Flux Power Holdings, Inc. (FLUX): Business Model Canvas [Dec-2025 Updated]

You're digging into the operational engine of Flux Power Holdings, Inc. to see if their industrial electrification play is built to last, and honestly, mapping out their Business Model Canvas is the fastest way to cut through the noise. As someone who spent a decade mapping out complex industrial plays at BlackRock, I can tell you their model hinges on selling a lower total cost of ownership (TCO) against propane and lead-acid, which drove $66.4 million in revenue in fiscal year 2025. Below, we break down the nine essential building blocks-from their proprietary Battery Management System (BMS) and over 28,000 installed packs to their growing recurring software revenue-so you can see exactly how they plan to scale that 32.7% gross margin.

Flux Power Holdings, Inc. (FLUX) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances that keep Flux Power Holdings, Inc. (FLUX) moving forward, especially after securing fresh capital and landing big orders in late 2025. These aren't just names on a slide; they represent tangible revenue channels and financial stability.

Distribution and Channel Partners

Averest Inc. stands out as a key distribution partner, specifically focused on the aviation industry for Ground Support Equipment (GSE) electrification. This partnership is central to capturing market share in airport operations. For example, the collaboration helped secure a purchase order exceeding $2 million for the G80-420 battery packs from a major U.S. airline, with delivery scheduled throughout 2025.

Flux Power Holdings, Inc. also serves customers through direct sales to lift equipment OEMs and battery distributors, but the channel partner structure is vital for segment penetration. The company secured an additional $1.2 million order with another airline for G80 solutions integrated with the SkyEMS software platform.

Here's a look at the recent order momentum that validates these distribution channels:

Financial Partners and Capital Injections

Securing capital is a constant partnership requirement for scaling. Flux Power Holdings, Inc. successfully closed a private placement subsequent to its Q4 2025 results, raising approximately $5.0 million in gross proceeds. The net cash impact from this specific raise was about $3.8 million after accounting for debt conversion and fees. To be fair, there was another capital event reported around the same time; on September 15, 2025, the company closed a private placement of prefunded warrants for $4.6 million net of offering related expenses.

The company also relies on established credit facilities. As of November 2025, Flux Power Holdings, Inc. has a revolving line of credit under a $16.0 million credit facility with Gibraltar Business Capital ("Gibraltar"). That facility provides a borrowing capacity of $16.0 million, subject to collateral and covenant satisfaction.

Strategic Suppliers and OEM Relationships

While specific lithium-ion cell suppliers aren't named in recent filings, the company's ability to secure major orders implies strong component sourcing and OEM alignment. Flux Power Holdings, Inc. designs its own proprietary battery management system (BMS) and telemetry, which is a key differentiator. The company's strategy includes achieving new lift truck model certifications, which requires deep integration with equipment manufacturers.

The success in the GSE market shows strong alignment with aviation equipment needs. For instance, the company secured a large order that doubled the number of North American airlines served to eight in the first quarter of fiscal year 2026 (ended September 30, 2025). Furthermore, the company received a UL EE Listing across its material handling portfolio, which opens up a new total addressable market estimated at $1 billion across sectors like chemical, oil & gas, agricultural processing, and pharmaceutical industries.

Key elements of these technology partnerships include:

• Securing a new patent covering a breakthrough approach to battery charge balancing to optimize performance.
• Graduating the SkyEMS 2.0 SaaS platform from beta into production with multiple paying customers.
• The G80-420 battery pack was engineered for high-intensity GSE applications like baggage tractors and belt loaders.

Finance: draft 13-week cash view by Friday.

Flux Power Holdings, Inc. (FLUX) - Canvas Business Model: Key Activities

You're looking at the core engine driving Flux Power Holdings, Inc. right now-the day-to-day work that turns designs into dollars and, more importantly, into recurring value. It's a mix of heavy engineering and smart software, which is key to their strategy as of late 2025.

