Fluence Energy Reports Wider Loss Despite Revenue Surge in Q1
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy FLNC?
Source: seekingalpha
- Significant Revenue Growth: Fluence Energy reported a 154% year-over-year increase in Q1 revenue, reaching $475 million; however, the company's profitability metrics sharply declined, indicating the impact of rising costs.
- Declining Profit Margins: The gross profit margin fell from 11.4% in Q1 2025 to 4.9%, while the adjusted gross profit margin dropped from 12.5% to 5.6%, with the company attributing a $20 million increase in costs to this margin pressure.
- Widening Net Loss: Fluence's net loss widened to $63 million from $57 million year-over-year, and adjusted EBITDA deteriorated from negative $49.7 million to negative $52.1 million, reflecting ongoing challenges in profitability.
- Maintained Outlook: Despite the losses, Fluence reaffirmed its FY 2026 revenue guidance of $3.2 billion to $3.6 billion, aligning with the $3.35 billion consensus estimate, while signing over $750 million in new orders during the quarter, indicating a strong backlog.
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Analyst Views on FLNC
Wall Street analysts forecast FLNC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FLNC is 16.25 USD with a low forecast of 8.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
3 Buy
12 Hold
3 Sell
Hold
Current: 18.950
Low
8.00
Averages
16.25
High
26.00
Current: 18.950
Low
8.00
Averages
16.25
High
26.00
About FLNC
Fluence Energy, Inc. is a global provider of energy storage products and services, and optimization software for renewables and storage. With a presence in 47 markets globally, the Company provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and artificial intelligence (AI)-enabled optimization software for managing and optimizing renewables and storage from any provider. Its offerings include energy storage products and solutions, delivery services, recurring O&M services, and digital applications and solutions for energy storage and other power assets. Its energy storage solutions include Gridstack Pro, Gridstack, Sunstack, Edgestack, and Ultrastack. In addition, each of its energy storage solutions comes with its proprietary energy management system, Fluence OS. The Company’s cloud-based software products include Fluence Mosaic and Fluence Nispera.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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