Flux Power reported its fiscal second quarter 2026 results, achieving positive GAAP net income for the first time in its history. The company saw sequential revenue growth and significant reductions in operating expenses, driven by cost-saving initiatives and an accrual reversal, leading to improved profitability and gross margins.
Achieved positive GAAP net income for the first time in its history.
positiveRevenue increased 7.2% sequentially to $14.1 million.
positiveGross profit increased to $4.9 million, or 34.7% of revenue, up from 28.6% in the prior quarter.
positiveOperating expenses reduced by approximately 31% sequentially, excluding an accrual reversal.
positiveSecured more than $3.6 million in additional purchase orders from a long-standing airline customer.
positiveAwarded U.S. Patent for determining the State of Health (SoH) of a battery pack.
positiveIntroduced next-gen telematics hardware SkyLNK device with 4x more sensors and new machine learning capabilities.
positiveAdded AI driven Intelligent Alerting to SkyEMS, improving customer experience and potential fleet uptime by 10 to 30%.
positiveReleased new Mobile UI for SkyEMS enabling on-the-go monitoring and faster decision-making.
positiveRevenue for the six months ended December 31, 2025, was $27.3 million, a decrease from $33.0 million in the prior year period.
negativeOperating loss for the six months ended December 31, 2025, was $1.4 million, compared to an operating loss of $2.7 million in the prior year period.
negativeNet loss for the six months ended December 31, 2025, was $2.0 million, compared to a net loss of $3.6 million in the prior year period.
negativeNon-GAAP net loss for the six months ended December 31, 2025, was $1.0 million, compared to a non-GAAP net loss of $1.6 million in the prior year period.
negativeAdjusted EBITDA for the six months ended December 31, 2025, was $55,000, compared to an adjusted EBITDA loss of $242,000 in the prior year period.
attentionCash decreased to $0.9 million as of December 31, 2025, from $1.3 million as of June 30, 2025.
attentionInventories, net decreased to $15.7 million as of December 31, 2025, from $17.2 million as of June 30, 2025.
attentionApproaching fiscal third quarter with an expectation of a sequential decline in revenues due to prevailing uncertainty related to tariff changes and dynamic customer order patterns.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Evidence of continued progress on strategic initiatives of implementing operational efficiencies and achieving profitability for the first time in the Company’s history.
Revenue increased sequentially as orders rebounded after a pause last quarter due to tariffs and pricing.
Reduced core operating expenses approximately 31% sequentially, excluding the benefit from an accrual reversal, as a result of implemented cost reductions.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.