US mulls equity stakes in chipmakers receiving CHIPS Act Funds - Reuters
On Monday, H.C. Wainwright reaffirmed a Buy rating and an $8.00 price target for Flux Power Holdings (NASDAQ:FLUX), a $31.5 million market cap company, following the company’s financial results for the third fiscal quarter of 2025. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, despite falling 26% over the past six months. Flux Power, a developer of advanced lithium-ion batteries for industrial applications, reported a year-over-year revenue increase of 16%, reaching $16.7 million for the quarter.
The gross profit for the quarter stood at $5.3 million, which is 32% of revenues. This marks an improvement from the 28% gross profit margin reported in the same quarter the previous year. Despite the rise in gross profit, operating expenses also saw a slight increase from $6.6 million in the third fiscal quarter of 2024 to $6.9 million in the same quarter this year.
Flux Power managed to narrow its adjusted EBITDA loss to $1.1 million from a loss of $1.7 million reported in the third fiscal quarter of 2024. The net loss for the quarter was reduced to $1.9 million, or $0.12 per share, compared to the net loss of $3.0 million, or $0.18 per share, in the corresponding quarter of the previous year.
The company concluded the quarter with approximately $0.5 million in cash. However, it has access to more than $6 million from existing credit facilities to support its operations and growth strategies. The analyst’s reiterated Buy rating and price target reflect a continued positive outlook on Flux Power’s financial performance and potential for growth. Get comprehensive insights into FLUX and 1,400+ other stocks with InvestingPro’s detailed Research Reports, transforming complex financial data into actionable intelligence.
In other recent news, Flux Power Holdings announced its Q3 FY2025 financial results, highlighting a significant revenue increase of 16% year-over-year, reaching $16.7 million, which exceeded the forecasted $14.97 million. Despite the revenue beat, the company reported an earnings per share (EPS) of -$0.12, missing the expected -$0.09. This mixed performance was accompanied by an improvement in gross profit, which rose by 32.5% compared to the previous year. The company’s net loss narrowed to $1.9 million from $3.0 million in Q3 FY2024, indicating progress in addressing profitability challenges. Flux Power Holdings is focusing on expanding its domestic manufacturing capabilities and developing its Sky EMS software platform, which is expected to enhance operational efficiencies. The company also highlighted the ongoing impact of tariff pressures on its cost structures, although it anticipates minimal effects in Q4 due to existing inventory levels. Analyst firms have not provided recent upgrades or downgrades, but the financial results reflect ongoing challenges and opportunities for the company.
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