Total Revenue

–30.7% (from $623.14M to $431.62M)

Total Revenue declined significantly driven primarily by the fall in energy storage products and solutions revenue and underperformance in key regions such as the Americas. This decline reflects a shift toward back‐loaded revenue recognition and delays/challenges in executing orders as seen in prior periods. " " " "

Energy Storage Products and Solutions

–35% (from $613.74M to $397.33M)

Revenue from energy storage decreased sharply due to lower fulfillment volumes and delays in project execution, similar to previous timing shifts in revenue recognition. This drop has been a major contributor to the overall total revenue decline. " "

Services Revenue

+300%+ (from $8.07M to $32.89M)

Services revenue surged over 300%, driven by the addition of new service contracts and increased demand in this segment, which partially offsets declines in other segments and highlights a strategic shift or market opportunity compared to previous periods. " "

Digital Applications

Flat (remained at $1.40M)

Revenue for digital applications remained stable, indicating that this segment was largely unaffected by the operational challenges or market shifts that impacted the other segments. " "

Americas Revenue

–57.5% (from $533.77M to $226.30M)

Americas revenue was hit hard, recording a 57.5% decline. This dramatic drop suggests significant challenges in contract execution and market demand in this region, contrasting with previous performance levels. " "

APAC Revenue

+29%

The APAC region experienced a 29% increase, reflecting improved market penetration and rising demand. This growth indicates strategic wins or a robust order intake in the region compared to previous periods. " "

EMEA Revenue

+317%

EMEA revenue surged by 317%, likely due to new contracts and market expansion in a region that previously underperformed, marking a sharp turnaround compared to earlier periods. " "

Gross Profit

–23.7% (from $64.18M to $42.58M)

Gross profit declined by 23.7% as a result of the drop in overall revenue, leading to margin compression. Persistent cost pressures combined with lower sales volumes contributed to reduced profitability compared to the previous period. " "

Net Income

Deterioration from a $12.88M loss to a $41.93M loss

Net income worsened significantly, with the net loss expanding from $12.88M to $41.93M. This deterioration reflects the overall revenue decline, increased operating expenses relative to revenue, and a drop in adjusted EBITDA, underscoring the operational challenges relative to prior performance. " "

Revenue ($USD Billions)

FY 2025

no prior guidance

$3.1 - $3.7 (Midpoint: $3.4) " "

no prior guidance

Revenue Timing (%)

FY 2025

no prior guidance

15% in H1, 85% in H2 "

no prior guidance

Annual Recurring Revenue (ARR) ($USD Millions)

FY 2025

no prior guidance

$145 " "

no prior guidance

Gross Margin (%)

FY 2025

no prior guidance

10% - 12% " "

no prior guidance

Adjusted EBITDA ($USD Millions)

FY 2025

no prior guidance

$85 (Midpoint) "

no prior guidance

Revenue Coverage (%)

FY 2025

no prior guidance

85% " "

no prior guidance

Cost-Cutting Initiatives ($USD Millions)

FY 2025

no prior guidance

$30 " "

no prior guidance

Revenue Growth

FY 2026

no prior guidance

Expected to grow by 30% or more over the updated FY 2025 revenue guidance midpoint of $3.4 billion " "

no prior guidance

Domestic Production & Content Strategy

In Q1 2025, Q4 2024, and Q3 2024 calls, Fluence detailed its long‐term U.S. supply chain build-out, discussed leveraging domestic content to qualify for credits (e.g., 45x manufacturing credit and 10% domestic bonus), and highlighted capacity expansion via ASC and upgraded production lines. " " " " " " " "

In Q2 2025, the company reiterated its domestic production strategy, emphasizing the blending of U.S. and imported cells for cost competitiveness (≈10% cheaper), flexibility under varied tariff outcomes, and progress at partner facilities to ramp up production to serve up to 100% non‐Chinese products. " " " "

Consistent focus across periods with evolving details; the strategy is repeatedly stressed with increasing operational progress and cost‐efficiency benefits.

Tariff Uncertainty & Competitive Pricing

Q3 2024 discussed IRA guidance, scheduled tariff increases (7.5% rising to 25% in 2026) and noted softening lithium carbonate prices. In Q4 2024, tariff exposures were quantified (≈$150 million risk) while Q1 2025 highlighted a 10% tariff hit on margins and pressure from Chinese players with pricing compression. " " " " "

In Q2 2025, Fluence detailed abrupt tariff hikes on Chinese inputs (from 10% to 155%), resulting in paused U.S. contract executions, a significant drop in adjusted EBITDA (–$75 million revised guidance point) and operational steps to mitigate headwinds through domestic content and renegotiated supplier terms. " " " " " "

Heightened emphasis on tariff risk and its immediate impact in Q2 2025, while competitive pricing pressures persist; evolving challenges require tighter cost and risk management compared to earlier discussions.

Backlog Strength & Pipeline Conversion Risks

Q3 2024 contained discussions of an all‐time high backlog ($4.5 billion with a $20 billion pipeline) and noted revenue “lumpiness.” Q4 2024 emphasized that 66% of fiscal 2025 guidance was secured with binding deals, and Q1 2025 detailed a record $5.1 billion backlog while addressing delays (e.g., Australian projects) and pipeline conversion risks. " " " " " " "

In Q2 2025, Fluence reported a robust $4.9 billion backlog with more than $1.9 billion scheduled for delivery. However, tariff uncertainty has temporarily paused some U.S. contracts—this deferral is seen as a timing shift rather than cancellations, and the company remains optimistic about future execution. " " "

Robust backlog maintained across periods; however, pipeline conversion risks persist—mainly due to tariff and contract timing issues—with a gradual improvement in management confidence over time.

