Fluence Energy, Inc. Reports First Quarter 2025 Results; Lowers Full Year 2025 Guidance; Reports Record $5.1 Billion Backlog
Fluence Energy (FLNC) reported Q1 2025 results with revenue of $186.8 million, representing a 49% decrease year-over-year. The company improved its GAAP gross profit margin to 11.4% from 10.0% in the same quarter last year. Net loss increased to $57.0 million from $25.6 million year-over-year.
The company has lowered its FY2025 guidance, with revenue now expected between $3.1-3.7 billion (previously $3.6-4.4 billion) and Adjusted EBITDA projected at $70-100 million (down from $160-200 million). The guidance reduction is primarily due to delayed contract signings in Australia and lower expected gross margins on recent contracts.
Notable developments include a record backlog of $5.1 billion and the issuance of $400 million in Convertible Senior Notes due 2030. Total cash position stands at $654.4 million as of December 31, 2024, an increase of $135.7 million from the previous quarter.
Fluence Energy (FLNC) ha riportato i risultati del primo trimestre 2025 con ricavi di 186,8 milioni di dollari, che rappresentano una diminuzione del 49% rispetto all'anno precedente. L'azienda ha migliorato il suo margine di profitto lordo GAAP all'11,4%, rispetto al 10,0% nello stesso trimestre dell'anno scorso. La perdita netta è aumentata a 57,0 milioni di dollari, rispetto ai 25,6 milioni di dollari dell'anno precedente.
L'azienda ha ridotto le previsioni per l'intero anno fiscale 2025, con ricavi ora attesi tra 3,1-3,7 miliardi di dollari (precedentemente 3,6-4,4 miliardi di dollari) e un EBITDA rettificato previsto tra 70-100 milioni di dollari (in diminuzione rispetto ai 160-200 milioni di dollari). La riduzione delle previsioni è principalmente dovuta ai ritardi nelle firme dei contratti in Australia e a margini di profitto lordo attesi inferiori sui contratti recenti.
Tra gli sviluppi significativi vi è un record di backlog di 5,1 miliardi di dollari e l'emissione di obbligazioni senior convertibili da 400 milioni di dollari con scadenza nel 2030. La posizione totale di liquidità si attesta a 654,4 milioni di dollari al 31 dicembre 2024, un aumento di 135,7 milioni di dollari rispetto al trimestre precedente.
Fluence Energy (FLNC) reportó resultados del primer trimestre de 2025 con ingresos de 186.8 millones de dólares, lo que representa una disminución del 49% en comparación con el año anterior. La empresa mejoró su margen de utilidad bruta GAAP al 11.4%, desde el 10.0% en el mismo trimestre del año pasado. La pérdida neta aumentó a 57.0 millones de dólares desde 25.6 millones de dólares en el año anterior.
La compañía ha reducido su guía para el año fiscal 2025, con ingresos ahora esperados entre 3.1-3.7 mil millones de dólares (anteriormente 3.6-4.4 mil millones de dólares) y un EBITDA ajustado proyectado entre 70-100 millones de dólares (bajando de 160-200 millones de dólares). La reducción de las proyecciones se debe principalmente a retrasos en la firma de contratos en Australia y a menores márgenes brutos esperados en contratos recientes.
Desarrollos notables incluyen un récord de backlog de 5.1 mil millones de dólares y la emisión de 400 millones de dólares en Notas Senior Convertibles con vencimiento en 2030. La posición total de efectivo se situó en 654.4 millones de dólares al 31 de diciembre de 2024, un aumento de 135.7 millones de dólares en comparación con el trimestre anterior.
Fluence Energy (FLNC)는 2025년 1분기 결과를 보고했으며, 매출은 1억 8680만 달러로 전년 대비 49% 감소했습니다. 회사는 작년 같은 분기 10.0%에서 GAAP 총 이익률을 11.4%로 개선했습니다. 순손실은 전년 대비 2560만 달러에서 5700만 달러로 증가했습니다.
회사는 2025 회계연도 가이던스를 낮추었으며, 이제 예상 매출은 31억~37억 달러(이전에는 36억~44억 달러)로, 수정 EBITDA는 7000만~1억 달러(1600만~2억 달러에서 하향 조정됨)로 예상됩니다. 가이던스 축소는 주로 호주에서의 계약 체결 지연과 최근 계약의 예상 총 이익률 감소 때문입니다.
주목할 만한 발전사항으로는 51억 달러의 기록적인 백로그와 2030년 만기 4억 달러 규모의 전환 우선채권 발행이 있습니다. 2024년 12월 31일 기준 총 현금 보유고는 6억 5440만 달러로, 이전 분기보다 1억 3570만 달러 증가했습니다.
