Flux Power Holdings Inc. (FLUX) reported fiscal fourth-quarter 2026 revenue of $8.2 million, a 25% increase from the prior quarter but a 50.9% decline from the same period last year. The figure missed analyst forecasts of $11.75 million by approximately 30%, triggering a sharp selloff in after-hours trading.
The company posted a net loss of $2.3 million, or $0.11 per share, compared with analyst expectations of a $0.0367 loss per share. For the full fiscal year 2026, revenue totaled $42.1 million, down 36.6% from $66.4 million in fiscal 2025. The full-year net loss widened to $7.4 million, or $0.38 per share, from a $1.2 million loss in the prior year’s comparable period.
Gross margins remained relatively stable at 27.4% in the quarter, though down from 34.5% a year earlier. Operating expenses declined to $4.4 million, a 28.4% reduction from fiscal 2025 levels. Adjusted EBITDA improved to a negative $1.6 million from negative $2.5 million in the prior quarter. Cash and cash equivalents stood at $0.3 million at quarter-end, with a market capitalization of $17.41 million.
Shares initially rose 15.5% during regular trading to close at $0.82 but reversed course in after-hours activity, falling 19.3% to $0.662. The stock remains well below its 52-week high of $7.55 and is down 44% year-to-date, despite a 19.5% weekly gain.
Management provided guidance for the first half of fiscal 2027, projecting revenue between $6 million and $7 million for the first quarter and $8 million to $9 million for the second. CFO Kevin Royal noted that gross margins should exceed 30% once quarterly revenue reaches a $12 million to $14 million run rate, with potential to climb into the mid-30% range at higher volumes.
Flux Power secured certification from Hyster-Yale Materials Handling for its Class 1, 2, and 3 forklifts during the quarter. The company also highlighted progress in its AI-driven SkyEMS 3.0 platform, now integrated into 100% of its ground service equipment batteries, and a new robotics vertical with a major global technology partner. A white-label OEM customer increased its annual order commitment by 50%, and Flux Power now supplies the top four North American OEMs, accounting for over 60% of the market.
Management attributed the full-year revenue decline to a capital freeze by a key customer, tariff pressures, elevated fuel costs, and broader economic weakness. The company emphasized its end-of-life battery recycling program and take-back guarantees as part of its sustainability initiatives.
