Flux Power Posts First GAAP Profit, Warns of Q3 Hit From Customer Freeze

Overview

• Fiscal Q2 revenue rose 7.2% sequentially to $14.1 million, with net income of $0.6 million and adjusted EBITDA of $1.5 million.
• Core operating expenses fell about 31% from the prior quarter and gross margin expanded by 610 basis points on better mix, lower warranty costs, and savings.
• The company said its largest customer has instituted a capital freeze, and it expects materially lower revenue in Q3 that could extend longer depending on the customer's timing.
• Cash stood at roughly $0.9 million at quarter‑end, with access to a $16 million collateral‑based revolving credit facility subject to covenants, and additional cost cuts are being executed.
• Product updates included a U.S. patent for battery State‑of‑Health algorithms, the next‑gen SkyLNK telematics device with four times the sensors and on‑device machine learning, and AI‑driven Intelligent Alerting plus a new mobile UI in SkyEMS, with a broad rollout of SkyLNK planned within two months.