Flux Power Holdings posted Q2 2025 revenue of $16.83 million, up 4.37% QoQ but down 8.25% YoY. The company delivered a gross profit of $5.463 million and a gross margin of 32.46%, modestly improving on a year-over-year basis but with negative operating leverage evident in an EBIT of -$1.479 million and EBITDA of -$1.229 million. Net income declined to -$1.889 million, or -$0.11 per share, underscoring sustained profitability challenges despite positive cash generation from operations. Cash flow from operations stood at $4.30 million for the quarter, contributing to a free cash flow of $4.56 million and ending cash of $0.883 million. While the cash story is positive in the near term, Flux carries a weak balance sheet signature: total assets of $28.96 million against total liabilities of $31.70 million and negative shareholders’ equity of -$2.74 million, resulting in a net debt position of approximately $11.7 million and a current ratio of 0.83. These dynamics imply a liquidity risk profile that could constrain growth initiatives absent strategic financing or working capital optimization.