Flux Power Holdings, Inc. (FLUX) Q1 2026 Earnings Call Transcript
Revenue $13.2 million, a decrease from $16.1 million in the same quarter last year (-18%). The decrease was driven mainly due to a pause in customer orders as a result of tariff uncertainty and macroeconomic concerns.
Gross Margin 28.6%, a decrease from 32.4% in the prior year period (-3.8 percentage points). The decrease resulted mainly from lower sales combined with a shift in mix to lower energy capacity products, which have lower gross margins.
Operating Expenses $5.9 million, a decrease from $6.4 million in the first quarter of 2025 (-7.8%). The decrease reflects the benefits of cost reduction initiatives, including rightsizing the workforce to match current operating levels.
Net Loss $2.6 million or $0.15 per share, compared to $1.7 million or $0.10 per share in the first quarter of 2025 (a larger loss of $0.9 million). The increase in net loss was due to lower revenue and margins.
Non-GAAP Net Loss $2.4 million or $0.14 per share, compared to $1.1 million or $0.06 per share in the prior year period (a larger loss of $1.3 million).
Adjusted EBITDA Negative $1.7 million, compared to negative $0.4 million in the same quarter a year ago (a larger loss of $1.3 million). This reflects the lower revenue and margins in the quarter.
Cash and Cash Equivalents $1.6 million, an increase from $0.6 million a year ago and $1.3 million in the prior quarter. The increase was supported by capital raises subsequent to the quarter end.
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Flux Power Holdings, Inc. Class Action Settlement Proposal Approved for $1.75 Million
- Settlement Amount: The U.S. District Court for the Southern District of California has approved a proposed class action settlement for Flux Power Holdings, Inc. involving $1.75 million, aimed at compensating investors who purchased stock between November 15, 2021, and February 14, 2025, reflecting the court's commitment to investor rights.
- Hearing Schedule: A hearing is set for April 2, 2026, to evaluate the fairness and adequacy of the settlement proposal, which, if approved, will provide compensation to affected shareholders, thereby enhancing investor confidence in the market.
- Claim Submission: Affected shareholders must submit a claim by March 3, 2026, to share in the distribution of the Net Settlement Fund, emphasizing the importance of timely action, which may influence investor participation and the smooth execution of the settlement.
- Exclusion Requests: Investors wishing to opt-out of the settlement class must submit a request by March 12, 2026; those who do not will be bound by the settlement judgment, reminding investors to be vigilant about protecting their rights.
Plug Power Continues to Struggle with Margin Issues: Is a Turnaround Possible?
Plug Power's Financial Struggles: Plug Power Inc. continues to face significant margin challenges, with its gross margin worsening from negative 57.6% to negative 67.9% year-over-year, resulting in a gross loss of $120 million in Q3 2025.
Impairment Charges and Asset Write-Downs: The company incurred over $97 million in impairment charges due to project execution issues and customer disputes, leading to reductions in the value of various assets.
Long-Term Recovery Plans: Despite ongoing difficulties, Plug Power is focused on long-term recovery by reducing input costs, tightening spending, and expanding its electrolyzer capacity and hydrogen plant development.
Comparative Industry Performance: While Plug Power's shares have only gained 1.4% year-to-date, peers like Bloom Energy have seen significant gross profit increases, highlighting the competitive challenges Plug Power faces in the industry.
