Flux Power Holdings, Inc. Q3 FY2026 earnings call

Revenue impacted by material handling customer capital freeze and geopolitical tensions; operating expenses down 30% via headcount reductions and efficiency actions; launched comprehensive digital strategy, had strong showing at MODEX show winning Innovation in Sustainability Award, showcased Sky EMS platform advancements and new patented state of health technology; hired new OEM director Brian McKenzie who is working with existing and new OEM partners, discussed global forklift market and electrification trends; working with existing OEMs to optimize white label pricing structure.

Fiscal third quarter 2026 revenue was $6.6 million compared to $16.7 million in the same quarter last year. Gross margin in the third quarter was 27.3% compared to 32% in the prior year period. Operating expenses in the third quarter of 2026 were $4.8 million compared to $6.9 million in the third quarter of 2025. Net loss for the third quarter was $3.2 million or $0.15 per share compared to a net loss of $1.9 million or $0.12 per share in the third quarter of 2025. Adjusted EBITDA for the third quarter was negative $2.5 million compared to negative adjusted EBITDA of $0.5 million in the same quarter a year ago.

Expect sequential revenue growth of approximately 20% in the fourth quarter; seeing positive trends and investing in marketing, OEM partnerships, etc. to continue growth beyond Q4.

Rising geopolitical tensions in the Middle East drove fuel prices higher which further delayed some customer spending; actual results could differ materially from forward-looking statements due to risks and uncertainties discussed in SEC filings.

Q: Brian, what's the strategy to grow faster than 17.2% CAGR in the forklift industry?

A: Continue working with existing OEMs for share of wallet and work with new OEMs, aligning with their electrification goals.

Q: Further visibility beyond Q4 2026?

A: Seeing increased activity, positive trends despite geopolitical issues, investing in marketing, etc.

Q: Details of social media strategy?

A: Focus on creating leads for sales, account-based marketing campaigns, started with existing budget.

Q: Clarity on Q3 revenue growth outlook?

A: 20% sequential growth off Q3, visibility on eventual lift but not in current calendar year.

Q: Relative activity in electric forklift vs airport ground equipment markets?

A: GSC market steady with new products, forklift market affected by customer capital freeze, both markets have growth opportunities.

Q: Gross margin strength and impact on future?

A: Focus on improving product costs, working with vendors, product redesigns ongoing, progress expected in next quarters.