Fluence Energy (FLNC) a annoncé les résultats du premier trimestre 2025 avec un revenu de 186,8 millions de dollars, représentant une diminution de 49 % par rapport à l'année précédente. L'entreprise a amélioré sa marge brute GAAP à 11,4 % contre 10,0 % au même trimestre de l'année dernière. La perte nette a augmenté à 57,0 millions de dollars, contre 25,6 millions de dollars l'année précédente.
L'entreprise a abaissé ses prévisions pour l'exercice 2025, avec des revenus désormais attendus entre 3,1 et 3,7 milliards de dollars (précédemment entre 3,6 et 4,4 milliards de dollars) et un EBITDA ajusté prévu entre 70 et 100 millions de dollars (en baisse par rapport à 160-200 millions de dollars). La réduction des prévisions est principalement due à des retards de signature de contrats en Australie et à des marges brutes inférieures anticipées sur des contrats récents.
Les développements notables incluent un carnet de commandes record de 5,1 milliards de dollars et l'émission de 400 millions de dollars en billets de créance senior convertibles échéant en 2030. La position totale de liquidités s'élève à 654,4 millions de dollars au 31 décembre 2024, soit une augmentation de 135,7 millions de dollars par rapport au trimestre précédent.
Fluence Energy (FLNC) hat die Ergebnisse für das erste Quartal 2025 veröffentlicht, mit einem Umsatz von 186,8 Millionen Dollar, was einen Rückgang von 49% im Vergleich zum Vorjahr darstellt. Das Unternehmen hat seine GAAP-Bruttomarge von 10,0% im gleichen Quartal des Vorjahres auf 11,4% verbessert. Der Nettoverlust stieg im Jahresvergleich von 25,6 Millionen Dollar auf 57,0 Millionen Dollar.
Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 gesenkt, wobei der Umsatz nun zwischen 3,1 und 3,7 Milliarden Dollar erwartet wird (zuvor 3,6 bis 4,4 Milliarden Dollar) und das bereinigte EBITDA auf 70 bis 100 Millionen Dollar (verringert von 160 bis 200 Millionen Dollar) prognostiziert wird. Die Herabsetzung der Prognose ist hauptsächlich auf verzögerte Vertragsunterzeichnungen in Australien und niedrigere erwartete Bruttomargen bei neuen Verträgen zurückzuführen.
Bemerkenswerte Entwicklungen umfassen einen Rekordauftragsbestand von 5,1 Milliarden Dollar und die Emission von 400 Millionen Dollar in wandelbaren Senior-Anleihen mit Fälligkeit 2030. Die Gesamtliquiditätsposition beträgt zum 31. Dezember 2024 654,4 Millionen Dollar, ein Anstieg von 135,7 Millionen Dollar im Vergleich zum vorherigen Quartal.
- Record backlog of $5.1 billion
- Improved gross profit margin to 11.4% from 10.0% YoY
- Strong cash position of $654.4 million, up $135.7 million QoQ
- Successful raise of $400 million through convertible notes
- Revenue decreased 49% YoY to $186.8 million
- Net loss increased to $57.0 million from $25.6 million YoY
- FY2025 revenue guidance lowered by $600 million at midpoint
- Adjusted EBITDA guidance reduced by $95 million at midpoint
- Lower expected gross margins on recently signed contracts
Insights
The Q1 2025 results and guidance revision from Fluence Energy reveal significant operational challenges that warrant careful investor attention. The 49% year-over-year revenue decline to
Three critical aspects deserve emphasis:
- The company's gross margin improvement to
11.4% is overshadowed by mounting competitive pressures affecting contract pricing, evidenced by the substantial reduction in Adjusted EBITDA guidance from$180 million to$85 million at midpoint. - The record
$5.1 billion backlog, while impressive, requires scrutiny as recent contract delays and margin compression suggest potential execution risks in converting this backlog to revenue. - The strategic focus on U.S. domestic content could provide competitive advantages under the Inflation Reduction Act, but the
$400 million convertible note issuance at2.25% indicates the capital-intensive nature of this transition.
The energy storage market remains robust, but Fluence's challenges reflect broader industry dynamics of pricing pressure and project timing uncertainties. The
ARLINGTON, Va., Feb. 10, 2025 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (Nasdaq: FLNC) (“Fluence” or the “Company”), a global market leader delivering intelligent energy storage, operational services, and asset optimization software, today announced its results for the three months ended December 31, 2024.
Financial Highlights for Fiscal Quarter ended December 31, 2024
- Revenue of approximately
$186.8 million , which represents a decrease of approximately49% from the same quarter last year, primarily driven by the pronounced backend nature of expected revenue for full year 2025 compared to the revenue distribution seen in full year 2024. - GAAP gross profit margin improved to approximately
11.4% , compared to approximately10.0% for the same quarter last year. - Adjusted gross profit margin1 improved to approximately
12.5% , compared to approximately10.5% for the same quarter last year. - Net loss of approximately
$57.0 million , increased from net loss of approximately$25.6 million for the same quarter last year. - Adjusted EBITDA1 of approximately negative
$49.7 million , compared to approximately negative$18.3 million for the same quarter last year. - Quarterly order intake of
$778.0 million , bringing backlog2 to approximately$5.1 billion as of December 31, 2024.
