FLUX · Flux Power Holdings, Inc.

Flux Power Holdings announced fiscal third quarter 2026 results showing significant revenue decline to $6.6 million from $16.7 million in the prior year quarter, primarily due to a major material handling customer's capital freeze and dynamic order patterns, compounded by geopolitical tensions causing fuel price increases that delayed customer decisions toward quarter-end. Gross profit fell to $1.8 million with margin contracting to 27.3% from 32.0%, reflecting sales mix and pricing pressures. Management responded aggressively by implementing cost reductions, cutting operating expenses 30% year-over-year to $4.8 million through headcount reductions and operational streamlining, though this resulted in a wider GAAP operating loss of $3.0 million versus $1.6 million last year. Non-GAAP operating loss was $2.8 million, excluding stock-based compensation. Net loss expanded to $3.2 million or ($0.15) per share. CEO Krishna Vanka highlighted proactive measures including optimized OEM pricing for white-label products securing higher volume commitments, new sales leadership for OEM growth, expanded marketing, and a successful MODEX trade show where the company won an Innovation in Sustainability Award. These efforts, plus a new $1.2 million battery order from a large cargo airline, signal momentum. The company anticipates about 20% sequential revenue growth in Q4, pointing to recovery. Balance sheet shows cash at a low $0.4 million as of March 31, 2026, down from $1.3 million at fiscal year-end June 30, 2025, underscoring liquidity pressures amid ongoing challenges in the lithium-ion battery market for material handling and airport equipment. A conference call was held on May 7, 2026, to discuss details.