Lithium-ion storage solutions provider Flux Power reported revenue of $8.25 million in the fourth quarter (Q4) of fiscal year (FY) 2026, down 50.7% year-over-year (YoY) from $16.74 million.

The revenue decline is attributed to changes in product mix, a full-year impact from tariffs, and a loss of operating leverage due to lower sales volume, resulting in higher unabsorbed labor and overheads.

The company posted a loss of $2.31 million, up 96.1% from a loss of $1.18 million the year before.

Earnings before taxes, depreciation, and amortization (EBITDA) for the quarter stood at a loss of $1.89 million, an increase of 252.3% from a loss of $535,000.

Earnings per share (EPS) for the quarter stood at a loss of $0.11, up 57.1% YoY from $0.07.

“Fourth quarter revenue increased 25% sequentially, slightly ahead of the expectations we conveyed on last quarter’s call due to increased customer orders and shipments into a new vertical market,” commented Krishna Vanka, CEO at Flux Power. “To improve our overall cost structure, we executed decisive expense reduction and efficiency initiatives over the past year that resulted in a 30% reduction in fourth quarter operating expenses compared to the prior year quarter.”

“The company has faced several headwinds during my first eighteen months as CEO, which in turn led us to reassess our business priorities and implement changes that we expect to benefit us in fiscal 2027 and beyond. With a leaner cost structure, a refreshed sales leadership team, expanding OEM relationships and upgraded offerings in place, I believe we are well positioned to deliver renewed growth and accelerate our path to profitability as broader economic conditions improve,” Vanka added.

Fiscal Year 2026

The company posted revenue of $42.13 million for FY 2026, down 36.6% compared to $66.43 million the year before.

It posted a loss of $7.45 million, up 11.6% YoY from $6.67 million.

EBITDA for FY 2026 stood at a loss of $5.62 million, an increase of 36.7% from $4.11 million the previous year.

EPS for the year stood at a loss of $0.38, down 5% from a loss of $0.40 last year.

Business Highlights

During the quarter, Flux received official certification from Hyster-Yale Materials Handling, a key OEM partner and global leader in lift truck manufacturing. This important certification applies to all of Hyster-Yale’s Class 1, 2, and 3 forklifts.

These three classes of forklifts represented $3.5 billion in Hyster-Yale’s revenue during its fiscal year 2025. This represents a major growth opportunity for Flux Power, as it significantly expands our market share across the largest segments of the electric material handling industry.

In June, the company made one of its most significant platform leaps in company history with the launch of AI-driven SkyEMS 3.0. This helped it redesign how its customers manage and optimize their energy assets. Flux has historically competed as a battery hardware manufacturer. SkyEMS 3.0 enhances that equation. It layers AI-powered intelligence, predictive analytics, and a fully customizable dashboard experience on top of every battery it deploys.

Outlook for FY 2027

For the first quarter of 2027, the company expects revenue to be down in the range of $6 million to $7 million. However, it expects second-quarter revenue to rebound to $8 million to $ 9 million.

Flux Power reported revenue of $6.59 million in Q3 of FY 2026, down 60.7% YoY from $16.7 million.