The primary activity remains the physical creation of their energy storage hardware. This involves the design and manufacturing of advanced lithium-ion battery packs tailored for commercial and industrial equipment. The results of this manufacturing focus are clear in the top-line numbers for the fiscal year ending June 30, 2025.

Here's a quick look at the scale of their product activity for the full fiscal year 2025:

A major component of their product activity is the continuous refinement of the battery systems themselves. This isn't just about the cells; it's about the intelligence built around them. Flux Power is actively engaged in R&D for their proprietary Battery Management System (BMS) and associated software. This focus is evidenced by recent intellectual property achievements.

• Awarded a patent for its Intelligent Battery Cycle Life Maximization Algorithm, which uses proprietary AI.
• Received UL EE Listing across the entire material handling portfolio, opening a new market segment estimated at around $1 billion in total addressable market.
• Achieved UL 1973 Listing for the G80-G2 lithium-ion solution, opening up new opportunities in AGVs and AMRs.

The financial commitment to this innovation shows some fluctuation, which is normal when managing a workforce transition. For instance, Research & Development expenses were $1.1 million in the third fiscal quarter of 2025, down from $1.3 million in the prior year period, driven by lower salaries and severance costs.

The company is intensely focused on driving operational efficiencies and cost management, especially following new executive leadership. This is a direct action to move toward profitability. The CEO confirmed a significant internal restructuring effort.

The CEO stated that since his arrival, they have reduced their headcount costs by a total of 20% while maintaining consistent production levels. This efficiency drive is reflected in the bottom-line improvement for the full fiscal year 2025:

• FY 2025 Net Loss narrowed to $6.7 million, down from $8.3 million in 2024.
• FY 2025 Adjusted EBITDA loss improved to approximately ($0.1) million, compared to a loss of $4.0 million in 2024.

Finally, a critical activity is the shift toward solution selling and upselling their telematics software, SkyEMS, into the installed base of battery customers. This is how they build that sticky, recurring revenue stream you're looking for. They graduated their SkyEMS 2.0 SaaS platform from beta into production, converting a major airline from beta testing to a paying customer. This software integration is already translating into hardware sales, such as a recently secured order of over $1.2 million with an airline that included the SkyEMS software platform.

Finance: draft 13-week cash view by Friday.

Flux Power Holdings, Inc. (FLUX) - Canvas Business Model: Key Resources

You're looking at the core assets Flux Power Holdings, Inc. (FLUX) relies on to execute its strategy. These aren't just line items; they're the tangible and intangible advantages that drive their market position in industrial electrification.

Proprietary BMS and New Patents for Charge Balancing and AI-Driven Algorithms

The proprietary Battery Management System (BMS) is central, offering Cell Balancing, Monitoring, and Error Reporting functions. This technology stack is evolving; for instance, the company was awarded a patent for its Intelligent Battery Cycle Life Maximization Algorithm, a proprietary AI-based algorithm, during the third fiscal quarter of 2025. This focus on intelligence supports the software upsell runway, as the SkyEMS 2.0 SaaS platform graduated from beta into production with multiple paying customers as of September 30, 2025.

Installed Base and Software Upsell Runway

While the exact installed base figure isn't publicly confirmed at the requested level, the growth in customer adoption clearly fuels the software opportunity. Flux Power Holdings, Inc. doubled the number of North American airlines served to eight as of November 2025. This expanding fleet base represents the runway for recurring revenue from the SkyEMS software platform. The company secured a large order with another major airline customer in the first quarter of fiscal year 2026, highlighting continued traction in this segment.

Manufacturing Facility in Vista, CA

The operational core is the manufacturing facility located in Vista, CA, specifically at 2685 South Melrose Drive. While the specific annual production capacity figure you mentioned isn't in the latest filings, the company's recent financial performance gives you a sense of scale and utilization. For the full fiscal year 2025 (ended June 30, 2025), total revenue reached $66.4 million. The company is focused on translating this production capability into profitable growth.

