Lithium-ion storage solutions provider Flux Power Holdings’ net loss for the third quarter (Q3) of the financial year (FY) 2023-24 widened 83% year-over-year (YoY) to $2.64 million on higher operating and interest expenses.

The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss for the quarter was ₹1.38 million compared to a loss of $676,000, primarily attributable to the impact of lower revenue.

Revenue for the quarter decreased 4% to $14.45 million compared to $15.08 million YoY due to lower capital spending in the company’s market sectors, resulting in shipments of fewer energy storage packs during the quarter.

The order backlog decreased to $19.6 million as of March 31, 2024, from $30.1 million as of December 31, 2023

The company stated that its initiatives have improved gross margin over the last two years. Flux is targeting gross margin improvement to continue, with a longer-term goal exceeding 40% through strategic supply chain and profitability improvement initiatives, lower costs, and higher volume purchasing.

Gross profit decreased 7% YoY during the third quarter to $4.4 million, and gross margin held steady at 30% YoY.

9M FY 2024

Flux Power’s net loss for 9M FY 2024 increased to $5.56 million from $5.26 million, up 6% YoY.

The adjusted EBITDA loss for the period was ₹2.26 million compared to a loss of $3.1 million.

Revenue decreased 5% YoY to $ 47.59 million from $ 50.08 million.

In August 2023, Flux Power secured a $15 million credit facility from Gibraltar Business Capital, an asset-based lender for middle-market businesses. The funding was intended for Flux’s working capital needs and the repayment of an existing credit facility with Silicon Valley Bank. The company’s existing assets were used to secure the facility.

Flux Power Holdings’ net loss for the second quarter of FY 2024 narrowed to $0.8 million from $1.7 million, a YoY improvement of 52%, as the company lowered its average cost of sales per unit and recorded revenue growth during the quarter.