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On Monday, H.C. Wainwright analyst Amit Dayal adjusted the price target for Flux Power Holdings (NASDAQ:FLUX) to $8.00, down from the previous $15.00, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock has shown significant volatility, with a 55% decline over the past year but a notable 23% gain year-to-date. This price target adjustment follows the company’s financial results for the second fiscal quarter of 2025, which were released last Thursday.
Flux Power reported a year-over-year revenue decline of 7.5% to $16.8 million for F2Q25. The company’s gross profit for the quarter was $5.5 million, which is 32.5% of revenues. This marks an increase from the 29.6% gross profit margin reported in the same quarter of the previous year. InvestingPro analysis shows the company maintains a Fair overall financial health score, despite operating expenses increasing to $6.9 million from $5.8 million in F2Q24. Get access to 8 more exclusive ProTips and comprehensive financial analysis with InvestingPro.
The adjusted EBITDA for the quarter showed a loss of $1.0 million, a downturn from a gain of $0.2 million in F2Q24. Flux Power’s net loss for the quarter widened to $1.9 million, or $0.11 per share, compared to a net loss of $0.9 million, or $0.06 per share, in the same quarter the previous year.
The company concluded the quarter with roughly $0.9 million in cash. Additionally, Flux Power had access to about $7.3 million from credit facilities. In his commentary, Dayal reiterated the Buy rating but adjusted the price target to reflect the recent financial outcomes, stating, "Reiterate Buy rating while adjusting PT to $8 from $15."
In other recent news, Flux Power Holdings Inc. reported its first-quarter earnings for 2025, revealing a revenue of $16.1 million, which represents a 9% increase compared to the previous year. However, the company missed its earnings per share (EPS) forecast, reporting -$0.10 against an expected -$0.06. Despite the earnings miss, the company is optimistic about future product launches, including new heavy-duty battery models. Flux Power maintains a strong backlog of $19.5 million as of February 2025, indicating sustained demand for its products. The company has also been focusing on expanding its product lines and launching new telemetry solutions, which could potentially generate software recurring revenue. In terms of analyst activity, no specific upgrades or downgrades were mentioned, but the ongoing developments could influence future evaluations. The company’s CEO, Krishna Venkata, expressed confidence in the company’s technology and growth potential, reflecting a positive outlook despite the recent financial challenges.
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