Lithium-ion storage solutions provider Flux Power has reported revenue of $6.59 million in the third quarter (Q3) of the fiscal year (FY) 2026, down 60.7% year-over-year (YoY) from $16.7 million.

The revenue fell short of analyst expectations of $10.1 million.

The decline was primarily attributed to the company’s largest material-handling customer implementing a capital-spending freeze, as well as shifting order patterns across the business. Flux Power also cited delayed customer purchasing decisions linked to rising fuel prices resulting from geopolitical tensions.

The company posted a net loss of $3.18 million during the quarter, compared to a loss of $1.94 million the previous year.

Earnings before interests, taxes, depreciation, and amortization (EBITDA)  for the quarter was a loss of $2.75 million, compared to a loss of $1.33 million last year.

Earnings per share (EPS) for the quarter came in at a loss of $0.15, compared to a loss of $0.12 in Q3 FY 2025, and missed analyst expectations of $0.06.

As of March 31, 2026, the company had an order backlog of $5.29 million, down 68.7% from $16.9 million the year before.

Nine Months FY 2026

Flux Power posted revenue of $33.9 million in the first nine months (9M) of FY 2026, down 31.8% from $49.7 million the year before.

The company’s net loss during 9M FY 2026 narrowed to $5.14 million from $5.5 million in the prior year. The decrease in net loss was primarily attributable to lower operating expenses and interest, partially offset by a reduction in gross profit due to lower revenue.

EBITDA for the period stood at a loss of $3.73 million, compared to a loss of $3.52 million during 9M FY 2025.

EPS for the period came to a loss of $0.27, compared to a loss of $0.33 during the same period the previous year.

Outlook

Going into the fourth quarter, the company expects approximately 20% sequential revenue growth. Additionally, it is working to improve margins through near-term supply chain optimizations, vendor renegotiations, and product redesign efforts.

“As a result of our efforts, we have seen other positive indications of increased order activity across the business that we believe point to renewed sequential revenue growth of about 20% in our fourth quarter. Looking longer-term, we remain focused on executing our strategic initiatives and capitalizing on the opportunities in the global lithium-ion battery industry, which continues to grow at an increasing rate across the markets we serve,” noted Krishna Vanka, Chief Executive Officer at Flux Power.

Looking ahead, Flux Power has projected continued EPS losses in the upcoming quarters, with forecasts of $0.10 and $0.07 for Q4 2026 and Q1 2027, respectively. The company anticipates revenue to recover slightly, projecting $12.55 million in Q4 FY 2026.

The global lithium-ion battery market exceeded $150 billion in 2025, up 20% from 2024, according to a recently published report. The report noted that declining battery costs and the expansion of applications continue to drive rapid demand growth across multiple sectors.