Flux Power Holdings, Inc. (NASDAQ:FLUX): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at Flux Power Holdings, Inc.'s (NASDAQ:FLUX) future prospects. Flux Power Holdings, Inc., through its subsidiary, designs, develops, manufactures, and sells lithium-ion energy storage solutions in North America. The US$34m market-cap company posted a loss in its most recent financial year of US$8.3m and a latest trailing-twelve-month loss of US$8.1m shrinking the gap between loss and breakeven. The most pressing concern for investors is Flux Power Holdings' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

According to the 5 industry analysts covering Flux Power Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$3.8m in 2027. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 109% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Flux Power Holdings' upcoming projects, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Flux Power Holdings

Before we wrap up, there’s one issue worth mentioning. Flux Power Holdings currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Flux Power Holdings, so if you are interested in understanding the company at a deeper level, take a look at Flux Power Holdings' company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

1. Valuation: What is Flux Power Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Flux Power Holdings is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Flux Power Holdings’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.