Flux Power Holdings, Inc.

Good afternoon and welcome to Flux Power's Fiscal Second Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. At the conclusion of today's conference call, instructions will be given for the question and answer session. As a reminder, this conference call is being recorded today, February 12, 2026. I would now like to turn the call over to Joel A. Kromowitz of Shelton Group Investor Relations. Joel, please go ahead.

Good afternoon and welcome to FlexPower's fiscal second quarter 2026 earnings conference call. I'm Joel Akramowitz, Managing Director of Shelton Group, FlexPower's investor relations firm. Joining me today are Krishna Vanka, FlexPower's CEO, and Kevin Royal, Chief Financial Officer. Before I turn the call over to Christian, I'd like to remind our listeners that during the course of this conference call, the company will provide financial guidance, projections, comments, and other forward-looking statements regarding future market developments, the future financial performance of the company, new products, or other matters. These statements are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically our 10-K and our most recent 10-Q statements. which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements. Also, the company's press release and management statements during this conference call will include discussions of certain adjusted or non-GAAP financial measures. These financial measures and related reconciliations are provided in the company's press release and related current report on Form 8K, which can be found in the investor relations section of FlexPower's website at www.flexpower.com. For those of you unable to listen to the entire call at this time, a recording will be available via webcast on the company's website. And now it's my great pleasure to turn the call over to FlexPower's CEO, Krishna Vanka. Krishna, please go ahead.

Thank you. and welcome everyone to our second quarter conference call. As we announced on our press release earlier today, we achieved profitability for the first time in the company's history. I am very pleased that we have been able to achieve this milestone within a year since I joined Flux. The discipline we built internally to optimize our expenses along with the sequential increase in revenue made this happen. I do want to thank all our employees, partners, and customers for contributing to this achievement. Also during the quarter, our product development team made significant progress on innovations and roadmap. I will walk you through these recent developments as I deliver updates to the five strategic initiatives that we have established to guide our execution and performance here at Flux. As a reminder, These initiatives include profitable growth, operational efficiencies, solution selling, building the right products, and integrating value added software to generate recurring revenue streams. Let me provide you with an update on our recent efforts as they relate to these key initiatives. To begin, as I mentioned, we have achieved net profitability. I can now say we achieved the first goal of this key initiative, Our focus will be to continue this trend while growing the business. The results also demonstrate benefits from the multi-quarter restructuring decisions we made to improve our operational efficiencies. These efforts included right-sizing our headcount as well as all other cost optimizations we took to streamline the organization. I can say that we looked carefully at all levels of the company to find and optimize spending where possible. This right-sizing process has led to a solid financial structure offering high operating leverage. Today, we have a much lower cost structure, higher margins, and a lower breakeven point than we had a year ago. Also, we have started using AI-driven tools in our engineering design software development, and day-to-day operations to further improve operational efficiencies and productivity. We hope to see benefits from these internal AI initiatives as we deploy them across the organization. Before I talk about our new products, I do want to touch on our third strategic initiative, which is solution selling. Our ongoing product development tool efforts reflect our close engagement with customers and partners to gain greater insights into the evolving product needs. These partnerships enable FluxPower to provide complete solutions to our customers. We refer to this powerful collaboration process as solutions-based selling. As I have said in the past, we are not just selling batteries, we are selling energy management solutions. Our customers are using these solutions to manage their fleets for greater operational results. The quality and depth of our sales team have to be superb to work so closely with customers on their key internal goals. In this regard, we recently hired an experienced OEM director with more than 20 years of experience working for a material handling OEM and their dealer networks. We believe his experience can help us reach new customers and provide additional opportunities for the company's products. We are also expanding our executive sales leadership by hiring a vice president of sales for material handling. Moving on, our focus to build the right products for our customers continues to bear fruit. We released our next generation SkyLink telematics device with significant advancements to complement our own flux-designed battery management system. SkyLink delivers a competitive advantage in high-performance processing and sensing. It is powered by a quad-core 64-bit processor, enabling onboard analytics and machine learning directly within each battery system. The algorithms can be run locally, which helps to build AI-driven features in the near future. It also includes integrated Wi-Fi Bluetooth, worldwide cellular and GPS, a three-axis accelerometer, gyroscope, and temperature sensing to provide continuous visibility and control. That means we will have four times the sensors compared to the current generation. This is a big achievement. These new capabilities align with our intelligence roadmap to provide our customers with powerful real-time features. These real-time features include user-defined geofencing with advanced health and performance analytics that can be automated via AI. Using the machine learning locally on the device helps predict fault detection, usage and trend analysis, energy optimization, and lifecycle forecasting. This Skylink telematics units are currently in beta test at multiple customer sites, and we are receiving great feedback. We plan to make Skylink telematics available to all customers in a couple of months. Also during this quarter, we released a new GAT315 battery in response to the GSC customer demand. This will help us continue to dominate this key market for us. We now have four product lines with multiple configurations that support the GSC segment. Our last key initiative is integrating value-added software across our battery portfolio. For Flux, this creates the opportunity to generate high-margin recurring revenue streams from sales of advanced software features and applications. As I mentioned earlier, our customers want more than a battery. They are looking for an energy management system to manage their assets, improve productivity, and reduce costs. Our Sky EMS software addresses all these needs and was recently upgraded to include multiple new features. First, intelligent alerting. This is a new feature that uses AI to fundamentally shift fleet management from being reactive to proactive. These new intelligent AI alerts proactively notify customers of potential battery issues and recommend the appropriate corrective action right on the screen. They also give fleet managers full visibility into their dynamic fleet conditions, enabling faster response. Our initial observations lead us to believe that our customers can gain 10% to 30% uptime by using intelligent alerts with corrective actions. Second, to further improve our customers' productivity, we also released a new mobile interface to our Sky EMS platform. This gives customers on-the-go monitoring for faster decision-making. For example, they can know when to charge their fleets and how long charging sessions can take right from their handheld devices. With data always in hand, equipment operators and supervisors now have what they need in real time. Mobile access can reduce the time it takes to recognize an issue by 15 to 40 percent by putting key battery and alert data in user's hands during operations. This also helps them charge their batteries on time with minimal downtime in their operations. Before turning the call over to Kevin, I want to summarize our progress and provide more color around our outlook for the third quarter. Through our product and operating cost reduction efforts, we have reported net income for the first time in the company's history. We are extremely happy with this progress that we have made in all areas of the business. We have demonstrated that we have the discipline to make changes that allow the company to be profitable and generate cash. We were able to do this even in the face of increasing costs from tariffs which are completely out of our control. In nearly all respects, the business is performing well and we have set stage for continued profitable growth. However, recently, our most significant customer has conveyed to us that they are implementing a capital freeze. We are not certain how long this freeze will be in effect, but anticipate it may impact a significant portion of calendar year 2026. That said, our partnership remains strong and we expect our business with this valued customer to resume in the future. As a result, we expect materially lower revenue in our third quarter. We continue to believe in the markets we serve and that we are well positioned to work through this slowdown and restore the company to profitable growth. We have proactively moved to further decrease our expense run rate and completed an additional cost reduction action during the current quarter. Despite this short-term market pressure, the lithium ion forklift battery segment is projected to go at an 8.8% CAGR through 2035, demonstrating the strong long-term market opportunity we have ahead of us. With our capable management team, strong relationships in the market, and additional resources targeting OEMs, along with a focused effort on what we can control, we are prepared to respond to customer needs. With that, let me now hand the call over to our CFO, Kevin Royal, to discuss our second quarter financial results in more detail. Kevin, please go ahead.