Lithium-ion storage solutions provider Flux Power Holdings’ net loss for the second quarter of the financial year (FY) 2023-24 narrowed to $0.8 million from $1.7 million, a year-over-year (YoY) improvement of 52%, as the company lowered its average cost of sales per unit and recorded revenue growth during the quarter.

The Nasdaq-listed firm sold more energy storage packs and raised prices for certain energy storage units, which led to a 7% rise in Q2 revenue to a record $18.3 million compared to $17.2 million in the same quarter last year.

“The second fiscal quarter of 2024 saw ongoing momentum to both top and bottom lines, as we continue to move steadily towards profitability,” said Flux Power CEO Ron Dutt, adding that Flux continues to see lumpiness from delivery time of new forklift orders and interest rate variability.

In the previous quarter, Flux’s revenue fell by 17% on shipment deferrals and delays in receiving anticipated orders. The company blamed forklift timing delays, seasonality, and product mix for shipment deferrals.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) swung to a profit of $0.3 million from a loss of $0.9 million last year, representing $1.2 million mainly due to improved gross margins.

As of February 2024, Flux’s order backlog stood at $29.7 million, reflecting contributions from four new customers. Additionally, the company secured a $2 million subordinated line of credit in the quarter from Cleveland Capital, with an extended duration to August 2025.

1H FY 2024

As for the first half (1H) of FY24, Flux’s net loss narrowed by 23% to $2.93 million from $3.82 million in 2022, while its EBITDA narrowed by 43% to $1.55 million from $2.74 million last year.

The lower loss was mainly due to an improvement in the cost of sales even as the company’s revenue fell 5% to $33.14 million in the first six months of the year from $35 million in the same period last year.

“We are confident that we are on a trajectory toward reaching sustained profitability during the current fiscal year,” Dutt told analysts during the earnings call.

The company’s revenue in the fourth quarter of last year rose by 7.2%, helped by higher sales at increased average prices, including a greater proportion of Airport Ground Support Equipment sales.