Flux Power Holdings Surges 52.17% on Earnings, New Contracts, Lithium-Ion Innovations

Flux Power Holdings (NASDAQ: FLUX) surged 52.17% following a six-day rally, with shares hitting an intraday high of $1.599 on September 16, 2025—their highest level since September 2025. The stock’s post-earnings surge reflects investor optimism over the company’s operational turnaround and strategic advancements in lithium-ion energy storage solutions.

Financial performance underscored the rally, with Q4 2025 revenue rising 25% year-over-year to $16.7 million and full-year revenue growing 9% to $66.4 million. Gross margins expanded to 34.5% in Q4, a significant improvement from 26.9% in the prior year, while adjusted EBITDA turned positive at $600,000 after a $1.2 million loss in Q4 2024. These metrics highlight cost discipline and product innovation, particularly in battery redesigns and software integration.

Strategic momentum came from $3.2 million in new contracts, including orders for G80-420 lithium-ion battery packs and SkyEMS software partnerships with a major North American airline. The launch of SkyEMS 2.0, an AI-driven energy management platform, and a new patent for battery charge-balancing technology further solidified the company’s competitive edge. CEO Krishna Vanka emphasized recurring revenue potential through software solutions and industrial electrification.

Capital raising and operational efficiency also supported the stock’s ascent. A $5 million private placement provided $3.8 million in net proceeds, while cost-cutting measures—including a 15% workforce reduction and vendor renegotiations—boosted liquidity. The company maintained $16 million in credit facilities, enabling growth in North and Central American markets through partnerships with OEMs and telematics providers.

Risks remain, including macroeconomic volatility, U.S.-China tariff pressures, and supply chain fragility in China. However, the $9 million backlog, coupled with improved financials and product differentiation, has positioned Flux Power to capitalize on long-term demand in industrial electrification. Analysts note the stock’s trajectory reflects confidence in its path to profitability and recurring revenue model, despite near-term uncertainties.