Financial Position
- Total Cash3 of approximately
$654.4 million as of December 31, 2024, representing an increase of approximately$135.7 million from September 30, 2024. - In December 2024, the Company issued
$400.0 million of2.25% Convertible Senior Notes due 2030 that provide the Company with additional liquidity to support its ongoing growth.
Fiscal Year 2025 Outlook
The Company is lowering its fiscal year 2025 total revenue guidance range to
"We have experienced customer-driven delays in signing certain contracts that, coupled with competitive pressures, result in the need to lower our fiscal year 2025 outlook. While these delays are disappointing, we continue to see a very robust utility scale battery storage market globally and strong interest in our U.S. domestic content product offering in particular, as evidenced by our record
"In December, we successfully raised
The foregoing Fiscal Year 2025 Outlook statements represent management's current best estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the Cautionary Note Regarding Forward-Looking Statements included in this release. Management does not assume any obligation to update these estimates.
Share Count
The shares of the Company’s common stock as of December 31, 2024 are presented below:
| Common Shares | |
| Class B-1 common stock held by AES Grid Stability, LLC | 51,499,195 |
| Class A common stock held by Siemens AG | 39,738,064 |
| Class A common stock held by SPT Invest Management, Sarl | 11,761,131 |
| Class A common stock held by Qatar Holding LLC | 14,668,275 |
| Class A common stock held by public | 63,761,553 |
| Total Class A and Class B-1 common stock outstanding | 181,428,218 |
Conference Call Information
The Company will conduct a teleconference starting at 8:30 a.m. EST on Tuesday, February 11th, 2025, to discuss the first fiscal quarter results. To participate, analysts are required to register by clicking Fluence Energy Q1 Earnings Call Registration Link. Once registered, analysts will be issued a unique PIN number and dial-in number. Analysts are encouraged to register at least 15 minutes before the scheduled start time.
General audience participants, and non-analysts are encouraged to join the teleconference in a listen-only mode at: Fluence Energy Listen - Only Webcast, or on www.fluenceenergy.com by selecting Investors, News & Events, and Events & Presentations. Supplemental materials that may be referenced during the teleconference will be available at: www.fluenceenergy.com, by selecting Investors, News & Events, and Events & Presentations.
A replay of the conference call will be available after 1:00 p.m. EST on Tuesday, February 11th, 2025. The replay will be available on the Company’s website at www.fluenceenergy.com by selecting Investors, News & Events, and Events & Presentations.
Non-GAAP Financial Measures
We present our operating results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We believe certain financial measures, such as Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Profit Margin, and Free Cash Flow, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with GAAP. These measures have limitations as analytical tools, including that other companies, including companies in our industry, may calculate these measures differently, reducing their usefulness as comparative measures.
Adjusted EBITDA is calculated from the consolidated statements of operations using net income (loss) adjusted for (i) interest income, net, (ii) income taxes, (iii) depreciation and amortization, (iv) stock-based compensation, and (v) other non-recurring income or expenses. Adjusted EBITDA also includes amounts impacting net income related to estimated payments due to related parties pursuant to the Tax Receivable Agreement, dated October 27, 2021, by and among Fluence Energy, Inc., Fluence Energy, LLC, Siemens Industry, Inc. and AES Grid Stability, LLC (the “Tax Receivable Agreement”).
Adjusted Gross Profit is calculated using gross profit, adjusted to exclude (i) stock-based compensation expenses, (ii) amortization, and (iii) other non-recurring income or expenses. Adjusted Gross Profit Margin is calculated using Adjusted Gross Profit divided by total revenue.
Free Cash Flow is calculated from the consolidated statements of cash flows and is defined as net cash provided by (used in) operating activities, less purchase of property and equipment made in the period. We expect our Free Cash Flow to fluctuate in future periods as we invest in our business to support our plans for growth. Limitations on the use of Free Cash Flow include (i) it should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures (for example, cash is still required to satisfy other working capital needs, including short-term investment policy, restricted cash, and intangible assets); (ii) Free Cash Flow has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by (used in) operating activities; and (iii) this metric does not reflect our future contractual commitments.
Please refer to the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures included in tables contained at the end of this release.
The Company is not able to provide a quantitative reconciliation of full fiscal year 2025 Adjusted EBITDA to GAAP Net Income (Loss) on a forward-looking basis within this press release because of the uncertainty around certain items that may impact Adjusted EBITDA, including stock compensation and restructuring expenses, that are not within our control or cannot be reasonably predicted without unreasonable effort.
About Fluence
Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. The Company's solutions and operational services are helping to create a more resilient grid and unlock the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed, and under management across nearly 50 markets, the Company is transforming the way we power our world for a more sustainable future.
