Flux Power Holdings, Inc.

Good afternoon, and welcome to Flux Power's fiscal fourth 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, August 20, 2026. I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead.

Good afternoon and welcome to FlexPower's fiscal fourth quarter and full year 2026 earnings conference call. I'm Leanne Seavers, president of Shelton Group, FlexPower's investor relations firm. Joining me today from FlexPower are Krishna Vanka, CEO, Kevin Royal, chief financial officer, and Stu Jacover, vice president of sales for material handling. Before I turn the call over to Krishna, 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 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, 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 Flux Power's website at www.fluxpower.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 pleasure to turn the call over to FlexPower CEO, Krishna Vanka. Krishna, please go ahead.

Thank you, Leanne, and thank you everyone for joining us on today's conference call. I am very pleased to report fourth quarter revenue increased 25% sequentially and even slightly better than the expectations conveyed on last quarter's call. We are encouraged by the improving order patterns we saw throughout the quarter across both our ground service equipment and material handling business. On a year-over-year basis, the quarter was below our historic revenue level due to our most significant material handling customer continuing to navigate its capital freeze as we conveyed previously. Our business has also been impacted by the broader economic disruptions related to tariffs and higher fuel prices. I want to reiterate that our partnership with our significant customer remains strong and we expect business with this valued customer to resume in the future. As mentioned on prior calls, we have been taking decisive actions over the past year to lower product and operating costs as well as improve operating efficiencies. We reduced operating expenses by 33% over the fourth quarter of fiscal 2025 and a decrease of 28% when comparing full year 2026 versus 2025. These actions have included headcount reductions, cost containment, and broader efficiency measures. We also continue to work aggressively to improve margins through near-term supply chain optimization, vendor pricing negotiations, and product redesign efforts. Additionally, we have been closely evaluating all of our component costs and meeting with vendor partners in low-cost regions. Also, this initiative will take time to implement. It should have a meaningful benefit to overall product costs over time. Another initiative I mentioned last quarter was optimizing our sales team and launching aggressive new marketing programs. These programs are aimed at diversifying our customer base so we are less dependent on any one customer. We are beginning to see positive results from new lead generation programs that have increased our customer activity. As a result of these marketing programs, we are also very excited to announce we entered a new and growing vertical robotics in the last quarter. We are doing this in close collaboration with a very large global technology platform company. They already deployed more than 70 of our batteries for their robotics testing and are looking at full-scale production starting in a quarter or two. I can't wait to share more details soon. We also successfully added senior sales veterans to the team, including a new VP of sales for material handling, Stu Jacover. Stu has more than three decades of dealer network, OEM, and national account leadership experience. I would now like to turn the call over to Stu to tell you more about himself and his initiatives aimed at accelerating growth across North America. Stu, please go ahead.