Flux Power Narrows Net Loss in Q4 FY23, Reports 44% YoY Improvement
The company recorded a revenue of $16.3 million, a 7.2% YoY increase
Lithium-ion storage solutions provider Flux Power Holdings’ net loss for the fourth quarter (Q4) of the fiscal year (FY) ended June 30, 2023, was $1.5 million as compared with a net loss of $2.7 million in the Q4 of FY22, a year-over-year (YoY) improvement of 44%.
The improvement was principally driven by increased gross profit and slightly offset by increased operating and interest expenses.
In Q4, there was a 7.2% increase in revenue, rising to $16.3 million from $15.2 million in the same quarter of 2022. This growth was attributed to higher unit sales at increased average prices, including a greater proportion of Airport Ground Support Equipment sales.
The gross profit for the quarter reached $4.3 million, compared to $3 million in Q4 2022, an increase of 43%, driven by higher unit sales with improved gross margins and cost reduction efforts.
Adjusted EBITDA for Q4 of 2023 amounted to a loss of $0.6 million, a significant improvement of 72% YoY from the loss of $2.2 million.
Selling and administrative expenses remained constant at $4.1 million, indicating improved operating efficiency to support the ongoing revenue growth.
Research and development expenses decreased slightly to $1.3 million, down from $1.4 million in the same quarter of 2022. This reduction was primarily due to lower expenses associated with the development of new products.
Company CEO Roy Dutt said, “A high priority for us remains reaching cash flow breakeven, and we made good progress during fiscal 2023 by improving the adjusted EBITDA from a loss of $14.1 million in fiscal year 2022 to a loss of $3.7 million in fiscal year 2023, an improvement of $10.4 million. We executed our initiatives to improve gross margins while growing our revenue at an annual rate of 57%.”
Full Fiscal Year 2023
In FY 2023, there was a net loss of $6.7 million, which marked a notable improvement of 57% compared to FY 2022, when the net loss was $15.6 million. This improvement was primarily attributed to higher gross profit, although increased operating and interest expenses partially offset it.
Revenue in FY 2023 experienced significant growth, increasing by 57% YoY to $66.3 million from $42.3 million. The surge in revenue was fueled by the sale of energy storage solutions at higher average prices and a greater volume of units sold, mainly due to substantial increases in GSE sales.
Adjusted EBITDA showed a loss of $3.7 million for FY 2023, a substantial improvement of 73.7% from FY 2022, when it reported a loss of $14.1 million. Enhanced gross margins primarily drove this improvement.
Operational Highlights During Q4
The company integrated artificial intelligence (AI) capabilities into its “SkyBMS Telematics” Platform to enhance decision-making and operational efficiency.
A new Atlanta facility was established to meet the rising demand for lithium-ion battery packs, improving customer support and response times.
The company said efforts to accelerate cash flow breakeven continued through strategic supply chain and profitability improvement initiatives.
The company added three new customers with substantial fleets in the last quarter and secured eight new customers in 2023, reflecting a growing preference for lithium-ion batteries over lead acid packs for long-term fleet needs.
The company’s loss narrowed to $1.4 million in the third quarter of FY 2022-23 from $3.7 million YoY.
Flux-Power posted a net loss of $1.7 million during the second quarter of 2023 compared to $5.1 million YoY, driven by increased sales volumes and higher selling prices to existing and new customers.