For more information, visit our website, or follow us on LinkedIn or X. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release and statements that are made on our earnings call that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements set forth above under “Fiscal Year 2025 Outlook” and other statements regarding the Company's future financial and operational performance, business strategy, growth and leadership position, introduction of new technology, our ability to differentiate our product and optimize our cost structure, liquidity and access to capital and cash flows, anticipated diversification of our geographic mix in the future, expectations related to delivering on our customer obligations, demand for electricity and impact to energy storage, demand for the Company's energy storage solutions, services, and digital applications offerings, our positioning to capture market share with domestic content offering and future offerings, expectations relating to competitive pressures, expected impact and benefits from the Inflation Reduction Act of 2022 and domestic content guidelines on us and on our customers, potential impact of tariffs and uncertainty around U.S. and foreign trade policy on the Company, potential impact of new policies, regulations, and other executive actions from the current U.S. political administration, new products and solutions and product innovation, relationships with new and existing customers and suppliers, expectations relating to backlog, pipeline, and contracted backlog, future revenue recognition, future capital expenditures and debt service obligations, and projected costs, beliefs, assumptions, prospects, plans and objectives of management. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “possible,” “will,” “should,” “seeks,” “expects,” “plans,” “anticipates,” “grows,” “could,” “intends,” “targets,” “projects,” “contemplates,” "commits", “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, our relatively limited operating and revenue history as an independent entity and the nascent clean energy industry; anticipated increasing expenses in the future, and our ability to maintain prolonged profitability; fluctuations of our order intake and results of operations across fiscal periods; potential difficulties in maintaining manufacturing capacity and establishing expected mass manufacturing capacity in the future; risks relating to delays, disruptions, and quality control problems in our manufacturing operations; risks relating to quality and quantity of components provided by suppliers; risks relating to our status as a relatively low-volume purchaser as well as from supplier concentration and limited supplier capacity; risks relating to operating as a global company with a global supply chain; changes in the cost and availability of raw materials and underlying components; failure by manufacturers, vendors, and suppliers to use ethical business practices and comply with applicable laws and regulations; significant reduction in pricing or order volume or loss of one or more of our significant customers or their inability to perform under their contracts; risks relating to competition for our offerings and our ability to attract new customers and retain existing customers; ability to maintain and enhance our reputation and brand recognition; ability to effectively manage our recent and future growth and expansion of our business and operations; our growth depends in part on the success of our relationships with third parties; ability to attract and retain highly qualified personnel; risks associated with engineering and construction, utility interconnection, commissioning and installation of our energy storage solutions and products, cost overruns, and delays; risks relating to lengthy sales and installation cycle for our energy storage solutions; risks related to defects, errors, vulnerabilities and/or bugs in our products and technology; risks relating to estimation uncertainty related to our product warranties; fluctuations in currency exchange rates; risks related to our current and planned foreign operations; amounts included in our pipeline and contracted backlog may not result in actual revenue or translate into profits; risks related to acquisitions we have made or that we may pursue; events and incidents relating to storage, delivery, installation, operation, maintenance and shutdowns of our products; risks relating to our impacts to our customer relationships due to events and incidents during the project lifecycle of an energy storage solution; actual or threatened health epidemics, pandemics or similar public health threats; ability to obtain financial assurances for our projects; risks relating to whether renewable energy technologies are suitable for widespread adoption or if sufficient demand for our offerings do not develop or takes longer to develop than we anticipate; estimates on size of our total addressable market; barriers arising from current electric utility industry policies and regulations and any subsequent changes; risks relating to the cost of electricity available from alternative sources; macroeconomic uncertainty and market conditions; risk relating to interest rates or a reduction in the availability of tax equity or project debt capital in the global financial markets and corresponding effects on customers’ ability to finance energy storage systems and demand for our energy storage solutions; reduction, elimination, or expiration of government incentives or regulations regarding renewable energy; decline in public acceptance of renewable energy, or delay, prevent, or increase in the cost of customer projects; severe weather events; increased attention to ESG matters; restrictions set forth in our current credit agreement and future debt agreements; uncertain ability to raise additional capital to execute on business opportunities; ability to obtain, maintain and enforce proper protection for our intellectual property, including our technology; threat of lawsuits by third parties alleging intellectual property violations; adequate protection for our trademarks and trade names; ability to enforce our intellectual property rights; risks relating to our patent portfolio; ability to effectively protect data integrity of our technology infrastructure and other business systems; use of open-source software; failure to comply with third party license or technology agreements; inability to license rights to use technologies on reasonable terms; risks relating to compromises, interruptions, or shutdowns of our systems; changes in the global trade environment; potential changes in tax laws or regulations; risks relating to environmental, health, and safety laws and potential obligations, liabilities and costs thereunder; failure to comply with data privacy and data security laws, regulations and industry standards; risks relating to potential future legal proceedings, regulatory disputes, and governmental inquiries; risks related to ownership of our Class A common stock; risks related to us being a “controlled company” within the meaning of the NASDAQ rules; risks relating to the terms of our amended and restated certificate of incorporation and amended and restated bylaws; risks relating to our relationship with our founders and continuing equity owners; risks relating to conflicts of interest by our officers and directors due to positions with continuing equity owners; risks related to short-seller activists; we depend on distributions from Fluence Energy, LLC to pay our taxes and expenses and Fluence Energy, LLC’s ability to make such distributions may be limited or restricted in certain scenarios; risks arising out of the Tax Receivable Agreement; unanticipated changes in effective tax rates or adverse outcomes resulting from examination of tax returns; risks relating to improper and ineffective internal control over reporting to comply with Sarbanes-Oxley Act; risks relating to changes in accounting principles or their applicability to us; risks relating to estimates or judgments relating to our critical accounting policies; and other factors set forth under Item 1A.“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, filed with the Securities and Exchange Commission (“SEC”) on November 29, 2024 and in other filings we make with the SEC from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.
