Flux Power Holdings, Inc. (NASDAQ: FLUX) announced its fiscal second‑quarter 2026 results, marking the company’s first GAAP profit in its history. Revenue rose 7.2% sequentially to $14.1 million, while gross profit climbed to $4.9 million, giving a 34.7% gross margin that is 6.1 percentage points higher than the prior quarter.
Operating expenses fell 31% to $4.1 million, largely due to a $0.5 million benefit from a reversal of accrued employee bonus awards and ongoing cost‑reduction initiatives. The lower expense load lifted operating income to $0.8 million, a turnaround from the $2.2 million loss reported in Q2 2025. Net income reached $0.6 million, or $0.03 per share, while non‑GAAP net income was $1.0 million, or $0.04 per share.
The earnings beat analyst expectations by $0.04 per share on the non‑GAAP metric and $0.10 per share on the GAAP metric, driven by disciplined cost control and a favorable mix shift toward higher‑margin software‑enabled energy platform sales. Revenue, however, missed consensus estimates of $15.55 million, a shortfall attributed to tariff‑related headwinds that dampened demand for legacy hardware orders.
"Our second quarter results reflected evidence of the continued progress on our strategic initiatives of implementing operational efficiencies and achieving profitability for the first time in the Company’s history," said CEO Krishna Vanka. He added that the company expects a sequential revenue decline in Q3 2026 due to tariff uncertainty and dynamic customer order patterns, but remains confident in maintaining profitability through cost discipline.
Flux Power’s guidance for the remainder of the fiscal year remains unchanged, but the company reiterated its focus on scaling the SkyLNK telematics device and the newly patented State of Health battery diagnostics technology. The company’s cash balance of $0.9 million and reliance on a $16.0 million credit facility underscore ongoing liquidity concerns, but the first‑time GAAP profit reduces existential risk and supports future growth initiatives.
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