Why Flux Power's Tech Conference Presentation Could Ignite a Lithium-Ion Revolution

Investors seeking high-growth opportunities in the energy storage sector should not miss Flux Power Holdings' (NASDAQ: FLUX) upcoming presentation at the Maxim Group 2025 Virtual Tech Conference. As the company prepares to showcase its transformative SkyEMS AI Platform and G-Series G96 solution, the timing could not be more critical. With a 25% surge in GSE shipments year-over-year, a patent-protected software edge, and a backlog exceeding $19 million, Flux Power is positioned to capitalize on the global shift toward electrification. But will the market finally recognize its potential? Let's dissect the data.

The Financial Story: Growth Through Adversity

Despite a challenging Q2 2025—marked by an 8% YoY revenue dip to $16.8 million—Flux Power's fundamentals remain robust. Gross margins have expanded to 33% (up from 30% in Q2 2024) due to cost reductions and higher-margin software integrations. The backlog has grown by 11% since Q1, reaching $19.5 million by February 2025, signaling pent-up demand. While adjusted EBITDA swung to a $1 million loss in Q2, this was largely due to one-time expenses like financial restatements and R&D investments.

The company's liquidity is also improving, with $0.9 million in cash and access to $6.3 million under its credit facility. Crucially, CEO Krishna Vanka (formerly of Fluence Digital) has prioritized operational discipline: “We're not just selling batteries—we're building a recurring revenue engine,” he stated in a recent earnings call.

SkyEMS: The Software Edge That Could Multiply Profits

Flux Power's crown jewel is its SkyEMS AI Platform, a proprietary system that transforms it from a hardware vendor into a data-driven solutions provider. By embedding AI-powered predictive maintenance and lifecycle management tools, SkyEMS unlocks two critical advantages:

1. Recurring Revenue Streams: Every battery sold becomes a node on the SkyEMS network, generating subscriptions for software services. With a $5.5 million gross profit in Q2 2025, software could soon rival hardware margins.
2. Competitive Moat: The patented “Intelligent Battery Cycle Life Maximization Algorithm” extends battery lifespan by optimizing charge cycles in real time—a feature no peer has yet replicated.

This shift isn't theoretical. Flux Power has already secured orders from six major North American airlines for its G-Series G96 batteries, with software integration driving long-term customer retention.

G-Series G96: Dominating the Ground Support Equipment Market

The G96 isn't just another lithium-ion battery—it's a disruptor. Designed for heavy-duty aircraft tractors, it offers 25% more runtime than competitors while slashing emissions. With airlines under pressure to decarbonize, Flux Power is capturing share from legacy lead-acid systems:

• Market Penetration: Over $6 million in airline orders in 2024, with $20 million in total GSE orders booked.
• Adjacent Market Wins: Medical equipment giants are now adopting the G96 for material handling, expanding its addressable market.

ESG Benefits: A Sustainable Business Model

Flux Power's environmental initiatives are both strategic and profitable. Its partnership with the largest U.S. battery recycler ensures end-of-life batteries are repurposed or responsibly recycled, reducing waste. Transitioning industries from propane to lithium-ion also cuts carbon emissions—a key selling point for ESG-focused investors.

Risks to Consider

• Order Delays: Higher interest rates have slowed forklift purchases, though backlog trends suggest this is temporary.
• Credit Facility Compliance: The company must maintain borrowing base thresholds, though its $16M credit line (expandable to $20M) provides flexibility.
• Operating Expenses: R&D and sales team expansion could pressure margins in the near term.

Why Act Now?

Flux Power's Maxim Group presentation is a catalyst to watch. The company will likely detail:
1. SkyEMS adoption rates among new customers.
2. G-Series G96's expansion into European aviation markets.
3. Progress toward $16.7M in Q3 revenue and its goal of cash flow breakeven in 2025.

With a market cap of just $120 million and a backlog nearly 15% of its annual revenue, FLUX is a tiny player in a $30 billion global lithium-ion market. Investors who act before competitors catch on could reap outsized rewards.

The question isn't whether energy storage is the future—it's who will dominate it. Flux Power's software-led strategy, paired with its product differentiation, makes it a rare diamond in a sector ripe for consolidation. Mark your calendar for the Maxim Group conference. This could be the spark that turns FLUX into a lithium-ion giant.