| FLUENCE ENERGY, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (U.S. Dollars in Thousands, except share and per share amounts) | |||||||
| Unaudited | |||||||
| December 31, 2024 | September 30, 2024 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 607,356 | $ | 448,685 | |||
| Restricted cash | 24,384 | 46,089 | |||||
| Trade receivables, net | 146,956 | 216,458 | |||||
| Unbilled receivables | 156,076 | 172,115 | |||||
| Receivables from related parties | 252,302 | 362,523 | |||||
| Advances to suppliers | 175,485 | 174,532 | |||||
| Inventory, net | 543,415 | 182,601 | |||||
| Current portion of notes receivable - pledged as collateral | — | 30,921 | |||||
| Other current assets | 77,654 | 46,519 | |||||
| Total current assets | 1,983,628 | 1,680,443 | |||||
| Non-current assets: | |||||||
| Property and equipment, net | $ | 18,845 | $ | 15,350 | |||
| Intangible assets, net | 58,589 | 60,002 | |||||
| Goodwill | 26,199 | 27,482 | |||||
| Deferred income tax asset | 8,076 | 8,880 | |||||
| Other non-current assets | 118,640 | 110,031 | |||||
| Total non-current assets | 230,349 | 221,745 | |||||
| Total assets | $ | 2,213,977 | $ | 1,902,188 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 101,858 | $ | 436,744 | |||
| Deferred revenue | 572,735 | 274,499 | |||||
| Deferred revenue with related parties | 33,169 | 38,162 | |||||
| Current portion of borrowings against note receivable - pledged as collateral | — | 30,360 | |||||
| Personnel related liabilities | 25,538 | 58,584 | |||||
| Accruals and provisions | 476,985 | 338,311 | |||||
| Taxes payable | 40,273 | 57,929 | |||||
| Other current liabilities | 10,809 | 24,246 | |||||
| Total current liabilities | 1,261,367 | 1,258,835 | |||||
| Non-current liabilities: | |||||||
| Deferred income tax liability | $ | 6,624 | $ | 7,114 | |||
| Convertible senior notes, net | 389,096 | — | |||||
| Other non-current liabilities | 27,590 | 29,100 | |||||
| Total non-current liabilities | 423,310 | 36,214 | |||||
| Total liabilities | 1,684,677 | 1,295,049 | |||||
| Stockholders’ Equity: | |||||||
| Preferred stock, | — | — | |||||
| Class A common stock, | 1 | 1 | |||||
| Class B-1 common stock, | — | — | |||||
| Class B-2 common stock, | — | — | |||||
| Treasury stock, at cost | (9,856 | ) | (9,460 | ) | |||
| Additional paid-in capital | 611,982 | 634,851 | |||||
| Accumulated other comprehensive income | 222 | (1,840 | ) | ||||
| Accumulated deficit | (192,914 | ) | (151,448 | ) | |||
| Total stockholders’ equity attributable to Fluence Energy, Inc. | 409,435 | 472,104 | |||||
| Non-Controlling interests | 119,865 | 135,035 | |||||
| Total stockholders’ equity | 529,300 | 607,139 | |||||
| Total liabilities and stockholders’ equity | $ | 2,213,977 | $ | 1,902,188 | |||
| FLUENCE ENERGY, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
| (U.S. Dollars in Thousands, except share and per share amounts) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue | $ | 116,199 | $ | 247,382 | |||
| Revenue from related parties | 70,589 | 116,574 | |||||
| Total revenue | 186,788 | 363,956 | |||||
| Cost of goods and services | 165,587 | 327,570 | |||||
| Gross profit | 21,201 | 36,386 | |||||
| Operating expenses: | |||||||
| Research and development | 17,195 | 15,440 | |||||
| Sales and marketing | 18,202 | 10,706 | |||||
| General and administrative | 36,707 | 37,728 | |||||
| Depreciation and amortization | 2,815 | 2,483 | |||||
| Interest income, net | (741 | ) | (1,993 | ) | |||
| Other expense (income), net | 5,751 | (1,187 | ) | ||||
| Loss before income taxes | (58,728 | ) | (26,791 | ) | |||
| Income tax benefit | (1,715 | ) | (1,235 | ) | |||
| Net loss | $ | (57,013 | ) | $ | (25,556 | ) | |
| Net loss attributable to non-controlling interest | $ | (15,547 | ) | $ | (8,813 | ) | |
| Net loss attributable to Fluence Energy, Inc. | $ | (41,466 | ) | $ | (16,743 | ) | |
| Weighted average number of Class A common shares outstanding: | |||||||
| Basic | 129,482,668 | 121,113,282 | |||||