Here's a quick look at the recent financial and operational scale:

Certifications for Key Product Lines

Regulatory compliance is a hard asset, opening up new market segments. Flux Power Holdings, Inc. has secured critical safety and reliability validations for its product lines. You should note these specific achievements:

• Received UL EE Listing across its material handling portfolio.
• Received UL 1973 Listing for its G80-G2 lithium-ion solution, which is an 80V product for mobile battery energy storage systems (BESS).

The UL EE Listing specifically opened up a new total addressable market estimated at $1 billion across chemical, oil & gas, agricultural processing, and pharmaceutical industries.

Flux Power Holdings, Inc. (FLUX) - Canvas Business Model: Value Propositions

You're looking at the core reasons why industrial fleets are choosing Flux Power Holdings, Inc. (FLUX) over older power sources. It's not just about being green; it's about the bottom line and operational superiority. Here's the breakdown of what Flux Power is offering its customers as of late 2025.

Lower total cost of ownership (TCO) versus traditional lead-acid and propane solutions

Flux Power Holdings, Inc. positions its lithium-ion battery packs as providing a lower cost of ownership, in many instances, compared to the traditional lead-acid and propane-based solutions that dominate the material handling and ground support equipment (GSE) sectors. While specific TCO reduction percentages aren't publicly detailed for all comparisons, the value proposition rests on the extended lifespan and reduced operational expense inherent in lithium-ion technology over the long haul.

Enhanced safety, performance, and extended battery cycle life

Performance is being engineered directly into the battery system through proprietary software and hardware. This focus on longevity and intelligence is a key differentiator. For example, the company secured a U.S. Patent in November 2025 for determining a State of Health (SoH) of a battery pack, which uses advanced algorithms to track depth of discharge and optimize charge patterns to extend overall battery lifespan. This builds on earlier innovation, like the patent awarded in May 2025 for an Intelligent Battery Cycle Life Maximization Algorithm that uses real-time machine learning to tune battery cycling behavior based on field usage. To date, Flux Power Holdings, Inc. has shipped more than 28,000 battery packs, each benefiting from this evolving intelligence.

Here's a quick look at the technology milestones supporting this value:

Data-driven fleet optimization via SkyEMS 2.0 telematics platform

The shift to intelligent energy is cemented by the SkyEMS software platform. This is a cloud-based energy management solution designed to give fleet managers real-time, data-driven insights. The company is actively moving toward a recurring revenue stream by integrating this intelligence; the SkyEMS AI platform version 2.0 entered beta testing with an airline customer, with rollouts planned for additional customers. For some customers, the G80 lithium-ion solutions are being bundled directly with SkyEMS, showing the software is integral to the offering, not just an add-on. The Chief Revenue Officer noted that these telemetry and energy management systems are becoming a 'bigger piece of the conversation' with end users.

Sustainable, zero-emission energy solutions for industrial electrification

Flux Power Holdings, Inc.'s lithium-ion packs directly address sustainability goals by reducing CO2 emissions, which helps customers meet their Environmental, Social, and Governance (ESG) metrics. This is particularly relevant in the airport ground support equipment (GSE) sector, where 'green initiatives' favor lithium-ion adoption. Public data suggests that only 15-25% of airline GSE fleets are currently electric, meaning 75-85% still run on internal combustion engines that are ripe for replacement. The market validation for this transition is evident in recent order flow; over the last calendar year, new airline customers placed purchase orders totaling over $6 million, contributing to approximately $20 million in total GSE orders. The company's full fiscal year 2025 revenue reached $66.4 million, reflecting this growing demand across material handling and GSE markets.

The core value propositions can be summarized by the market segments driving adoption:

• Fleet electrification targets for major airlines and Fortune 500 companies.
• Unit growth in the GSE market was 25% during Q3 Fiscal Year 2025.
• Unit growth in the Material Handling market was 10% during Q3 Fiscal Year 2025.
• The company has an open order backlog of $19.5 million as of February 28, 2025.

Flux Power Holdings, Inc. (FLUX) - Canvas Business Model: Customer Relationships

You're looking at how Flux Power Holdings, Inc. (FLUX) manages the people buying their advanced lithium-ion energy storage and software. The relationship strategy is clearly moving toward deep integration, not just transactional sales.

