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1. Company Snapshot

1.a. Company Description

Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the United States.It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift.The company also provides 24-volt onboard chargers for its Class 3 Walkie LiFT packs; and smart wall mounted chargers to interface with its BMS.


The company sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors.Flux Power Holdings, Inc.was incorporated in 1998 and is based in Vista, California.

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1.b. Last Insights on FLUX

Flux Power Holdings, Inc.'s recent performance was driven by a series of positive developments. The company's H1 2025 earnings call transcript highlighted its strong revenue growth and expanding customer base. Additionally, the company's CEO, Krishna Vanka, emphasized the importance of its battery technology and its potential to disrupt the market. Furthermore, the company's recent investments in research and development are expected to drive future growth and innovation.

1.c. Company Highlights

2. Flux Power Holdings' Q1 2026 Earnings: A Temporary Lull

Flux Power Holdings reported revenue of $13.2 million for the first quarter of 2026, a decline of 18% compared to $16.1 million in the same quarter last year. The decrease was primarily attributed to a temporary pause in customer orders due to uncertainty surrounding the tariff situation and macroeconomic concerns. Gross margin for the quarter was 28.6%, down from 32.4% in the prior year period. The company's EPS came in at -$0.14, missing estimates of -$0.04. Operating expenses were $5.9 million, a reduction of 8% from $6.4 million in the same quarter last year, reflecting the benefits of cost reduction initiatives.

Publication Date: Nov -25

📋 Highlights
  • Revenue Decline: Q1 2026 revenue fell to $13.2M from $16.1M in Q1 2025 due to order pauses linked to tariffs and macroeconomic uncertainty.
  • Order Rebound: Q2 saw $2.4M in orders from top material handling customers and a major airline, doubling the airline customer base since 2023.
  • Cost Reductions: Operational efficiencies reduced headcount costs by 20% while maintaining production levels.
  • Capital Raises: Raised $13.8M total post-quarter via secondary offering ($9.2M) and private placement ($4.6M), boosting cash to $1.6M.
  • Margin Pressure: Gross margin dropped to 28.6% from 32.4% in Q1 2025, reflecting ongoing cost and pricing challenges.

Operational Highlights

Despite the challenges, Flux Power Holdings made significant progress in its operational efficiencies, including a limited workforce reduction that resulted in a 20% reduction in headcount costs while maintaining consistent production levels. The company also secured multimillion-dollar orders from top material handling customers totaling $2.4 million and doubled its airline customer base compared to last year. As Krishna Vanka noted, "We're not seeing any pushback from the overall goal and how the airlines are thinking about going lithium, so that trend is very supportive."

Valuation and Outlook

With a P/S Ratio of 0.39, the market appears to be pricing in a significant slowdown in revenue growth. Analysts estimate revenue growth to be -1.4% next year, indicating a continued challenging environment. The company's EV/EBITDA ratio is -10.07, suggesting that the market is pricing in significant losses. However, with the successful capital raises totaling $13.8 million in proceeds and a strengthened balance sheet, Flux Power Holdings is well-positioned to achieve profitable growth in the coming quarters.

Financial Position

The company's cash and cash equivalents stood at $1.6 million, up from $600,000 a year ago and $1.3 million in the prior quarter. Subsequent to quarter end, Flux Power Holdings raised an additional $9.2 million in proceeds net of fees and underwriters discount from the secondary offering of common stock and $4.6 million in proceeds net of fees from a private placement of prefunded warrants and common stock warrants, further bolstering its financial position.

3. NewsRoom

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FLUX Power to Participate in the iAccess Alpha Virtual Best Ideas Winter Investment Conference

Dec -03

Source: globenewswire.com

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Plug Power vs. Flux Power: Which Clean Energy Stock Has the Edge?

Nov -26

Source: zacks.com

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Flux Power Awarded Patent for Advanced Battery State of Health Technology

Nov -20

Source: globenewswire.com

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Flux Power Holdings, Inc. (FLUX) Reports Q1 Loss, Lags Revenue Estimates

Nov -13

Source: zacks.com

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Flux Power Holdings, Inc. (FLUX) Q1 2026 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Are Computer and Technology Stocks Lagging Flux Power (FLUX) This Year?

Nov -13

Source: zacks.com

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Flux Power Secures $2.4 Million in Repeat Orders from Major Food & Beverage and Manufacturing Customer

Nov -06

Source: globenewswire.com

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Flux Power: Capital Requirements And Nasdaq Delisting Threat Addressed - Buy (Rating Upgrade)

Nov -03

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.47%)

6. Segments

Lithium-ion Energy Storage Solutions

Expected Growth: 11.47%

Flux Power Holdings, Inc.'s 11.47% growth in Lithium-ion Energy Storage Solutions is driven by increasing adoption in renewable energy systems, rising demand for electric vehicles, and growing need for efficient energy storage in industrial and commercial applications, coupled with government incentives and declining battery costs.

7. Detailed Products

Lithium-Ion Batteries

High-performance lithium-ion batteries designed for heavy-duty applications, providing reliable power and long lifespan.

Battery Management Systems (BMS)

Advanced BMS solutions that monitor and control battery performance, ensuring safe and efficient operation.

Charging Systems

High-power charging solutions designed for fast and efficient charging of lithium-ion batteries.

Electric Vehicle (EV) Charging Stations

Level 2 and DC Fast Charging stations for electric vehicles, providing convenient and efficient charging solutions.

Energy Storage Systems (ESS)

Modular energy storage solutions designed for grid-scale and commercial applications, providing backup power and peak shaving capabilities.

8. Flux Power Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Flux Power Holdings, Inc. is moderate due to the availability of alternative energy sources.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power and the high switching costs.

Bargaining Power Of Suppliers

The bargaining power of suppliers is high due to the concentration of suppliers and the high switching costs.

Threat Of New Entrants

The threat of new entrants is moderate due to the high barriers to entry and the high capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the high competition and the low product differentiation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 57.71%
Debt Cost 8.57%
Equity Weight 42.29%
Equity Cost 10.55%
WACC 9.41%
Leverage 136.45%

11. Quality Control: Flux Power Holdings, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Pioneer Power Solutions

A-Score: 5.4/10

Value: 8.0

Growth: 4.2

Quality: 6.9

Yield: 10.0

Momentum: 2.0

Volatility: 1.0

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Flux Power

A-Score: 4.7/10

Value: 8.0

Growth: 6.9

Quality: 5.5

Yield: 0.0

Momentum: 7.5

Volatility: 0.3

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Value: 6.0

Growth: 5.2

Quality: 3.6

Yield: 0.0

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Volatility: 0.3

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Solid Power

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Value: 6.6

Growth: 3.2

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

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Servotronics

A-Score: 4.1/10

Value: 6.2

Growth: 3.0

Quality: 5.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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RF Industries

A-Score: 3.9/10

Value: 4.7

Growth: 3.7

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.67$

Current Price

1.68$

Potential

-0.00%

Expected Cash-Flows