| Diluted | 129,482,668 | 121,113,282 | |||||
| Loss per share of Class A common stock: | |||||||
| Basic | $ | (0.32 | ) | $ | (0.14 | ) | |
| Diluted | $ | (0.32 | ) | $ | (0.14 | ) | |
| FLUENCE ENERGY, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | |||||||
| (U.S. Dollars in Thousands) | |||||||
| | Three Months Ended December 31, | ||||||
| 2024 | | 2023 | |||||
| Net loss | $ | (57,013 | ) | $ | (25,556 | ) | |
| (Loss) gain on foreign currency translation, net of tax | (5,311 | ) | 1,804 | ||||
| Gain (loss) on cash flow hedges, net of tax | 8,193 | (169 | ) | ||||
| Total other comprehensive income | 2,882 | 1,635 | |||||
| Total comprehensive loss | $ | (54,131 | ) | $ | (23,921 | ) | |
| Comprehensive loss attributable to non-controlling interest | $ | (14,727 | ) | $ | (8,358 | ) | |
| Total comprehensive loss attributable to Fluence Energy, Inc. | $ | (39,404 | ) | $ | (15,563 | ) | |
| FLUENCE ENERGY, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
| (U.S. Dollars in Thousands) | |||||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Operating activities | |||||||
| Net loss | $ | (57,013 | ) | $ | (25,556 | ) | |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
| Depreciation and amortization | 4,485 | 2,883 | |||||
| Amortization of debt issuance costs | 817 | 682 | |||||
| Inventory provision | 2,283 | 298 | |||||
| Stock-based compensation | 5,266 | 5,630 | |||||
| Deferred income taxes | (66 | ) | 295 | ||||
| Changes in operating assets and liabilities: | |||||||
| Trade receivables, net | 60,143 | (70,550 | ) | ||||
| Unbilled receivables | 10,725 | 11,895 | |||||
| Receivables from related parties | 110,198 | (16,882 | ) | ||||
| Advances to suppliers | (5,593 | ) | 3,216 | ||||
| Inventory | (368,763 | ) | (336,408 | ) | |||
| Other current assets | (7,640 | ) | (48,709 | ) | |||
| Other non-current assets | (11,582 | ) | 26,459 | ||||
| Accounts payable | (333,593 | ) | 254,781 | ||||
| Deferred revenue with related parties | (4,959 | ) | 147,814 | ||||
| Deferred revenue | 316,723 | 99,051 | |||||
| Accruals and provisions | 139,064 | 190 | |||||
| Taxes payable | (7,534 | ) | (1,438 | ) | |||
| Other current liabilities | (67,354 | ) | (5,496 | ) | |||
| Other non-current liabilities | 3,161 | (28,792 | ) | ||||
| Net cash (used in) provided by operating activities | (211,232 | ) | 19,363 | ||||
| Investing activities | |||||||
| Capital expenditures on software | (3,077 | ) | (1,128 | ) | |||
| Purchase of property and equipment | (2,109 | ) | (1,468 | ) | |||
| Net cash used in by investing activities | (5,186 | ) | (2,596 | ) | |||
| Financing activities | |||||||
| Class A common stock withheld related to settlement of employee taxes for stock-based compensation awards | (396 | ) | — | ||||
| Proceeds from issuance of 2030 Convertible Senior Notes | 400,000 | — | |||||
| Payment for debt issuance costs on 2030 Convertible Senior Notes | (10,000 | ) | — | ||||
| Payment for debt issuance costs on revolving facilities | (195 | ) | (3,583 | ) | |||
| Purchases of Capped Calls related to 2030 Convertible Senior Notes | (29,000 | ) | — | ||||
| Payments for acquisitions | — | (3,892 | ) | ||||
| Proceeds from exercise of stock options | 422 | 1,116 | |||||
| Net cash provided by (used in) financing activities | 360,831 | (6,359 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (8,710 | ) | 3,418 | ||||
| Net increase in cash, cash equivalents, and restricted cash | 135,703 | 13,826 | |||||
| Cash, cash equivalents, and restricted cash as of the beginning of the period | 518,706 | 462,731 | |||||
| Cash, cash equivalents, and restricted cash as of the end of the period | $ | 654,409 | $ | 476,557 | |||
| Supplemental Cash Flows Information | |||||||
| Interest paid | $ | 920 | $ | 722 | |||
| Cash paid for income taxes | $ | 5,707 | $ | 916 | |||
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation. Accounts payable with related parties of
Provision on loss contracts, net of
FLUENCE ENERGY, INC.