Margin Transformation & Cost Management Challenges

Q3 2024 highlighted the transformation from –5% to a +12% gross margin with targets of 10%–15%, while Q4 2024 showcased a 13% gross profit margin and significant cost improvements (positive EBITDA swing). In Q1 2025, margin compression due to international competitive pressures was noted along with targeted cost reduction initiatives. " " " " " " "

Q2 2025 mentioned a 10.4% adjusted gross margin with rising operating expenses and a negative adjusted EBITDA of $30 million, partly due to tariff-induced challenges. The company noted it is pursuing operational efficiencies and renegotiations to help offset these headwinds. " "

Ongoing improvement in margin transformation evident from earlier quarters; however, Q2 2025 shows immediate cost pressures—indicating that while long‐term trends are positive, short‐term challenges remain.

Contract Execution & Revenue Timing Deferrals

In Q1 2025, delays (notably in Australian projects due to permitting and site issues) led to removal of $600 million from fiscal 2025 guidance, with deferred revenue expected to reverse soon. Q3 2024 noted delays in moving contracts into backlog but strong execution later in the quarter ensured progress. " " " " Q4 2024 provided no mention.

In Q2 2025, contract execution was impacted by tariff uncertainty; the mutual pause on U.S. contracts resulted in $700 million of expected revenue being deferred. Fluence emphasized that these are timing shifts (not cancellations) and expects normalized contracting once tariffs stabilize. " " "

Persistent concerns with contract timing delays; while Q1 reflected more caution over revenue timing, Q2 indicates a temporary pause with improving confidence that execution will rebound once the tariff environment clears.

International Competition & Pricing Pressure

Q3 2024 discussed stiff competition in the U.K. and Europe, with declining ASPs (25% lower) driven by soft commodity prices and competitive proposals. Q4 2024 mentioned global Chinese competitors’ competitive advantages alongside strengths in total cost of ownership, while Q1 2025 noted intensified competition from Chinese players causing margin compression and ASP declines (35%–40% drop). " " " " " " " "

In Q2 2025, the discussion focused on the ongoing intense international competitive landscape, particularly from Chinese competitors. However, Fluence remains confident in its Smartstack technology as a differentiator and emphasizes that its product innovation positions it effectively despite pricing pressures. "

Steady and pervasive pressure from international competition persists across periods; responses remain focused on product innovation and operational agility to counter pricing pressures, with Q2 reaffirming the threat but also the company's differentiated strategy.

Regulatory & Political Uncertainty

Q3 2024 addressed regulatory changes via IRA content requirements and Section 301 tariff adjustments, while Q1 2025 linked political uncertainty to the need for robust domestic supply chains. Q4 2024 did not include mention on this topic. " "

In Q2 2025, regulatory and political uncertainty surfaced prominently through the dramatic tariff hikes (10% to 155%) on Chinese inputs, leading to contract execution pauses. The company expressed optimism based on anticipated trade negotiations and a temporary nature to the uncertainty. " "

Continued backdrop of regulatory uncertainty; Q2 2025 intensifies concerns with dramatic tariff changes, yet long‐term confidence remains based on adaptive domestic strategies established in prior periods.

Product Innovation & Technology Advancements

Q3 2024 briefly mentioned a focus on speed and investment in tech/AI-driven demand, while Q4 2024 emphasized rapid innovation in meeting customer needs. Q1 2025 provided a detailed launch of a new product platform with superior density, integrated design, and lower total cost of ownership aimed for fiscal 2026. " " " "

In Q2 2025, Fluence rolled out its breakthrough Smartstack platform, touting world-class safety, flexible integration, high density, and cost advantages compared to earlier designs. The Smartstack launch is coupled with an enhanced domestic content strategy that supports cost efficiency. " "

Increasing emphasis on innovation; while Q1 set the stage with a new product platform, Q2 leverages that momentum with Smartstack—a focused technological advancement that reinforces competitive positioning.

Emergence of Data Center Demand

Q3 2024 discussed data center demand indirectly—citing that roughly 40% of the U.S. pipeline is associated with data centers via PPAs with hyperscalers, with urgency in project execution noted. Q1 and Q4 2024 did not mention the topic. " " " " "

In Q2 2025, data center deployments were cited as a driver behind an 11% projected growth in U.S. electricity consumption through 2030, underscoring energy storage’s increasing role in supporting data center demand. "

Emerging emphasis; while first clearly outlined in Q3 2024, the theme is reinforced in Q2 2025—indicating growing market significance for data center–related energy storage, a trend not covered in earlier periods like Q1 and Q4 2024.

Delayed Australian Contracts as a Waning Concern

In Q1 2025, delays in Australian contracts (due to permitting, minor offtake, and site preparation issues) were a concern with revenue deferred to fiscal 2026. Q3 2024 and Q4 2024 did not address this topic. " "

In Q2 2025, the company noted that three core Australian projects previously delayed are expected to be signed soon (two in Q3 and one in Q4), suggesting that this concern is waning and the issue is beginning to resolve. "

Improving outlook; what was initially a concern in Q1 is now largely resolved by Q2 2025, reflecting positive progress in project execution and a reduction in delay-related uncertainty.