Dedicated Account Management and Key Segments

Flux Power Holdings, Inc. targets large, sophisticated buyers, which necessitates a high-touch approach. While specific dedicated account manager headcounts aren't public, the focus on major clients is clear. Kelly Frey, the Chief Revenue Officer, brings experience from roles spanning startups up to Fortune 100 companies, which speaks to the caliber of relationship management being deployed. The airline sector is a prime example of this focus.

• Secured a large order with another major airline customer, which effectively doubled the number of North American airlines served to eight from the prior year.
• Secured a purchase order for over $2 million from one major North American airline for its G80-420 battery pack.
• The company has shipped more than 28,000 battery packs in total to date.

This focus on large fleet operators, like airlines where only 15-25% of GSE fleets are currently electric, shows a significant opportunity for relationship expansion.

Strong Focus on Repeat Business

The company is seeing tangible results from its customer retention efforts. The focus on long-term partnerships is evidenced by recent financial activity, showing customers are coming back for more electrification solutions. Honestly, this recurring business is what management points to as proof of trust in the brand and service.

Flux Power Holdings, Inc. announced new purchase orders totaling approximately $2.4 million in November 2025, which are explicitly cited as repeat orders. Here's a quick breakdown of that recent repeat business:

This $2.4 million in repeat orders reinforces the momentum in material handling electrification. Still, it's worth noting that the Fiscal Year 2025 revenue was $66.4 million, so these recent orders represent a material portion of near-term activity.

Solution Selling and Software Bundling

The strategy is defintely shifting from just selling hardware to a bundled solution. This is where the SkyEMS software platform comes in, tying the hardware to ongoing service and data insights. The goal is to move toward recurring revenue streams, which typically carry higher margins than one-time hardware sales. The Fiscal Year 2025 full-year gross margin was 32.7%.

The integration of SkyEMS is key to this approach:

• The SkyEMS 2.0 SaaS platform graduated from beta testing into production with multiple paying customers.
• One recent $1.2 million order for G80 lithium-ion energy solutions was specifically bundled with the SkyEMS software platform.
• The platform is designed to add intelligence to the customer's existing equipment and IT infrastructure.

The company is actively converting customers to this model; for example, one major airline moved from beta testing to a paying customer for the SkyEMS 2.0 SaaS platform.

Technical Support and Maintenance Services

The relationship extends through the entire product lifecycle, primarily facilitated by the software layer. The SkyEMS telemetry and energy management systems are explicitly used for monitoring and optimizing battery performance. This creates a sticky software-as-a-service (SaaS) model that supports planning, operation, recycling, and predictive analytics. This service component is crucial for driving the long-term value and lower total cost of ownership that Flux Power Holdings, Inc. promises over traditional lead-acid solutions.

For context on the business scale supporting these relationships, Q1 Fiscal Year 2026 revenue was $13.2 million, with a gross margin of 28.6%.

Finance: draft 13-week cash view by Friday.

Flux Power Holdings, Inc. (FLUX) - Canvas Business Model: Channels

You're looking at how Flux Power Holdings, Inc. gets its advanced lithium-ion energy storage solutions into the hands of commercial and industrial fleet operators as of late 2025. It's a mix of direct engagement and leveraging established networks.

Direct sales force targeting large commercial and industrial fleets.

Flux Power Holdings, Inc. relies on its direct sales staff to cover major geographies across North America, working alongside their established sales partners. The company explicitly stated plans to hire additional sales staff to support expected sales growth, showing a direct investment in this channel. The long-term strategy centers on targeting large companies with significant energy storage needs in the material handling sector. The cost of sales as a percentage of revenues for the full fiscal year 2025 was 67%, which was a five percentage point decrease from the prior year, partly due to gross margin improvement initiatives that included design enhancements to simplify the bill of materials, which helps the direct sales team sell total value. This focus on large fleets is evident in the Q4 FY2025 order from a leading global food and beverage distribution company for $1.4 million of their solutions.