KEY OPERATING METRICS (UNAUDITED)
The following tables present our key operating metrics as of December 31, 2024 and September 30, 2024. The tables below present the metrics in either Gigawatts (GW) or Gigawatt hours (GWh). Our key operating metrics focus on project milestones to measure our performance and designate each project as either “deployed”, “assets under management”, “contracted backlog”, or “pipeline”.
| December 31, 2024 | September 30, 2024 | Change | Change % | ||
| Energy Storage Products and Solutions | | | |||
| Deployed (GW) | 5.8 | 5.0 | 0.8 | 16 | % |
| Deployed (GWh) | 14.8 | 12.8 | 2.0 | 16 | % |
| Contracted Backlog (GW) | 7.8 | 7.5 | 0.3 | 4 | % |
| Pipeline (GW) | 30.3 | 25.8 | 4.5 | 17 | % |
| Pipeline (GWh) | 94.2 | 80.5 | 13.7 | 17 | % |
| (amounts in GW) | December 31, 2024 | September 30, 2024 | Change | Change % | ||
| Service Contracts | | | ||||
| Assets under Management | 4.8 | 4.3 | 0.5 | 12 | % | |
| Contracted Backlog | 3.9 | 4.1 | (0.2 | ) | (5 | %) |
| Pipeline | 26.6 | 25.6 | 1.0 | 4 | % | |
| (amounts in GW) | December 31, 2024 | September 30, 2024 | Change | Change % | ||
| Digital Contracts | | | ||||
| Assets under Management | 18.7 | 18.3 | 0.4 | 2 | % | |
| Contracted Backlog | 13.3 | 10.6 | 2.7 | 25 | % | |
| Pipeline | 59.1 | 64.5 | (5.4 | ) | (8 | %) |
The following table presents our order intake for the three months ended December 31, 2024 and 2023. The table is presented in Gigawatts (GW):
| (amounts in GW) | Three Months Ended December 31, | |||||
| 2024 | 2023 | Change | Change % | |||
| Energy Storage Products and Solutions | | | | | ||
| Contracted | 1.0 | 1.2 | (0.2 | ) | (17 | )% |
| Service Contracts | | | ||||
| Contracted | 0.5 | 1.1 | (0.6 | ) | (55 | )% |
| Digital Contracts | | | ||||
| Contracted | 3.2 | 0.4 | 2.8 | 700 | % | |
Deployed
Deployed represents cumulative energy storage products and solutions that have achieved substantial completion and are not decommissioned. Deployed is monitored by management to measure our performance towards achieving project milestones.
Assets Under Management
Assets under management for service contracts represents our long-term service contracts with customers associated with our completed energy storage system products and solutions. We start providing maintenance, monitoring, or other operational services after the storage product projects are completed. In some cases, services may be commenced for energy storage solutions prior to achievement of substantial completion. This is not limited to energy storage solutions delivered by Fluence. Assets under management for digital software represents contracts signed and active (post go live). Assets under management serves as an indicator of expected revenue from our customers and assists management in forecasting our expected financial performance.
Contracted Backlog
For our energy storage products and solutions contracts, contracted backlog includes signed customer orders or contracts under execution prior to when substantial completion is achieved. For service contracts, contracted backlog includes signed service agreements associated with our storage product projects that have not been completed and the associated service has not started. For digital applications contracts, contracted backlog includes signed agreements where the associated subscription has not started.
We cannot guarantee that our contracted backlog will result in actual revenue in the originally anticipated period or at all. Contracted backlog may not generate margins equal to our historical operating results. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our contracted backlog fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity.
Contracted/Order Intake
Contracted, which we use interchangeably with “order intake”, represents new energy storage product and solutions contracts, new service contracts and new digital contracts signed during each period presented. We define “Contracted” as a firm and binding purchase order, letter of award, change order or other signed contract (in each case an “Order”) from the customer that is received and accepted by Fluence. Our order intake is intended to convey the dollar amount and gigawatts (operating measure) contracted in the period presented. We believe that order intake provides useful information to investors and management because the order intake provides visibility into future revenue and enables evaluation of the effectiveness of the Company’s sales activity and the attractiveness of its offerings in the market.
