Flux Power Holdings 2026 Q1 Earnings Misses Estimates with 53.5% Wider Net Loss

Flux Power Holdings (FLUX) reported Q1 2026 earnings that missed both revenue and EPS estimates, with the company posting a net loss of $2.56 million (53.5% wider year-over-year) and revenue declining 18.3% to $13.18 million. The CEO highlighted operational challenges tied to tariff uncertainty and macroeconomic caution but noted Q2 order recovery and strategic progress.

Revenue

Total revenue for Q1 2026 fell to $13.18 million, a 18.3% decline from $16.13 million in Q1 2025. The drop was attributed to customer order pauses linked to tariff uncertainty and macroeconomic concerns, as noted by CEO Krishna Vanka.

Earnings/Net Income

The company’s net loss widened to $2.56 million ($0.15 per share) in Q1 2026, representing a 53.5% increase from the $1.67 million loss ($0.10 per share) in Q1 2025. This marks the 9th consecutive year of losses in the corresponding quarter, underscoring persistent financial challenges.

Post-Earnings Price Action Review

Flux Power’s stock price declined 6.31% after hours following the earnings report, exacerbating a 71.11% month-to-date drop. The shares have also fallen 17.49% in the latest trading week, reflecting investor concerns over the widening losses and revenue shortfall. Despite management’s optimism about Q2 order recovery and cost reductions, the stock remains under pressure due to ongoing macroeconomic and tariff-related headwinds.

CEO Commentary

Krishna Vanka emphasized Q2 momentum, citing $2.4 million in orders from material handling customers and a major airline deal, doubling the company’s airline client base. The CEO also highlighted $13.8 million in new capital, cost reductions, and certifications for its SkyEMS 2.0 platform and battery technologies, expressing cautious optimism for profitability.

Guidance

The company aims to deploy its $13.8 million in capital toward operational efficiency, product development, and market expansion, while navigating risks such as macroeconomic volatility and tariff impacts. Management remains focused on achieving profitability through energy storage and SaaS solutions.

Additional News

Flux Power recently completed two capital raises totaling $13.8 million, which will fund working capital and product development. The company also secured UL EE and UL 1973 certifications for its material handling and battery products, unlocking $1 billion in new market opportunities. Additionally, it expanded its North American airline client base to eight, doubling year-over-year.

The stock’s recent performance has been volatile, with a 71.11% monthly decline and a 17.49% weekly drop, reflecting investor skepticism despite management’s strategic updates. Analysts remain divided, with some upgrading the stock due to capital raises and certifications, while others caution over elevated dilution risks and a weak earnings outlook.

Flux Power’s Q1 results highlight a challenging operating environment, but the company’s focus on cost reductions, certifications, and market expansion could position it for recovery in the coming quarters. Investors will closely watch order trends and capital deployment to assess progress toward profitability.