OEM channels for integration into new lift truck models.

The Original Equipment Manufacturer (OEM) channel is critical for embedding Flux Power Holdings, Inc.'s technology directly into new equipment. You saw validation of this channel when the L36 battery pack received official approval from a major OEM in the material handling industry. Furthermore, the company was highly focused on securing new customers and supporting the migration of current customers, which included launching a new private label program with another top Forklift OEM during the period leading up to the end of fiscal year 2025. This OEM integration is key to future volume, as the company aims to be the supplier of choice as the industry transitions from internal combustion to electric power.

Specialized distribution partnerships for market segments like GSE (Ground Support Equipment).

Distribution partnerships are heavily leveraged in specialized sectors like Ground Support Equipment (GSE) and the airline industry. The unit growth in the ground support market was 25% in the third fiscal quarter of 2025, showing this channel's strength. As of March 31, 2025, the total GSE orders were approximately $20 million. This segment saw significant wins, including securing a purchase order for over $2 million from a major North American airline for the G80-420 battery pack in Q4 FY2025. By the first quarter of fiscal 2026 (ended September 30, 2025), Flux Power Holdings, Inc. was serving eight major North American airlines, doubling the number served from the previous year, following six new airline customers placing orders totaling over $6 million in the preceding calendar year. The UL EE Listing received in Q1 FY2026 opened up a new $1 billion total addressable market across chemical, oil & gas, agricultural processing, and pharmaceutical industries, which will certainly be pursued through distribution partners.

Online and direct customer support for service and software.

The service and software component is increasingly becoming a direct revenue channel. Flux Power Holdings, Inc. is building out recurring revenue streams through its proprietary battery management system (BMS) and telemetry. The company graduated its SkyEMS 2.0 software as a Service (SaaS) platform from beta into production with multiple paying customers in the first fiscal quarter of 2026. This platform is designed for end-to-end battery life management and provides data insights that drive customer value and loyalty. The company also maintains a nationwide network of service providers, typically forklift equipment dealers and battery distributors, who provide the necessary local customer service for large fleet accounts.

Here's a quick look at the financial scale related to these channels for the fiscal year ending June 30, 2025, and the start of the next:

The company is definitely pushing to make the software platform a more significant part of the revenue mix. Finance: draft 13-week cash view by Friday.

Flux Power Holdings, Inc. (FLUX) - Canvas Business Model: Customer Segments

You're looking at the core customer groups Flux Power Holdings, Inc. (FLUX) targets with its lithium-ion energy storage solutions. These segments are focused on high-utilization industrial and commercial equipment where the total cost of ownership (TCO) advantage of lithium-ion is most compelling.

The customer base is clearly segmented across material handling, airport operations, and large-scale distribution/manufacturing, with recent order flow showing continued engagement in the latter two sectors.

The overall business scale provides context for these segment activities. For the full fiscal year ending June 30, 2025, Flux Power Holdings, Inc. reported annual revenue of $66.43 million, which was up 9.22% year-over-year.

You see the direct customer engagement through specific order wins:

• Secured repeat orders totaling approximately $2.4 million from the food and beverage and industrial manufacturing segments combined.
• The order backlog as of February 28, 2025, stood at approximately $19.5 million.
• As of September 30, 2025, the trailing twelve-month revenue was $63.5M.

The GSE segment shows significant traction, with unit growth reaching 25% in Q3 FY2025. This is supported by the fact that only an estimated 15-25% of airline GSE fleets are currently electric, leaving 75-85% as potential replacements for internal combustion engines.

Finance: draft 13-week cash view by Friday.

Flux Power Holdings, Inc. (FLUX) - Canvas Business Model: Cost Structure

You're looking at where Flux Power Holdings, Inc. (FLUX) is spending its money to build out its energy storage business as of late 2025. The cost structure is heavily influenced by the cost of the physical product-the battery cells and components-and the necessary overhead to run a growing, technology-focused company.

