Flux Power Expects Revenue of $7 Million to $8 Million in Fiscal Second Quarter
Key Facts
Flux Power expects revenue of between $7 million and $8 million in fiscal second-quarter 2027, citing improved order activity, according to a company statement. The guidance followed the return of the company’s largest customer, which had halted orders, with a new order through an original equipment manufacturing partner. Management said it was too early to predict the future course of this customer’s orders. The return puts a new customer order in the context of the quarterly forecast, but the company did not specify its size or its individual impact on revenue. The guidance comes after fiscal first-quarter results showed declines in revenue and gross profit compared with the previous quarter and the same period last year.
Revenue for fiscal first-quarter 2027, which ended on September 30, 2026, was $6.8 million, compared with $8.2 million in the previous quarter and $13.2 million in the year-earlier period, according to a Flux Power statement. That means the decline extended to both the quarterly and annual comparisons, as the company looks for revenue to rise in the second quarter. Management attributed the decrease mainly to lower spending by one of its major customers and broader economic conditions. On the results call, it said higher interest rates and fuel prices had affected customer demand patterns. The company thus linked weaker revenue to factors involving a major customer and to market conditions that it said had affected purchasing decisions.
Gross profit was $1.7 million, or 24.8% of revenue, in the first quarter, compared with $2.3 million and a margin of 27.4% in the previous quarter, and $3.8 million and a margin of 28.6% a year earlier, the company said. Both gross profit and its share of revenue declined in the two comparisons, alongside lower sales. The company posted a net loss of $3.2 million, or $0.15 per share, compared with a loss of $2.3 million, or $0.11 per share, in the previous quarter. The net loss was $2.6 million, or $0.15 per share, in the same period a year earlier. By contrast, the company said operating expenses fell 22% year over year, attributing the decrease mainly to staff reductions and a more streamlined operating model.
Flux Power said it received 25 orders in the first quarter through its partners from customers buying its products for the first time, representing about $750,000 in new revenue. The orders add a new-customer acquisition channel to developments in the company’s demand, as spending by one of its major customers declined. The company’s revenue for fiscal 2026 also fell to $42.1 million from $66.4 million in fiscal 2025, according to its annual results filing. The annual decline places the first-quarter results within a broader period of falling revenue. Cash stood at $0.4 million on September 30, compared with $0.3 million on June 30, 2026.
Alongside its second-quarter guidance, management forecast revenue of between $9 million and $10 million in fiscal third-quarter 2027, according to the results-call transcript. That puts the announced third-quarter forecast range above the second-quarter range, but management did not tie the outlook to a specific trajectory for orders from its largest customer. The company said it is evaluating financing alternatives and strategic partnerships. Its results filing also cited its default under its agreement with Gibraltar Business Capital, its ability to comply with the agreement’s terms and continued access to the credit facility among factors that could affect future results. The company expects initial shipments of its gas-sensing feature to begin in the first quarter of 2027, starting with an end customer in the aviation sector.
In trading, Flux Power shares closed at $0.4464 on November 3, 2026, after closing at $0.4539 in the previous session, according to daily data provided by EL7. The closes provide a comparison between the two sessions, while the available data did not include verified figures for the daily highs and lows. The return of the largest customer remains one element of the company’s operating picture, alongside 25 orders from new customers through its partners. However, management said it was too early to determine the future direction of that customer’s orders. The second- and third-quarter forecasts come as the company continues to assess financing and partnership options and risks related to its credit facility.