Flux Power Holdings, Inc. Q1 FY2025 earnings call

• New leadership: Krishna Vanka joined as CEO, Kelly Frey as Chief Revenue Officer, and Mark Barmettler as Senior Head of Engineering. - Revenue growth: Sequential growth in revenue and gross margin in first half of fiscal 2025. - Product launches: Launching new heavy-duty models and telemetry product in pilot stage. - Team additions: Strengthened sales and engineering teams. - Operational updates: Focus on driving revenue growth, achieving profitability, addressing order delays, and launching new products to meet customer demand.

For the fiscal first quarter ended September 30, 2024, revenue was $16.1 million, a 9% year-over-year increase. Gross profit was $5.2 million, with a gross margin of 32%. Adjusted EBITDA loss was $600,000. For the fiscal second quarter ended December 31, 2024, revenue was $16.8 million, a 8% year-over-year decrease but 4% sequentially increase. Gross profit was $5.5 million, with a gross margin of 33%. Adjusted EBITDA loss was $1.0 million.

• Fiscal third quarter 2025 revenues expected to be in line with second quarter. - Fiscal fourth quarter 2025 revenues expected to increase 5% to 10% over third quarter. - Expect to be profitable on an adjusted EBITDA basis in fiscal fourth quarter as macroeconomic conditions improve and selling strategies support growth.

• Order delays due to revised timing of forklift deliveries and economic uncertainty in 2024. - Inventory accounting issues addressed by restating previously issued financial statements, but measures taken to mitigate reoccurrence.

Q: Third quarter commentary and EBITDA positive possibility A: Kevin Royal said Q3 expected to be on par with Q2 in $16 million range, Q4 expected to be profitable on adjusted EBITDA basis.

Q: Market opportunity and sales approach A: Kelly Frey said Flux was previously passive in sales, now refocusing on solution orientation and demand generation.

Q: Macro outlook and fourth quarter uptick A: Kevin Royal said confidence based on backlog and sales force forecast, Kelly Frey added replacement cycle of lithium packs and telemetry providing forward visibility.

Q: Telemetry business model A: Krishna Vanka said there is a software revenue generating model with telemetry data providing operational insights and potential for recurring revenue.