Lithium-ion energy storage solutions provider Flux Power reported revenue of $6.76 million in the first quarter (Q1) of fiscal year (FY) 2027, down 48.7% year-over-year (YoY) from $13.18 million.

The revenue, however, beat analysts’ expectations by $605,330.

The revenue drop was primarily attributed to reduced spending by a key customer and broader economic conditions, including higher interest rates and fuel prices, which affected customer ordering patterns.

Revenue declined 18.1% from $8.25 million in Q4 FY 2026.

The company’s net loss widened 23.7% YoY to $3.17 million from $2.56 million.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at a loss of $2.77 million, widening 39.9% from a loss of $1.98 million in the corresponding quarter last year.

Earnings per share (EPS) was a loss of $0.15, beating EPS estimates of $0.03.

Flux Power said that it is evaluating financing alternatives and strategic partnerships to meet its capital requirements and support operations. The company also plans to utilize its existing committed equity facility to raise additional capital.

During the earnings call, Chief Financial Officer Kevin Royal said the company’s lender had required it to raise at least $4 million in net capital.

Business Highlights

During the quarter, Flux Power received an order from its largest material handling customer, which had paused orders over the previous few quarters. The company secured the order through an original equipment manufacturer (OEM) partner.

The company had previously expected orders from this customer to resume in the first quarter of calendar year 2027. However, management said the timing and volume of future orders remain uncertain.

Flux Power also received 25 orders through its OEM partners from first-time customers, representing approximately $750,000 in new revenue.

The company is advancing three major OEM programs, including its existing partnership with Hyster-Yale Materials Handling. Flux Power expects orders from the two prospective OEM partnerships toward the end of FY 2027.

The company is also pursuing white-label opportunities, with five OEMs evaluating its programs and two major dealers exploring potential partnerships.

One existing OEM partner has added the S8 battery to its dealer customer relationship management system, which Flux Power expects to generate about $1 million in business over the next two quarters.

During the quarter, Flux Power also secured a replacement battery order valued at more than $500,000 from a multinational earthmoving and mining equipment manufacturer. The company anticipates additional orders exceeding $1 million in calendar year 2027 as the customer’s existing battery fleet enters its replacement cycle.

The company continued expanding into the robotics market, with a global technology platform customer conducting field tests of its C48 batteries. Flux Power expects production-level orders from this customer in calendar year 2027.

Flux announced product innovations focused on battery safety, expanded material handling applications, and connected fleet intelligence during the quarter.

These include integrated gas detection capabilities for airport ground support equipment batteries, developed with a major airline, and SkyVOX, a fleet intelligence solution offering battery location tracking and charging alerts.

Initial shipments of batteries with integrated gas detection are expected in the first quarter of calendar year 2027, while SkyVOX shipments are scheduled to begin in Q2 FY 2027.

Flux Power is also leveraging its S-Series battery platform to pursue white-label opportunities and developing a more integrated supply chain model to improve manufacturing scale and gross margins.

Management said its supply chain optimization strategy is designed to support an increase in production from hundreds to thousands of battery units while reducing costs.

Outlook

Flux Power expects revenue of $7 million to $8 million in Q2 FY 2027, indicating a sequential recovery from the $6.76 million recorded in Q1.

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