The primary cost driver related to sales is the Cost of Goods Sold (COGS), which directly impacts the Gross Margin. For the full fiscal year 2025, Flux Power Holdings, Inc. achieved a Gross Margin of 32.7%. This margin reflects the cost of battery cells and components relative to revenue, showing improvement from the prior year.

Total Operating expenses (OpEx) for the full fiscal year 2025 reached $26.8 million, up from $23.8 million in the prior year. This increase reflects necessary spending to support growth and address compliance matters. A significant portion of this was a one-time hit related to financial reporting cleanup.

The breakdown of these operating costs highlights the investment in both administration and future technology:

• Selling, General, and Administrative (SG&A) costs for fiscal year 2025 totaled $22,304,000.
• This SG&A figure includes a one-time cost of $2.9 million incurred in connection with the multi-year restatement of previously issued financial statements, which management noted will not be incurred in future quarters.

Flux Power Holdings, Inc. has a definite, significant investment in Research & Development (R&D) for new product and software development, which is crucial for their strategy involving the SkyEMS software platform and new high-voltage solutions. Here is a look at the cost components for the full fiscal year 2025:

The R&D investment is clearly ongoing, as shown by the quarterly spend in the first half of the fiscal year, signaling a focus on building out their software and product pipeline. Here's the quick math on the reported quarterly R&D spend:

• R&D Expense for Q1 FY2025 was $1.3 million.
• R&D Expense for Q2 FY2025 was $1.0 million.
• R&D Expense for Q3 FY2025 was $1.1 million.

The inferred full-year R&D spend of $4,496,000 aligns with the sum of these quarterly figures plus an expected Q4 spend. This spending supports the development of proprietary technology like the Intelligent Battery Cycle Life Maximization Algorithm and the SkyEMS 2.0 software platform.

Finance: draft 13-week cash view by Friday.

Flux Power Holdings, Inc. (FLUX) - Canvas Business Model: Revenue Streams

You're looking at how Flux Power Holdings, Inc. (FLUX) is bringing in cash as of late 2025. The model clearly leans on hardware sales but is strategically pivoting to lock in more predictable software income.

The core of the revenue comes from the sale of their lithium-ion battery packs for industrial and commercial equipment. For the full fiscal year (FY) 2025, the total revenue clocked in at $66.4 million. This represented a 9% increase year-over-year from the prior fiscal year.

Here's a quick look at the top-line performance for the period closest to the end of 2025:

The company is aggressively pursuing large, strategic hardware orders, particularly in the airport ground support equipment (GSE) sector. These deals often bundle the hardware with their intelligence platform, which is key to the recurring revenue component.

You can see the impact of these large deals:

• Secured a purchase order worth over $2 million from a major North American airline for 120 units of the G80-420 battery packs, delivered throughout 2025.
• Received an additional $1.2 million-plus order from another airline, which specifically included G80 solutions with a Multi-Year SkyEMS Software Subscription via integrated telemetry.
• Six new airline customers placed purchase orders totaling over $6 million in the last calendar year (as of the Q3 FY2025 report).
• Total GSE orders reached approximately $20 million around that same time frame.

The push for recurring revenue is centered on the SkyEMS telematics platform. While a specific standalone SaaS revenue number for FY2025 isn't explicitly broken out, the strategy is clear: the SkyEMS AI platform version 2.0 was released into beta testing with an airline customer, signaling the start of broader rollout and subscription capture. The Chief Revenue Officer noted that the SkyEMS telemetry and energy management systems are becoming a bigger piece of the sales conversation. The goal is for every lithium-ion battery to function as part of a connected, self-optimizing network, which translates directly into subscription fees for data and monitoring services.

Sales of related services, which include technical support and maintenance, are inherently tied to the hardware sales and the SkyEMS platform. The G80-420 battery packs feature modular architecture for field service, and the embedded telematics provide real-time insights and maintenance alerts, which supports a service revenue stream through uptime optimization and predictive maintenance contracts. The company has shipped more than 28,000 battery packs in total, representing a large installed base that can be monetized through ongoing service agreements.

Finance: draft 13-week cash view by Friday.