fiscal 2025)
• Gross Profit (Q4 2026): $2.3 million (27.4% of revenue), down from $5.8 million (34.5% of revenue) in Q4 2025
• Operating Expenses (Q4 2026): $4.4 million (down from $6.5 million in Q4 2025)
• Operating Loss (Q4 2026): $2.1 million (compared to an operating loss of $0.8 million in Q4 2025)
• Net Loss (Q4 2026): $2.3 million, or ($0.11) per share (compared to a net loss of $1.2 million, or ($0.07) per share in Q4 2025)
• Adjusted EBITDA (Q4 2026): Negative $1.6 million (compared to positive $0.5 million in Q4 2025)

Operational Highlights:

• The company launched SkyEMS® 3.0, which includes AI-powered insights and predictive analytics, aimed at enhancing fleet management capabilities.
• Flux Power appointed Stu Jacover as Vice President of Sales for Material Handling to bolster sales and marketing efforts.
• The company achieved certification with a new major OEM, potentially expanding its addressable market.

Despite these operational initiatives, the financial results reflect a company still grappling with significant headwinds. The CEO, Krishna Vanka, acknowledged the challenges faced during his tenure and emphasized the need for a reassessment of business priorities to drive future growth.

Shareholder Impact:

The continued losses and revenue decline are concerning for shareholders. The net loss for the full fiscal year was $7.4 million, or ($0.38) per share, compared to a net loss of $6.7 million, or ($0.40) per share in fiscal 2025. The non-GAAP operating loss for the full year was $5.5 million, worsening from a non-GAAP operating loss of $1.1 million in fiscal 2025.

Future Outlook:

Investors should closely monitor Flux Power's efforts to stabilize its financial performance in the upcoming quarters. Key catalysts to watch include:

• The impact of the newly launched SkyEMS® 3.0 on customer acquisition and revenue growth.
• The effectiveness of the new sales leadership under Stu Jacover in driving sales in the Material Handling sector.
• Any updates on partnerships with OEMs that could enhance market reach and product offerings.

In conclusion, while Flux Power is taking steps to improve its operational efficiency and product offerings, the significant revenue decline and ongoing losses indicate a challenging road ahead for the company and its shareholders.

Note: The following tables present amounts in thousands.

FLUX POWER HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS	Three months ended June 30, 2026	Three months ended June 30, 2025	Twelve months ended June 30, 2026	Twelve months ended June 30, 2025
Revenue	$8,200	$16,700	$42,100	$66,400
Cost of sales	$5,900	$10,900	$29,000	$44,600
Gross profit	$2,300	$5,800	$12,100	$21,700
Operating expenses	$4,300	$6,500	$19,000	$26,700
Operating loss	$-2,100	$-760	$-6,500	$-5,000
Other expenses	$-190	$-270	$-1,200	$-810
Net Interest expense	$-190	$-392	$-850	$-1,500
Net loss	$-2,300	$-1,100	$-7,400	$-6,600
Net loss per share	$-0.11	$-0.07	$-0.38	$-0.40
Weighted-average shares used to compute net income per share, basic	21,580,992	16,700,000	19,000,000	16,700,000

FLUX POWER HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS	June 30, 2026	June 30, 2025
Cash	$305	$1,334
Accounts receivable, net of allowance for credit losses of $70 and $68 at June 30, 2026 and 2025, respectively	$4,862	$11,374
Inventories, net	$14,752	$17,231
Other current assets	$781	$1,865
Total current assets	$20,700	$31,804
Right of use assets, net	$2,167	$1,275
Fixed assets, net of accumulated depreciation of $2,034 and $1,700 at June 30, 2026 and 2025, respectively	$476	$708
Intangible assets, net of accumulated amortization of $2,459 and $1,969 at June 30, 2026 and 2025, respectively	$763	$846
Other assets	$92	$119
Total assets	$24,198	$34,752
Current liabilities:
Accounts payable	$8,473	$16,295
Accrued expenses	$4,124	$7,058
Line of credit	$6,303	$13,627
Subordinated debt	$-	$1,000
Deferred revenue	$144	$459
Customer deposits	$31	$38
Finance leases payable, current portion	$52	$80
Office leases payable, current portion	$862	$815
Accrued interest	$58	$246
Total current liabilities	$20,047	$39,618
Long term liabilities:
Finance leases payable, less current portion	$19	$32
Office leases payable, less current portion	$1,274	$506
Deferred revenue, less current portion	$300	$-
Total liabilities	$21,640	$40,156
Stockholders’ equity (deficit):
Preferred stock, $.001 par value; 3,000,000 and 500,000 shares authorized at June 30, 2026 and 2025, respectively; none issued and outstanding	$-	$-
Common stock, $0.001 par value; 75,000,000 shares authorized; 21,580,992 and 16,835,698 issued and outstanding at June 30, 2026 and 2025, respectively	$22	$17
Additional paid-in capital	$116,370	$100,965
Accumulated deficit	$-113,834	$-106,386
Total stockholders’ equity (deficit)	$2,558	$-5,404
Total liabilities and stockholders’ equity	$24,198	$34,752

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