Pipeline
Pipeline represents our uncontracted, potential revenue from energy storage products and solutions, service, and digital software contracts, which have a reasonable likelihood of contract execution within 24 months. Pipeline is an internal management metric that we construct from market information reported by our global sales force. Pipeline is monitored by management to understand the anticipated growth of our Company and our estimated future revenue related to customer contracts for our battery-based energy storage products and solutions, services and digital software.
We cannot guarantee that our pipeline will result in actual revenue in the originally anticipated period or at all. Pipeline may not generate margins equal to our historical operating results. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our pipeline fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity.
Annual Recurring Revenue
ARR represents the net annualized contracted value including software subscriptions including initial trial, licensing, long term service agreements, and extended warranty agreements as of the reporting period. ARR excludes one-time fees, revenue share or other revenue that is non-recurring and variable. The Company believes ARR is an important operating metric as it provides visibility to future revenue. It is important to management to increase this visibility as we continue to expand. ARR is not a forecast of future revenue and should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to replace these items.
FLUENCE ENERGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED)
The following tables present non-GAAP measures for the periods indicated.
| ($ in thousands) | Three Months Ended December 31, | Change | Change % | ||||||||
| 2024 | 2023 | ||||||||||
| Net loss | $ | (57,013 | ) | $ | (25,556 | ) | $ | (31,457 | ) | 123 | % |
| Add: | |||||||||||
| Interest income, net | (741 | ) | (1,993 | ) | 1,252 | (63 | )% | ||||
| Income tax benefit | (1,715 | ) | (1,235 | ) | (480 | ) | 39 | % | |||
| Depreciation and amortization | 4,485 | 2,883 | 1,602 | 56 | % | ||||||
| Stock-based compensation(a) | 5,308 | 5,630 | (322 | ) | (6 | )% | |||||
| Other non-recurring expenses(b) | — | 1,984 | (1,984 | ) | (100 | )% | |||||
| Adjusted EBITDA | $ | (49,676 | ) | $ | (18,287 | ) | $ | (31,389 | ) | (172 | )% |
(a) Includes incentive awards that will be settled in shares and incentive awards that will be settled in cash.
(b) Amount for the three months ended December 31, 2023 includes approximately
| ($ in thousands) | Three Months Ended December 31, | Change | Change % | ||||||||
| 2024 | 2023 | ||||||||||
| Total revenue | $ | 186,788 | $ | 363,956 | $ | (177,168 | ) | (49 | )% | ||
| Cost of goods and services | 165,587 | 327,570 | (161,983 | ) | (49 | )% | |||||
| Gross profit | 21,201 | 36,386 | (15,185 | ) | (42 | )% | |||||
| Gross profit margin % | 11.4 | % | 10.0 | % | |||||||
| Add: | | | |||||||||
| Stock-based compensation(a) | 883 | 1,259 | (376 | ) | (30 | )% | |||||
| Amortization(b) | 1,269 | 400 | 869 | 217 | % | ||||||
| Other non-recurring expenses | — | — | — | — | % | ||||||
| Adjusted Gross Profit | $ | 23,353 | $ | 38,045 | $ | (14,692 | ) | (39 | )% | ||
| Adjusted Gross Profit Margin % | 12.5 | % | 10.5 | % | | | |||||
(a) Includes incentive awards that will be settled in shares and incentive awards that will be settled in cash.
(b) Amount relates to amortization of capitalized software included in cost of goods and services.
| ($ in thousands) | Three Months Ended December 31, | Change | Change % | ||||||||
| 2024 | 2023 | ||||||||||
| Net cash provided by (used in) operating activities | $ | (211,232 | ) | $ | 19,363 | $ | (230,595 | ) | (1191 | )% | |
| Less: Purchase of property and equipment | (2,109 | ) | (1,468 | ) | (641 | ) | (44 | )% | |||
| Free Cash Flow | $ | (213,341 | ) | $ | 17,895 | $ | (231,236 | ) | (1292 | )% | |
1 Non-GAAP Financial Metric. See the section titled “Non-GAAP Financial Measures” for more information regarding the Company's use of non-GAAP financial measures, as well as a reconciliation to the most directly comparable financial measure stated in accordance with GAAP.
2 Backlog represents the unrecognized revenue value of our contractual commitments, which include deferred revenue and amounts that will be billed and recognized as revenue in future periods. The Company’s backlog may vary significantly each reporting period based on the timing of major new contractual commitments and the backlog may fluctuate with currency movements. In addition, under certain circumstances, the Company’s customers have the right to terminate contracts or defer the timing of its services and their payments to the Company.
3 Total Cash includes Cash and cash equivalents + Restricted Cash.
FAQ
What caused Fluence Energy (FLNC) to lower its FY2025 guidance?
How much did FLNC's Q1 2025 revenue decline compared to last year?
What is FLNC's current backlog value as of December 2024?
How much did FLNC raise through convertible notes in December 2024?
What is FLNC's revised revenue guidance range for FY2025?
